According to some arbitrators, Jetstar Pacific's proposal to set a floor price for domestic flight tickets is not in compliance with any Vietnamese laws.
“The law on price also states that any set price must reflect the market value of the product, which is decided by demand and supply. The application of floor prices to prevent unfair competition is also inappropriate in this case, because the cost of each flight is determined based on the whole flight itinerary, so you can't say anyone is dumping”, said Hoang Ngoc Giao who is the arbitrator of Vietnam International Arbitration Center.
The law on civil aviation only allows for ticket framework for exclusive routes in need of government support, not for commercial flight routes. Furthermore, customers with low to average income will most likely be affected by this high floor price.
