Conditions for grant of air carriage business licenses in Vietnam (latest)

Conditions for grant of air carriage business licenses in Vietnam (Image from Internet)

1. Regulations on air carriage business in Vietnam

According to Article 109 of the Vietnam Civil Aviation Law 2006 (amended per Clause 39 Article 1 of the Law Amending and Supplementing the Vietnam Civil Aviation Law 2014), the regulations on air carriage business in Vietnam are as follows:

- Air transport refers to the conveyance of passengers, luggage, cargo, and mail by air. Air transport includes both scheduled and non-scheduled air transport.

Scheduled air transport refers to air transport operations carried out regularly according to publicly announced flight schedules and open for public use.

Non-scheduled air transport refers to air transport that does not meet the criteria for scheduled air transport.

- air carriage business is a conditional business sector carried out by air transport enterprises (hereinafter referred to as airlines).

2. Conditions for grant of air carriage business licenses in Vietnam

According to Article 110 of the Vietnam Civil Aviation Law 2006 (amended per Clause 24 Article 1 of the Law Amending and Supplementing the Vietnam Civil Aviation Law 2014), the conditions for grant of air carriage business licenses in Vietnam are as follows:

- An enterprise is issued an air carriage business License when it meets the following conditions:

+ Possesses a Business Registration Certificate with the primary business being air transport;

+ Has a plan ensuring the availability of aircraft for operation;

+ Has an organizational structure and personnel licensed and certified appropriately to ensure aircraft operations and air carriage business;

+ Meets capital requirements as stipulated by the Government of Vietnam;

+ Has a business plan and air transport product development strategy suitable to market demand and the sector development plan and orientation;

+ Has a main office and primary business location in Vietnam.

- Foreign-invested enterprises are issued an air carriage business License when they meet the conditions stipulated in Clause 1, Article 110 of the Vietnam Civil Aviation Law 2006 and the following conditions:

+ Foreign parties contribute capital at the ratio regulated by the Government of Vietnam;

+ The legal representative of the enterprise is a Vietnamese citizen and no more than one-third of the executive board members are foreigners.

- The Minister of Transport grants the air carriage business License after obtaining approval from the Prime Minister of the Government of Vietnam.

- Enterprises applying for an air carriage business License must pay a fee.

- Enterprises issued an air carriage business License have the following obligations:

+ Publicly disclose the contents of the air carriage business License;

+ Operate in accordance with the purposes, contents, and conditions stated in the air carriage business License;

+ Maintain the conditions for the issuance of the air carriage business License and the Aircraft Operator Certificate as stipulated;

+ Maintain the quality of air transport services per the regulations of the Ministry of Transport;

+ Comply with the legal provisions on civil aviation and other relevant laws.

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