CAAV asks carriers to reduce fares after fuel costs fall.
The Civil Aviation Authority of Vietnam (CAAV) has asked airlines to reduce their fares and introduce promotional programs and special fares given fuel prices have fallen over recent months. According to CAAV the falling Jet A1 price has had a positive impact on carriers and lower fares would make air travel more attractive.
“Airlines in Vietnam have introduced many low-price tickets on domestic routes and introduced many promotions, some of which include free tickets,” a representative of CAAV was quoted as saying.
The Ministry of Finance and the Ministry of Industry and Trade had cut fuel prices five times as at September 3, from a high of VND20,710 ($0.92) per liter in June.
For years aviation costs have represented a relatively large share of the tourism cost structure. In order to secure reasonable fares, many travel companies have engaged staff to work 24 hours a day hunting for cheap tickets for their tours. Travel companies believe lower fares are good news for the industry and makes air travel more affordable.