Airlines attempting to raise airfares

While Jetstar Pacific Airlines plans to raise airfares to VND4mil at the highest, the airline would still keep low-cost tickets, at VND15,000/ticket at the cheapest.
According to the proposed airfares Jetstar Pacific has submitted to the Civil Aviation Authority of Vietnam (CAAV) and the Ministry of Finance, the highest airfare level would be applied to the Hanoi-Can Tho route, at VND4mil. Meanwhile, the HCM City-Hanoi route would have the airfare of VND3.7mil at the highest (instead of VND1.7mil currently) and the lowest of VND100,000. The airfares include VAT and other service fees.
It also wants to increase airfares on flights from HCM City to Hai Phong and Vinh cities. Short-distance flights like the ones from Hanoi to Da Nang, Hue would see the highest airfare of VND2mil instead of VND1mil at present.
According to Jetstar Pacific Airlines’ General Director Luong Hoai Nam, the new airfares have 26 basic levels, determined on the basis of, the sooner passengers book tickets, the cheaper the tickets they can get.
The Ministry of Finance has confirmed that it has received the proposed airfare adjustments from Jetstar Pacific. An official from the ministry said that Vietnam’s aviation market has entered a competitive period with the participation of many airlines. Therefore, he believes that airlines have to set airfares at reasonable levels or they will lose passengers.
Under Circular No 103, since December 2008, domestic and international airfares and other fees are set by airlines themselves. However, airlines have to register airfare adjustments with the CAAV and Ministry of Finance.
Besides Jetstar Pacific Airlines, other air carriers including Vietnam Airlines, Indochina Airlines and Vietjet Air also want to adjust their airfares.
The national flag air carrier Vietnam Airlines is expected to submit new airfares this week, while Indochina Airlines said it is considering a suitable time for raising airfares.