Authorities to inspect transport business licences of domestic airlines
The objective of this inspection, as stated in a recent written document signed by Deputy Minister of Transport Le Anh Tuan, is to ensure that airlines comply with current laws.
The Ministry of Transport has directed the Civil Aviation Authority of Vietnam (CAAV) to inspect domestic airlines' transport licences.
The objective of this inspection, as stated in a recent written document signed by Deputy Minister of Transport Le Anh Tuan, is to ensure that airlines comply with current laws.
The CAAV must submit a plan for addressing air transport companies that do not meet the legal requirements in full, if any, and provide a written report to the Ministry of Transport by March 8, 2023.
Viet Nam has six operational airlines, Vietnam Airlines, Pacific Airlines, Vietjet Air, Bamboo Airways, Vasco, and Vietravel Airlines, according to CAAV statistics.
In addition, the country has a few general airlines like Hai Au, Hanh Tinh Xanh, Ngoi Sao Viet, Bau Troi Xanh, Sun Air, Bay Viet, with a combined fleet of 249 aircraft.
To operate legally, airlines must hold both an air transport and a general aviation business licence, as stipulated by current laws. In addition, enterprises must ensure that their aircraft comply with operational requirements and satisfy other criteria, such as organisational structure, capital, business plans, and product development strategy.
The number of aircraft maintained for an air transport business must be at least three aircraft and at least one for a general aviation enterprise.
In addition, enterprises must meet the minimum capital requirements (including equity and loan) to establish and maintain an air transportation enterprise.
Specifically, an air transport enterprise with a maximum of 10 planes must have minimum charter capital of VND300 billion. For those owning 11-30 and more than 30 planes, the minimum amount is VND600 billion and VND700 billion, respectively.
The minimum charter capital to establish and maintain a general aviation enterprise is VND100 billion.
Foreign-invested air transport enterprises must satisfy the following conditions: foreign investors must account for no more than 34 per cent of charter capital, and there must be at least one Vietnamese individual or one Vietnamese legal entity holding the largest share of charter capital.
If the Vietnamese legal entity has foreign invested capital, the foreign capital contribution must not exceed 49 per cent of the legal entity's charter capital. — VNS
