The 2022 audited financial report showed that the carrier’s net revenue increased sharply by 3.3 times, from VND3.557 trillion in 2021 to VND12.018 trillion in 2022. However, the enterprise incurred a gross loss of VND3.209 trillion.

As the corporate governance cost soared from VND158 billion in 2021 to VND12.75 trillion in 2022, it took a heavy loss of VND17.619 trillion last year.

This was a record high loss, which was much higher than the loss of VND2.625 trillion incurred by Vietnam Airlines and the loss of VND1.993 trillion by Vietjet Air. As of the end of 2022, Bamboo Airways’ stockholder’s equity had plummeted to minus VND835 billion.

The audited financial report found the management cost soared by 80 times to VND12.75 trillion in 2022. The sharp increase has not been explained, but analysts attributed it to the provisioning against accounts receivable.

Bamboo Airways reported that the provision against short-term receivables by the end of 2022 had amounted to more than VND9.692 trillion, while the provision against long-term bad debts was VND2,800 billion.

Also, the air carrier reported securities investments valued up to VND6.309 trillion, though they did not give detailed explanation about the securities investment portfolio.

The short-term debt in financial leasing has amounted to VND10.115 trillion.

In 2023, the initial information from the leadership showed that the airline had nearly reached the breakeven point in the first quarter.

With pressure from financial problems, the extraordinary shareholders’ meeting on May 9 approved a plan on issuing 1.15 billion new shares, which allows an increase of charter capital to VND30 trillion. Analysts predicted that Le Thai Sam will become the biggest shareholder after the move and control the carrier.

Prior to that, the board of directors of FLC Group, the holding company of Bamboo Airways, made public the resolution approving the transfer of Bamboo Airways’ shares (BAV) to Le Thai Sam, a member of the board of directors of the airline.

The resolution says FLC will transfer 400 million BAV, or 21.7 percent of Bamboo Airways shares, to Sam in exchange for the debt settlement of the two parties.

The documents prepared for the shareholders’ meeting, slated for June 21, show that the air carrier plans to replace the entire board of directors of Bamboo Airways as all five members have resigned from their posts. A new board of directors for the 2023-2028 tenure will be elected with seven members.

In the latest move, Nguyen Minh Hai, became CEO of Bamboo Airways on May 24.

Manh Ha