Transport Ministry raises airfares on domestic routes

VOV.VN - The Ministry of Transport has issued a circular allowing domestic airlines to raise the ceiling prices of domestic air tickets on airlines’ request.

Accordingly, for flights from 850km to more than 1,280km, the ministry proposes the maximum prices ranging from VND2.89 million to VND4 million/ticket depending on flight length, which are between VND100,000 and 250,000 higher than current regulations.

Passengers flying between Hanoi and Ho Chi Minh City, the most popular air route in Vietnam, will now pay VND3.4 million at maximum for a single flight, VND200,000 higher than current regulations.

These are ceiling prices that do not include the value added tax, security screening fees, ground service fees and other services of airlines.

The application of the ceiling prices in the aviation industry is, according to the Ministry of Transport, a regulatory tool of the authorities to ensure people’s access to services and avoid monopoly from airlines.

However, airlines say the air ticket prices applied since 2015 are no longer appropriate due to rising costs, especially increased fuel prices.

Faced by financial difficulties, airlines have repeatedly called on the Ministry of Transport to remove the ceiling prices of air tickets.

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