Saturday, 22 Sep 2018
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ECONOMYTRADE - SERVICE

FLC inks US$5.6-billion contract with Boeing

Updated at Tuesday, 26 Jun 2018, 00:32
The Hanoitimes - Vietnamese conglomerate FLC Group has reached an agreement with Boeing to purchase 20 Boeing 787-9 Dreamliners for its Bamboo Airways in a contract worth US$5.6 billion at current list prices, according to the group.
Following the agreement, Boeing expected to deliver those aircrafts in April 2020. 

As part of the agreement, Bamboo Airways completed the deposit requirement in mid-June to reserve the 20 airplanes, which are tentatively schedule to deliver from April 2020 through 2021, Boeing said in a statement. 
 
Illustration photo.
Illustration photo.
In an interview to the media at Boeing's headquarter in Seattle las weekend, Trinh Van Quyet, founder of FLC Group confirmed that Bamboo Airways will launch its first flight in 2018. 

"We have prepared all necessary requirements for Bamboo Airways to take off in October. I can confirm that the airline will start operation this year," he asserted.

Bamboo Airways plans to provide direct international flights to destinations where FLC Group has resort facilities, such as Quy Nhon, Quang Ninh, Hai Phong, Phu Quoc, and Nha Trang, in addition to domestic flights connecting tourist spots in Vietnam.

At the annual general meeting on June 12, FLC Group Chairman Trinh Van Quyet stated the airlines positions itself similar to traditional carriers such as Vietnam Airlines, instead of being a budget airways. 

FLC previously came into an agreement with Airbus to purchase 24 Airbus A321 neo aircrafts for US$3 billion. 

The A321neo is the latest model of Airbus' A320 family (including A318, A319, A320, and A321). A321neo has an overall length of 44.51m with 220 seats, providing fuel burn improvement in excess of 20% per seat. For this new model, Airbus expanded seating capacity to optimize cabin space and increased exit limits. 

The A321neo is considered an ideal model for hybrid low-cost and traditional airlines, the very business model Bamboo Airways is targeting.

Viet Bamboo Airlines, the subsidiary of FLC Group operating Bamboo Airways, was established in 2017 with the charter capital of VND700 billion (US$30.8 million)

Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
Nguyen Tung
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