Vietnam Airlines eyes airfare cap hike, fuel surcharge
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Vietnam Airlines proposed to raise the price cap for domestic travel from April 1 and add a fuel surcharge for local routes.
The current price cap of air transportation services is no longer suitable, the airline said in its proposal sent to the Ministry of Transportation and the Ministry of Finance on March 14.
The current maximum fare is VND2.2 million ($96) for routes under 850 kilometers, and VND3.75 million for those above 1.280 kilometers.
The higher cap would serve to offset costs of rising oil prices and improve service quality, the airline said.
Its proposal also advocated for a fuel surcharge on domestic routes and full environmental tax exemption for aviation fuel in 2022, which would save the airline more than VND600 billion if approved.
Previously, the Civil Aviation Authority of Vietnam had repeatedly requested the airfare cap be removed, but to no avail.
Last year, the national carrier proposed to set price floors between VND560,000 and VND1.4 million for air tickets on domestic routes, but the Ministry of Transportation rejected the idea.
Questions & Answers
Q.What specifically is Vietnam Airlines proposing to change regarding airfares?
What specifically is Vietnam Airlines proposing to change regarding airfares?
Vietnam Airlines proposed to raise the price cap for domestic travel and add a fuel surcharge for local routes. They also advocated for a full environmental tax exemption for aviation fuel in 2022.
Q.When would these proposed changes to domestic airfares come into effect?
When would these proposed changes to domestic airfares come into effect?
The airline's proposal suggests that the changes to the domestic travel price cap would come into effect from April 1. The article does not specify a date for the fuel surcharge.
Q.What are the current maximum fares for domestic flights in Vietnam?
What are the current maximum fares for domestic flights in Vietnam?
The current maximum fare is VND2.2 million for routes under 850 kilometers. For routes above 1,280 kilometers, the current maximum fare is VND3.75 million.
Q.Why does Vietnam Airlines want to increase the domestic airfare cap and add a fuel surcharge?
Why does Vietnam Airlines want to increase the domestic airfare cap and add a fuel surcharge?
The airline stated the current price cap is no longer suitable. They believe a higher cap and a fuel surcharge would help offset rising oil prices and improve service quality.
Reader pulse
Will the hike be approved?
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