22:37 (GMT +7) - Friday 16/11/2018

Business

PM agrees to licenses being issued to Bamboo Airways

Released at: 14:25, 09/11/2018

PM agrees to licenses being issued to Bamboo Airways

Photo: FLC Group

Carrier's first flight to take off by the end of this year.

by Ngoc Lan

Prime Minister Nguyen Xuan Phuc officially agreed with a proposal from the Ministry of Transport (MoT) to issue air transportation business licenses to Bamboo Airways, a member of the FLC Group, at a meeting of permanent government members on November 8.

Bamboo Airways’ flight licensing has now secured the consensus of representatives from ministries, sectors and localities.

Minister and Chairman of the Office of the Government Mai Tien Dung noted that the Prime Minister has agreed on the policy and assigned MoT to consider, evaluate and issue the flight license.

MoT previously sent an official proposal to the Prime Minister on it granting the license, as the carrier has met capital requirements, has plans to ensure the availability of aircraft, and has adopted an organizational structure, business plans, and product development strategies.

The ministry also said Bamboo Airways’ routes will assist tourism development, including inter-regional routes linking local tourist destinations with major cities such as Hanoi, Ho Chi Minh City and other countries in the region.

This will create new products and markets, improve tourism competitiveness, and increase options for passengers, in line with the aviation business plan approved by the Prime Minister.

Bamboo Airways received a decision approving its investment policy on July 9.

Mr. Dang Tat Thang, General Director of Bamboo Airways, said that in line with the aviation business license approved by the government on November 8, all final stages of preparation are completed for the airline’s first flight, scheduled for the end of the year.

Bamboo Airways will have 20 aircraft this year and 20-30 more in 2019 to serve its planned operations. New aircraft under $8.8 billion contracts signed with Airbus and Boeing are expected to be handed over from 2020.

Established in 2017, Bamboo Airways is a member of the FLC Group, has charter capital of VND700 billion ($31.1 million), and is a pioneer in the hybrid model (a combination of traditional and low-cost carriers). Passengers will be offered the same facilities as traditional airlines at only a slightly higher cost than on budget carriers.

In its first year of operations, Bamboo Airways is expected to operate eight to ten routes to priority domestic destinations such as Quang Ninh, Hai Phong, Thanh Hoa, Quy Nhon, and Nha Trang.

In subsequent years it will add international routes to Japan, South Korea, China, Thailand, Hong Kong and Taiwan. By 2023 it will open long-haul routes to the Americas, Europe, and Africa.

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