What is the minimum amount of capital required for establishment and maintenance of an airline in Vietnam?
Vietnam: What is the general aviation service business?
Pursuant to Point b, Clause 3, Article 3 of Decree 92/2016/ND-CP has the following provisions:
Definition
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3. Air transport service business includes two forms of air transport service business and general aviation service business.
a) Air transport service business refers to air transportation of passengers, luggage, goods and postal items for profitable purposes.
b) General aviation service business refers to profitable general aviation operation services performed by aircraft other than unmanned aircraft systems or ultralight aircraft vehicles as defined in Article 21 of the Law on Vietnam Civil Aviation.
Thus, it can be understood that general aviation service business refers to profitable general aviation operation services performed by aircraft other than unmanned aircraft systems or ultralight aircraft vehicles as prescribed in Article 21 of the Law on Vietnam Civil Aviation 2006 (amended by Clause 8, Article 1 of Law amending and supplementing a number of articles of the Vietnam Civil Aviation Law 2014), specifically as follows:
- The Minister of Transport shall prescribe airworthiness standards and procedures for grant or recognition of airworthiness certificates and type certificates, criteria and procedures for licensing establishments to design, manufacture, repair, maintain or test aircraft, aircraft engines, aircraft propellers and aircraft equipment, except in the case specified in Clause 2 of this Article.
- The Minister of National Defense shall prescribe airworthiness standards; criteria and procedures for licensing establishments to design, manufacture, repair, maintain or test unmanned aircraft and ultralight aerial vehicles, and their engines, propellers and equipment.
Unmanned aircraft is an aerial craft of which the flight can be controlled or maintained without direct control by an operator onboard.
Ultralight aerial vehicles include aerostats and aerial models of all kinds.
Aerostat means an aerial craft that gains its lift through the use of a buoyant gas in its gasbags. Aerostat includes powered airship and unpowered balloon.
Aerial models include gliders that simulate shapes and type models of airplanes, have engines and can be controlled by radio or programmed devices; and paragliders and kites, whether or not man-controlled, except traditional kites.
What is the minimum amount of capital required for establishment and maintenance of an airline in Vietnam?
What is the minimum amount of capital required for establishment and maintenance of an airline in Vietnam?
Pursuant to Article 8 of Decree 92/2016/ND-CP (amended by Clause 5, Article 1 of Decree 89/2019/ND-CP) as follows:
Requirements concerning capital
1. The minimum amount of capital (including equity and loans) required for establishment and maintenance of an airline shall comply with the following regulations:
a) With regard to an airline operating up to 10 aircrafts, the minimum amount of capital shall be VND 300 billion;
b) With regard to an airline operating from 11 to 30 aircrafts, the minimum amount of capital shall be VND 600 billion;
c) With regard to an airline operating more than 30 aircrafts, the minimum amount of capital shall be VND 700 billion.
2. The minimum amount of capital required for establishment and maintenance of a general aviation enterprise shall be VND 100 billion.
3. A foreign-invested airline must conform to the following requirements:
a) Foreign ownership shall not exceed 34% of the charter capital;
b) There is at least one Vietnamese natural or juridical person owning the highest share of charter capital;
c) In cases where a Vietnamese juridical person has foreign investment capital, the foreign share of equity participation shall not exceed 49% of the charter capital of that juridical person.”
Thus, The minimum amount of capital required for establishment and maintenance of an airline is VND 100 billion.
What is the minimum number of aircraft required for the entire process of providing general aviation business in Vietnam?
According to the provisions of Article 6 of Decree 92/2016/ND-CP (amended by Clause 3, Article 1 of Decree 89/2019/ND-CP) on this content are as follows:
Requirements concerning plans to ensure availability of aircraft for operations
1. A plan to ensure that aircraft is available for operations shall include the following contents:
a) The number, type and service life of aircraft;
b) The form of ownership;
c) Operation and maintenance planning and scheduling, and arrangements for personnel to meet aircraft operation and maintenance requirements;
2. The minimum number of aircraft required for the entire process of providing air transport services is 03; for general aviation business is 01.
Accordingly, the minimum number of aircraft required for the entire process of providing general aviation business in Vietnam is 01 aircraft.
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