Final preparation underwayIn an announcement on June 20, the deputy prime minister requested the MPI to draft a prime minister decision approving the investment project in conformity with the Investment Law.
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The project investment scale is satisfied with requirements stipulated in government decree No. 92, which sets the minimum number of aircraft required for the entire process of providing air transport services at three.
Besides, the investor has sufficient equity, along with FLC Group's commitment to provide working capital regularly for business activities in the project's early stages and afterwards.
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.
With regard to this aspect, Dang Tat Thang, CEO of Bamboo Airways, added that the carrier will offer attractive fares that are a little bit more expensive than those of budget carriers, but with "five-star" services.
"Bamboo Airways is expected to launch its first flight on October 1, 2018," he tipped.
The airline was established in mid-2017 with charter capital of VND700 billion (US$30.8 million), the minimum stipulated for a local airline.
In May, FLC signed a US$3-billion contract with Airbus to buy 24 A321neo aircrafts, which is expected to be delivered to Bamboo Airlines in the agreed timeline in period 2022 - 2025. The airline also expected to lease an additional 10 aircrafts for operation.
At the annual general meeting of FLC Faros Construction Co. earlier this month, Quyet said Bamboo Airlines will strike a deal to acquire some 20 planes from Boeing later this month.
Bamboo Airways plans to provide direct international flights to destinations where FLC Group has resorts, such as Quy Nhon, Quang Ninh, Hai Phong, Phu Quoc, and Nha Trang, in addition to domestic flights connecting tourist spots in Vietnam.
Plenty of room for growth
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).
In 2010-2016, the Vietnamese aviation market witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo annually, informed the Civil Aviation Authority of Vietnam (CAAV).
During the first nine months of 2017, Vietnamese airports served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to US$34.6 billion in 2027 from US$18.4 billion recorded last year.
