Airport service fees are set to rise this October, signalling a potential increase in airfare costs for local travelers.
According to VnExpress, the Civil Aviation Authority of Vietnam (CAAV) has announced an increase in airport service fees across the country. The move is an effort to create more funding for maintenance and upgrade work at Vietnamese airports and its implementation is expected to also help reduce airport congestion during peak hours.
Takeoff and landing fees at Vietnamese airports will rise by 5%, with the Ministry of Transport aiming to impose another 5% hike by June 2018, the news outlet reports. The new cost for takeoff and landing will range from VND700,000 to VND5.8 million, depending on the type of aircraft.
Flights operating during peak hours will also incur an additional 15% fee, while those operating during off-peak hours will receive a 15% discount.
Though an initial fare increase isn’t likely, according to VnExpress, higher fares may be on the horizon, as airlines are expected to raise ticket prices in the long run to compensate for this service fee increase.
Saigon’s Tan Son Nhat International Airport in particular faces serious challenges as a result of overcrowding. Already, the facility operates well beyond its 25 million passenger annual capacity – last year, the airport welcomed 32 million travelers – even after government officials have gone to great lengths to accommodate airport expansion projects.
Last year, Vietnam’s Air Force departed from Tan Son Nhat to give more room to commercial carriers, while military officials handed over land earlier this year for yet another addition to the facility. Meanwhile, the launch of Vietnam’s fifth domestic airline, Vietstar, has been put on hold until Tan Son Nhat has the space to accommodate additional carriers.
[Photo via Zing]
