Finance Ministry wants airfare caps lifted soon

The Finance Ministry has asked the Ministry of Transport to put into practice a policy drafted last year aiming to eliminate airfare caps on key domestic routes.

The ministries decided in November last year to lift the price ceiling on domestic routes that two or more airlines serve.

However, the transport ministry, which oversees aviation in the country, has not implemented the decision, online newspaper VnExpress said in a report Thursday.

Since the beginning of this year four airlines have urged the government to execute the policy soon, the report said.

Under the decision, carriers will be allowed to set their own prices to exceed a current fare cap of VND1.7 million (US$95) for an economy class ticket.

On routes served by only one airline, fares will still be subject to price limits.

National flag carrier Vietnam Airlines is currently provides exclusive service to 20 less popular destinations in the country. For key routes between large cities and provinces, it competes against other carriers including Jetstar Pacific and Indochina Airlines. 

thanhnien

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