Vietnam Airlines once again calls for setting minimum fares

Vietnam Airlines wants aviation authorities to set floor fares and increase the ceiling, saying it would ensure fair competition among carriers.

In a proposal it sent to the Civil Aviation Authority of Vietnam, it wants the fare ceiling to be increased by VND50,000-250,000 ($2.17-10.86), and minimum fares to be 35 percent of the ceiling, or VND787,500-1.01 million.

It claimed having minimum fares would ensure fair competition among airlines and help them overcome the hardship caused by the Covid-19 outbreak, but said they could be scrapped once the aviation industry recovers from the pandemic.

Analysts said if the proposal is accepted, airlines would not be able to offer free flight tickets under promotions, and tourism companies and passengers would be the losers.

In 2017, Vietnam Airlines had suggested fixing minimum domestic fares of VND1.54-4.2 million ($68-$185), while its subsidiary Jetstar Pacific had proposed VND600,000-1.2 million.

But both were rejected by the Ministry of Transport.