Bamboo Airways mum on bankruptcy rumors, affirms normal operations

Vietnamese private carrier Bamboo Airways confirmed in a Friday statement that it was operating normally and focusing on ensuring absolute safe operation of flights.

The statement made no reference to recent rumors that Bamboo Airways had filed for bankruptcy protection.

The carrier said it has been restructuring and carrying out many reforms, adding that it has carefully researched and built many operating plans to choose the most appropriate and feasible development direction.

The airline also said it would continue to develop its flight network and optimize resource utilization to provide high quality service to customers.

Responding to rumors that surfaced earlier this week about a fairly large airline having applied for bankruptcy protection from the government, Dinh Viet Thang, director of the Civil Aviation Authority of Vietnam said he had "no specific information."

He said Vietnam has a bankruptcy law, so if an airline proposed to apply for bankruptcy protection, it would have to act in accordance with the prescribed legal process.

"We understand how difficult it is for airlines the world over after the Covid pandemic. The Ministry of Transport and the Civil Aviation Authority always provide maximum support to carriers," Thang said.

Two days ago, on July 12, Bamboo Airways approved a decision to elect new board members for the 2023-2028 term to replace members who have stepped down. Accordingly, Le Thai Sam has been appointed chairman, replacing Oshima Hideki who will take the position of standing vice chairman, while Le Ba Nguyen and Nguyen Ngoc Trong have been named vice chairmen.

Nguyen Ngoc Trong will also hold the position of general director, replacing Nguyen Minh Hai who has resigned. The personnel adjustments are part of the carrier's restructuring process.

New chairman Le Thai Sam currently owns over 50% of the carrier's charter capital.

Bamboo Airways recently accepted the resignations of chairman Oshima Hideki and three vice chairmen - Nguyen Ngoc Trong, Doan Huu Doan and Phan Dinh Tue. Notably, the resignations came less than a month after the official’s election at the annual general meeting of shareholders held June 21.

Bamboo Airways reported a loss of VND17.6 trillion ($748 million) in 2022, about $84 million higher than the combined figures of Vietnam Airlines and Vietjet Air at VND15.62 trillion ($664.1 million).