The Civil Aviation Authority of Vietnam (CAAV) has confirmed that the recent increase in domestic airfare complies with regulations set by authorities.

Air carriers have reported profits for the first quarter of 2024 thanks to the strong recovery of the aviation market and sky-high airfares.

The Civil Aviation Authority of Vietnam (CAAV) has sent a report to the Ministry of Transport, explaining the sharp increase in domestic air ticket prices and putting forward solutions aimed at regulating the price of flight tickets.

Due to a hike of air ticket prices for domestic flights, Vietnamese tourists are turning to short-distance trips for the upcoming National Reunification Day (April 30) and May Day (May 1) holidays.

Responding to the scarcity of domestic air tickets, the Ministry of Transport has told the Civil Aviation Authority of Vietnam (CAAV) to ensure a stable supply of air services and compliance with ceiling air ticket prices.

The surge in domestic airfare prices has prompted many more Vietnamese travelers to opt for international tours.

As airfares for domestic flights have increased sharply, Vietnamese have canceled their domestic tours and booked outbound tours instead.

The Ministry of Transport has issued a circular allowing domestic airlines to raise the ceiling prices of domestic air tickets on airlines’ request.

According to the Civil Aviation Authority of VN, at the peak period of Lunar New Year (January 25-February 24), domestic airlines are expected to provide nearly 6.5 million seats on domestic routes, an increase of 4 per cent compared to last year.

It is difficult for domestic airlines to lower air ticket prices any further after more than two years of struggling with the severe economic consequences of the COVID-19 pandemic.

The National Assembly has approved maintaining airfare price ceilings in the revised Pricing Law, which was passed yesterday, June 19.

A proposed floor airfare scheme could increase airfares.

Imposing a floor fare for domestic airline tickets would undermine competition in the aviation industry and affect the recovery of the air transport market, insiders have warned.

The domestic price cap for air service will averagely increase by 3.75% from the current one from the second or third quarter of 2023, according to the Ministry of Transport.

Domestic airlines and experts say the ceiling price for air tickets should be replaced with a flexible airfare adjustment policy.

The Civil Aviation Administration of Vietnam (CAAV) has called on airlines to well handle increased demand during the peak of summer.

If a proposed airfare scheme is applied, the fees will make it impossible for low-income earners to travel by air.

The Civil Aviation Authority of Vietnam (CAAV) has  proposed removal of the cap for airfares on domestic flight routes operated by at least three...

Increasing ceiling rates for airfares would bring more opportunities for local aviation firms to have flexible and suitable price policies in the domestic aviation market.