Capital requirements drafted for new airlines
14:29, 2016/06/27
The Ministry of Transport has submitted a draft decree on conditional business lines. According to the draft, a new airline must have capital of at least 100 billion VND (4.66 million USD).
Under the draft, if the airline registers one to 10 airplanes, investors will have to guarantee charter capital of at least 700 billion VND for international services and 300 billion VND for domestic services.
If the airline registers 10 to 30 aircraft, investors are required to guarantee at least 1 trillion VND for international flights and 600 VND for domestic flights.
New airlines registering more than 30 aircraft will have to secure at least 1.3 trillion VND for international flights and 700 billion VND for domestic flights.
The draft stipulates that for foreign-invested businesses in aviation, foreign ownership is not allowed to exceed 30 percent of the charter capital, while Vietnamese individuals or investors are not permitted to hold more than 49 percent of charter capital. If they want to sell their shares to foreign investors, it can be done after two years since the date of issuing the business licence for aviation.
The draft decree also sets out the principles and responsibility of agencies and units to manage, plan and operate airports.
The draft offers two business methods. The first method requires that the minimum capital for establishing and maintaining the operation of airport enterprises that provide aviation service is 100 billion VND for domestic airports and 200 billion VND for international airports.
Foreign ownership is not allowed to exceed 30 percent in companies that manage passenger terminals, goods terminals, gas and oil supply, as well as ground commercial technical services. Airlines are not allowed to own more than 30 percent of charter capital in airport enterprises and enterprises that manage passenger and goods terminals.
The second method requires that companies that manage apron areas, news services, navigation aid and supervision, as well as weather observation, must be at least 65 percent State-owned.
Minister of Transport Truong Quang Nghia said the draft regulation on the charter capital ratio was adapted according to the equitisation plan for the Airports Corporation of Vietnam (ACV), which was approved by the government.
ACV, which operates airports across Vietnam, is allowed to sell part of the State’s stake in the corporation and issue more shares to increase its charter capital.
If the airline registers 10 to 30 aircraft, investors are required to guarantee at least 1 trillion VND for international flights and 600 VND for domestic flights.
New airlines registering more than 30 aircraft will have to secure at least 1.3 trillion VND for international flights and 700 billion VND for domestic flights.
After equitisation, VASCO will change its name to be SkyViet Airline Joint Stock Company
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The draft decree also sets out the principles and responsibility of agencies and units to manage, plan and operate airports.
The draft offers two business methods. The first method requires that the minimum capital for establishing and maintaining the operation of airport enterprises that provide aviation service is 100 billion VND for domestic airports and 200 billion VND for international airports.
Foreign ownership is not allowed to exceed 30 percent in companies that manage passenger terminals, goods terminals, gas and oil supply, as well as ground commercial technical services. Airlines are not allowed to own more than 30 percent of charter capital in airport enterprises and enterprises that manage passenger and goods terminals.
The second method requires that companies that manage apron areas, news services, navigation aid and supervision, as well as weather observation, must be at least 65 percent State-owned.
Minister of Transport Truong Quang Nghia said the draft regulation on the charter capital ratio was adapted according to the equitisation plan for the Airports Corporation of Vietnam (ACV), which was approved by the government.
ACV, which operates airports across Vietnam, is allowed to sell part of the State’s stake in the corporation and issue more shares to increase its charter capital.
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