The Civil Aviation Administration of Vietnam (CAAV) is investigating the recent hike in airfares following public outcry over the high prices.

The move was ordered by the Transport Ministry in response to concerns that have impacted the public’s travel plans, especially during peak periods such as the recent five-day national holiday.

Consisting of 10 members from the CAAV, a team will conduct a comprehensive assessment over a three-day period (from May 7 to 9), focusing on the pricing, transparency, and disclosure of information related to airfares from the beginning of the year.

CAAV has been asked to address any violations within their jurisdiction and report its findings to the ministry by May 10.

The public has expressed concerns over the surge in domestic airfares due to multiple taxes and fees.

However, the Tax Management and Policy Supervision Department under the Ministry of Finance has refuted these claims.

It clarified airfare charges are categorised as “specialised aviation service fees”, which are not related to the fees outlined in the Law on Fees and Charges.

“The increase in airfares is not a result of taxes or fees,” it said.

Reports from local media revealed that domestic flight prices for the recent holidays have been 1.5 times higher than usual since March.

For instance, a round-trip ticket from Hà Nội to Quy Nhơn (which takes one and a half hours) between April 27 and April 30 cost over VNĐ5 million (US$200).

This airfare is VNĐ600,000 higher than the peak period price a month prior, and VNĐ2 million higher than the following week.

The aviation industry has undergone significant changes recently, including airlines restructuring operations and reducing their fleets.

Bamboo Airways, which previously operated 28 aircraft, now operates only a few after returning all Embraer E190 aircraft to the leasing company.

Pacific Airlines has also suspended operations, returning all aircraft to address debts.

In addition, a recall of Pratt & Whitney (PW) PW1100G engines earlier this year has led to inspections and repairs of manufacturing defects.

Thousands of these engines are expected to be inspected this year and next, potentially impacting airline operations, particularly during peak seasons.

Local airlines such as Vietnam Airlines and Vietjet Air, among others, will need to adjust their fleets or incur massive costs to lease aircraft to maintain operations, experts said. — VNS