Business

Without license and aircraft, Bamboo Airways is determined to start flights at the year end

By Tran Dung April 23, 2018 | 12:18 PM GMT+7

Bamboo Airways has contacted many partners to lease 10 aircraft which are planned to come into operation in the fourth quarter of this year, according to the airline’s representative.

On April 20, 2018, FLC Group and its subsidiary, Bamboo Airways, launched a new brand identity pack. This is a follow-up activity for Bamboo Airways expected to start its flights at the end of this year.

Previously, Chairman of FLC Group Trinh Van Quyet signed a memorandum of understanding with Airbus (France) to purchase 24 A321NEO aircraft. Expectedly, the first aircraft will be delivered to Vietnam in 2021.

At the launch, Bamboo Airways CEO Dang Tat Thang said that the application progress of Bamboo Airways' business license is coming to an end. The airline is taking urgent matters to the Ministry of Transport (MoT) and the Ministry of Planning and Investment (MPI) for granting the license as soon as possible.

Despite having no license and aircraft, Bamboo Airways is confident that it will have the first flights from the fourth quarter of 2018 and will be licensed before this time.

"Headquarter" of Bamboo Airways will be located in Quy Nhon city, Binh Dinh province. Phu Cat airport located in Quy Nhon city is also the place where Bamboo Airways chooses to park its aircraft, avoiding congestion at Tan Son Nhat and Noi Bai airports.

It is unclear whether Bamboo Airways will be able to achieve its wish this year. However, Thang said that the airline has taken steps to move quickly, including human resources.

The fact that Nguyen Ngoc Trong, former vice president of Vietnam Airlines, has just been appointed Deputy CEO of Bamboo Airways can be seen as a typical example. By May, Bamboo Airways will complete its key team including both local and foreign staffs.

Bamboo Airways plans to take off in the fourth quarter of this year.

Formerly known as the helicopter supplier of FLC Group, due to ineffective business, Bamboo Airways has split to become a separate airline. In case that Bamboo Airways starts its flights by the end of this year, the airline’s tickets will soon be available in the market.

With the "hybrid" business model between traditional and low-cost airlines. Bamboo Airways will provide both services that these two models have. Bamboo Airways' ticket prices are also the average prices of the two models to compete with Vietnam Airlines and Vietjet Air.

Previously, Vietnam Airlines shared that the short flights such as Hanoi to Quang Binh route, the airline often has to offset losses. That is why both Vietnam Airlines and Vietjet Air have few flights for this route. Regarding this issue, Thang is confident that Bamboo Airways would be better off by taking advantage of the FLC ecosystem.

Thang said that Bamboo Airways has a competitive advantage that the two major airlines do not have. It is a good ecosystem from the FLC Group, with resorts ranging in size from 1,000 to 3,000 rooms. Bamboo Airways flights at first will make use of this advantage. For example, if customer flies from Hanoi to Quy Nhon via Bamboo Airways, the airline may offer discount when a customer stays at FLC Quy Nhon and vice versa.

"We do not worry about losses, it's important to set out an effective business strategy," Thang concluded.