PM to Decide on Airline Establishment: Draft Law

The Prime Minister will have a final say on the establishment of air carriers in Vietnam, according to the proposed draft amendments to the Vietnam Aviation Law.

 

The draft, which National Assembly deputies discussed at their ongoing session in Hanoi on October 31 specifies that the Ministry of Communications and Transport will be responsible for issuing licenses for the formation of airlines after the prime minister gives the go-ahead.

 

Establishing an airline in Vietnam is conditional. New local airlines must have as sufficient aircraft and professional staff as required, meet financial requirements and devise business plans that are sound and suitable for the country’s overall civil aviation development plan.

 

For Vietnam-foreign aviation join ventures, in addition to the above conditions, the prime minister must decide local and foreign holdings and legal representatives must be Vietnamese. Foreigners will make up one-third of management or less, according to the draft.

 

The draft disallows the trading or transfer of commercial air transport rights, which will be granted by the transport ministry.

 

Vietnam currently has two airlines, the national flag carrier Vietnam Airlines, and Pacific Airlines, which is a joint stock company. In the next three or four years, the government has no plan to establish the third airline.