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Domestic airfare price controls to go
Airfares of the economy class for domestic trips will increase if the Ministry of Finance (MoF) approves a recommendation by the Ministry of Transport (MoT).
Under the MoT's proposal, airfares could rise to as much as VND1.82 million (US$98.4), up roughly VND200,000.
New airfares for trips with distances of less than 300km, 300-500km and 500-850km will cost VND681,000, VND863,000 and VND1.18 million, respectively, according to the proposal.
MoT suggested that MoF apply the new fares as of March 1, 2010.
An official circular removing the ceiling on domestic airfares was issued by the ministries in December 2008, but the policy was not implemented.
In the fourth quarter of last year, MoF advised MoT to enforce the circular.
Under it, the State will set ceilings for routes that are only serviced by one airline, but allow healthy competition to regulate the costs on routes where two or more airlines provide flights.
Currently, Vietnam Airlines and budget airline Jetstar Pacific serve Viet Nam's domestic market.
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