Aviation regulator wants fare caps for domestic flights raised

By Anh Duy April 12, 2022 | 09:22 pm PT

Vietnam Airlines planes at HCMC's Tan Son Nhat Airport. Photo by VnExpress/Quynh Tran

The Civil Aviation Authority of Vietnam has recommended a 3.7-percent increase in domestic fare caps to enable airlines to cope with surging fuel prices.

In a proposal it submitted to the Ministry of Transportation, it said fuel costs have risen by 84 percent since September 2015, when the current caps were introduced.

The price of aviation fuel Jet A1 has doubled in the period from US$61.6 per barrel to $132.6, according to data from the International Air Transport Association.

CAAV has proposed hikes ranging between 2.2 percent for routes of up to 850 kilometers and 6.6 percent for those above 1,280 km. Currently these fares are capped at VND2.2 million ($96.1) and VND3.75 million ($163.8).

In 2019, Vietnam Airlines had called for abolishing the domestic price caps altogether.

Last month it called for raising the caps and fuel surcharges. Vietnam is one of the few countries in the world to still cap airfares.