Authorities have agreed to raise the ceiling for one-way fares for the longest domestic route to 5 million VND (238 USD) to offset rising operating costs, according to the Ministry of Transport.
The new fare rate for economic class, which includes value-added tax (VAT) and surcharges, may be applied from the Lunar New Year (Tet) festival, which falls in January next year, online VietnamNet quoted deputy general director of Vietnam Airlines Trinh Hong Quang as saying.
Under the new rate, the ceiling for one-way fares for flights of less than 300km will be VND2.5 million (119 USD), VND2.55 million for routes between 300km and 850km and 3 million VND (142.85 USD) for routes between 850-1,000km.
The ceiling for one-way fares for routes between 1,000km to 1,280km will be 3.84 million VND and for one-way flights longer than 1,280km, the ceiling price will be 4.725 million VND. These fares are exclusive of VAT and surcharges.
Air carriers can currently charge 863,636 VND for one-way flights of less than 300km, 1.1 million VND for routes between 300km and 500km, and 1.481 million VND for routes between 500km and 850km.
The ceiling one-way fares are currently 2.227 million VND for routes between 1,000km to 1,280km and 2.727 million VND for one-way flights longer than 1,280km, exclusive of VAT and surcharges.
Airlines said they are suffering losses with current fare rates. Indochina Airlines has to ground aircraft while others have had to cut flights./