Airplane at Tan Son Nhat International Airport in Ho Chi Minh City, February 2021. Photo by Shutterstock / Quang Nguyen Vinh.
The Civil Aviation Authority of Vietnam (CAAV) has proposed abolishing the price cap for routes with three or more airlines.
“The maximum prices will not allow airlines to improve the quality of flight service. This will affect the ability of airlines to compete for quality of service, which is an important factor in sustainable development, ”says the CAAV report to the Ministry of Transport.
Most domestic routes are operated by three or more airlines.
Currently, the maximum price of air tickets for routes less than 500 kilometers is 1.6 million VND (69 USD), and the maximum price is 3.75 million VND for routes with a length of 1,280 kilometers or more.
In 2019, the national carrier Vietnam Airlines proposed that Vietnam lift the domestic price ceiling. Vietnam is one of the few countries in the world where price caps still apply.
Local carriers handled 11.7 million passengers in the first four months, up 9.5 percent from last year, according to the General Bureau of Statistics.
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