Decree No. 76/2007/ND-CP on Air Cargo Transport Business and Common Aviation Activities

DECREE

Regarding air cargo transportation business and common aviation activities.

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Civil Aviation Law of Vietnam dated June 29, 2006;

Considering the proposal of the Minister of Transport.

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Decree specifies the conditions, procedures, and authorities for examining and issuing Air Cargo Transportation Business Licenses, Common Aviation Business Licenses, and Certificates of Registration for Common Aviation Activities.

2. This Decree applies to all organizations and individuals involved in the issuance of Air Cargo Transportation Business Licenses, Common Aviation Business Licenses, and Certificates of Registration for Common Aviation Activities.

Article 2. Scope of Air Cargo Transportation Business and Common Aviation Activities

1. The air cargo transportation business includes air cargo transportation, advertising, marketing, and selling air cargo transportation products on the market with the aim of profit-making.

2. General aviation activities include the following types:

a) Commercial common aviation activity is the provision of common aviation services, advertising, marketing, or selling common aviation services on the market with the aim of profit-making;

b) Non-commercial general aviation activities involve general aviation services provided for organizational and individual activities not for profit-making purposes.

Article 3. Authorities for Examination and Issuance of Licenses and Certificates

1. The Civil Aviation Authority of Vietnam, under the Ministry of Transport, shall conduct the examination of applications for Air Cargo Transportation Business Licenses, Common Aviation Business Licenses, Certificates of Registration for Common Aviation Activities, and Investment Certificates for foreign-invested projects in the air cargo transportation business and common aviation business.

2. The Minister of Transport shall issue Air Cargo Transportation Business Licenses and Investment Certificates for foreign-invested projects in the air cargo transportation business after obtaining approval from the Prime Minister.

3. The Director of the Civil Aviation Authority of Vietnam shall issue Common Aviation Business Licenses, Investment Certificates for foreign-invested projects in the common aviation business, and Certificates of Registration for Common Aviation Activities.

Article 4. Investment Certificate for Foreign-Invested Projects

1. The Investment Certificate for foreign-invested projects is simultaneously an Air Cargo Transportation Business License and a Common Aviation Business License as applicable.

2. The conditions, procedures, and requirements for issuing the Investment Certificate stipulated in Clause 1 of this Article shall be carried out in accordance with the provisions for issuing Air Cargo Transportation Business Licenses and Common Aviation Business Licenses set forth in this Decree.

Chapter II

CONDITIONS FOR ISSUANCE OF AIR CARGO TRANSPORTATION BUSINESS LICENSES AND COMMON AVIATION BUSINESS LICENSES

AIR TRANSPORT, LICENSE FOR COMMON AIR TRANSPORT

Article 5. General Requirements

1. Enterprises applying for an Air Cargo Transportation Business License or a Common Aviation Business License must meet the corresponding conditions prescribed in Clause 1, Article 110, Clause 2, Article 198 of the Civil Aviation Law of Vietnam and specific conditions stipulated in this Decree.

2. Airlines that have already been issued an Air Cargo Transportation Business License and are applying for a Common Aviation Business License only need to meet the corresponding conditions prescribed in Point a, Clause 1, Clause 2, Article 6, and Article 9 of this Decree.

Article 6. Aircraft Operation Assurance Plan

1. The aircraft operation assurance plan for the five years from the expected start date of business operations shall include the following contents:

a) Number and type of aircraft;

b) Form of ownership (purchase, lease purchase, or lease);

c) Operation, maintenance plan, and human resources to ensure aircraft operation and maintenance;

d) Capital source to ensure aircraft ownership;

đ) Ensure that the number of leased aircraft with flight crews does not exceed 30% of the fleet at the end of the third year of operation.

2. The age limit for second-hand aircraft imported into Vietnam is specified as follows:

a) For passenger-carrying aircraft: not more than 10 years from the date of manufacture to the date of importation into Vietnam under a purchase or lease-purchase contract; not more than 20 years from the date of manufacture to the end date of the lease contract under a lease contract;

b) For cargo-carrying aircraft, mail, and express delivery, commercial air taxi services: not more than 15 years from the date of manufacture to the date of importation into Vietnam under a purchase or lease-purchase contract; not more than 25 years from the date of manufacture to the end date of the lease contract under a lease contract;

c) For aircraft other than those specified in points a and b of Clause 2 of this Article: not more than 20 years from the date of manufacture to the date of importation into Vietnam under a purchase or lease-purchase contract; not more than 30 years from the date of manufacture to the end date of the lease contract under a lease contract.

Article 7. Conditions Regarding Organizational Structure to Ensure Aircraft Operations, Air Transport Business, and Air Taxi Business

1. Having a management organizational structure capable of supervising aircraft operation activities, aircraft maintenance, pilot training, ground operations; developing products, marketing, and selling air transport services; financial payment systems.

2. Individuals responsible for the activities stipulated in Clause 1 of this Article must hold appropriate professional certificates issued or recognized by the Ministry of Transport.

Article 8. Statutory Capital

1. Statutory capital for airlines engaged in air transport business is specified as follows:

a) Operating from 1 to 10 aircraft:

- VND 500 billion for enterprises operating international air transport;

- VND 200 billion for enterprises operating only domestic air transport.

b) Operating from 11 to 30 aircraft:

- VND 800 billion for enterprises operating international air transport;

- VND 400 billion for enterprises operating only domestic air transport.

c) Operating over 30 aircraft:

- VND 1,000 billion for enterprises operating international air transport;

- VND 500 billion for enterprises operating only domestic air transport.

2. Statutory capital for enterprises engaged in air taxi business: VND 50 billion.

Article 9. Contents of Business Plan and Product Development Strategy

1. Market demand and development trends.

2. Practical assessment and level of competition of services provided on the market.

3. Air transport product development strategy and business development plan for the first five years.

Article 10. Foreign-invested enterprises

1. Air carriers engaged in air transportation business and air taxi operators with foreign investment must meet the conditions stipulated in Clause 2 of Article 110 of the Civil Aviation Law of Vietnam and the following specific conditions:

a) The enterprise's charter must clearly specify the members of the management board, among which the number of foreign members shall not exceed one third of the total number of members;

b) The foreign side shall not hold more than 49% of the registered capital for air carriers, or 49% of the registered capital for air taxi operators; a single individual or legal entity from a foreign country shall not hold more than 30% of the registered capital.

2. The management board referred to in point a of Clause 1 of this Article includes:

a) Director, Deputy Director;

b) Chief Accountant;

c) Person in charge of supervising operational activities, maintenance, flight crew training, ground operations; product development, marketing, and air transport service sales;

d) Other members of the management board as prescribed in the enterprise's charter.

Chapter III

PROCEDURE FOR ISSUING BUSINESS LICENSES

FOR AIR TRANSPORTATION, BUSINESS LICENSE FOR AIR TAXI OPERATIONS

Article 11. Documents for Application for Business License for Air Transportation, Business License for Air Taxi Operations

1. The applicant for a business license for air transportation or a business license for air taxi operations must submit the application documents to the Vietnam Civil Aviation Authority.

a) Application form for a business license, including information on the name of the enterprise, trading name, main office location; legal representative; type of enterprise; branch offices, representative offices (if any);

2. The documents include:

b) A copy of the Certificate of Registration for Air Taxi Operations in cases where a business license for air taxi operations is requested;

c) List of members, shareholders; nationality and share of each member, shareholder for a limited liability company, joint stock company;

d) A copy of the Business Registration Certificate;

đ) Documentation proving compliance with the licensing conditions specified in Chapter II of this Decree;

g) Draft Charter for Air Transport;

e) A copy of the company's articles of operation;

h) Legal documents confirming the legal status of the owner, shareholders, investors;

i) Financial capability report of the owner, board members, shareholders, investors;

k) Confirmation from the competent authority or legal documents proving the capital of the enterprise;

l) Copies of professional certificates of individuals responsible as stipulated in Article 7 of this Decree;

m) Receipts or documents confirming payment of fees.

m) Receipt or document confirming payment of fees.

Article 12. Examination of Application for Business License for Air Transportation

1. Within thirty days from the date of receipt of all documents, the Vietnam Civil Aviation Authority will examine the application for a business license for air transportation and report the examination results to the Minister of Transport.

2. During the examination process, the applicant for a business license for air transportation must provide additional explanations regarding related issues as required by the examining authority.

Article 13. Decision on Issuing the Air Cargo Transport Business License

1. Within fifteen days from the date of receipt of the report on the results of the assessment by the Vietnam Civil Aviation Authority, the Minister of Transport shall submit to the Prime Minister for decision or request the Vietnam Civil Aviation Authority to reassess. The procedures and formalities for reassessment shall be carried out in accordance with the provisions of Article 12 of this Decree.

2. Within fifteen days from the date of receipt of the submission by the Minister of Transport, the Prime Minister shall consider the issuance of the Air Cargo Transport Business License.

3. Within five working days from the date of receipt of the approval opinion of the Prime Minister, the Minister of Transport shall issue the Air Cargo Transport Business License.

4. The Air Cargo Transport Business License shall include the following contents:

a) Name of the enterprise, trading name; main office location; branch offices, representative offices;

b) Number and date of issuance of the Air Cargo Transport Business License;

c) Registered capital; type of enterprise; share of each member, shareholder for a limited liability partnership, limited liability company, joint stock company;

d) Scope of business, type of air cargo transport.

Article 14. Assessment and Issuance of the General Air Transport Business License

1. Within thirty days from the date of receipt of all necessary documents, the Vietnam Civil Aviation Authority shall assess the application for the issuance of the General Air Transport Business License and make a decision on issuing the license.

2. During the assessment process, the applicant for the General Air Transport Business License must provide explanations regarding related issues upon the requirements of the assessing authority.

3. The General Air Transport Business License shall include the following contents:

a) Name of the enterprise, trading name; main office location; branch offices, representative offices;

b) Number and date of issuance of the General Air Transport Business License;

c) Registered capital; type of enterprise; share of each member, shareholder for a limited liability partnership, limited liability company, joint stock company;

d) Scope of business, type of general air transport activities.

Article 15. Notification of Issuance or Refusal to Issue the Air Cargo Transport Business License, the General Air Transport Business License

The Vietnam Civil Aviation Authority shall be responsible for:

1. Sending the Air Cargo Transport Business License, the General Air Transport Business License to the enterprise requesting the license within three working days from the date of receipt of the license, the date of issuance of the license.

2. Notifying in writing the refusal to issue the license to the applicant within three working days from the date of receipt of the decision refusing to issue the Air Cargo Transport Business License, the date of the decision refusing to issue the General Air Transport Business License.

Article 16. Publication of Contents of the Air Cargo Transport Business License, the General Air Transport Business License

1. Within thirty days from the date of issuance of the Air Cargo Transport Business License, the General Air Transport Business License, the enterprise must publish the contents of the license in one of the central newspapers or online newspapers in three consecutive issues.

2. In case the contents of the Air Cargo Transport Business License, the General Air Transport Business License change, the enterprise must announce the changes within the time limit and in the manner prescribed in Clause 1 of this Article.

Article 17. Revocation of Air Transport Business License and Common Aviation Business License

1. The Air Transport Business License and the Common Aviation Business License shall be revoked in the following cases:

a) Failure to meet the conditions for issuance of the license;

b) Intentionally falsifying information in the application dossier;

c) Not commencing air transport operations or common aviation activities within 24 months from the date of issuance of the license;

d) Ceasing air transport operations or common aviation activities continuously for 12 months;

đ) Not obtaining the Aircraft Operator Certificate within 24 months from the date of issuance of the license; the Aircraft Operator Certificate being withdrawn or revoked for more than 12 months without reissuance;

e) Operating contrary to the purpose or not in accordance with the contents recorded in the license;

g) Deliberately violating the provisions set forth in Articles 16, 18, and 19 of this Decree;

h) Seriously violating laws on national defense security, aviation security, aviation safety, air transport operations, and common aviation activities;

i) Bankruptcy or dissolution of the enterprise.

2. In the event that the Air Transport Business License and the Common Aviation Business License are revoked, the enterprise must immediately cease air transport business and common aviation business operations and be responsible for resolving existing air transport contracts and common aviation service contracts signed prior to revocation of the license.

Article 18. Changes to Enterprises Must Be Approved

1. An enterprise that has been issued an Air Transport Business License or a Common Aviation Business License must submit an application for approval when undergoing the following changes:

a) Sale of the enterprise; the enterprise is divided, merged, or consolidated;

b) Other changes different from those specified in the Air Transport Business License or the Common Aviation Business License as stipulated in Clause 4, Article 13 and Clause 3, Article 14 of this Decree.

2. An enterprise that has been issued an Air Transport Business License or a Common Aviation Business License must submit a change request dossier to the Civil Aviation Authority of Vietnam for review.

3. Procedures for reviewing the dossier and reporting the results of the review shall be carried out in accordance with Articles 12 and 14 of this Decree.

4. Within seven working days from the date of receipt of the review report for changes to the Air Transport Business License, if the change is approved, the Minister of Transport shall issue a supplementary or new license; if not approved, the Minister of Transport shall decide to reject the approval or require the Civil Aviation Authority of Vietnam to conduct another review.

5. If the change to the Common Aviation Business License is approved, the Director of the Civil Aviation Authority of Vietnam shall issue a supplementary or new license.

Article 19. Changes to Enterprises Must Be Registered

1. The following contents of enterprises holding an Air Transport Business License or a Common Aviation Business License must be registered with the Civil Aviation Authority of Vietnam within thirty days from the date of implementation:

a) Amendments to the Enterprise Operation Regulations and Transport Regulations;

b) Changes to the Business Registration Certificate;

c) Changes to the organizational structure as stipulated in Article 7 of this Decree;

d) Changes to the legal representative and management board members.

2. In cases where the changes specified in Clause 1 of this Article contravene legal provisions, the Civil Aviation Authority of Vietnam shall notify the enterprise in writing to make appropriate amendments.

Chapter IV

REGISTRATION CERTIFICATE FOR OPERATIONS

Article 11. Documents for Application for Business License for Air Transportation, Business License for Air Taxi Operations

Article 20. Conditions for Issuing the Certificate of Registration for General Aviation Activities

1. The Certificate of Registration for General Aviation Activities shall be issued to organizations and individuals conducting general aviation activities not for commercial purposes.

2. Conditions for issuing the Certificate of Registration for General Aviation Activities:

a) Recipient: Vietnamese legal entities; organizations established and operating under Vietnamese law with their main office in Vietnam; representative offices or branches of foreign organizations in Vietnam; Vietnamese citizens residing permanently in Vietnam; foreign citizens residing permanently in Vietnam;

b) Possessing operational aircraft;

c) Having aircraft maintenance facilities or having service contracts with maintenance facilities recognized by the Ministry of Transport;

d) Crew members must hold appropriate licenses and certificates;

đ) The type of general aviation activity planned must be suitable for the organization's functions and the individual's specific needs;

e) Compliance with national defense and security requirements.

Article 21. Documents for Application for Issuance of the Certificate of Registration for General Aviation Activities

1. Applicants requesting issuance of the Certificate of Registration for General Aviation Activities must submit the application documents to the Civil Aviation Authority of Vietnam.

2. The application package shall include the following documents:

a) Application form for general aviation activities, including information on the business name, trading name, main office location; legal representative (for organizations) or full name, date of birth, nationality, identification number or passport number, signature, place of residence (for individuals); planned type of general aviation activity; intended airports for aircraft base; quantity, type, registration number, ownership form (purchase, lease purchase, or lease) of aircraft to be operated; full name, date of birth, nationality, identification number or passport number, place of residence, license number and issue date of the aircraft pilot license of crew members;

b) Copies of establishment permit, operation permit, business registration certificate (for organizations); copies of identification card or passport (for individuals);

c) Copies of residence permit in Vietnam (for foreign citizens residing permanently in Vietnam); copies of establishment permit for representative offices or branches in Vietnam (for representative offices and branches of foreign organizations);

d) Copies of Aircraft Nationality Registration Certificate, Aircraft Airworthiness Certificate;

đ) Aircraft operation and maintenance plan;

e) Copies of licenses and certificates of crew members;

g) Copies of maintenance facility operation permits; copies of maintenance service lease contracts in case of leasing maintenance services;

h) Receipts or confirmation documents regarding payment of fees.

Article 22. Examination and Issuance of the Certificate of Registration for General Aviation Activities

1. Within thirty days from the date of receipt of complete application documents, the Civil Aviation Authority of Vietnam shall examine the application for issuance of the Certificate of Registration for General Aviation Activities; decide to issue or not issue the Certificate of Registration for General Aviation Activities after obtaining the agreement of the Combat Operations Department, Ministry of Defense.

2. During the examination process, applicants requesting issuance of the Certificate of Registration for General Aviation Activities must provide additional explanations on related issues according to the requirements of the examining authority.

3. The Certificate of Registration for General Aviation Activities shall include the following contents:

a) Name of enterprise, trading name, main office location; legal representative of the organization;

b) Full name; date of birth; nationality; identification number, issuing authority, and date of issuance of identity card or passport number, issuing authority, and date of issuance, place of residence of the individual;

c) Number and date of issuance of the Certificate of Registration for General Aviation Activities;

d) Type of general aviation activity to be conducted;

đ) Intended airport as the base for aircraft operations;

e) Quantity, type, registration number of aircraft operated.

Article 23. Revocation and Amendment of the Certificate of Registration for Common Air Transport Activities

1. The Certificate of Registration for Common Air Transport Activities shall be revoked in the following cases:

a) Failure to meet the conditions for issuance of the registration certificate;

b) Conducting activities contrary to the purpose or not in accordance with the contents recorded in the registration certificate;

c) Serious violation of laws governing non-commercial air transport activities;

d) Engaging in non-commercial air transport activities that affect national defense security, public interest, and social order;

đ) Intentionally falsifying information in the registration dossier;

e) The organization ceases to exist; the individual dies or loses civil capacity.

2. Organizations and individuals who have been issued the Certificate of Registration for Common Air Transport Activities wishing to amend the contents of the certificate must submit a request to the Civil Aviation Administration of Vietnam.

3. The content and procedures for examination and amendment of the Certificate of Registration for Common Air Transport Activities shall be carried out in accordance with the provisions of Article 22 of this Decree. In case of approval for amendment, the Director of the Civil Aviation Administration of Vietnam shall issue a supplementary or replacement certificate.

Chapter V

IMPLEMENTING PROVISIONS

Article 24. Application to Enterprises Engaged in Air Transport Business and Organizations, Individuals Engaging in Common Air Transport Activities Before the Effective Date of This Decree

Within one year from the date this Decree takes effect, enterprises currently engaged in air transport business, enterprises currently engaged in common air transport business, organizations, and individuals currently engaging in common air transport activities not for commercial purposes must complete the procedures to apply for a Business License for Air Transport Operations, a Business License for Common Air Transport, and a Certificate of Registration for Common Air Transport Activities in accordance with the provisions of this Decree.

Article 25. Effective Date

This Decree shall take effect fifteen days after its publication in the Official Gazette.

Article 26. Implementation

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.