VnExpress News The News Gateway of Vietnam
The proposal on raising the airfare cap has been calculated to protect customer interests and economic stability, said Dinh Viet Thang, head of the Civil Aviation Administration of Vietnam (CAAV).
This is unrelated to the upcoming travel peak during the Reunification Day holiday, he said Thursday. Vietnamese people will have four days off for the Reunification Day-Labor Day holiday as both days, April 30 and May 1, fall on the weekend.
On Tuesday, CAAV asked the Ministry of Transportation for a 3.7-percent hike in domestic fare caps to enable airlines to cope with surging fuel prices.
Prices of aviation fuel Jet A1 have almost doubled since last year to $130 per barrel, it stated, adding that foreign airlines flying to Vietnam have applied fuel surcharges on international routes.
Thang added that only 60 percent of tickets would hit fare caps during the peak session.
“Airlines have a wide range of ticket prices, and none will sell at ceiling prices,” he noted.
A recent VnExpress survey shows the highest price for a one-way economy ticket from Hanoi to Con Dao Island during the holiday is VND3.4 million ($148.5). The current price cap is VND3.75 million.
CAAV also forecast that traffic volume during the upcoming peak would be 5-10 percent lower compared to last year.
Around 1,000 flights have been arranged for the peak period, it added.
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