Vietnam mulls increasing ceiling price for domestic flights

At a media briefing on April 9, Do Hong Cam, deputy head of the Civil Aviation Authority of Vietnam (CAAV) said, “Currently, the authority is coordinating with airlines and relevant agencies to carefully study and consider the most optimal and suitable solution, based on international experience, listening to the opinions of airlines, specialised agencies, and the public on this issue.”

Do Hong Cam, deputy head of CAAV. Photo: MoC

He said that the fuel supply for flight operations had been calculated and guaranteed to remain stable until the end of April, and to adequately serve the travel needs of the public during the peak of the holiday on April 30.

Hovever, he added that in the context of rising fuel prices, raising the ceiling on airfares was being considered.

The Ministry of Construction (MoC) has reported to the prime minister and recommended that relevant ministries and agencies study appropriate support policies. The option of adjusting and increasing the maximum price for domestic air passenger services is currently being evaluated by the MoC.

Earlier, the MoC requested the CAAV consider options for adjusting the ceiling price of domestic airfares or applying a fuel surcharge to support airlines amid rising fuel costs.

Accordingly, the specialised management agency was tasked with evaluating two options: adjusting the current ceiling price framework and applying a fuel surcharge – an additional charge outside the ceiling price. The surcharge option, in particular, needs clarification regarding its legal basis, issuing authority, and calculation.

In addition, the CAAV is reviewing the current ticket price framework, assessing the operational situation of airlines after the implementation of support policies, and analysing the advantages of each option and its impact on the consumer price index. Another key aspect is to clearly determine whether the proposed surcharge includes VAT.

The MoC has also requested coordination with airport businesses and air traffic control service providers to develop a plan to reduce landing, takeoff, and air traffic control service fees.

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