Domestic Airfares Increasing November 2011

The news was confirmed by the Vietnam Civil Aviation Administration and also intend to be approval from government. Based on inputs, costs incurred, market supply and demand, the company will make price plans in October to send to the Ministry of Finance - Transportation that will be the basis for evaluation and discussion for final decision.  If the plan is approved, the longest domestic route will be over 2.700.000VND (about 132US$) for 01 way tickets (Hanoi – Phu Quoc island)

 According to Vietnam Airlines - the main airline in the domestic market, said the top fare increase proposed by the enterprise. However, the specific growth rate and duration will be applied by the individual airfare “Increase the maximum does not mean fare tickets will increase immediately, but that will be condition to make flexible ticket policy”. In fact, early six months 2011, fuel costs by Vetnam Airlines has increased by 1,534 billion compared with the plan. Other aviation such as Mekong Air, Jetstar Pacific also encountered the same situation.

 In last April, the airfare was increased to the new ceiling rate. Accordingly highest route is applicable for Hanoi - Can Tho and Ha Noi - Phu Quoc at cost VND2.7 million instead of VND2.5 million. The other route such as Hanoi - HCM City to be applied maximum VND2.5 million.

 Thus, if the Aviation’s proposal is adopted, then this is the 2nd times in this year, airfares are up ceiling.


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