Bamboo Airways: the Vietnamese company is in difficulty

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Bamboo Airways, the Vietnamese airline, had already confirmed several weeks ago that it had negotiated a “cooperation agreement” with at least one of the aircraft leasing companies. She did not specify how many planes or lessors would be affected by this decision. However, it has indicated that it is looking to rationalize the types of aircraft it operates – currently seven of them.

Financial losses are at the root of the company’s problems

The fleet restructuring decision follows Bamboo’s loss of $740 million for the 2022 calendar year, ownership changes, board turmoil and speculation that the airline would file for bankruptcy. Although the current CEO admitted that the carrier was facing difficulties, he insisted that the board and management are determined to overcome the challenges and put Bamboo back on a sound financial and operational footing. It currently serves 31 destinations in Vietnam and ten other countries: Thailand, Germany, China, United Kingdom, South Korea, Taiwan, Japan, Macau and Singapore

Bamboo Airways leaves Australian skies

Bamboo Airways has laid off all its local staff. Former Australia and New Zealand Sales Director Brad Crawford said: “It is with a heavy heart that I advise that all Bamboo Airways Australia staff have been made redundant, including my role as Director national sales. »

Bamboo Airways leaves other destinations

Other abandoned international routes include London and Frankfurt, which, like Sydney and Melbourne, relied on Bamboo Airways’ Boeing 787s. However, the carrier is now set to reduce its fleet of single-aisle aircraft focused on “key domestic routes” such as Hanoi, Ho Chi Minh City and Da Nang, as well as high-demand tourist routes and routes international routes to Southeast Asia

A new path for 2024?

“This set of solutions has enabled Bamboo Airways to chart a new and suitable path for its operations in late 2023 and early 2024.”

Bamboo Airlines has been contacted for further comment; the airline has not yet informed passengers and travel agents how refunds for the canceled flight will be processed.

Bamboo Airways competes with VietJet

Problems have been brewing for some time, with the carrier not only struggling to turn around its bottom line after posting significant losses in 2022, but also seeing the departure of around 10% of its pilot base in recent months. Four of its five directors also resigned in June.

Rival budget airline Vietjet has undoubtedly contributed to Bamboo’s woes since its debut in Australia in April. Initially connecting Sydney and Melbourne with Ho Chi Minh City, VietJet has since added flights to Brisbane, with Perth and Adelaide set to take off next month.

Catherine Mills Avatar