Jetstar Pacific seeks to raise fare caps

      Low-cost carrier Jetstar Pacific is seeking permission to increase its ceiling prices, less than three months after the government lifted caps on airfares on certain routes.
Under the Ministry of Finance and the Ministry of Transport’s circular No.103, effective from November 27 last year, for domestic routes on which two or more airlines fly, carriers are allowed to fix their own prices based on demand after obtaining government approval.
In a recent note sent to the Ministry of Finance, the budget airline said it wants to push up the highest airfare for a one-way trip between Ho Chi Minh City and Hanoi/Hai Phong/Vinh to VND3.7 million (US$215) from the current VND1.7 million ($99).
For the highest one-way fares on the Hanoi-Da Nang and Hanoi-Hue routes, Jetstar Pacific wants to increase to VND2 million ($116) from the current VND1.02 million ($59).
But the carrier said it wants to decrease the lowest normal saver fare on the Hanoi-Da Nang route to VND300,000 ($17) from VND380,000 ($22).
Vietnam Airlines, meanwhile, said it has no plans to raise fares at this juncture as there is no large fluctuation in world oil prices and the government has decided to lower the fuel import tariff.
The government has decided to cut the import tax on gasoline to 20 percent from the current 25 percent, the second cut this month, from today.