Vietnam Airlines wants to raise airfare 20pct

National flag carrier Vietnam Airlines (VNA) has asked the government to allow it to increase airfare caps for domestic routes amid the dong’s depreciation against the US dollar, Pham Ngoc Minh, general director of the airline, said.

The government in the future should allow airlines to add extra costs to ticket prices whenever fuel prices surge, VNA said.

It also suggested the government scrap those caps between 2013 and 2014, Minh added.

VNA suffered an approximate $30 million in losses on domestic air routes, Minh said.

Airfares for domestic air routes are now capped at 682,000 dong, 864,000 dong, 1.182 million dong, and 1.819 million dong, depending on distances.

If the price caps are to be abolished, airlines will be able to offer different prices that suit a wide variety of passengers, a representative from a carrier remarked. – tuoitre

Tags: airfare, Vietnam airlines

Posted by VBN on Feb 26 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