MOT to raise ceiling airfares next month

From the beginning of March, the ceiling price for tickets on domestic flight routes will be increased, according to Circular 34 recently issued by the Ministry of Transport.

Under the circular, the price framework for basic economy class passenger transportation services will be amended. The ceiling airfares will remain unchanged at VND 1.6 million per one-way ticket for routes which serve the socio-economic development in remote areas or islands where there is only one carrier operating, and VND 1.7 million for other domestic routes below 500km.

MOT to raise ceiling airfares next month (Illustration)

The remaining flight routes are subject to a price increase of VND 50,000-250,000 per one-way ticket, depending on the length of each route.

The maximum price covers all costs a passenger must pay for an airline’s service, excluding value-added tax and fees collected on behalf of the airport (including passenger service fees and security assurance fees, luggage; service charges with additional items).

According to the Civil Aviation Authority of Vietnam under the Ministry of Transport, the proposed increase in domestic air ticket prices is due to changes in the factors that form ticket prices, especially hikes of fuel prices and exchange rates.-


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