Tuesday,  Sep 25, 2018,06:59 (GMT+7) 0 0
CAAV asks carriers not to hike airfares
The Saigon Times Daily
Wednesday,  Aug 15, 2018,20:03 (GMT+7)

CAAV asks carriers not to hike airfares

The Saigon Times Daily

Passengers are seen getting off an aircraft of Vietnam Airlines. CAAV has asked local carriers to refrain from increasing airfares to stabilize prices during fuel price hikes - PHOTO: LE ANH

HCMC - The Civil Aviation Administration of Vietnam (CAAV) has asked local carriers to refrain from increasing airfares to stabilize prices during fuel price hikes, in accordance with the prime minister’s request, the local media reported.

The Government and the Ministry of Transport have requested the relevant agencies to stabilize prices to maintain an inflation rate below 4% this year. 

Earlier, in June, data from the General Statistics Office showed that local budget carriers Vietjet and Jetstar Pacific had hiked the fees of their fringe services, leading to a rise in airfares by 2.59%. Deputy Prime Minister Vuong Dinh Hue had asked the Transport Ministry to perform an inspection and work on price monitoring as traffic service costs make a 1.04% contribution to the consumer price index of the country.

According to CAAV, as of March, the Jet A1 fuel price in Asia had hit US$86.7 per barrel, with import tariffs of 7%, environmental taxes at VND3,000 per liter and the exchange rate of Vietnamese dong versus the U.S. dollar reaching VND23,260. The final price of this fuel will cost some VND2.6 million per barrel when entering Vietnam.

CAAV concluded that the volatility of fuel prices and exchange rates have raised the costs per flight by an average 17% versus August last year.

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