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Airline ticket ceiling cut

Released at: 10:32, 15/09/2015

Airline ticket ceiling cut

CAAV directs carriers to reduce ticket ceiling by 4% due to lower fuel costs.

by Hoai An

The Civil Aviation Authority of Vietnam (CAAV) has issued Dispatch No. 5010/CHK-TC adjusting the price ceiling on flight tickets due to falls in the fuel price over recent times.

Prices are to be cut by at least 4 per cent on economy fares, based on distance. The ceiling on a one-way flight ticket up to 500 km is now set at VND1.6 million - VND1.7 million ($75 - $78), VND2.2 million ($103) for flights between 500 km and 850 km, VND2.79 million ($131) from 850 km to 1,000 km, VND3.2 million ($150) from 1,000 km to 1,280 km, and VND 3.75 million ($176) for flights over 1,280 km.  

CAAV has directed airlines to calculate and publish their prices, which, including surcharges and fares, must not exceed the new ceiling. It also encouraged carriers to continue with promotional programs and diversify ticket classes.

According to CAAV, the price of Jet A1 fuel has fallen by 4.71 per cent since the end of 2014. Exchange rate fluctuations, however, have increased certain costs such as foreign employee salaries and aircraft leases and purchases. Ceiling prices have therefore only been cut by 4 per cent.

The dispatch takes effect on October 1.

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