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VietNamNews

Airlines get new rules on capital

Update: April, 13/2013 - 09:08
A Jetstar airplane lands at Da Nang International Airport. — VNS Photo Doan Tung

HA NOI (VNS)— A minimum of VND300 billion (US$14.4 million) is required to set up a commercial airline, following a recent Government decision.

The VND300 billion threshold applies to airlines which have less than 10 aircraft and operate solely domestic flights.

The minimum capital will increase to VND700 billion ($33.5 million) to fly international routes.

But the regulation also varies depending on the number of aircraft.

Carriers operating 11-30 planes for international flights would be required to have at least VND1 trillion ($47.8 million), while those with the same number running only domestic flights must have VND600 billion ($28.7 million).

Carriers with more than 30 planes on international routes must have registered capital of VND1.3 trillion ($62.2 million), while those with the same number operating on domestic routes only require capital holdings of at least VND700 billion ($33.5 million).

The decision also stipulates that foreign shareholders' capital be limited to 30 per cent of the total registered capital of any carrier.

The decision is effective from June 1, 2013.

Improving services

The Ministry of Transport has told three local airlines and the national airport corporation to improve in-flight services as well as customer service at airports.

The ministry has asked the national flag carrier, Vietnam Airlines, and two budget airlines, Jetstar Pacific Airlines and VietJet Air, as well as the Airport Corporation of Viet Nam, to review their attitude towards passengers and improve airport and on-board services.

According to the ministry, Vietnam Airlines should particularly improve its flight attendants' attitude and behaviour towards passengers, and strictly follow aviation security regulations.

The carriers should develop business plans according to market demand, while the Airport Corporation of Viet Nam should provide in-depth training courses to all employees at airports across the country, the ministry said.

The requests came after the ministry's receipt of many complaints about the attitude of flight attendants, service quality and repeated flight cancellations, according to Pham Quy Tieu, deputy minister of Transport.

The Airport Corporation of Viet Nam has asked all the airports under its management to strictly follow the ministry's request. — VNS


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