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Domestic airfares rise April 27

The Ministry of Finance has given thumbs-up to raise ceiling prices for airfares on domestic routes, effective from April 27.
The Ministry of Finance has given thumbs-up to raise ceiling prices for airfares on domestic routes, effective from April 27.

For distances under 300km, the maximum fare will increase by 26.6percent to 863,636 VND (41 USD) per ticket; for distances from 300km tounder 500km, the ceiling price will rise 27.3 percent to 1.1 million VND(53 USD); for distances from 500km to less than 850km, the increase is25.2 percent to 1.48 million VND (71 USD).

For distancesfurther than 850km, the maximum fare will increase from 1.82 million VND(87 USD) per ticket to 1.9 million VND (91 USD); for distances below1,000km, to 2.22 million VND (107 USD); for distances less than 1,280km;and to 2.72 million VND (131 USD) for distances more than 1,280km.

Earlier in March, the Civil Aviation Administration of Vietnam (CAAV)proposed to the Ministry of Finance to raise the ceiling prices ofdomestic flights from 20 percent to 27 percent, depending on flightdistances.

Currently, about 71 percent of the total costsof aviation businesses must be paid in US dollars and fuel costs make upabout 36 percent.

Thus, according to the CAAV, theincrease was calculated mainly on the fluctuation of exchange rates,recent fuel price hikes and other input costs./.
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