Vietnam
airlines refuse to cut fares despite cheaper fuel, bigger revenue
Vietnam’s transport minister has
called for lower airfares to match a sharp decline in fuel costs, but
carriers say their tickets are already affordable.
At a meeting Monday, Minister Dinh La Thang asked that Vietnam
Airlines make its tickets cheaper after the national carrier reported a
whopping 129 percent increase in consolidated revenues, to VND70 trillion
(US$3.12 billion) in 2015, and a pretax profit of more than VND1.4 trillion
($62.3 million).
“With such profits, the airline should cut fares for the sake of
passengers,” Thang said, as cited by Tuoi Tre newspaper.
He noted that the price of jet fuel A1 in Asia in December dropped to
less than US$48 a barrel, down 40 percent year-on-year.
Local carriers said they have already cut fares by offering various
discounts for domestic routes, allowing many people to fly at the same price
of a bus ticket.
Pham Ngoc Minh, general director of Vietnam Airlines, said the domestic
air travel market expanded to more than 40 million passengers in 2015 mostly
because local carriers managed to win customers from bus services.
Lai Xuan Thanh, director of the
Civil Aviation Administration of Vietnam, said it can only encourage airlines
to lower their fares, instead of forcing them to do so.
He said the maximum domestic
airfares are still 20 percent lower than the caps set by the agency last
October.
Local carriers also said they have had to deal with bigger expenses from
aircraft rental and purchases and foreign staff’s salaries due to a stronger
dollar.
Fuel import tariffs and environment fees have also been
raised, they said.
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Thứ Năm, 7 tháng 1, 2016
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