| THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No.76/2007/ND-CP | Hanoi, May 09, 2007 |
DECREE
ON AIR TRANSPORTATION BUSINESS AND GENERAL AVIATION
THE GOVERNMENT
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Law on Civil Aviation of Vietnam dated June 29, 2006;
At the proposal of the Minister of Transport,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Decree specifies the conditions, order, procedures for the grant of air transportation business licenses, general aviation business licenses and general aviation registration certificates, agencies examining dossiers of application and agencies granting these licenses and certificates.
2. This Decree applies to all organizations and individuals involved in the grant of air transportation business licenses, general aviation business licenses and general aviation registration certificates.
Article 2. Scope of air transportation business and general aviation
1. Air transportation business includes air transportation, advertisement, marketing, sale of air transportation products on the market for profit purposes.
2. General aviation includes the following activities:
a) General aviation for commercial purposes, which means activities of providing general aviation services, advertising, marketing or selling general aviation services on the market for profit purposes;
b) General aviation for non-commercial purposes, which means general aviation in service of activities of organizations and individuals for non-profit purposes.
Article 3. Agencies examining dossiers of application and granting licenses and certificates
1. The Civil Aviation Administration of Vietnam, an agency of the Ministry of Transport, shall examine dossiers of application for air transportation business licenses, general aviation business licenses, general aviation registration certificates, investment certificates for foreign investment projects in the domain of air transportation business, and investment certificates for foreign investment projects in the domain of general aviation business.
2. The Minister of Transport shall grant, as authorized by the Prime Minister, air transportation business licenses and investment certificates for foreign investment projects in the domain of air transportation business.
3. The director of the Civil Aviation Administration of Vietnam shall grant general aviation business licenses, investment certificates for foreign investment projects in the domain of general aviation business, and general aviation registration certificates.
Article 4. Investment certificates for foreign investment projects
1. An investment certificate for a foreign investment project is concurrently an air transportation business license or general aviation business license, as the case may be.
2. The conditions, order and procedures for the grant of investment certificates specified in Clause of this Article are also applicable to the grant of air transportation business licenses and general aviation business licenses defined in this Decree.
Chapter II
CONDITIONS FOR GRANT OF AIR TRANSPORTATION BUSINESS LICENSES AND GENERAL AVIATION BUSINESS LICENSES
Article 5. General requirements
1. Enterprises applying for ail transportation business licenses or general aviation business licenses must satisfy the conditions specified in Clause 1, Article 110 and Clause 2, Article 198 of the Law on Civil Aviation of Vietnam and the specific conditions specified in this Decree.
2. If airlines that have been granted air transportation business licenses apply for general aviation business licenses, they are only required to satisfy the relevant conditions specified at Point a, Clause 1, Clause 2, Article 6, and Article 9 of this Decree.
Article 6. Plans to assure the 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 specify the following:
a) Quantity and type of aircraft;
b) Mode of possession (purchase, hire-purchase or lease);
c) Plan on operation, maintenance and human resources to operate and maintain aircraft;
d) Capital source to assure the possession of aircraft;
e) The number of aircraft dry-leased by the end of the third year of operation must account for not more than 30% of the fleet.
2. The age of used aircraft; imported into Vietnam is specified as follows:
a) For aircraft for passenger transportation: The age of an aircraft of this type must not exceed 10 years, counting from the date of manufacture to the time of import into Vietnam under a purchase or hire-purchase contract; or must not exceed 20 years, counting from the date of manufacture to the time of expiration of a lease contract as stated in that contract;
b) For aircraft for transportation of cargoes, postal parcels and items and engaged in general aviation for commercial purposes: The age of an aircraft of this type must not exceed 15 years, counting from the date of manufacture to the time of import into Vietnam under a purchase or hire-purchase contract; or must not exceed 25 years, counting from the date of manufacture to the time of expiration of a lease contract as stated in that contract;
c) For aircraft other than those specified at Points a and b, Clause 2 of this Article: The age of an aircraft of this type must not exceed 20 years, counting from the date of manufacture to the time of import into Vietnam under a purchase or hire-purchase contract; or must not exceed 30 years, counting from the date of manufacture to the time of expiration of a lease contract as stated in that contract.
Article 7. Conditions on organization of the apparatus to assure the operation of aircraft, air transportation business or general aviation business
1. Having a management apparatus capable of supervising the operation and maintenance of aircraft, flight training, ground operation; development of products, marketing and sale of air transportation services; and a financial payment system.
2. Persons in charge of activities specified in Clause 1 of this Article must have appropriate professional certificates issued or recognized by the Ministry of Transport.
Article 8. Legal capital
1. Legal capital for an airline engaged in air transportation business is prescribed as follows:
a) If it operates between 1 and 10 aircraft:
- VND 500 billion, for enterprises also engaged in international air transportation;
- VND 200 billion, for enterprises only engaged in domestic air transportation.
b) If it operates between 11 and 30 aircraft:
- VND 800 billion, for enterprises also engaged in international air transportation;
- VND 400 billion, for enterprises only engaged in domestic air transportation.
c) If it operates more than 30 aircraft:
-VND 1,000 billion, for enterprises also engaged in international air transportation;
-VND 500 billion, for enterprises only engaged in domestic air transportation.
2. Legal capital for enterprises engaged in general aviation business: VND 50 billion.
Article 9. Contents of business plan and product development strategy
1. Demand and development trend of the market.
2. Evaluation of the present status and competitiveness of services provided on the market.
3. Strategy on development of air transportation products and plan on business development in the first five years.
Article 10. Foreign-invested enterprises
1. Foreign-invested airlines conducting air transportation business and foreign-invested enterprises conducting general aviation business must satisfy the conditions specified in Clause 2, Article 110 of the Law on Civil Aviation of Vietnam and the following specific conditions:
a) The operation charter must clearly state the number of members of the executive apparatus, of whom foreign members account for not more than one third;
b) The foreign party owns not more than 49% of the charter capital; or one foreign individual or legal entity owns not more than 30% of the charter capital.
2. The executive apparatus defined at Point a, Clause 1 of this Article is composed of:
a) Director, deputy director(s);
b) Chief accountant;
c) Supervisors in charge of operation and maintenance of aircraft; training of flight crews; ground operation; development of products, marketing and sale of air transportation services;
d) Other members of the executive directorate as stipulated in the operation charter of the enterprise.
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