Temporary exit ban lifted for Bamboo Airways CEO

The temporary exit ban for Bamboo Airways CEO Luong Hoai Nam has been removed, Binh Dinh province's tax authorities say in a document sent to the Ministry of Public Security's immigration management department.

The ban was effective from September 11 as Bamboo Airways failed to fulfil tax obligations worth VND304 billion ($12.2 million) as of September. The south-central province of Binh Dinh is where the airline is headquartered.

Handling the case, the department had deducted money from the company's accounts, requested account freezes, and levied a temporary exit ban on its CEO and legal representative.

Meeting with the People’s Committee of Binh Dinh on Tuesday, a Bamboo Airways leader stated that the tax department’s measures and temporary exit ban were fully compliant with legal regulations.

However, he noted that the carrier was undergoing restructuring, so such ban would pose big difficulties to the company in seeking partners, raising capital, and signing contracts.

The airline proposed to pay its tax debts in installments (VND10 billion or $400,480 per month) with a bank guarantee, and asked for the ban to be lifted.

The tax department agreed on the proposal, saying once bank guarantee documents are submitted, it would lift the exit ban.

Bamboo Airways is the third-largest airline in Vietnam in terms of flights. The carrier targets total revenue of VND4.86 trillion ($196.9 million), with losses projected to drop to VND1.39 trillion ($26.3 million) this year.

It plans to break even by 2025 and achieve profitability in subsequent years, with a goal of listing on a stock exchange within three years.

Luong Hoai Nam was appointed CEO of Bamboo Airways in October last year, the third in five months and the fourth in more than a year, as the carrier was undergoing tough reshuffles following a change in owners.

Nam, 61, has over three decades working in the aviation and tourism industries, taking on senior positions at national carrier Vietnam Airlines, Jetstar Pacific Airlines, Hai Au Aviation, Viet Star Airlines, real estate group Nam Long, among others.