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Vietnam Airlines wants to raise airfare 20%
National flag carrier Vietnam Airlines (VNA) has asked the government to allow it to increase airfare caps for domestic routes amid the dong’s depreciation against the US dollar, Pham Ngoc Minh, General Director of the airline, said.
The government in the future should allow airlines to add extra costs to ticket prices whenever fuel prices surge, VNA said.
It also suggested the government scrap those caps between 2013 and 2014, Minh added.
VNA suffered an approximate US$30 million in losses on domestic air routes, Minh said.
Airfares for domestic air routes are now capped at VND682,000, VND864,000, VND1.182 million, and VND1.819 million, depending on distances.
If the price caps are to be abolished, airlines will be able to offer different prices that suit a wide variety of passengers, a representative from a carrier remarked.
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