Vietnamese airlines cut fares as fuel costs plummet
Passengers of Vietnamese airlines now have the chance to travel at lower costs as the carriers have decided to slash airfares due to falling fuel costs, Tran Bao Ngoc, Head of the Transportation Department under the Ministry of Transport told Vietnam News Agency reporter.
The national flag carrier Vietnam Airlines is offering 9-80 percent discounts from regulated ceiling prices for both domestic and international routes while low cost airlines Vietjet Air and Jetstar Pacific are providing 9-100 percent discounts of their airfares.
The airlines sell tickets at different bands, based on demand-supply relations, airplane seating and time of ticket booking, he highlighted.
Airlines are not allowed to sell tickets higher than regulated ceiling prices, Ngoc said, adding that last year, the Government made adjustments to the prices in line with the fall of fuel costs.
As ceiling prices are built on fuel costs, the Ministry of Transport will work with the Ministry of Finance to calculate a suitable ceiling price to apply to each carrier.
According to Ngoc, in 2015, Vietjet Air nearly quadrupled its promotional tickets offered at VND 0 and lowered 8% of its average air fare prices compared to 2014. He said that a number of airlines have committed to setting up further promotional programmes in 2016.
The airlines sell tickets at different bands, based on demand-supply relations, airplane seating and time of ticket booking, he highlighted.
Airlines are not allowed to sell tickets higher than regulated ceiling prices, Ngoc said, adding that last year, the Government made adjustments to the prices in line with the fall of fuel costs.
As ceiling prices are built on fuel costs, the Ministry of Transport will work with the Ministry of Finance to calculate a suitable ceiling price to apply to each carrier.
