Earlier in March, the Civil Aviation Administration of Vietnam (CAAV) proposed to the Ministry of Finance to raise the ceiling prices of domestic flights from 20 percent to 27 percent, depending on flight distances.

Currently, about 71 percent of the aviation businesses’ total costs must be paid in US dollars and fuel costs make up about 36 percent.

Thus, the increase was calculated mainly on the fluctuation of exchange rates, recent fuel price hikes and other input costs.