Along with the development of the socio-economy, sewing machines are increasingly becoming a popular and safe means of passenger transport. In that context, airline ticket companies were born, acting as a bridge between customers and airlines. However, airline ticket business is one of the conditional business lines prescribed by law. Therefore, businesses need to meet the conditions for establishing an airline ticket company to be able to operate in this field.
An airline ticket company is actually an airline ticket agency that makes transactions and sells airline tickets when customers want to buy tickets but do not need to go directly to the garment company to buy. It can be understood that airline ticket companies are authorized to sell tickets directly from airlines and are granted the right to sell airline tickets from the website of the garment company at competitive prices.
For airline ticket companies, the product to be traded will be airline tickets provided by airlines to distribute to the market to meet the needs of customers to use flight services. And in fact, airline ticket companies will often act as agents for many different airlines.
It can be seen that the current Enterprise Law 2020 allows any individual or organization to have the right to establish an airline ticket business. However, according to Clause 2, Article 17 of the Enterprise Law 2020, the law also prohibits the following entities from being allowed to establish and manage enterprises, including:
Basically, the airline ticket company will be the commercial agent for the airlines. Therefore, according to the 2005 Commercial Law, a commercial agency is an activity with the purpose of making profits whereby the principal and the agent will make an agreement for the agent to buy and sell goods on their own behalf to the principal or provide services of the principal to customers for remuneration.
Therefore, for each airline when signing an agency contract with an airline ticket company, there will be requirements for specific conditions in the agency contract. These conditions will be entirely up to the airline, as long as they are not contrary to the law.
You can refer to some common conditions of airlines in Vietnam that a ticket company must meet before becoming their agent that we present below:
Thus, the conditions for establishing an airline ticket company will include general conditions to be able to establish a legal business and separate conditions for each different airline. Airline ticket companies need to meet both of these conditions in order for the business to operate in accordance with the law.
In Vietnam’s WTO schedule of service commitments, the subgroup of services for sale and marketing of aviation products stipulates the mode of commercial presence: Foreign airlines are allowed to provide services in Vietnam through their ticketing offices or agents in Vietnam. With regard to the mode of presence of natural persons, Vietnam has not committed, except for general commitments. In addition, foreign investors can do business in selling airline tickets in the form of: booking and reservation services by computer. There are currently no restrictions on this form under WTO commitments.
The application for establishment of an airline ticket company will include the following documents:
After fully preparing the above dossier, Viet An Law Firm will proceed to submit an application for an Enterprise Registration Certificate through the National Business Registration Portal.
In case the application is complete and valid, the company will receive the business registration certificate within 3 working days.
After obtaining the business registration certificate, the airline ticket company performs the following tasks:
In order to be able to sign an airline ticket agency contract, the airline ticket company needs to know the conditions to be able to be an airline ticket agent for each specific airline.
If you have any other questions related to the conditions for establishing an airline ticket company in particular and other types of businesses in general, please contact Viet An Law Firm for support!
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