The Ministry of Finance has approved higher domestic service fees at airports, thereby raising domestic airline passengers' fares beginning October 1, 2014, according to the Viet Nam News Agency.

Under Decision 1992/QD-BTC, beginning October 1, service charges at airports were increased from VND10,000 to VND70,000 per passenger on domestic flights at Noi Bai, Tan Son Nhat, Da Nang, Cam Ranh and Can Tho, as well as Phu Quoc and Cat Bi airports, and to VND60,000 per passenger at Phu Cat, Ca Mau, Buon Ma Thuot and Lien Khuong, as well as Tuy Hoa and Dong Hoi airports.

Service charges remain unchanged for international flights at US$8 to $20 per passenger, but $25 will be collected only at Noi Bai International Airport's new terminal T2, which will be used late this year.

Airports collect security screening fees on a per-guest rather than per-flight basis, with domestic passengers paying VND10,000 and international passengers paying $1.5.

Goods screening charges were increased by 10 per cent compared with the previous VND140,000 per tonne for domestic flights and $15 per tonne for international flights.

Previously, passengers had to pay VND110,000 to VND120,000 for charges that are included in the price of airplane tickets. These fees include VND50,000 for ticket issuance and a 10 per cent value-added tax.

Airline companies said the service fee increases would affect passengers as it would be added to the airplane tickets that they would purchase. For example, though the airplane ticket price remains unchanged, each passenger will have to pay an additional VND20,000 for a one-way flight from Ha Noi to HCM City.

Airline companies expressed concerned over added difficulties arising from the adjustments, saying they have managed to lower airfares to attract passengers, especially from October to early December, the lean season for airline passengers in Viet Nam.

However, aviation authorities said the increases were necessary and were made in line with price increases for other services. They added that security screening fees have remained unchanged since 2010.

VNS/VNN