Bamboo Air set to disrupt Vietnam’s busy airspace
Bamboo Airways, a new airline in Vietnam launched by property developer FLC Group, is set to compete in one of Southeast Asia’s busiest aviation markets, aiming at operating 37 domestic routes after its inaugural flight in October this year, Bloomberg News wrote.
However, the new airline still needs a government aviation license before operating and is seeking to capitalise on the nation’s growing middle class and rapidly expanding tourism industry.
“With a good investment, well-prepared staff and new aircraft, we will become a giant right after we launch the airline,” Chairman Trinh Van Quyet told Bloomberg News in an interview in his Hanoi office. The Civil Aviation Authority of Vietnam said the company has met “sufficient conditions” required to be able to fly in October and the flight license is forthcoming, he added.
Bamboo Airways’ proposal is being reviewed, according to a transport ministry official. Still, the startup airline may struggle to crack Vietnam’s aviation market, which also includes Vietnam Airlines’ budget carrier unit and joint venture with Jetstar Pacific.
The International Air Transport Association forecasts Vietnam will be among the world’s top five fastest-growing air travel markets in the next 20 years. The route between Hanoi and Ho Chi Minh City is already the world’s sixth-busiest in terms of passenger numbers last year, according to IATA. The aviation industry handled 23.6 million passengers during the first half of the year, a 15-per cent increase from the same period last year, according to Hanoi’s General Statistics Office.
Bamboo Airways will initially use 20 leased narrow-body and wide-body aircraft. Parent FLC agreed to buy 24 Airbus SE A321neo planes worth $3.2 billion at list price for Bamboo Airways. In June, it signed a commitment for 20 Boeing twin aisle 787-9 Dreamliners with a list price of $5.6 billion. Sixty per cent of the capital needed to buy the aircraft will be funded by financial organisations, Quyet said, adding that the funds were already arranged. The company expects full delivery of all aircraft by 2022.
The airline, which has registered capital of 1.3 trillion dong ($56 million), in addition to its domestic network is planning 50 international routes in 2019 to countries including Russia, Germany, France, England, Japan and China.
[caption id="attachment_31847" align="alignleft" width="300"] Bamboo Airline still needs an aviation license[/caption] Bamboo Airways, a new airline in Vietnam launched by property developer FLC Group, is set to compete in one of Southeast Asia’s busiest aviation markets, aiming at operating 37 domestic routes after its inaugural flight in October this year, Bloomberg News wrote. However, the new airline still needs a government aviation license before operating and is seeking to capitalise on the nation’s growing middle class and rapidly expanding tourism industry. “With a good investment, well-prepared staff and new aircraft, we will become a giant right after we launch the...
Bamboo Airways, a new airline in Vietnam launched by property developer FLC Group, is set to compete in one of Southeast Asia’s busiest aviation markets, aiming at operating 37 domestic routes after its inaugural flight in October this year, Bloomberg News wrote.
However, the new airline still needs a government aviation license before operating and is seeking to capitalise on the nation’s growing middle class and rapidly expanding tourism industry.
“With a good investment, well-prepared staff and new aircraft, we will become a giant right after we launch the airline,” Chairman Trinh Van Quyet told Bloomberg News in an interview in his Hanoi office. The Civil Aviation Authority of Vietnam said the company has met “sufficient conditions” required to be able to fly in October and the flight license is forthcoming, he added.
Bamboo Airways’ proposal is being reviewed, according to a transport ministry official. Still, the startup airline may struggle to crack Vietnam’s aviation market, which also includes Vietnam Airlines’ budget carrier unit and joint venture with Jetstar Pacific.
The International Air Transport Association forecasts Vietnam will be among the world’s top five fastest-growing air travel markets in the next 20 years. The route between Hanoi and Ho Chi Minh City is already the world’s sixth-busiest in terms of passenger numbers last year, according to IATA. The aviation industry handled 23.6 million passengers during the first half of the year, a 15-per cent increase from the same period last year, according to Hanoi’s General Statistics Office.
Bamboo Airways will initially use 20 leased narrow-body and wide-body aircraft. Parent FLC agreed to buy 24 Airbus SE A321neo planes worth $3.2 billion at list price for Bamboo Airways. In June, it signed a commitment for 20 Boeing twin aisle 787-9 Dreamliners with a list price of $5.6 billion. Sixty per cent of the capital needed to buy the aircraft will be funded by financial organisations, Quyet said, adding that the funds were already arranged. The company expects full delivery of all aircraft by 2022.
The airline, which has registered capital of 1.3 trillion dong ($56 million), in addition to its domestic network is planning 50 international routes in 2019 to countries including Russia, Germany, France, England, Japan and China.
