11/07/2018 14:23 GMT+7 Email Print Like 0

Bamboo Airways given approval for investment

Deputy Prime Minister Trinh Dinh Dung has approved Bamboo Airways’ investment project at Phu Cat Airport in the south central province of Binh Dinh.

The project aims to make Bamboo Airways one of Vietnam’s leading carriers with a total investment of 700 billion VND (31.4 million USD).

The project plans to purchase ten Airbus 320 and 321 or Boeing 737 aircraft by 2023. It is permitted to operate for 50 years, starting from July 9, 2018.

The Deputy PM asked the Ministry of Transport to verify the project and grant it an aviation business license, while the People’s Committee of Binh Dinh was tasked with supervising the implementation of the project.

In May 2017, property developer FLC Group announced it would establish the Viet Bamboo Airways Company, a hybrid airline which will blend low-cost traits with those of traditional or full-service carriers. It also aims to be the first in Vietnam to provide First Class seats.

The carrier plans to serve 24 domestic air routes, including Thanh Hoa-Quy Nhon, Thanh Hoa-Phu Quoc, Thanh Hoa-Nha Trang and Hai Phong-Quy Nhon. It will also launch international flights to Japan, the Republic of Korea, China, Singapore, Thailand, Hong Kong, Taiwan, the Philippines, the US and Europe.

In March, FLC Group inked an agreement with French manufacturer Airbus to buy up to 24 A321neo aircraft, worth 3 billion USD, for Bamboo Airways.

Three months later, the group signed a deal with Boeing from the US to purchase 20 wide-body 787-9 Dreamliners, worth up to 5.6 billion USD, to serve long international routes.

Bamboo Airways is set to start operations in 2019 with aircraft on lease from third-party lessors before taking delivery of the aircraft from Airbus.

The airline expects to own a fleet of more than 200 aircraft by 2020 and 400 by 2030 and to make up 3 – 5 percent of the country’s aviation market share, according to General Director Dang Tat Thang.