Hanoi [Vietnam], July 18: Vietnam will consider increasing ceiling airfares for domestic flight routes amid jet fuel price fluctuations, following eight years of having them being unchanged, local media reported on Monday.
Ceiling prices for routes from 500 km to 850 km will increase from 2.2 million to 2.25 million Vietnamese dong (92.4 to 94.5 U.S. dollars), local newspaper Vietnam News reported.
Meanwhile, the ceiling airfares for domestic routes below 500 km will be kept unchanged at 1.6 million to 1.7 million Vietnamese dong (67.7 to 71.9 dollars), the newspaper said.
The proposal of increasing ceiling airfares was raised in the context that jet fuel prices saw huge fluctuations, the newspaper said, citing the ministry of transport.
Ceiling airfares being kept at a low level was hindering the growth of the aviation sector, the newspaper cited experts.
The lifting of the ceiling on airfares would certainly help airlines better meet the needs of passengers, especially during the peak period because airlines could offset the cost of two-way flights, Bui Doan Ne, general secretary of Vietnam Aviation Business Association said.
According to the Ministry of Transport, in the long term, the ceiling could be removed when air transport capacity better meets requirements and the aviation market sees more diverse participation of carriers. The competition must be substantive by ticket prices and service quality, and passengers need the right to choose based on their capacity.
Source: Xinhua