Vietnam Airlines caps airfare for under-500km service at $80

The maximum airfare for services shorter than 500km operated by Vietnam Airlines has been set at VND1.7 million (US$80), the national flag carrier announced Monday.

The new cap was put in place as of the beginning of this year, as Vietnam Airlines followed a directive by Minister of Transport Dinh La Thang to slash airfares for short services, according to a press release posted on the airline’s website.

As for nine routes to distant, remote, island and border areas, the ceiling ticket price is VND1.6 million ($75), according to Vietnam Airlines.

The services include Hanoi-Na San, Ho Chi Minh City-Can Tho/Con Dao/Ca Mau, Vung Tau-Con Dao, Vung Tau-Can Tho, and Da Nang-Pleiku/Quy Nhon/Dong Hoi.

Na San is a town in the northern province of Son La, some 290km west of Hanoi.

Pleiku, Quy Nhon, and Dong Hoi are the capitals of Gia Lai Province in the Central Highlands, Binh Dinh Province in the south-central region, and Quang Binh Province in central Vietnam, respectively.

Con Dao Island is an archipelago, and a district, of the southern province of Ba Ria-Vung Tau. The island is around 375km from Ho Chi Minh City.

Ca Mau is Vietnam’s southernmost province, 330km from the southern metropolis.

Both of the airfare caps do not include taxes and fees.

The ministerial fiat, signed on December 25, requires airlines to lower airfares for such routes as cheaper air tickets will encourage people in these areas, who usually have low income, to travel by air and thus boost socio-economic development there.

As of January 15, Vietnam Airlines will offer discounts for passengers who are permanent residents, military officers and public servants in Con Dao, Ca Mau and Pleiku.

The Ho Chi Minh City-Con Dao service will be subject to a 30 percent discount, while a 15 percent price cut will be applied to the Ho Chi Minh City-Ca Mau and Da Nang-Pleiku services, according to Vietnam Airlines.

The Vietnam Air Services Co. (VASCO), a Vietnam Airlines subsidiary, also announced the same discounts for its services connecting Ho Chi Minh City and Con Dao and Ca Mau last week.

VASCO has recently capped ticket prices for the two services at VND1.6 million as per the transport minister’s order.

Last month the Ministry of Finance gave the green light to a proposal by the Civil Aviation Authority of Vietnam to cut the ceiling of airfares for domestic services by 15 percent.

The new ceiling, which went into effect on January 1, 2015, is VND4,250 a passenger per km, with the old cap being VND5,000.

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