The Civil Aviation Authority of Vietnam (CAAV) has denied media claims that it is considering setting minimum prices on passenger tickets, reports the Vietnam News publication.

In a discussion on raising the maximum passenger ticket price, Jetstar Pacific (Ho Chi Minh City) proposed considering the adoption of minimum pricing for domestic tickets, saying that continuing price wars affect sustainable growth. It said that 'floor fares' could be based on direct flight costs, such as maintenance, labour and insurance. Vietnam Airlines (VN, Hanoi Noi Bai International) – which has shares in Jetstar Pacific – was reportedly in favour of this idea, while VietJetAir (VJ, Hanoi Noi Bai International) was opposed. CAAV Director General Lai Xuan Thanh clarified the proposal was from an airline, and not from CAAV as widely reported.

"This information is completely inaccurate," Thanh said. "We have not yet submitted any proposals or documents to the Ministry of Transport and related agencies for comments on this issue."

Deputy Minister of Transport Nguyen Hong Truong spoke at a press conference in Hanoi this week, saying that the CAAV will be looking to other countries for expertise regarding its booming aviation industry. The Vietnamese Investment Review reports that the ministry is reviewing its own operations and considering ways to keep the sector healthy considering its current growth.

Other measures the ministry is looking at are downsizing workforce requirements for airlines, air traffic management and airport ground services, in a bid to keep airline costs down.

The US Department of Commerce's International Trade Administration projects that Vietnam will be one of the fastest growing aviation markets in Southeast Asia in the next two decades. Passenger traffic reached 63 million in 2015, and is expected to hit 122 million by 2020 with a growth rate of 14.2% per year.