Prices for Vietnam's domestic flights keep soaring - Cost of economy-class tickets up 25%

Domestic air-ticket prices have become a headache for many families and tourists making travel decisions. This is not only affecting consumer pockets, but also the domestic tourism and aviation industries as well, analysts said. The average price for economy-class tickets on Vietnam’s domestic routes has surged by up to 25% year-on-year. “Aside from Vietnam, airfares are generally high worldwide because prices are the function of supply and demand,” said Subhas Menon, director general of the Association of Asia Pacific Airlines. If demand is much more than supply, then prices tend to be high. So this is the case now. Just look at aircraft deliveries and delays. Supply is not keeping up with demand.” Economist Dinh Trong Thinh from the Academy of Finance said there were few airlines in Vietnam and very few planes. Aircraft recalls for inspection and repairs and the modest quantity of newly leased aircraft have led to a significant decline in the number of commercial planes in Vietnam, Thinh said. He said the more airlines a market has, the more competitive it would be, and airlines have to find ways to lower ticket prices to meet passenger needs. However, it would be a complicated matter to form new carriers in Vietnam.<br/>