Struggling Bamboo Airways suspends routes to Asian, European destinations

Vietnam's privately-run carrier Bamboo Airways has started halting a series of international routes to South Korea, Japan, Thailand, Australia and Germany from October 29 in its latest effort to stay afloat.

The service between Hanoi and South Korea’s Incheon was suspended from Sunday as the carrier seeks to focus resources for popular flights in the run-up to a peak season - the New Year and Lunar New Year 2024, Bamboo Airways announced on its official Facebook page and website.

Flights from Ho Chi Minh City to Singapore, Australia’s Sydney and Melbourne as well as air connections from HCMC and Hanoi to Germany’s Frankfurt will be halted from November 4.

Other flights from Hanoi to Thailand’s Bangkok, Japan’s Narita and Taiwan’s Taipei will be suspended from November 8. Suspension of the HCMC-Bangkok route will take place from November 21.

From October 18, Bamboo Airways halted service between Hanoi and London Gatwick.

The carrier has pledged to ensure the legal rights of passengers on the suspended flights.

For the domestic flight network, Bamboo Airways will continue maintaining major routes such as Hanoi-HCMC, Hanoi-Da Nang, HCMC-Da Nang and those connecting to major tourism hubs such as Hai Phong, Vinh, Dong Hoi, Hue, Nha Trang, Da Lat, Quy Nhon, Phu Quoc and Con Dao.

The carrier has been going through major leadership changes ever since its then chairman Trinh Van Quyet was arrested in March last year for stock manipulation. Aviation veteran Luong Hoai Nam was appointed as its new CEO last week, the third in five months and the fourth in more than a year.

Bamboo Airways was established by FLC in late May 2017 with an initial charter capital of VND700 billion ($29.6 million). It operated the 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 capital contribution totaling over VND3.58 trillion ($151.4 million), or a 51.24% stake. In its recent 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, 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.