Business

Authorities to inspect transport business licences of domestic airlines

The Ministry of Transport has directed the Civil Aviation Authority of Vietnam (CAAV) to inspect domestic airlines' transport licences.
Authorities to inspect transport business licences of domestic airlines ảnh 1Aircraft at Noi Bai International Airport. The inspection of the transport business licences of domestic airlines will ensure airlines strictly comply with the law. (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Transport hasdirected the Civil Aviation Authority of Vietnam (CAAV) toinspect domestic airlines' transport licences.

The objective of this inspection, as stated in a recent writtendocument signed by Deputy Minister of Transport Le Anh Tuan, is to ensure thatairlines comply with current laws.

The CAAV must submit a plan for addressing air transport companiesthat do not meet the legal requirements in full, if any, and provide a writtenreport to the Ministry of Transport by March 8, 2023.

Vietnam 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, HanhTinh Xanh, Ngoi Sao Viet, Bau Troi Xanh, Sun Air, Bay Viet, with a combinedfleet of 249 aircraft.

To operate legally, airlines must hold both an air transport anda general aviation business licence, as stipulated by current laws. Inaddition, enterprises must ensure that their aircraft comply with operationalrequirements and satisfy other criteria, such as organisational structure,capital, business plans, and product development strategy.

The number of aircraft maintained for an air transport businessmust be at least three aircraft and at least one for a general aviationenterprise.

In addition, enterprises must meet the minimum capitalrequirements (including equity and loan) to establish and maintain an airtransportation enterprise.

Specifically, an air transport enterprise with a maximum of 10planes must have minimum charter capital of 300 billion VND. For those owning11-30 and more than 30 planes, the minimum amount is 600 billion VND and 700billion VND, respectively.

The minimum charter capital to establish and maintain a generalaviation enterprise is 100 billion VND.

Foreign-invested air transport enterprises must satisfy thefollowing conditions: foreign investors must account for no more than 34% ofcharter capital, and there must be at least one Vietnamese individual or oneVietnamese legal entity holding the largest share of charter capital.

If the Vietnamese legal entity has foreign invested capital, theforeign capital contribution must not exceed 49% of the legal entity's chartercapital./.      
VNA
#Civil Aviation Authority of Vietnam #Ministry of Transport #airlines #charter capital #Vietnam News Agency #Vietnam Plus
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