Domestic airfare may be increased by 15%

>> New price cap on domestic flights

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%.

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% as maximun.

VNA\'s revenues reached VND21.926 trillion (over USD1 billion) in the first half of the fiscal year. However the dong\'s depreciation against the dollar has lessened this amount.