Five-star Emirates fined for VND15 million by Vietnam authorities

Emirates was fined for lacking a non-refundable advance compensation policy

The results of the CAAV’s recent inspection of Emirates’ operation in Vietnam uncovered several shortcomings and faults in the company’s operation and provision of air services in Vietnam.

The penalty was issued by the CAAV over charges of EK’s unpublished non-refundable advance compensation policy, which it found to be a breach of conduct under the local law. Accordingly, Emirates does not apply such a policy, thus its website and booking agencies do not have this information available for the public, while Article 4(3) of Circular No.14/2015/TT-BGTVT explicitly requires air transport companies to have such a policy and make information about it readily available to the public.

As reported by the CAAV, since January 1, 2017 until now, EK had 33 flights delayed for less than two hours and one cancelled flight in Ho Chi Minh City, while it had 23 delayed flights (including three that were delayed for more than three hours, and one for four hours) in Hanoi.

An inspection of the delayed and cancelled flights showed that flight EF393 (403 passengers, scheduled to depart at 11.55PM on July 18, 2018) was cancelled for technical reasons. The airline announced the cancellation to all passengers waiting to check in at the airport and served food and drink as well as arranged accommodation for guests that required it. However, Emirates then did not offer passengers the $150 non-refundable advance compensation as stipulated in Article 8 of Circular 14.

During the inspection, Emirates' reports have not met the inspectors’ requirements and the reports and other related documents requested were submitted with delays.

Especially, EK’s booking office submitted its 2017 report late and did not send the CAAV its unscheduled report on changing foreign employees in accordance with Article 12 of Circular No.81/2014/TT-BGTVT issued on December 30, 2014 by the Vietnamese Ministry of Transport. The CAAV’s chief inspector has written up another report and fined Emirates to VND15 million ($652) for this violation.

Emirates officially opened its booking office and set up business in Vietnam in 2012. Currently, it operates daily flights between Dubai and two Vietnamese destinations, Hanoi and Ho Chi Minh City.

In 2017, EK carried 124,646 passengers and 13,060 tonnes of goods to Ho Chi Minh City, and 81,864 passengers and 19,368 tonnes of goods to Hanoi. Only between January 1, 2018 and October 2018, there were a total of 107,857 passengers and 10,911 tonnes of goods flying with EK to Ho Chi Minh City, while there were 85,323 passengers and 16,313 tonnes of goods transported on the Hanoi route.

Based on European Commission (EC) Regulation 261/2004 on compensation and assistance to passengers in the event on delayed boarding and of cancellation or long delay of flights, in case your Emirates flight is delayed for more than three hours on arrival or is cancelled at an EU airport, you are entitled to a compensation of up to €600 ($679) from the airline.