Draft circular ups advance compensation for delayed, cancelled flights

Under the draft circular on air transport, now open for comments, domestic payments per passenger would rise to 250,000 VND (nearly 9.5 USD) for flights under 500km (from 200,000 VND); 375,000 VND for 500-999km; and 500,000 VND for 1,000km and above.

Passengers wait at Tan Son Nhat International Airport in Ho Chi Minh City (Photo: dantri.com.vn)
Passengers wait at Tan Son Nhat International Airport in Ho Chi Minh City (Photo: dantri.com.vn)

Hanoi (VNS/VNA) - The Ministry of Construction has proposed raising advance compensation for passengers affected by flight delays and cancellations by 25% and adding vouchers and airline loyalty points as accepted forms of payment.

The draft circular on air transport, now open for comments, keeps existing compensation methods, including cash, bank transfer, free tickets and reimbursement documents, but adds payment vouchers and frequent‑flyer points, the ministry said.

Refund deadlines would vary by payment method under the draft: vouchers within seven days; cash or bank transfers within 21 days; credit card refunds within 45 days; and refunds processed via travel agencies within 60 days.

The proposal increases advance compensation for delayed or cancelled flights by about 25%. Under the draft, domestic payments per passenger would rise to 250,000 VND (nearly 9.5 USD) for flights under 500km (from 200,000 VND); 375,000 VND for 500-999km; and 500,000 VND for 1,000km and above.

International levels would increase to 30 USD for flights under 1,000km (from 25 USD); 60 USD for 1,000-2,499km; 100 USD for 2,500-4,999km; and 180 USD for 5,000km and above.

The ministry said the rise is based on a 25% increase in the US dollar inflation index between 2015 and 2025, citing US Bureau of Labor Statistics data.
The draft also proposes extending the time airlines have to complete compensation to 30 working days from the date of delay or cancellation, up from 14 days under current rules.

The measures follow parliamentary debate on revisions to Vietnam’s Civil Aviation Law in November 2025, when lawmakers pressed carriers over responsibility for delays, cancellations and denied boarding.

Minister of Construction Tran Hong Minh said regulators and airlines do not want delays or cancellations to occur, but that clearer law is needed as airports expand to prevent such incidents./.

VNA

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