Circular No. 14/2015/TT-BGTVT on compensation for non-refundable advance payments in air passenger transport

CIRCULAR

Regulations on Advance Non-Refundable Compensation in Air Passenger Transportg

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Pursuant to the Civil Aviation Law of Vietnam No. 66/2006/QH11; the Law Amending and Supplementing the Civil Aviation Law of Vietnam No. 61/2014/QH13;

Pursuant to Decree No. 107/2012/NĐ-CP dated December 20, 2012 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Transport;

At the proposal of the Director of the Legal Affairs Department and the Director General of the Civil Aviation Administration of Vietnam,

The Minister of Transport hereby promulgates this Circular stipulating advance non-refundable compensation in air passenger transport.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates advance non-refundable compensation in air passenger transport in Vietnam for cases where passengers have been confirmed seats on flights but are refused carriage or flights are canceled or delayed due to the carrier's fault.

2. This Circular applies to organizations and individuals related to advance non-refundable compensation in air passenger transport in Vietnam.

1. "Advance non-refundable compensation" means compensation in the form of money or other appropriate forms that the carrier must pay to passengers under the provisions of the law regardless of the actual amount of loss suffered by the passengers.

2. "Passenger refused carriage" refers to a passenger who has a ticket and has been confirmed a seat on a flight but is refused carriage by the carrier.

3. "Flight cancellation" means not performing a flight whose schedule for seat reservation and ticket sales has been published on the carrier's booking system within 24 hours before the scheduled departure time.

4. "Delayed flight" means a flight with an actual departure time (counted from the time of aircraft pushback) more than four hours later than the scheduled departure time according to the carrier's published schedule updated until 15:00 on the day prior to the planned flight operation date.

5. "Carrier" refers to the airline operating the flights.

6. "Seat confirmation" means the carrier confirming that the passenger has a seat on the flight.

Article 3. Principles of Implementation

1. Advance non-refundable compensation shall be provided for flights departing from Vietnam in cases where passengers are refused carriage, flights are canceled, or flights are delayed.

2. The obligation to provide advance non-refundable compensation does not affect the carrier's obligations when transporting passengers as prescribed by law.

3. In cases where the carrier is liable for civil damages, the advance non-refundable compensation specified in this Circular shall be deducted from the amount of damage compensation.

Chapter II
OBLIGATIONS OF THE CARRIER AND RIGHTS OF PASSENGERS

1. Provide advance non-refundable compensation to passengers with tickets and confirmed seats on flights at the level prescribed in Article 8 of this Circular in cases of refusal of carriage, flight cancellation, or delayed flights, except for cases exempted from liability as prescribed in Articles 5, 6, and 7 of this Circular.

2. The regulations in the Carrier's Conditions of Carriage regarding compensation policies and compensation amounts shall not be lower than those prescribed in this Circular.

3. Publicly announce on the carrier's website, at airports, representative offices, ticket offices, and the carrier's sales agent network about the cases eligible for advance non-refundable compensation, compensation amounts, detailed compensation methods and deadlines, and specific addresses for compensation implementation.

6. Promptly accept and resolve complaints from passengers refused carriage, flight cancellations, or delays.

Article 5. Exemption from Liability of the Carrier in Cases of Refusal to Transport

The carrier is exempted from liability for non-refundable advance compensation in cases of refusal to transport passengers with confirmed seats on flights or those currently in transit as stipulated in Article 146 of the Civil Aviation Law of Vietnam, specifically as follows:

1. Due to the passenger's health condition where the carrier deems that transportation or continued transportation would be harmful to the passenger, other persons on board the aircraft, or the flight itself.

2. To prevent the spread of infectious diseases.

3. The passenger does not comply with regulations concerning aviation safety, aviation security, air transport operations, and administrative penalties for civil aviation offenses.

4. The passenger engages in behavior disrupting public order, threatening flight safety, or affecting the lives, health, or property of others.

5. The passenger is in a state of intoxication due to alcohol, beer, or other stimulants and cannot control their actions.

6. For security reasons notified by authorized authorities.

7. At the request of authorized state agencies.

Article 6. Exemption from Liability of the Carrier in Cases of Cancellation or Significant Delay of Flights

The carrier is exempted from liability for non-refundable advance compensation in cases of cancellation or significant delay of flights due to one of the following reasons:

1. Weather conditions affecting safe flight operations.

2. Security risks affecting safe flight operations.

3. The flight cannot be carried out or is significantly delayed according to the decision of authorized state agencies.

4. Passenger health issues (serious illness or death after boarding the aircraft).

5. The aircraft scheduled for the flight has been damaged or the fleet has been damaged.

6. Armed conflict, political instability, strikes affecting the flight.

7. In cases where the airport infrastructure or air traffic service support does not ensure the implementation of the flight.

8. Technical incidents occurring during aircraft operation, from the time the aircraft commander signs off on the aircraft being ready for the flight until the end of the flight.

9. Passengers are re-routed to their destination within 4 hours of the originally scheduled arrival time of the confirmed flight.

10. Passengers are re-routed to their destination within 6 hours of the originally scheduled arrival time of the connecting flight if the planned destination of the flight is a connecting point in the passenger’s journey.

11. Other force majeure circumstances.

Article 7. Exemption from Liability of the Carrier in Other Circumstances

1. The carrier is exempted from liability for non-refundable advance compensation to passengers if the carrier can prove one of the following situations:

a) Notifying the passenger verbally, via text message, or email about the cancellation or significant delay of the flight at least 24 hours before the scheduled departure time as specified in Clause 7 of Article 4 of this Circular; in case of telephone calls, the call must be made between 7 AM and 10 PM, with two attempts, each separated by 20 minutes, if the first call is unsuccessful.

b) The passenger has not registered contact information as required.

c) Unable to contact the passenger using the registered contact information.

3. The carrier is exempted from liability for non-refundable advance compensation in cases where passengers are not present to check-in at the airport or agreed-upon location with the carrier.

4. The carrier is exempted from liability for non-refundable advance compensation in cases where passengers voluntarily relinquish their confirmed status.

Article 8. Amount of Non-refundable Advance Compensation

1. The amount of non-refundable advance compensation for each passenger for domestic flights shall be as follows:

a) Flights with a route length under 500 km: 200,000 VND;

b) Flights with a route length from 500 km to under 1,000 km: 300,000 VND;

c) Flights with a route length of 1,000 km or more: 400,000 VND.

2. The amount of non-refundable advance compensation for each passenger for international flights shall be as follows:

a) Flights with a route length under 1,000 km: 25 USD;

b) Flights with a route length from 1,000 km to under 2,500 km: 50 USD;

c) Flights with a route length from 2,500 km to under 5,000 km: 80 USD;

d) Flights with a route length of 5,000 km or more: 150 USD.

Article 9. Method and Time Limit for Non-refundable Advance Compensation

1. The carrier may provide non-refundable advance compensation to passengers through the following methods:

a) Cash;

b) Bank transfer or through other appropriate payment intermediary services at the passenger's request. For this method, the carrier is obligated to provide non-refundable advance compensation within 14 working days from the date of receiving the passenger's request;

c) Free tickets, compensation vouchers for continued use of the carrier's services or other free services if the passenger agrees.

2. In cases where passengers are refused carriage due to the carrier's fault, the carrier is obligated to compensate the passengers immediately at one of the following locations:

a) The airport where the passenger was refused carriage;

b) Branches or representative offices designated by the carrier upon agreement with the passenger in cases where the passenger processed their procedures at a location other than the airport;

c) Into the account provided by the passenger in cases where the method specified in point b, Clause 1 of this Article is chosen.

3. In cases of flight cancellation, the carrier is obligated to compensate passengers:

a) At the airport where the flight was cancelled;

b) At branches or representative offices of the carrier according to the passenger's request or designated by the carrier within 14 working days from the date of flight cancellation;

c) Into the account provided by the passenger in cases where the method specified in point b, Clause 1 of this Article is chosen.

4. In cases of delayed flights, the carrier is obligated to compensate passengers:

a) At the airport where the flight takes off or lands;

b) At branches or representative offices of the carrier according to the passenger's request or designated by the carrier.

c) Into the account provided by the passenger in cases where the method specified in point b, Clause 1 of this Article is chosen.

Article 10. Rights of Passengers

1. To receive information on the contents stipulated in Clause 3 of Article 4 of this Circular.

2. To receive non-refundable advance compensation from the carrier according to the methods and time limits prescribed in this Circular.

3. In cases where passengers do not receive the non-refundable advance compensation or the amount of non-refundable advance compensation does not comply with the provisions of this Circular, passengers may submit a written request to the carrier within 90 days from the scheduled departure date of the flight to demand the carrier fulfill its obligations. Within 7 days from the date of receipt of the written request, the carrier is obligated to respond in writing regarding the fulfillment of the obligation to provide non-refundable advance compensation as prescribed in this Circular.

4. Passengers may initiate legal proceedings against the carrier for compensation for damages according to civil law regulations if they disagree with the decision of the carrier as stipulated in Clause 3 of this Article.

Article 11. Obligations of passengers

1. Provide complete and accurate information as prescribed in Clause 7, Article 4 of this Circular.

2. Select and notify the carrier of the method for receiving non-refundable advance compensation.

Chapter III
IMPLEMENTATION

Article 12. Responsibilities of the Vietnam Civil Aviation Authority

1. Announce the length of domestic and international flights departing from Vietnam as the basis for calculating the amount of non-refundable advance compensation as stipulated in Article 8 of this Circular.

2. Inspect, supervise, and handle according to their authority the implementation of regulations on non-refundable advance compensation in air passenger transport.

1. To publicly post the length of flight routes and regulations of this Circular at airports.

2. Inspect, supervise, and handle according to their authority the implementation of the carrier's obligations in cases where passengers are refused carriage, flights are canceled, or flights are delayed according to the provisions of this Circular.

3. Report periodically monthly or at any time upon request to the Civil Aviation Administration of Vietnam on the supervision of the contents prescribed in this Circular according to their authority.

Airports Enterprises shall be responsible for updating information on canceled or delayed flights onto the airport's information system immediately after receiving such information provided by the carrier as prescribed in Clause 3, Article 4 of this Circular.

Article 15. Effective Date of Implementation

1. This Circular takes effect from July 1, 2015.

2. Repeal Decision No. 10/2007/QĐ-BGTVT dated February 27, 2007 of the Minister of Transport regarding non-refundable advance compensation in air passenger transport.

3. The Director of the Ministry's Office, the Inspector General of the Ministry, the Heads of Departments, the Director of the Civil Aviation Administration of Vietnam, and the Heads of related agencies, organizations, and individuals are responsible for implementing this Circular./.