Vietnam Airlines eyes airfare cap hike, fuel surcharge

The current price cap of air transportation services is no longer suitable, the airline said in its proposal sent sent to the Ministry of Transportation and the Ministry of Finance on March 14.

The current maximum fare is VND2.2 million ($96) for routes under 850 kilometers, and VND3.75 million for those above 1.280 kilometers.

The higher cap would serve to offset costs of rising oil prices and improve service quality, the airline said.

Its proposal also advocated for a fuel surcharge on domestic routes and full environmental tax exemption for aviation fuel in 2022, which would save the airline more than VND600 billion if approved.

Previously, the Civil Aviation Authority of Vietnam had repeatedly requested the airfare cap be removed, but to no avail.

Last year, the national carrier proposed to set price floors between VND560,000 and VND1.4 million for air tickets on domestic routes, but the Ministry of Transportation rejected the idea.