Vietnam raises air fare

Vietnam raises air fare

HANOI (Reuter): Vietnam Airlines, clawing back part of a whopping domestic air fare rise that was canceled by the government last year, has raised the price of an economy class ticket on its main Hanoi-Ho Chi Minh City route by 14.3 percent.

The April 12 edition of the official Saigon Giai phong, seen by Reuters on Saturday, said Vietnam nationals would pay 800,000 dong (US$72.72) for a one-way ticket instead of 700,000 ($63.63). Foreigners pay $170 for the same trip.

"The reason for the price change is the unprofitable domestic business at a time when services have improved," the paper said.

It said the Civil Aviation Administration would discuss the increase with the government Price Committee to decide when it should become effective. The Civil Aviation Administration was instructed last year to withdraw a domestic fares increase averaging 27 to 30 percent and reimburse customers.