Vietnam's Finance Ministry hiked ground service fees starting October 1, passing additional costs on to air commuters.
The ministry raised its per person airport service charge to VND70,000 at the A-group airports (i.e. Noi Bai, Tan Son Nhat, Cam Ranh, Phu Quoc, Can Tho, Da Nang and Cat Bi) and VND60,000 at all other airports.
The airport service fee for foreigner will remain somewhere between $8-20 a person.
However, the new terminal being built at Noi Bai Airport is expected to charge $25 per foreigner when it comes to operation by the end of 2014.
Consumers will also pick up the additional cost of personal security checks--$1.5 for overseas travelers and VND10,000 or VND20,000 for domestic ones.
Luggage scan fees also went up by 10 percent.
Le Truong Giang, the spokesperson of Vietnam Airlines, said all the extra fees will be rolled into flight fares which carriers collect on behalf of the airport management company.
“Vietnam Airlines ticket prices won’t go up, but customers will have to pay extra fees,” Giang said.
He cited, as an example, Hanoi-Ho Chi Minh City flights, whose customers will have to pay at least another VND20,000 (nearly US$1) to cover the hike in airport fees and security scans.
A representative of low-cost carrier Vietjet Air said the price hike might lower the demand even more during the low season.
Vietjet is charging the low-season price of VND700,000 a ticket from Hanoi to Ho Chi Minh City, but sales are still slow.
“Customers will think twice (about flying),” the source said.