Vietnam national carrier to raise domestic flight prices

Vietnam Airlines will charge more for domestic flights starting next Wednesday, the national carrier said Monday.
The new price system takes into account higher oil prices and the dong devaluation, the airline said.
It said earlier that despite the hike, the carrier would offer discount tickets depending on routes and seasons.
There will be 14 levels of prices, including those for business and economy classes, and for people going on tours. Thus people will actually be able to buy tickets at cheaper rates than the cap prices, which were raised Monday.
The busiest route between Hanoi and Ho Chi Minh City has the cap price of VND1,818,000 (US$97,45) a ticket but Vietnam Airlines passengers can buy the cheapest ticket at VND860,000, depending on the flight time.
The prices do not include value added tax which is 10 percent at Vietnam Airlines and the low-cost Jetstar Pacific Airlines, up from the 5 percent in 2009.
A representative from Vietnam Airlines said they have delayed the new prices until after the Tet high travel demand so as not to affect people’s vacation plan.
Vietnam domestic flight price caps took effect Monday after the Ministry of Finance approved the plan by the Ministry of Transport.