THE GOVERNMENT

Decree No. 30/2013/ND-CP of April 8, 2013, on air transportation business and general aviation

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 29, 2006 Law on Civil Aviation of Vietnam;

At the proposal of the Minister of Transport,

The Government promulgates the Decree on air transportation business and general aviation.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decree provides:

a/ Conditions and procedures for grant of air transportation business licenses, licenses for commercial general aviation business and registration certificates of non-commercial general aviation;

b/ The use of brands and commercial franchises by air transportation enterprises and commercial general aviation enterprises.

2. This Decree applies to all organizations and individuals involved in the grant, re-grant or revocation of air transportation business licenses, licenses for commercial general aviation business and registration certificates of non-commercial general aviation; and those engaged in air transportation business or general aviation.

3. In this Decree, air transportation enterprises and commercial general aviation enterprises are collectively referred to as airlines.

Article 2. Activities of air transportation business and general aviation

1. Air transportation business includes air transportation, advertising, marketing and sale of air transportation products on the market for profit purposes.

2. General aviation includes the following activities:

a/ Commercial general aviation, which covers activities of advertising, marketing, selling and performing general aviation services on the market for profit purposes;

b/ Non-commercial general aviation, which covers general aviation to serve activities of organizations and individuals for non-profit purposes.

Article 3. Agencies elaborating and promulgating development master plans and appraising dossiers of application and granting licenses and certificates

1. The Ministry of Transport shall assume the prime responsibility for, and coordinate with related ministries, sectors, organizations and individuals in, elaborating a master plan on development of Vietnamese airlines, and submitting it to the Prime Minister for approval.

2. The Minister of Transport shall grant and re-grant air transportation business licenses, licenses for commercial general aviation business and investment certificates for foreign-invested airlines after obtaining permission of the Prime Minister.

3. The Civil Aviation Administration of Vietnam is an agency of the Ministry of Transport in charge of appraising dossiers of application for air transportation business licenses or licenses for commercial general aviation business.

4. The director of the Civil Aviation Administration of Vietnam shall grant and re-grant registration certificates of non-commercial general aviation (excluding activities of unmanned aircraft and ultra-light flying craft).

Article 4. Foreign-invested airlines

1. Foreign-invested airlines have the rights and obligations provided by the laws on civil aviation, investment and enterprises.

2. Investment certificates for foreign investment projects are concurrently air transportation business licenses or licenses for commercial general aviation business.

Chapter II

AIR TRANSPORTATION BUSINESS LICENSES AND LICENSES FOR COMMERCIAL GENERAL AVIATION BUSINESS

Article 5. General requirements

1. The grant of air transportation business licenses and licenses for commercial general aviation business must be in line with the master plan on development of airlines.

2. Airlines that apply for air transportation business licenses or licenses for commercial general aviation business must fully satisfy the conditions prescribed in Clause 1, Article 110 of the Law on Civil Aviation of Vietnam and the conditions prescribed in this Decree.

3. If airlines that have been granted air transportation business licenses apply for licenses for commercial general aviation business, they must only satisfy the conditions prescribed at Point a, Clause 1 and in Clause 2, Article 6, and in Clause 2, Article 10 of this Decree.

4. Applicants for air transportation business licenses and licenses for commercial general aviation business shall pay fees as prescribed by law.

Article 6. Plans to assure availability of aircraft for operation

1. A plan to assure the availability of aircraft for operation in five years after the planned date of business commencement must contain the following:

a/ Quantity and types of aircraft;

b/ Mode of possession (purchase, hire-purchase or charter);

c/ Plan on operation, maintenance and human resources to operate and maintain aircraft;

d/ Capital sources to assure possession of aircraft.

2. The age of second-hand aircraft imported into Vietnam is prescribed as follows:

a/ For aircraft for passenger transportation: The age of an aircraft must not exceed 10 years, counting from the date of ex-work to the time of import into Vietnam under the purchase or hire-purchase contract; or must not exceed 20 years, counting from the date of ex-work to the time of expiration of the charter contract. For helicopters, the age must not exceed 25 years, counting from the date of ex-work to the time of expiration of the charter contract;

b/ For aircraft for transportation of cargoes, postal parcels and articles and engaged in commercial general aviation: The age of an aircraft must not exceed 15 years, counting from the date of ex-work to the time of import into Vietnam under the purchase or hire-purchase contract; or must not exceed 25 years, counting from the date of ex-work to the time of expiration of the charter contract;

c/ For aircraft other than those defined at Points a and b, Clause 2 of this Article: The age of an aircraft must not exceed 20 years, counting from the date of ex-work to the time of import into Vietnam under the purchase or hire-purchase contract; or must not exceed 30 years, counting from the date of ex-work to the time of expiration of the charter contract.

3. The quantity of aircraft maintained throughout the course of operation for air transportation or commercial general aviation business must be at least two (2); the quantity of aircraft chartered with flight crew up to the end of the third year of operation must not exceed 30% of the aircraft fleet.  

Article 7. Conditions on organization of the apparatus to assure the operation of aircraft, air transportation business or commercial general aviation business

1. Having an organizational apparatus to operate the safety and security management system, operate and maintain aircraft, provide flight training, perform ground operation, develop products and marketing and sell air transportation and general aviation services; and a financial payment system.

2. Persons appointed to take charge of the safety and security management system, aircraft operation and maintenance and flight training must have at least three consecutive years’ working experience in the fields they are in charge of, and possess relevant diplomas and certificates granted or recognized in accordance with law.

3. Persons appointed to supervise the development of products, marketing and sale of air transportation services and general aviation services must possess a university degree in economics, trade or finance.

4. Persons appointed to supervise the financial payment system must possess a university degree in finance, a chief accountant certificate or an international accounting certificate recognized in Vietnam.  

Article 8. Capital conditions

1. The minimum capital amount for an airline to be established and maintain its air transportation business:

a/ If it operates up to 10 aircraft: VND 700 billion, for airlines also engaged in international air transportation; VND 300 billion, for airlines only engaged in domestic air transportation;

b/ If it operates between 11 and 30 aircraft: VND 1,000 billion, for airlines also engaged in international air transportation; VND 600 billion, for airlines only engaged in domestic air transportation;

c/ If it operates more than 30 aircraft: VND 1,300 billion, for aircraft also engaged in international air transportation; VND 700 billion, for airlines only engaged in domestic air transportation.

2. The minimum capital amount for establishing an airline engaged in commercial general aviation business is VND 100 billion.

Article 9. Written certification of capital

1. For capital contributions in Vietnam dong and freely convertible foreign currencies: A written certification by a credit institution of the money amount of the license applicant frozen at such credit institution; the frozen money amount may be released only after such applicant is granted a license or receives a notice of refusal to grant a license.

2. For capital contributions in assets or immovable assets to directly serve air transportation business or commercial general aviation business: A written certification by a competent valuation organization of the monetary value of such assets.

3. Organizations and individuals that directly certify capital of enterprises shall take responsibility for the accuracy and truthfulness of data at the time of certification.

4. Operating airlines may use bank guarantees as written certifications of appropriate capital.

Article 10. Contents of business plan and product development strategy