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Bamboo Airways’ business licence approved
November 16th 2018
The Ministry of Transport in Hanoi on Monday approved the business licence of fledgling Bamboo Airways, an airline proposing a hybrid business model. Read More »
Bamboo Airways was granted the licence following an extraordinary meeting presided over by Vietnamese Prime Minister, Nguyen Xuan Phuc. The ministry said its approval was based on the business plan presented by the airline and its financial soundness.
Bamboo Airways hopes to begin operations “before the end of the year”, although the airline still has not got any airplanes.
Earlier this month, Bamboo Airways signed a lease agreement with Hong Kong’s CDB Aviation for three new A320neo aircraft from the lessor’s order book with Airbus. The three planes are scheduled for delivery to Bamboo in the second half of 2019. CDB Aviation is the first aircraft lessor to lease new aircraft to the carrier and Bamboo Airways is CDB Leasing’s first airline customer in Vietnam.
Earlier this year, the airline signed a Memorandum of Understanding with Airbus for 24 A321neo. At the signing ceremony, the airline said it would order an equal number of A321LRs after its business license was approved. Shortly after signing the Airbus MoU, Bamboo agreed a Memorandum of Understanding with Boeing for the purchase of 20 B787-9s.
Bamboo Airways plans to operate domestic and international flights to tourist domestic destinations including cities where FLC hotels and resorts are located. It will compete with Vietnam Airlines and LCCs VietJet Air and Jetstar Pacific. VietJet just last week ordered an additional 50 A321neo aircraft, increasing its backlog for the type to 120 aircraft.
The biggest challenge to aviation development in Vietnam is infrastructure bottlenecks. Slots at Hanoi and Ho Chi Minh City are filling up quickly slots and there is a shortage of ramp space. Addressing the growing congestion, Bamboo Airways said it would fly passengers directly to Quy Nhon, Quang Ninh, Haiphong, Thanh Hoa, Phu Quoc, and Nha Trang.
Bamboo Airways is Vietnam’s first hybrid airline, combining a traditional full-service model with low-cost solutions.
