CIRCULAR

ON NON-REFUNDABLE ADVANCE COMPENSATION IN AIR PASSENGER TRANSPORT

Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of the Minister of Transport on non-refundable advance compensation in air passenger transport, coming to force as of July 1, 2015, amended by:

Circular No. 27/2017/TT-BGTVT on amendments to certain articles of the Circular No. 36/2014/TT-BGTVT dated August 29, 2014 by the Minister of Transport on quality of passenger services at airports and the Circular No. 14/2015/TT-BGTVT dated April 27, 2015 by the Minister of Transport on non-refundable advance compensation in air passenger transport, coming into force as of November 1, 2017.

Circular No. 21/2020/TT-BGTVT dated September 28, 2020 on amendments to Circular No. 81/2014/TT-BGTVT dated December 30, 2014 of Minister of Transport on airway transportation and general aviation operation, Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of Minister of Transport on compensation for non-refunded advance in airway passenger transportation and Circular No. 33/2016/TT-BGTVT dated November 25, 2016 of Minister of Transport on operational and statistical report in Vietnam civil aviation, coming into force as of November 15, 2020.

Pursuant to the Law on Vietnam Civil Aviation No. 66/2006/QH11 and Law on Amendments to certain articles of the Law on Vietnam Civil Aviation No. 61/2014/QH13;

Pursuant to Decree No. 107/2012/NĐ-CP dated December 20, 2012 of the Government defining the functions, tasks, entitlements and organizational structure of the Ministry of Transport;

At the request of Director of Legal Department and Director of the Civil Aviation Authority of Vietnam,

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Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Circular promulgates non-refundable advance compensation (hereinafter referred to as compensation) in air passenger transport in Vietnam given to passengers who received confirmed reservations on flights in the event of denied boarding, flight cancellations, or long delays of flights due to faults of carriers.

2. This Circular applies to organizations or individuals involved in compensation in air passenger transport in Vietnam.

Article 2. Interpretation of terms[2]

1. “non-refundable advance compensation” means a compensation payment in cash or other appropriate forms which is paid to passengers by the carrier in accordance with regulations of law, irrespective of actual damage of the passengers.

2. “denied boarding passenger” means any passenger who had a ticket and received a confirmed reservation on the flight but that passenger is denied boarding by the carrier.

3. “actual time of departure (ATD)” means the time starting when chocks from under aircraft wheels are removed before take-off.

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5. “cancellation schedule” means the statement of cancelled flights operated by an airline sent to the Civil Aviation Authority of Vietnam, airport authorities and relevant regional air traffic services companies not later than 24 hours compared to the estimated time of departure (ETD).

6. “flight cancellation” means failure to operate a flight due to the cancellation schedule made by an airline.

7. “long delay of flight" means a flight having the ATD (when aircraft chocks are removed) of more than 4 hours later than its ETD based on its flight schedule.

8. “carrier” means an airline actually operating flights.

9. “confirmed reservation” means a statement made by the carrier to confirm that the passenger has had a seat on the flight.

Article 3. Rules for compensation

1. The non-refundable advance compensation shall be given to passengers in event of denied boarding, flight cancellations or long delays of flights in the flights departing from Vietnam.

2. The fulfillment of obligations to the non-refundable advance compensation shall not affect to fulfillment of other obligations of the carrier in air passenger transport as prescribed in regulations of law.

3. If the carrier is subject to compensation payment for damage under civil liability, the compensation payment prescribed in this Circular shall be deducted from the former compensation payment.

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OBLIGATIONS OF CARRIERS AND RIGHTS OF PASSENGERS

Article 4. Obligations of carriers[3]

1. Give non-refundable advance compensation for passengers having tickets and confirmed seats on flights with amount specified under Article 8 of this Circular in case of denied boarding, cancelled flight or delayed flights, except for cases of immunity from responsibility specified under Article 5, Article 6 and Article 7 of this Circular.

2. Publicize on websites of carriers, airports, representative offices, ticket offices and ticket sale systems of carriers regarding cases of non-refundable advance compensation, amount of compensation, detailed methods, compensation deadline and specific address for compensation.

3. Inform airport authorities, airport enterprises and passenger terminal service providers about reasons for cancelled flights and delayed flights immediately after decisions on cancellation are issued or as soon as delayed flights are identified to supervise and update on information system of airports and airfields.

4. Within 72 hours from the moment in which flights are expected to take off (in case of cancelled flights) or actually take off (in case of denied boarding or delayed flights) or irregularly at request of airport authorities, airlines are responsible for reporting to airport authorities about compensating for non-refunded advance of flights as follows:

a) Name: Report on non-refundable advance compensation for passengers denied boarding and having cancelled flights;

b) Details: information on flights of airlines, information on denied passengers, passengers with cancelled flights and solutions of the airlines;

c) Methods of submitting and receiving reports: physical or digital reports shall be submitted in person, via postal service, fax or other appropriate methods as per the law;

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5. Accept and process complaints of passengers denied boarding, having cancelled flights or delayed flights.

6. Record contact information provided by passengers namely: mobile number, landline number, email or number of relatives in case of failure to contact to provide information on cancelled flights and delayed flights 24 hours prior to estimated take-off time to serve as the basis for obligation exemption specified under Clause 1 Article 7 of this Circular.

Article 5. Carrier’s immunity from responsibility for denied boarding

The carrier shall be immune from obligations to pay compensation in the invent of denied boarding regarding any passenger having ticket and receiving the confirmed reservation or being on the journey as prescribed in Article 146 of Law on civil aviation of Vietnam, in particular:

1. The health problem of the passenger may cause damage to such passenger, other passengers or the flight.

2. The passenger is denied boarding to prevent epidemic diseases.

3. The passenger fails to conform to regulations on aviation safety, aviation security, aviation transport, or penalties for administrative violations against civil aviation.

4. The passenger violates public order, endangers flight safety or creates negative effects on lives, health and assets of other people.

5. The passenger under the influence of alcohol or other drugs loses control of his/her behaviors.

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7. The passenger is denied boarding at the request of a competent agency.

Article 6. Carrier’s immunity from responsibility for flight cancellations or long delays of flights

The carrier shall be immune from obligations to pay compensation in the event of flight cancellations or long delays of flights due to one of following reasons:

1. Weather condition causes negative effects on flight safety.

2. Security risks cause negative effects on flight safety.

3. The flight is cancelled or long delayed according to the decision of a competent agency.

4. The flight is not operated due to health problems of passengers (they suffer serious illnesses or die after boarding).

5. Scheduled airplanes are sabotaged or fleets of airplanes are sabotaged.

6. The flight is not operated due to armed conflicts, political instability or strikes.

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8. Technical problems occur during the operation of the airplane, from the time the captain signs the record on receipt of aircraft ready for flight operation until the end of the flight.

9. Each passenger is offered re-routing to the same destination in another flight and results in the passenger arriving no more than 4 hours later than the scheduled arrival time of the flight on which the confirmed reservation is received.

10. Each passenger is offered re-routing to the same destination in another flight and results in the passenger arriving no more than 6 hours later than the scheduled arrival time of the connecting flight if the destination is a connecting point in the journey of the passenger.

11. Other force majeure events occur.

Article 7. Carrier’s immunity from responsibility for other cases

1. The carrier shall be immune from obligations to pay compensation if it may prove the fact of one of following cases:

a) The carrier has provided the passenger with notice of flight cancellation or long delay of flight in speech or by messages or emails no less than 24 hours prior to the scheduled departure time under addresses prescribed in Clause 7 Article 4 of this Circular; or the carrier has made 02 telephone calls from 7 a.m to 10 p.m if the first call is not connected, the period of time between the first call and the second call is at least 20 minutes;

b) The passenger does not register contact information as prescribed;

c) It fails to contact with the passenger according to his/her registered information.

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3. The carrier is immune from obligations to pay compensation to the passenger who did not arrived for check-in at the airport or another place agreed with the carrier.

4. The carrier shall be immune from obligations to pay compensation to the passenger who voluntarily cancel the confirmed reservation.

Article 8. Non-refundable advance compensation levels

1. Compensation levels for a domestic flight paid to each passenger:

a) A flight of less than 1,500 km in distance: VND 200,000;

b) A flight of at least 500 km but less than 1,000 km in distance: VND 300,000;

c) A flight of at least 1,000 km in distance: VND 400,000;

2. Compensation for an international flight paid to each passenger:

a) A flight of less than 1,000 km in distance: 25 USD;

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c) A flight of at least 2,500 km but less than 5,000 km in distance: 80 USD;

d) A flight of at least 5,000 km in distance: 150 USD.

3. The carrier may regulate its compensation levels provided that they are not lower than compensation levels prescribed in Clause 1 and Clause 2 of this Article.

4[5]. The non-refundable advance compensation shall only apply once in the cases where the flight has been delayed for a long time and then cancelled.

Article 9. Methods and deadlines for non-refundable advance compensation

1. The carrier may provide passengers with non-refundable advance compensation by following methods:

a) In cash;

b) By bank transfer or other appropriate payment intermediary services at the requests of passengers.  With regard to aforesaid method, the carrier is obligated to make non-refundable advance compensation within 14 working days from the date on which the request of the passenger is received;

c) By free tickets, reimbursement vouchers for further use of the carrier’s service or other free services in case of approval of the passenger.

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a) At the airport where the passenger is denied boarding;

b) At the branch or the representative office appointed by the carrier according to agreement with the passenger if that passenger follows procedures at a place other the airport;

c) Into the account provided by the passenger if the method prescribed in Point b Clause 1 of this Article is selected.

3. For flight cancellation, the carrier is obligated to provide the passenger with non-refundable advance compensation:

a) At the airport where their flight is cancelled,

b) At the branch or the representative office of the carrier at the request of the passenger or appointed by the carrier within 14 working days from the date on which the flight is cancelled;

c) Into the account provided by the passenger if the method prescribed in Point b Clause 1 of this Article is selected.

4. For long delays of flights, the carrier is obligated to provide the passenger with non-refundable advance compensation:

a) At the airport where their flight takes off or lands;

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c) Into the account provided by the passenger if the method prescribed in Point b Clause 1 of this Article is selected.

Article 10. Rights of passengers

1. Receiving information as prescribed in Clause 3 Article 4 of this Circular.

2. Receiving non-refundable advance compensation from the carrier according to methods and terms prescribed in this Circular.

3. In case the passenger fails to receive any non-refundable advance compensation or the compensation level is not offered in accordance with this Circular, the passenger shall send a request to the carrier within 90 days from the scheduled departure time of the flight. Within 7 days from the date on which the request is received, the carrier is obligated to send response to the non-refundable advance compensation as prescribed in this Circular.

4. Suing the carrier for non-refundable advance compensation as prescribed in civil law if he/she does not agree with the decision of the carrier prescribed in Clause 3 of this Article.

Article 11. Obligations of passengers

1. Providing sufficient and accurate information as prescribed in Clause 7 Article 4 of this Circular.

2. Sending notifications of methods and terms for compensation to the carrier.

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IMPLEMENTATION

Article 12. Responsibilities of the Civil Aviation Authority of Vietnam

1. Announcing lengths of domestic and international flights departing from Vietnam which are bases for non-refundable advance compensation prescribed in Article 8 of this Circular.

2. Inspecting and dealing with implementation of non-refundable advance compensation in air passenger transport.

Article 13. Responsibilities of airport authorities[6]

1. Publicly post length of air routes and regulations of this Circular in airports.

2. Inspect, supervise and deal with execution of obligations of carriers regarding passengers in the event of denied boarding, flight cancellations or long delays of flights according to this Circular.

3. Submit reports on supervising non-refundable advance compensation of airlines to Civil Aviation Authority of Vietnam on a monthly or ad-hoc basis.  

Monthly reports on supervising non-refundable advance compensation of airlines shall include following details:

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b) Details: information on airlines, flights (number, routes), date of fights, number of passengers receiving compensation, method of compensation, information of passengers receiving compensation and other information (if any);

c) Methods of submitting and receiving reports: physical or digital reports shall be submitted in person, via postal service, fax or other appropriate methods as per the law;

d) Report submission deadline: before the 10th of the next month;

dd) Figure conclusion date: from the first date to the last date of the month;

e) Report form: follow Annex II attached to this Circular.

Article 14. Duties of airport enterprises and enterprises providing passenger services[7]

Airport enterprises and enterprises providing passenger services shall update information about flight cancellations or long delays of flights on the information system of the airport right after receiving information provided by the carrier as prescribed in Clause 4 Article 4 of this Circular.

Article 15. Entry into force[8]

1. This Circular comes into force from July 1, 2015.

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3. Chief Officers, Chief Inspector, Directors of the Civil Aviation Authority of Vietnam, heads of authorities, relevant organizations and individuals shall implement this Circular./.

AUTHENTICATION OF CONSOLIDATED DOCUMENT
MINISTER




Nguyen Van The

[1] Circular No. 27/2017/TT-BGTVT on amendments to certain articles of the Circular No. 36/2014/TT-BGTVT dated August 29, 2014 by the Minister of Transport on quality of passenger services at airports and the Circular No. 14/2015/TT-BGTVT dated April 27, 2015 by the Minister of Transport on non-refundable advance compensation in air passenger transport, coming into force as of November 1, 2017, has the following bases:

“Pursuant to the 2006 Law on Vietnam Civil Aviation and Law on Amendments to certain articles of the 2014 Law on Vietnam Civil Aviation;

Pursuant to the Government’s Decree No. 12/2017/ND-CP dated February 10, 2017 on functions, tasks, power and organizational structure of the Ministry of Transport;

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Pursuant to the Circular No. 14/2015/TT-BGTVT dated April 27, 2015 by the Minister of Transport on non-refundable advance compensation in air passenger transport;

At the request of the Director of the Bureau of Transport and the Director of the Civil Aviation Authority of Vietnam;

The Minister of Transport promulgates a Circular on amendments to certain articles of the Circular No. 36/2014/TT-BGTVT dated August 29, 2014 by the Minister of Transport on quality of passenger services at airports and the Circular No. 14/2015/TT-BGTVT dated April 27, 2015 by the Minister of Transport on non-refundable advance compensation in air passenger transport”. 

Circular No. 21/2020/TT-BGTVT dated September 28, 2020 on amendments to Circular No. 81/2014/TT-BGTVT dated December 30, 2014 of Minister of Transport on airway transportation and general aviation operation, Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of Minister of Transport on compensation for non-refunded advance in airway passenger transportation and Circular No. 33/2016/TT-BGTVT dated November 25, 2016 of Minister of Transport on operational and statistical report in Vietnam civil aviation, coming into force as of November 15, 2020, has the following bases:

“Pursuant to Law on Vietnam Civil Aviation No. 66/2006/QH11 dated June 29, 2006 and Law on amendments to Law on Vietnam Civil Aviation No. 61/2014/QH13 dated November 21, 2014;

Pursuant to Decree No. 30/2013/ND-CP dated April 8, 2013 of the Government on airway transportation business and general aviation operation;

Pursuant to Decree No. 66/2015/ND-CP dated August 12, 2015 of Government on Aviation Authorities;

Pursuant to Decree No. 92/2016/ND-CP dated July 1, 2016 of the Government on conditional business lines in civil aviation sector;

Pursuant to Decree No. 12/2017/ND-CP dated February 10, 2017 of Government on functions, tasks, powers, and organizational structure of Ministry of Transport;

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At request of Director General of Department of Transport and Director of Civil Aviation Authority of Vietnam,

Minister of Transport promulgates a Circular on amendments to Circular No. 81/2014/TT-BGTVT dated December 30, 2014 of Minister of Transport on airway transportation and general aviation operation (hereinafter referred to as “Circular No. 81/2014/TT-BGTVT dated December 30, 2014”), Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of Minister of Transport on compensation for non-refunded advance in airway passenger transportation (hereinafter referred to as “ Circular No. 14/2015/TT-BGTVT dated April 27, 2015”)  and Circular No. 33/2016/TT-BGTVT dated November 25, 2016 of Minister of Transport on operational and statistical report in Vietnam civil aviation (hereinafter referred to as “Circular No. 33/2016/TT-BGTVT dated November 15, 2016”).”.

[2] This Article is amended by clause 1 Article 2 of Circular No. 27/2017/TT-BGTVT.

[3] This Article is amended by clause 1 Article 2 of Circular No. 21/2020/TT-BGTVT.

[4] This clause is amended by clause 3 Article 2 of Circular No. 27/2017/TT-BGTVT.

[5] This clause is amended by clause 4 Article 2 of Circular No. 27/2017/TT-BGTVT.

[6] This Article is amended by clause 2 Article 2 of Circular No. 21/2020/TT-BGTVT.

[7] This Article is amended by clause 5 Article 2 of Circular No. 27/2017/TT-BGTVT.

[8] Article 3 of Circular No. 27/2017/TT-BGTVT reads as follows:

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1. This Circular comes into force from November 01, 2017.

2. Chief Officers, Chief Inspector, Directors of the Civil Aviation Authority of Vietnam, heads of authorities, relevant organizations and individuals shall implement this Circular./.”

Article 4 of Circular No. 21/2020/TT-BGTVT on amendments to Circular No. 81/2014/TT-BGTVT dated December 30, 2014 of Minister of Transport on airway transportation and general aviation operation, Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of Minister of Transport on compensation for non-refunded advance in airway passenger transportation and Circular No. 33/2016/TT-BGTVT dated November 25, 2016 of Minister of Transport on operational and statistical report in Vietnam civil aviation, coming into force as of November 15, 2020, reads as follows:

“Article 4. Implementation

1. This Circular comes into force from November 15, 2020.

2. This Circular annuls:

a) Circular No. 52/2018/TT-BGTVT dated October 15, 2018 of Minister of Transport on amendments to Circular No. 81/2014/TT-BGTVT dated December 30, 2014 on airway transportation and general aviation operation;

b) Clause 2 Article 2 of Circular No. 27/2017/TT-BGTVT dated August 25, 2017 of Minister of Transport on amendments to Circular No. 36/2014/TT-BGTVT dated August 29, 2014 of Minister of Transport on quality of passenger services in airports and Circular No. 14/2015/TT-BGTVT dated April 27, 2015 of Minister of Transport on non-refundable advance compensation in airway passenger transportation.

3. Chief Officers, Chief Inspector, Directors of the Civil Aviation Authority of Vietnam, heads of authorities, relevant organizations and individuals shall implement this Circular./.”

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[10] This Appendix is amended as prescribed in clause 4 Article 2 of Circular No. 21/2020/TT-BGTVT.