Swiss firm interested in Vietnam airport projects

Switzerland’s Zurich Airport AG has shown interest in airport development projects in Vietnam, including the big-ticket Long Thanh International Airport in the southern province of Dong Nai.

The corporation has sent a delegation to Vietnam to learn about airport projects here. Speaking at a meeting with Deputy Prime Minister Vuong Dinh Hue in Hanoi on October 25, Lukas Brosi, chief financial officer of Zurich Airport AG, said his business trip to Vietnam this time was aimed at getting detailed information about airport projects in Vietnam, according a report on the Government news website.

Deputy PM Hue expressed appreciation of Zurich Airport AG’s intention to participate in airport projects in Vietnam, saying he would tell relevant ministries and agencies to assist the company to explore these projects here.

Vietnam is looking for domestic and foreign investors to develop airports including Long Thanh International Airport, Hue told the Zurich Airport AG mission.

In his visit to Switzerland last month, Hue met with Zurich Airport AG leadership.

The Vietnamese aviation sector has grown significantly in recent years and is expected to be among the world’s top five markets in terms of passenger traffic in 2015-2035. Therefore, Vietnam will need huge capital to build and upgrade airports, said Hue.

Besides Long Thanh International Airport, Hue introduced Van Don, Chu Lai and Lao Cai airport projects to the Zurich Airport AG delegation.

Source: The Saigon Times

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Decree No. 30/2013/ND-CP on aviation business and operations

On Apr 8th, 2013, the Government issued Decree No. 30/2013/ND-CP on business air transport and general aviation operations to replace Decree 76/2007/ND-CP dated May 9th, 2007.

The new Decree regulates on conditions and procedures for granting business permits for air transport, general business aviation license for commercial purpose, registration certificate of general aviation operation for commercial purpose, the use of brand, franchise businesses in air transport business and air transport operation enterprises for commercial purposes.

According to this Decree, the age of the used aircraft imported into Vietnam is regulated as following:

a) For passenger aircraft: Not exceeding 10 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; does not exceed 20 years from the date of manufacture to the expiry of the leasing contract; 25 years from the date of manufacture to the expiry of the lease contract for helicopters;

b) For cargo aircraft, postal parcels and business aviation for commercial purposes: Not exceeding 15 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; not exceeding 25 years from the date of manufacture to the expiry of the lease contract;

c) The type of aircraft other than those specified above: Not exceeding 20 years from the date of manufacture to the point of entry into Vietnam under the purchase contract, lease purchase contract; does not exceed 30 years from the date of manufacture to the expiry of the lease contract.

In addition, the decree also provides for capital requirements:

1. Minimum capital requirement to establish and operate airline air transportation business:

a) Operation upto 10 aircrafts: 700 billion VND (or USD 25m) for airlines to do international air transport; 300 billion VND for airline operators in domestic air transportation;

b) Operation from 11 to 30 aircrafts: 1,000 billion VND for airlines to do international air transport; 600 billion VND for airline operators in domestic air transport ;

c) Operation from 30 aircrafts or more: 1,300 billion VND for airlines to do international air transport; 700 billion VND for airline operators in domestic air transport.

2. Minimum capital requirement for the establishment of the airline business for commercial purposes: 100 billion VND Vietnam.

This Decree shall be effective from the date of 06/01/2013.

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