Airport taxes for domestic passengers will go up 30% at main airports like Tan Son Nhat, Danang, Cam Ranh, Phu Quoc, and Noi Bai, and 21% at second tier facilities like Lien Khuong, Buon Ma Thuot, and Tuy Hoa. The current charges are $3.08 and $2.64, respectively.

Security charges passed on by carriers for baggage screening and terminal security will rise to $2 for passengers flying internationally, and to $0.8 for domestic routes. There will be further increases in 2018. The rates remain low by regional standards -- Myanmar charges $6.5, Singapore $6, and Cambodia $3.

After a 5% increase, take-off and landing charges will range from $30 to $255 depending on the size of aircraft, and further increases will be applied in 2018 and 2019. There will also be premiums of 15% added for peak hours, and reductions of 15% for off-peak usage.

The current rates have been in place since 2011, and the CAAV said domestic carriers have benefited from low service charges, cheaper fuel, and high growth in demand for domestic travel.

"The landing and takeoff service fees for domestic flights in Vietnam are only between 47% and 68% of Southeast Asia's average rates," Lai Xuan Thanh, the head of CAAV, told reporters.

Vietnam has some 52 air routes connecting 22 civilian airports around the country, and these are used mostly by local carriers. Internationally, 63 foreign airlines operate 105 international routes through six international gateways.

In the first half of 2017, Vietnamese airports served over 46 million passengers, up 17.6% year on year, and this figure should reach 91 million by year's end, a 13% increase on 2016. Cargo volume is meanwhile expected to rise 5% to reach 1.2 million tons this year.

The Airports Corporation of Vietnam, which manages civilian airports, expects the increases to reduce pressure on the state budget without increasing airfares much. These will remain about 20% below official price ceilings. No increases in ticket prices have been announced as yet, but some reduction in the number of discounted tickets might follow.

Some carriers also pre-emptively raised service fees in March. Vietnam Airlines raised charges on business-class tickets on domestic routes from $4.5 to $22, and in economy from $2 to $13.

Low-cost carrier Vietjet increased its service charges by about 40% for both domestic and international routes, and charged more for seat selection, baggage, and flight changes.

Foreign carriers have also been adjusting their charges, which is impacting tour operators for whom airfares represent on average about 40% of the overall tour price.

Nikkei Asian Review - August 28, 2017