Vietnam domestic airfare cap increase approved

The Ministry of Finance had approved an increase in domestic flight price caps set to take effect March 1, local newswire VnExpress reported on Thursday.
Under the decision signed by Minister Tran Van Hieu, flights shorter than 300 kilometers would cost US$35.80 at most, and flights from 300 kilometers to under 500 kilometers would cost $45.30.
Flights from 500 kilometers to under 850 kilometers would be capped at $62.05, while flights from 850 kilometers would be sold at $95.48.
The prices do not include value added tax which is 10 percent at state-owned Vietnam Airlines and the low-cost Jetstar Pacific Airlines, up from the 5 percent last year, and other fees.
This meant an economy class ticket for a flight from Hanoi to Ho Chi Minh City, currently the most active route, would cost $106.56 at most, according to the newswire.
Vietnam Airlines spokesman Le Hoang Dung said the carrier would release a specific price list soon in accordance with the new caps, adding they would offer many discount tickets depending on routes and seasons.
Jetstar Pacific Airlines also committed to a variety of tickets with different prices, VnExpress reported.
According to the news source, just around 10 percent of the low-cost carrier’s tickets were currently sold at regulated caps, while others could be sold at $0.78 at the cheapest.