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Under a plan of the ministry, the cap on domestic airline tickets will be applied on four kinds of flights.

New airfares for flights with a distance of 1,280km upward, from 1,000 - under 1,280km, 850 -  less than 1,000 km, and from 500 - under 850km will rise by 6.67%, 6.25%, 3.58% and 2.25% to a maximum of 4 million VND (170.03 USD), 3.4 million VND, 2.89 million VND, and 2.25 million VND, respectively.

Fares for air routes with a distance of less than 500km and State-supported ones will not change.

According to the Civil Aviation Administration of Vietnam and the General Statistics Office, this adjustment is expected to contribute to increasing the country’s CPI this year to about 0.07 percentage points.

At a seminar held by the Vietnam Aviation Business Association (VABA) in late February, representatives of airlines and transport experts suggested removing the price cap for domestic air service to ensure a variety of price policies to provide the best quality products to customers.

Source: VNA