Bamboo Airways suspends domestic routes to popular tourist hubs

Privately-run Vietnamese carrier Bamboo Airways had suspended a series of domestic routes to popular tourist hubs such as Phu Quoc and Da Lat from this month in its latest effort to stay afloat amid major restructuring.

The carrier halted flights connecting Danang and the Central Highlands tourist city of Da Lat starting from Tuesday, it announced on its Facebook page.

The Hanoi-Phu Quoc service was also suspended from Tuesday. Three weeks ago, it also suspended the HCMC-Phu Quoc route.

Bamboo Airways was the only Vietnamese airline to operate the route connecting Can Tho and Phu Quoc, but last month it suspended that service.

Phu Quoc, off the southern province of Kien Giang, is Vietnam’s biggest island, famous for its long, sandy beaches and high-end resorts, while Da Lat in the Central Highlands province of Lam Dong is loved for its year-round cool climate and French colonial heritages.

Last month, Bamboo Airways halted a series of international routes to South Korea, Japan, Thailand, Australia and Germany as the carrier foughts to focus its resources on its most popular flights in the run-up to the peak season - New Year and Lunar New Year 2024.

Currently, it mainly operates domestic flights connecting Hanoi and Ho Chi Minh City, Vietnam’s two biggest cities, to tourist hotspots such as Con Dao, Danang, Nha Trang, Quy Nhon, Hue and Quang Binh, home to the Phong Nha-Ke Bang National Park.

Bamboo Airways last month appointed former executive of Pacific Airlines and Air Mekong Luong Hoai Nam as its new CEO, the third in five months.

The carrier has been going through major leadership changes ever since its chairman Trinh Van Quyet was arrested in March last year for stock market manipulation and fraud.

Bamboo Airways was established by FLC in late May 2017 with an initial charter capital of VND700 billion ($29.6 million). It launched its first commercial flights in January 2019.

Trinh Van Quyet poured over VND2.8 trillion ($118.4 million) into the airline, or a 40.03% stake, while other shareholders injected more than VND610 billion ($25.8 million), an 8.73% share.

In April 2022, FLC became the airline’s largest shareholder, with a capital contribution totaling over VND3.58 trillion ($151.4 million), or a 51.24% stake. In its latest financial statement, FLC’s ownership in Bamboo Airways fell to 21.7% of its charter capital of VND18.5 trillion ($782.3 million).

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

In the first nine months of this year, Bamboo Airways reported 2,470 delayed flights, accounting for 7.6% of the total, maintaining its position as the most punctual airline during the period. It also stood out with a low cancelation rate, with just 0.2% of the total.