Vietnam Airlines mulls airfare cap hike, fuel surcharge

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By Doan Loan March 16, 2022 | 6:37 p.m. PT

A Vietnam Airlines plane is seen at Tan Son Nhat International Airport in Ho Chi Minh City. Photo by VnExpress/Quynh Tran

Vietnam Airlines has proposed raising the price cap for domestic travel from April 1 and adding a fuel surcharge for local routes.

The current price cap for air transport services is no longer appropriate, the airline said in its proposal sent to the Ministry of Transport and the Ministry of Finance on March 14.

The current maximum fare is VND 2.2 million ($96) for trips under 850 kilometers and VND 3.75 million for trips over 1,280 kilometers.

The higher cap would serve to offset the costs of rising oil prices and improve service quality, the airline said.

His proposal also called for a fuel surcharge on domestic routes and a full environmental tax exemption for aviation fuel in 2022, which would save the airline over VND 600 billion if approved.

Previously, the Civil Aviation Authority of Vietnam had repeatedly called for the airfare cap to be removed, but to no avail.

Last year, the national carrier proposed setting price floors between VND560,000 and VND1.4 million for air tickets on domestic routes, but the transport ministry rejected the idea.

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