Airlines to increase airfares

The national flag carrier Vietnam Airlines increased tickets for business class on for domestic flights by 100,000 – 500,000 VND per leg; and economy class 40,000 – 300,000 VND.

The airfare adjustment will be applied from April 1 for specific flights.

However, Vietnam Airlines will maintain around 10 low-cost prices for each domestic flight, and keep unchanged prices for some specific routes.

Vietjet Air also increased service fees from 100,000 VND to 140,000 VND per domestic leg and from 120,000 VND to 160,000 VND per international leg from March 22.

Meanwhile, Jetstar Pacific announced to increase management fees from 100,000 VND to 130,000 VND per leg from March 15.

The adjustment of airfare is based on the market demand and regulations of the Civil Aviation Authority of Vietnam and Ministry of Transport, a representative from Vietnam Airlines said.

It also aims to ensure healthy competition in the aviation sector, a representative from Vietjet Air said.

The Civil Aviation Authority of Vietnam in early this month sent a proposal to the Ministry of Transport to raise several aviation service charges in order to reduce peak-hour overloads and raise money for infrastructure development.

Under the proposal, take-off and landing service charges at major airports, including Noi Bai and Tan Son Nhat, would be raised by 15 percent during rush hours and reduced by 15 percent during off-peak hours.

The Civil Aviation Authority is also proposing a hike in security charges of 0.5 USD per passenger for international flights, and 18,181 VND (0.9 cents) per passenger for domestic flights – double the current charge.

A hike of 40,000 VND in passenger service charges is also being proposed, raising them to 90,909 VND for arrivals and departures at type A airports, and 72,727 VND at type B airports.

The increase is explained by the upgrading of many airports and passenger service quality.