Econ
Bamboo Airways plans to launch non-stop flight to the US next year
Even if Bamboo Airways’ price of round-trip ticket rises to US$1,300, it’s still cheaper than that of other regional carriers namely Japan Airlines (US$1,600), Hong Kong’s Cathay Pacific (over US$1,300), among others.
Bamboo Airways, a unit of resort developer FLC Group and the newest air carrier in Vietnam, plans to launch the direct flight from Hanoi or Ho Chi Minh City to the US in early 2020.
At the panel discussing on Vietnam-US direct air route last week, CEO of FLC Trinh Van Quyet cited some facts to wipe out concerns that the Vietnam – US direct flight might incur loss to the Group.
Quyet affirmed that in case Bamboo Airways has to lease a wide body jet Boeing 787-9, the total expense for the Vietnam-US roundtrip flights in one month would be around VND113 billion (US$4.9 million).
With all costs counted including aircraft leasing, fuel, technical details, among others, the direct flight operation may incur a loss of VND13 billion (US$561,500) monthly if it sells round-trip ticket at US$1,100 each. However, if the price increases to US$1,300 and all the seats of the aircraft are filled, the carrier would gain VND8 billion (US$345,500) in revenue monthly.
Even if Bamboo Airways’ price of round-trip ticket rises to US$1,300, it’s still cheaper than that of other regional carriers namely Japan Airlines (US$1,600), Hong Kong’s Cathay Pacific (over US$1,300), among others, Quyet said.
In another scenario, with the same price of round-trip ticket at US$1,300, if the fifth air carrier in Vietnam leases Airbus A350 aircraft for the direct route, it might earn nearly VND28 billion (US$1.2 billion) monthly, Quyet elaborated.
If the flights are not as full as expected, Bamboo Airways will reduce the number of flights or make transit through third countries including Japan, South Korea, among others to pick up more passengers.
At the beginning, Bamboo Airways may face some challenges, but in long term, the carrier will not suffer loss taking into account its overall financial solution, said Chairman and President of Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.
Deputy Director General of the Civil Aviation Authority of Vietnam Vo Huy Cuong stressed that launching a direct flight from Vietnam to the US will help create a number opportunities for Vietnam in politics, foreign affairs as well as strengthening Vietnam's integration and connectivity with other countries in the world.
Bamboo, which made its maiden flight in February, operates 10 aircraft on 17 domestic flight routes.
Photo by Shutterstock/Phuong D. Nguyen. |
Quyet affirmed that in case Bamboo Airways has to lease a wide body jet Boeing 787-9, the total expense for the Vietnam-US roundtrip flights in one month would be around VND113 billion (US$4.9 million).
With all costs counted including aircraft leasing, fuel, technical details, among others, the direct flight operation may incur a loss of VND13 billion (US$561,500) monthly if it sells round-trip ticket at US$1,100 each. However, if the price increases to US$1,300 and all the seats of the aircraft are filled, the carrier would gain VND8 billion (US$345,500) in revenue monthly.
Even if Bamboo Airways’ price of round-trip ticket rises to US$1,300, it’s still cheaper than that of other regional carriers namely Japan Airlines (US$1,600), Hong Kong’s Cathay Pacific (over US$1,300), among others, Quyet said.
In another scenario, with the same price of round-trip ticket at US$1,300, if the fifth air carrier in Vietnam leases Airbus A350 aircraft for the direct route, it might earn nearly VND28 billion (US$1.2 billion) monthly, Quyet elaborated.
If the flights are not as full as expected, Bamboo Airways will reduce the number of flights or make transit through third countries including Japan, South Korea, among others to pick up more passengers.
At the beginning, Bamboo Airways may face some challenges, but in long term, the carrier will not suffer loss taking into account its overall financial solution, said Chairman and President of Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc.
Deputy Director General of the Civil Aviation Authority of Vietnam Vo Huy Cuong stressed that launching a direct flight from Vietnam to the US will help create a number opportunities for Vietnam in politics, foreign affairs as well as strengthening Vietnam's integration and connectivity with other countries in the world.
