Prior to that, on December 12, at the Government Office, Khai presided over a meeting to consider proposals from Bamboo Airways. Khai, after listening to the report by Bamboo Airways’ managers and opinions from relevant parties, said that, though Bamboo Airways is a newcomer in the aviation market, it provides high quality services and has gained passengers’ confidence. 

However, the air carrier is facing difficulties, incurring losses and owing money to clients and the state. Khai requested Bamboo Airways to check its operations and build a plan to restructure the company to help it operate effectively.

Meanwhile, the Ministries of Transport; Planning and Investment; Finance; and Public Security, the State Bank of Vietnam and the State Capital Management Commission will handle the proposals from the air carriers in accordance with their functions and rights. The results must be reported to the Prime Minister prior to December 31 as instructed by Khai in Dispatch No 9529 dated December 5, 2023. The problems which don’t come within the jurisdiction of the ministries need to be reported to the Prime Minister.

Khai told Petrolimex, Vietnam Airlines and joint stock banks to give support, share and join forces to cooperate with Bamboo Airways to overcome difficulties together.

One of the things Bamboo Airways wants to get from the government is permission to lease land at Tan Son Nhat Airport, which the carrier will use to develop auxiliary civil aviation functions.

The Ministry of Transport has been tasked with handling the proposal.

Regarding charter capital, Khai has assigned the Ministry of Public Security to handle in accordance with the laws.

Bamboo Airways has repeatedly asked the government and relevant ministries and branches to help overcome problems in financial capability and business activities.

Bamboo Airways’ 2022 financial report showed a loss of VND17.619 trillion, which was even higher than Vietnam Airlines’ (VND2.625 trillion) and VIetjet’s (VND1.993 trillion). Its stockholder equity had dropped to minus (-) VND836 billion by the end of 2022.

During the restructuring process, Bamboo Airways downsized its fleet from 30 to nine aircraft. It now provides services on only 16 domestic routes instead of 60 routes. The carrier is in debt to many service providers, from petrol suppliers to on-ground and catering service providers. 

As a result of the move, hundreds of pilots and 500 stewards have become redundant. Bamboo Airways has called on other carriers to help settle the problem.

Luong Bang