Decree No. 30/2013/ND-CP on aviation business and operations

On Apr 8th, 2013, the Government issued Decree No. 30/2013/ND-CP on business air transport and general aviation operations to replace Decree 76/2007/ND-CP dated May 9th, 2007.

Set-up business in Vietnam

The new Decree regulates on conditions and procedures for granting business permits for air transport, general business aviation license for commercial purpose, registration certificate of general aviation operation for commercial purpose, the use of brand, franchise businesses in air transport business and air transport operation enterprises for commercial purposes.

According to this Decree, the age of the used aircraft imported into Vietnam is regulated as following:

a) For passenger aircraft: Not exceeding 10 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; does not exceed 20 years from the date of manufacture to the expiry of the leasing contract; 25 years from the date of manufacture to the expiry of the lease contract for helicopters;

b) For cargo aircraft, postal parcels and business aviation for commercial purposes: Not exceeding 15 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; not exceeding 25 years from the date of manufacture to the expiry of the lease contract;

c) The type of aircraft other than those specified above: Not exceeding 20 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; does not exceed 30 years from the date of manufacture to the expiry of the lease contract.

In addition, the decree also provides for capital requirements:

1. Minimum capital requirement to establish and operate airline air transportation business:

a) Operation upto 10 aircrafts: 700 billion VND (or USD 25m) for airlines to do international air transport; 300 billion VND for airline operators in domestic air transportation;

b) Operation from 11 to 30 aircrafts: 1,000 billion VND for airlines to do international air transport; 600 billion VND for airline operators in domestic air transport ;

c) Operation from 30 aircrafts or more: 1,300 billion VND for airlines to do international air transport; 700 billion VND for airline operators in domestic air transport.

2. Minimum capital requirement for the establishment of the airline business for commercial purposes: 100 billion VND Vietnam.

This Decree shall be effective from the date of 06/01/2013.

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