REGULATION

OF THE HEAD OF AUTHORITY OF CIVIL AVIATION OF VIETNAM ON MANAGEMENT OF LEASING, BUYING AIRPLANES FOR AIR TRANSPORTATION IN VIETNAM

THE HEAD OF AUTHORITY OF CIVIL AVIATION OF VIETNAM

- Based on the Civil Law of Vietnam stated according to Order No-63 LCT/HDBT8 dated June 4th 1992 of the Chairmen of the State Council;
- Based on Decree No.242/HDBT dated June, 30th 1992 of the Ministerial Council
- Based on Decree No.36/TTg dated fed 6th 1993 of the Prime Minister.
- In order to improve the state management to air-transportation in Vietnam;

STIPULATE

Article 1: General regulation

1. Vietnamese civil air-transportation Businesses are responsible to submit their plans of exploitation and development of airplanes (short term and long term) to Authority of Civil Aviation of Vietnam for approval.

2. Vietnamese civil air-transportation Businesses are allowed to negotiate, sign contracts to lease, buy airplanes on the basis of their plan of airplane, development approved by authority of civil aviation of Vietnam according to point 1 of this article.

3. Agreements of leasing, buying airplanes must include a terms which regulates that the above mentioned contracts only come into effect after getting the approval of Authority of Civil Aviation of Vietnam according to the regulation on management to contract relating to air-transportation in Vietnam.

Article 2. Required conditions for leasing, buying airplanes.

1. Vietnamese air-transportation businesses are only allowed to lease, buy airplanes under the following conditions:

a. Used time of each airplane is not over 15 years from the date of leaving factory, or not over 2/3 of the longevity total fixed by its manufacture, and total of flew-time is over 30.000 hours or 2/3 of the whole flying time fixed by its manufacturer.

b. The above mentioned planes must meet requirements of flying safety to exploited line, flying-space.

c. The planes must have all valid certificates concerning their exploitation.

d. Leasing, buying of planes must meet requirements of development of planes, suit with plan and financial possibility of the business.

2. Vietnamese air-transportation businesses are responsible to execute fully the state's regulations on export-import management to leasing, buying airplanes.

Taking leased airplanes, bought-airplanes into Vietnam for use must be allowed according to Vietnam's regulation of issuing permit of civil aviation flying.

Article 3. Report on implementing contracts of leasing buying airplanes.

1. Vietnamese air-transportation businesses are responsible to report on serious breach-cases of civil aviation of Vietnam during performance of approved contracts of leasing/buying airplanes as stated in article 1 of this regulation and report on termination of the contracts before due or extension of duration of the contracts by leasing/buying airplanes must be approved before coming into effect.

Article 4. Required conditions for using leased airplanes.

1. Vietnamese air-transportation Businesses are only allowed to use leased airplanes in exploitation of air-transportation based on the approved contracts of leasing airplanes by authority of civil aviation of Vietnam.

2. Leasing airplanes as stated at point 1 of this article does not allow plane owners to use right of commercial exploitation of Vietnamese air-transportation Businesses.

Financial benefit of plane-owners does not depend on exploitation result of Vietnamese air-transportation Businesses who exploit airplanes.

3. foreign aviation firms are allowed to use which are not their possessions for air-transportation according to governmental agreement of aviation or agreement between authority of civil aviation of Vietnam and Authority of Aviation of the related country, or on the basis of mutual co-operation and must implement strictly regulations stated in point 2 of this article.

Article 5. Execution term

This regulation comes into effect from the signing date.

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