Vietnam Airlines may raise domestic airfares

National flag carrier Vietnam Airlines (VNA) is mulling over a plan to increase domestic airfare by 1.5 times to cope with rising inflation.

Pham Ngoc Minh, VNA General Director, said that the increased fees are expected to offset rising fuel prices.

Minh added that, if the government approves the proposal, fees will be increased by 15 per cent.

Minister of Transportation Dinh La Thang has said that he agreed with VNA’s proposal in theory. But he said that they should come up with a detailed plan for submission in October, which the ministry will consider and submit to the government.

In April this year, the Ministries of Transportation and Finance approved an increase in airfares of 22.7 per cent as maximun.

VNA’s revenues reached VND21.926 trillion (over $1 billion) in the first half of the fiscal year. However the dong’s depreciation against the dollar has lessened this amount. – DAntri

Tags: Vietnam airlines, Vietnam aviation, Vietnam aviation industry, Vietnam aviation market

Posted by VBN on Sep 19 2011. Filed under Aviation. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry