Bamboo Airways launches cargo airline company

Bamboo Airways, a private airline founded by FLC Group, launched subsidiary Bamboo Airways Cargo JSC (BAC) on Tuesday.

At the launch ceremony, Bamboo Airways also announced Doan Huu Doan, acting vice board chairman and deputy CEO of the airline, as board chairman of BAC; Nguyen Khac Hai, deputy CEO of Bamboo Airways, as CEO of BAC; and Dang Van Vien as managing director of BAC.

The move is part of Bamboo Airways’ strategy to build a full-service airline eco-system.

On the same day, Bamboo Airways announced the appointment of Pham Dang Thanh as its deputy CEO. Thanh has many years working in the aviation industry in roles such as an executive of Vietnam Airlines Engineering Company (VAECO) and Aircraft Factory A76 under the Civil Aviation Authority of Vietnam.

Bamboo Airways was the most punctual airline in Vietnam in the first 11 months of 2022 with an on-time performance (OTP) of 95.2%. In the period, the firm conducted 44,932 flights on time, following budget airline Vietjet Air with 92,546 and national flag carrier Vietnam Airlines with 92,071. Vietnamese airlines operated 254,369 flights on schedule in the period, with an OTP of 89.1%.

FLC Group, the founder of Bamboo Airways, saw its ownership at the airline reduced from 51.29% to 39.4%, according to the group's newly-released 2020 audited consolidated financial report. As its ownership is now below the 50% threshold, under the Law on Enterprises, Bamboo Airways is no longer a subsidiary of FLC Group.

Over 2 billion tons of goods were transferred through Vietnam in 2022, up 23.7% year-on-year, according to the General Statistics Office. Of this, 300,000 tons were transferred by air, up 0.3% year-on-year.

Vietnam is yet to have a cargo airline, with operational carriers transporting both passengers and cargo.

In late October, IPP Air Cargo asked for authorities' permission to suspend its proposal to establish a cargo airline in the country, citing negative impacts of the Russia-Ukraine conflict and the global economic recession.

"The global economic recession looms large with surging inflation, rising interest rates and turbulence in the price of energy," Le Hong Thuy Tien, CEO of IPP Air Cargo, explained in a document submitted to the Government Office, Ministry of Transport, and Civil Aviation Authority of Vietnam (CAAV).

Tien said the company would seek such a license again at a more suitable time when the global market recovers.

Bamboo Airways has witnessed multiple personnel changes since Trinh Van Quyet, former FLC Group chairman, was arrested in March 2022. Later that month, FLC announced the appointment of Dang Tat Thang as new chairman of both the group and the airline.

In July 2022, Thang retired from all positions at the group and Bamboo Airways, saying he was ready to see Bamboo Airways transferred to a new investor.

In August 2022, Bamboo Airways announced a resolution to invite chairman of Sacombank Duong Cong Minh to become a senior advisor to its board of directors.

In October 2022, Bamboo Airways appointed Dao Duc Vu as its new deputy general director and head of flight operations. Before joining Bamboo Airways, Vu was the deputy general director in charge of flight operations at Vietravel Airlines.