New Japanese leader expected to help Bamboo Airways turn profit in 2024

Oshima Hideki, former deputy CEO of Japan Airlines, was appointed chairman of Vietnam’s loss-making private airline Bamboo Airways for the 2023-2028 term on Wednesday.

The new foreign leader, to be accompanied by experienced experts from Japan, is expected to help the carrier stop making loss and start earning profits in 2024, said Nguyen Ngoc Trong, who was elected the firm's standing vice chairman at its 2023 annual general meeting of shareholders (AGM).

Oshima Hideki has nearly 40 years of experience in the aviation field. Before becoming deputy CEO of Japan Airlines, he had held many senior management positions at airports like deputy CEO of Tokyo Narita Airport and project manager at Tokyo Haneda Airport.

Masaru Onishi, ex-chairman of Japan Airlines, now serves as a senior advisor of Bamboo Airways' board of directors.

The AGM also elected Doan Huu Doan and Phan Dinh Tue as vice board chairmen, along with three members of the supervisory board for the 2023-2028 tenure.

Under the new leadership, Bamboo Airways plans to operate a fleet of 30-36 aircraft by the end of this year and maintain the occupation rate at 81.5% and the punctuality rate at over 90%, said the airline’s CEO Nguyen Minh Hai.

Its revenue from passenger and freight transport is expected to grow by 15-20% compared to 2022. Last year, the airline recorded net revenue of VND11.73 trillion ($498.96 million).

The carrier will maintain a domestic flight network connecting all 22 domestic airports and expanding routes to target international markets in Europe, Northeast Asia, East Asia, and Southeast Asia and Australia, he said.

Bamboo Airways is building an aviation ecosystem with the establishment of air cargo transport, ground services, aeronautical engineering and airline catering companies, he added.

“All solutions for the hinge year 2023 are aimed at strengthening the international flight network and raising service quality, thereby making Bamboo Airways an airline brand of Asia and the world,” he noted.

He also disclosed plans to conduct an initial public offering (IPO) at the end of 2026.

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, VND15.62 trillion ($664.1 million).