HCMC – The Civil Aviation Authority of Vietnam has written to the Ministry of Transport proposing raising domestic airfare caps due to rising jet fuel prices.
The global jet fuel price spike has driven up airlines’ costs by over 30%. According to the aviation authority, some carriers that account for a large proportion of air transport in the country have spent an additional VND5 trillion on fuel.
The cost of jet fuel makes up 30%-40% of the airlines’ total expenditures, the local media reported.
As such, the authority proposed raising the airfare cap for routes under 850 kilometers by 2.27% to VND2.25 million from the current VND2.2 million.
Besides, the cap for 850-1,000 kilometer routes should be revised up 3.58% to VND2.89 million.
The authority also proposed spurring the airfare cap for routes from 1,000 to 1,280 kilometers, up 6.25%, while expecting the cap for those above 1,280 kilometers to be adjusted up 6.67% at VND4 million.
The current airfare caps have been applied since 2015.
In addition, the authority is considering adding a fuel surcharge to airfares as proposed by airlines.