Aviation authorities recommend fare hikes
Print 
The Civil Aviation Administration of Vietnam has proposed increasing domestic fare caps by up to 27 percent due to the depreciation of the dong and airlines’ rising operational costs.
In a recommendation to the Ministry of Transportation, it said the fare ceilings should be hiked by 27 percent on sectors less than 500 kilometers, gradually coming down to 20 percent on routes that are more than 1250 kilometers.
Fares are now capped at VND682,000 for less than 300 kilometers, VND864,000 for 300 to 500 kilometers, VND1.18 million for 500 to 850 kilometers, and VND1.819 for more than 850 kilometers.
Besides the government devaluation of the currency last month, carriers are also suffering due to higher fuel costs, pilot wages, and aircraft lease prices.
Airlines operating in Vietnam pay 71 percent of their costs in US dollars, with fuel
accounting for 36 percent.
