FLC Group plans to increase Bamboo Airways' charter capital to $56.4 million
By Anh Nguyen
July 17, 2018 | 07:55 AM GMT+7
According to the recent resolution of FLC Group’s Board of Directors, the Group plans to increase Bamboo Airways' charter capital by $26 million, an increase from $30.4 million to $56.4 million.
Bamboo Airways plans to take off its first flight on October 10 this year
According to Article 8, Decree No. 92/2016 / ND-CP, which regulates conditional business lines in civil aviation, $56.4 million is the minimum capital requirement of an airline to establish and maintain operation of more than 30 aircraft and also the exploitation of international air transport.
The decision to increase Bamboo Airways' charter capital of FLC Group was made soon after the Government officially approved establishment of Bamboo Airways.
Based on the approval decision, this project has a total investment capital of over $30 million, the minimum stipulated for a local airline.
The project will be implemented in the period 2019-2023 and is licensed for a period of 50 years from July 9, 2018.
Bamboo Airways' official fanpage has also recently announced the date of its first scheduled take-off to be October 10 this year.
With this project, FLC Group aims to turn Bamboo Airways into one of the top airlines in Vietnam.
According to Dang Tat Thang, CEO of Bamboo Airways, Bamboo Airways is set out to be a "hybrid" airline, particularly a combination of traditional and low cost airlines, aiming to satisfy the diverse demands of every passenger segment.
On last July 6, the leading Swiss investment bank, Credit Suisse AG, Singapore Branch, began disbursing $200 million worth of credit packages to the FLC Group under the contract signed between the two parties.
FLC Group said that the loan is secured by the right to contribute capital to its subsidiary in order to supplement the project's capital and working capital. The loan term is from 2.5 years to 3 years, according to the disbursement period.
The amount of disbursement will be used to implement and expand the projects as well as new activities of FLC Group.
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