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Bamboo Airways

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Bamboo Airways
IATA ICAO Call sign
QH BAV BAMBOO
Founded31 May 2017; 7 years ago (2017-05-31)
Commenced operations16 January 2019; 5 years ago (2019-01-16)
AOC #366
Operating bases
Frequent-flyer programBamboo Club[1]
Fleet size29
Destinations29
Parent companyHim Lam Group
HeadquartersCầu Giấy, Hanoi, Vietnam
Key people
FounderFLC Group (entirely divested)
Net incomeDecrease −US$747.8 million[2]
Total assetsIncrease US$ 1.4 billion (2020)[3]
Websitewww.bambooairways.com

Bamboo Airways JSC (Vietnamese: CTCP Hàng không Tre Việt, lit. 'Viet Bamboo Aviation JSC')[4][5] is a Vietnamese airline founded in 2017. Commencing operations in January 2019, this carrier declared that it would be following the "hybrid airline" model.[6] Bamboo Airways operates a mixed fleet of narrowbody and widebody aircraft, having hubs at Noi Bai International Airport and Tan Son Nhat International Airport alongside its registered base, Phu Cat Airport.

History

Launching & aircraft acquisition

The airline was founded in 2017.[7] In March 2018, a memorandum of understanding with Airbus for up to 24 Airbus A321neos in a deal worth up to US$3.1 billion was signed; the event was witnessed by the General Secretary Nguyễn Phú Trọng and the French Parliamentary President François de Rugy.[8][9][10] On 25 June 2018, with the presence of Deputy Prime Minister Vương Đình Huệ, the FLC Group officially signed an agreement with Boeing for an order of 20 new Boeing 787-9 Dreamliner aircraft worth $5.6 billion.[10][11]

In March 2019, Bamboo Airways completed an agreement to buy 26 more Airbus A321neo aircraft with a total listing value of up to $6.3 billion, serving the plan to develop the fleet and open new international routes, the agreement will bring the total number of narrow-body Airbus A321Neo aircraft ordered by Bamboo Airways to 50, including 24 in the memorandum of understanding signed in March 2018.[12][13]

The airline aimed to hire up to 600 personnel when it began in April 2018, and additionally had goals to operate as a five-star airline.[14][failed verification][8] In July 2018, The FLC Group announced it would be increasing its charter capital to $56.52 million.[15]

The establishment of the carrier was approved by the Prime Minister of Vietnam in July 2018.[16] The airline's AOC was granted on 9 July 2018. Bamboo Airways subsequently passed the five stages for certification required by Vietnam's Civil Aviation Authority.[17] After reviewing the airline's financial structure and business plan, the Ministry of Transport issued an aviation license in November 2018.[18] The carrier inducted its first aircraft, an Airbus A319-100, in December 2018.[19] The same month, Bamboo Airways took delivery of its first A321neo, on lease from GECAS.[17][20]

The airline started operations using aircraft acquired by lease from third-party lessors, before taking delivery of aircraft from Airbus.[21] Operations started on 16 January 2019, with a leased Airbus A320 linking Ho Chi Minh City with Hanoi.[22] A firm order covering ten Boeing 787-9s was made public in early 2019.[23] The carrier received its first A320neo in November 2019.[24] The airline's first Boeing 787-9 was delivered a month later.[25]

Founders' crisis, restructuring and new owner

In March 2022, Trịnh Văn Quyết - the founder and chairman of Bamboo Airways' then-parent group FLC - as well as many other FLC's key people were arrested over alleged stock market manipulation, fraud and appropriation of properties.[26][citation needed] Concerned that the crisis will negatively affect the operations of the carrier and damage the rights and safety of the customers, the Civil Aviation Authority of Vietnam announced that it will closely monitor and supervise Bamboo Airways in a certain period of time, while Bamboo Airways declared that it faced little disruption and its business was still running "smoothly".[27]

Followed by the authorities' investigations aiming at its parent company FLC Group, Bamboo Airways stated that it was needing a "strategic investor".[28] Local media has reported that a new owner, that its accurate identity is yet to be confirmed, has already started its acquisition of Bamboo Airways by refreshing the board of directors of the enterprise, announcing restructure plans for Bamboo Airways as well as cutting connections between Bamboo Airways's operations and its "former" owner FLC Group.[29][30]

As of December 2022, the official website of Bamboo Airways has no more mentioned the names of its founders, including the "FLC Group" brand.[31] In the financial report of 2022's third quarter, FLC has formally confirmed that its stake in Bamboo has been reduced to just more than 21%, eventually losing its dominant stakeholder position.[32]

In March 2023, Bamboo Airways confirmed that it has found a group of new investors replacing Trịnh Văn Quyết and FLC's ownership in the company. Meanwhile, the first Bamboo aircraft was rolled out in Taiwan without "FLC Group" marking.[33][34]

On 21 June 2023, Him Lam Group was officially announced as the new owner of Bamboo Airways.[35] Shortly after the Him Lam takeover, there were allegations of Bamboo Airways filing for bankruptcy protection due to "the inability of the new investors." The carrier later refuted the mentioned rumors while committing that it would be maintaining all normal operations.[36][37] It was subsequently recognized that Sacombank is looking to invest into the airline and help improving the financial situation of the carrier.[38]

In October 2023, Bamboo appointed a new CEO while announced fleet restructuring, hinting that the carrier may decommission its widebody fleet.[39]

Corporate affairs

Key people

As of November 2018, Duong Thi Mai Hoa held the vice-president and general manager positions.[40] Dang Tat Thang held the CEO position from 2018 until July 2022.[41] Nguyen Manh Quan is the current CEO of the carrier, as of July 30, 2022.[42][43]

Dang Tat Thang was also the chairman of the carrier after the former Chairman Trinh Van Quyet was arrested at the end of March 2022 on stock manipulation charges. He held the position and also the aforementioned CEO position until July 27, 2022, when he resigned, citing "personal reasons".[44] After an extraordinary shareholders meeting on August 13, 2022, the carrier's shareholders have appointed Deputy Chairman Nguyen Ngoc Trong as the new chairman of the board for the carrier.[45][46]

On May 21, during a board meeting, the carrier's Board of Directors passed a Resolution appointing Mr Nguyen Minh Hai, former Deputy CEO of Vietnam Airlines and former CEO of Cambodia Angkor Air, to be the new CEO of the carrier from May 24, replacing Mr Nguyen Manh Quan who has submitted a Resignation Letter to move up to the board of directors,[47] only to resign after just 2 months.[48] Currently, Le Thai Sam is acting as the carrier's Chairman of the Board, Le Ba Nguyen as the Vice Chairman and Nguyen Ngoc Trong as the CEO. The carrier has been undergone a restructuring plan regarding its leadership, route network and fleet composition.[49]

Ownership

Bamboo Airways was owned by FLC Group, a company that specializes in property development, finance, and mining, among other activities.[9] FLC Group is reportedly transferring Bamboo Airways to another "strategic investor" and eventually withdrawing its influence from the carrier.[29]

In 2023, following the founders' crisis, the carrier was practically acquired by Him Lam Group (Him Lam JSC) - a sizeable real estate investor in Vietnam - alongside a group of "Japanese-associated investors."[35]

Headquarters

Bamboo Airways is headquartered in Cau Giay district, Hanoi.[50]

Destinations

Countries in which Bamboo Airways operates (October 2023)[51][52]
A Bamboo A321neo at Macau International Airport — one of the first international destinations launched by the carrier[citation needed]
Business Class on board a Boeing 787-9

As of October 2023, Bamboo Airways operates or has operated to the following destinations:[53]

Country City Airport Notes Refs
Australia Melbourne Melbourne Airport Terminated [54]
Sydney Sydney Airport Terminated [55]
China Tianjin Tianjin Binhai International Airport Charter [56]
Germany Frankfurt Frankfurt Airport Ends 30 October 2023 [57]
Macau Macau Macau International Airport Charter [58]
Japan Fukushima Fukushima Airport Terminated [59]
Omitama Ibaraki Airport Charter [60]
Tokyo Narita International Airport [61]
Singapore Singapore Changi Airport [62]
South Korea Seoul Incheon International Airport [63]
Taiwan Kaohsiung Kaohsiung International Airport [64]
Tainan Tainan Airport Charter [65]
Taipei Taoyuan International Airport [65][66]
Thailand Bangkok Suvarnabhumi Airport [62]
United Kingdom London Gatwick Airport Ends 25 October 2023 [67][68][69]
Heathrow Airport Terminated [62][67]
Vietnam Buon Ma Thuot Buon Ma Thuot Airport [70]
Can Tho Can Tho International Airport [71]
Chu Lai Chu Lai Airport [72]
Con Dao Con Dao Airport [73]
Da Lat Lien Khuong Airport [71]
Da Nang Da Nang International Airport
Đồng Hới Dong Hoi Airport [74]
Ha Long Van Don International Airport [75]
Hanoi Noi Bai International Airport Hub [74]
Hai Phong Cat Bi International Airport [74][76]
Ho Chi Minh City Tan Son Nhat International Airport Hub [74]
Huế Phu Bai International Airport [72]
Nha Trang Cam Ranh International Airport
Phu Quoc Phu Quoc International Airport [74]
Pleiku Pleiku Airport [71]
Quy Nhơn Phu Cat Airport Hub [74]
Rạch Giá Rach Gia Airport [77][78]
Thanh Hóa Tho Xuan Airport [74]
Tuy Hòa Tuy Hoa Airport [79]
Vinh Vinh International Airport [74]

Fleet

Current fleet

Bamboo Airways' first A321neo at Noi Bai International Airport. The type was phased in during November 2019 and was technically the first aircraft type to be commissioned by Bamboo Airways.[20]
Bamboo Airways' A320neo aircraft with the Fly Green special livery spotted at Tan Son Nhat International Airport, Ho Chi Minh City.

As of September 2023, Bamboo Airways operates an all-leased fleet consisting of the following aircraft:[80]

Aircraft In
service 		Orders Passengers[citation needed] Notes
C W Y Total
Airbus A320-200 6 — 16 — 120 136
8 162 170
Airbus A320neo 6 — 8 — 162 170[24]
— 180 180
Airbus A321-200 4 — 8 — 184 192
Airbus A321neo 6 — 16 — 182 198 Signed MoU for 24 airframes, no firmed order yet[81]
8 196 198[82]
8 215 223 Equipped with Airbus Cabin Flex configuration[83]
Boeing 787-9 3 10[84] 26 21 247 294[85] With an MoU for 20 more airframes[11]
30 36 226 292[85]
Embraer E190 5 — 6 — 92 98
Total 30 10
Bamboo Airways' Boeing 787-9 at Noi Bai International Airport, Hanoi.

Fleet development

In August 2022 Chairman Nguyen Ngoc Trong said that Bamboo Airways aims to boost the number of aircraft in the fleet to 35 by the end of 2022, 42 in 2023 and 100 in 2028.[86]

Recently, the carrier has announced that it was undergoing a restructuring plan regarding its fleet in order to trim operating costs, thereby increasing operational effectiveness, increasing competition on the market and leading to a sustainable development.[87][88] The first aircraft to leave the fleet after the restructuring plans were announced is a 787-9, registered VN-A829, returning to lessor AerCap and is currently stored in Shanghai, China. It is currently unknown which aircraft type will leave the fleet.

Retired fleet

Those types of aircraft were either retired or decommissioned from Bamboo Airways fleet:

Aircraft Total Introduced Retired Notes
Airbus A319-100 1 2019 2022 [89][90][91]
Embraer E195 5 2020 2021 Wet-leased from Great Dane Airlines and LOT Polish Airlines.[92][93]

See also

References

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