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  • Vietjet and Bamboo Airways Hike Checked Baggage Fees Prior to Peak Summer Travel Rush

    Vietjet and Bamboo Airways Hike Checked Baggage Fees Prior to Peak Summer Travel Rush

    Vietjet Air and Bamboo Airways, two leading airline companies, have recently increased their rates for checked luggage by 15-25%. This price surge has come into effect just before the beginning of the high-demand summer travel season.

    Revised Baggage Prices

    According to a recently released pricing schedule, checking in 20 kg on Vietjet’s domestic flights has become 25% more expensive, now costing VND250,000 (equivalent to US$9.5) plus tax. For 30 and 40 kg luggage, the prices have risen by 20%, costing VND360,000 and VND480,000 respectively. Furthermore, the pricing for oversized bags and extra carry-on allowance has also seen an increase of approximately 20%.

    The price adjustments also apply to various international routes. For instance, the price for checked baggage weighing 20 kg on Southeast Asia flights has increased by 21%, amounting to VND580,000. Meanwhile, on flights to Hong Kong, Taiwan, and mainland China, the rate has similarly increased to VND700,000.

    Bamboo Airways has also implemented an approximate 15% increase on their domestic flights during peak seasons such as Tet (the Lunar New Year) and summer. The summer fees are set to be applicable from May 20 to August 15 as well as from August 27 to September 2.

    Implications of Rising Costs

    A flight booking agency in Ho Chi Minh City noted that several airlines have been increasing fares and other prices, such as checked baggage, seat selection, and in-flight meals, in response to the escalating fuel costs. It has been observed that customers, who previously focused solely on ticket prices, are now showing heightened awareness of baggage fees when planning their travel expenses, particularly families and long-term travelers who may end up adding millions of dong to each trip due to these charges.

    According to a report by the Civil Aviation Authority of Vietnam, the prices of Jet A1 aviation fuel have consistently remained high in Asia, occasionally reaching US$214-216, as a result of Middle East tensions. This fluctuation in fuel prices has significantly impacted airlines’ operating costs and airfares in recent years.

    Questions & Answers

    What is the percentage increase in Vietjet Air and Bamboo Airways’ checked baggage prices?
    Answer: Their checked baggage prices have increased by 15-25%.

    How is the increase in baggage prices affecting customers’ travel planning?
    Answer: Customers are now more conscious of baggage fees when planning their travel expenses.

    What has contributed to the increasing operating costs for airlines in recent years?
    Answer: Fluctuating fuel prices, particularly of Jet A1 aviation fuel, have significantly impacted airlines’ operating costs and airfares in recent years.

  • Bamboo Airways Amplifies Fleet Post-FLC Acquisition, Aims to Elevate Flight Frequency and Launch New Routes

    Bamboo Airways Amplifies Fleet Post-FLC Acquisition, Aims to Elevate Flight Frequency and Launch New Routes

    Bamboo Airways has recently expanded its fleet with the addition of an Airbus A320 aircraft, taking its total count to eight. This move comes as part of an augmentation strategy laid out by the airline, which was recently re-acquired by property developer FLC.

    Expansion and Frequency

    Bamboo Airways’ CEO, Truong Phuong Thanh, regards this fleet expansion as a crucial foundation for increasing flight frequencies and initiating new routes. The airline has an ambitious goal of adding eight to ten aircraft annually which includes wide-body aircraft for long-haul flights, with the aim of expanding its fleet to 30. As of now, the airline only operates narrow-body jets.

    Increased Capacity and Route Resumption

    In light of the new aircraft acquisition, Bamboo Airways anticipates a 16% increase in seat capacity during the Lunar New Year holidays in early February. Additionally, the airline plans to recommence services on several routes that had been previously put on hold.

    Capital for Expansion

    In November, FLC CEO Bui Hai Huyen disclosed that the company was in discussions with various partners to secure funding for the fleet expansion and other related tasks. The property developer had re-purchased Bamboo Airways in September from a consortium of investors, two years after it had initially divested its ownership.

    Expansion among Vietnamese Airlines

    Bamboo Airways is not the only Vietnamese airline in an expansion phase. Vietjet has acquired seven Airbus and two Comac aircraft, while Sun PhuQuoc Airways has added a fifth plane to its fleet.

    Questions & Answers

    What is the goal of Bamboo Airways in terms of fleet expansion?
    Bamboo Airways aims to add eight to ten aircraft annually with the objective of expanding its fleet to 30.

    How does Bamboo Airways plan to increase its flight frequency and capacity?
    The airline plans to increase its flight frequency and capacity by adding to its fleet and increasing the number of seats available with the help of new aircraft.

    How are other Vietnamese airlines expanding their fleet?
    Other Vietnamese airlines such as Vietjet and Sun PhuQuoc Airways are also expanding their fleet by acquiring new aircraft.

  • Bamboo Airways Shuffles Top Management: Vice Chairman Bui Quang Dung Promoted to Helm

    Bamboo Airways Shuffles Top Management: Vice Chairman Bui Quang Dung Promoted to Helm

    Bui Quang Dung has been appointed as the new chairman of Bamboo Airways, replacing Le Thai Sam. The announcement was made on Thursday, confirming that the change would take effect from the preceding Wednesday. Dung simultaneously holds the position of deputy CEO at property development firm FLC Group, which is also the parent company of Bamboo Airways.

    A Wealth of Experience

    Dung brings with him a wealth of experience from several senior management roles at various firms including the investment management firm Colliers International, the multi-industry BIM Group, and property developer Empire Group. He is a proud alumnus of Southern Columbia University in the U.S., where he earned a master’s degree in business administration. With more than 15 years of experience in real estate investment management, Dung is set to contribute significantly to the airline’s growth. The airline confirmed that Sam, the outgoing chairman, would continue to serve as a member of the board.

    The History of Bamboo Airways

    Bamboo Airways was founded by FLC Group in 2017 and commenced operations in early 2019. It changed hands in May 2023 when it was fully sold to Sam, only to be repurchased by FLC Group in September of the same year.

    The recent reshuffle at the helm is part of a wider board restructuring initiated after the airline was reintegrated into the FLC Group. The company has witnessed several leadership changes, with Dung being the seventh chairman since 2022. The frequent changes were precipitated by the financial challenges faced by FLC Group.

    Plans for the Future

    Bamboo Airways has ambitious plans for the future, aiming to restructure its operations and expand its fleet and route network over the next five years. The airline has plans to add a new aircraft ahead of the peak travel season at the end of the year and another one before the Lunar New Year holidays in February 2026.

    At an extraordinary shareholders’ meeting held on Tuesday, Bui Hai Huyen, FLC’s CEO, announced that the company is currently in discussions with several local and international partners. The prospective collaborations would involve experience in aircraft leasing, purchasing, and financing.

    Questions & Answers

    Who is the new chairman of Bamboo Airways?
    Bui Quang Dung has been named as the new chairman of Bamboo Airways.

    What previous experience does Bui Quang Dung bring to his new role at Bamboo Airways?
    Dung has held senior management roles at several firms including Colliers International and the BIM Group. He also possesses over 15 years of experience in real estate investment management.

    What are Bamboo Airways’ plans for the future?
    Bamboo Airways intends to restructure its operations and expand its fleet and route network within the next five years. It also plans to add new aircraft to its fleet in the near future.

  • FLC uses Bamboo Airways shares as collateral

    FLC uses Bamboo Airways shares as collateral

    Property developer FLC will use nearly 155 million Bamboo Airways shares as collaterals for loans from lender OCB, repeating a decision it made three years ago.

    The company will also use golf project FLC Quang Binh Golf Links as collateral for the loans from the same bank.

    FLC used a total of nearly 155 million Bamboo Airways shares as collateral for OCB loans five times in 2020.

    The developer has invested VND4.02 trillion in the carrier for a 21.7% stake. It is set to sell the stake, partially or fully, to a buyer who has yet to be revealed.

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  • Vietnamese airlines race to find new investors

    Vietnamese airlines race to find new investors

    Pacific Airlines, Bamboo Airways, and Vietravel Airlines are seeking new investors to help them overcome financial difficulties and speed up their post-pandemic recovery.

    Vietnam Airlines, which owns approximately 98% of Pacific Airlines’ shares, has been searching for new investors for its subsidiary carrier since last year.

    The national flag carrier is also looking to sell its stake in jet fuel distributor Skypec to help alleviate some of its difficulties and gradually reduce its losses.

    By the end of last year, Vietnam Airlines was recording an accumulated loss of nearly VND34.2 trillion ($1.45 billion), and its shares are at risk of being delisted as the carrier is set to record three annual losses in a row.

    Bamboo Airways is also seeking new investors to help its ambitious development plans.

    Although the airline was expected to be invested in by a large southern property company, the deal has yet to be finalized and the airline is still looking for new investors.

    Rookie Vietravel Airlines is also seeking investors and has requested the government to increase its charter capital sixfold to more than VND7.6 trillion, mainly to expand its fleet.

    By 2030 the airline seeks to have VND8.25 trillion in charter capital, in which shareholders contribute VND2 trillion, with the remainder coming from undistributed profits and other investors.

    Nguyen Quoc Ky, chairman of Vietravel Airlines, said “the airline is lucky as it has attracted interest from some investors.” He added that the airlines prioritizes domestic investors who can journey with the airline for a long time.

    Each airline has its own strengths to entice investors.

    Pacific Airlines and Vietnam Airlines possess prime flight slots at major airports like Noi Bai and Tan Son Nhat.

    Bamboo Airways is the fastest growing airline with a fleet of 30 jets just four years after it was launched. It also has a network covering both domestic and international markets.

    Vietravel Airlines is part of tourism firm Vietravel’s ecosystem and therefore has a large customer base and a connection with tourism markets.

    Nguyen Hai Quang, a lecturer at the University of Economics and Law under Vietnam National University, Ho Chi Minh City, acknowledged that the pandemic has severely impacted the airline industry and that finding new investors is essential.

    “The aviation business requires large capital and aircraft-related expenses,” he said, adding that this is a good time for investors to join the industry.

    The International Air Transport Association (IATA) has forecast that the global aviation industry will become profitable again this year with a profit to sales ratio of 0.4%.

    But Quang also said that challenges lie ahead for Vietnamese airlines, and one of these is the recovery of the international markets.

    “Only when international markets resume pre-pandemic levels can Vietnamese carriers report profits again,” he said.

    Other factors such as fuel price, currency exchange rates, global economic growth and inflation will also play important roles in the performance of airlines, Quang said.

    When new investors are found, airlines will have many opportunities for growth, he added.

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  • Bamboo Airways names new senior advisor amid restructuring

    Bamboo Airways names new senior advisor amid restructuring

    Sacombank Chairman Duong Cong Minh was appointed senior advisor to the board of directors at Bamboo Airways to support the airline’s restructuring.

    Minh, 62, is also the founder and chairman of property developer Him Lam. His appointment came three days after the airline named a new chairman.

    Minh will be key to the restructuring of Bamboo Airways’ management and expansion, Chairman Nguyen Ngoc Trong said.

    Sacombank was one of the top lenders to Bamboo Airways and its parent company, FLC Group. Hundreds of millions of airline shares were used as collateral for loans at the bank under the reign of ex-chairman Trinh Van Quyet, who was arrested for allegedly manipulating the stock market.

    As of June 30, the group and its subsidiaries had finished paying off their VND1.8 trillion ($76.9 million) debt to Sacombank, according to FLC’s financial statements.

    Bamboo Airways currently operates nearly 170 flights a day on 40 domestic and 12 international routes.

    The carrier plans to continue launching new international services to tourism markets in Asia, Europe and Australia.

    It also plans to increase its fleet to 35 by the end of this year and triple its fleet size to 100 aircraft by 2028.

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  • Vietnam–US air fare starts from $1,300: Bamboo Airways

    Vietnam–US air fare starts from $1,300: Bamboo Airways

    A Bamboo Airways return ticket between Vietnam and the U.S. is set to cost $1,300-1,500, with the first regular flight planned for the first quarter of next year.

    Bamboo Airways plans to start one regular flight every two days from Ho Chi Minh City to San Francisco and increase the frequency to daily later, chairman Trinh Van Quyet told the press recently.

    This is the same price the startup airline announced two years ago. It is set to record losses with such a fare.

    “Our advantage is big resorts. The combination of aviation and tourism will bring many benefits to customers.”

    The airline is negotiating to lease wide-body Boeing 787-9 and Boeing 787-10 aircraft for flights to the U.S. and Europe.

    Quyet said the airline has submitted all necessary documents to U.S. aviation authorities.

    It will start flying once U.S. Federal Aviation Administration (FAA) gives it permission and the Vietnamese government resumes regular international flights.

    Bamboo Airways began its first charter flight from Vietnam to the U.S. on Sep. 23 as part of the 12 charter flights the U.S. Transportation Security Administration (TSA) had given permission to operate.

    Vietnam Airlines on Nov. 29 operated its first regular flight to the U.S. The airline announced earlier that one-way ticket prices would be around $1,000.

    The Vietnam-U.S. route recorded 1.4 million passengers in 2019.

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  • Bamboo Airways set to list its stocks

    Bamboo Airways set to list its stocks

    Bamboo Airways plans to list on the Unlisted Public Company Market next quarter while preparing for an IPO in the U.S.

    Prices of the ticker BAV will be at least VND60,000 ($2.65), CEO Nguyen Khac Hai said in a statement Friday.

    UPCoM serves as a market to encourage companies to go public. Vietnam’s two main bourses are the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange.

    The company targets to raise $200 million by issuing shares on the New York Stock Exchange, giving the startup airline a market cap of $4 billion.

    The airline plans to begin regular services to the U.S. city of San Francisco from HCMC by the end of this year, with five return flights a week initially and later daily.

    It has been operating charter flights to the U.S. since the end of September.

    The airline also announced plans to fly to the U.K. this year with six flights a week from Hanoi and HCMC to London.

  • Bamboo Airways signs $2-bln deal with Safran, GE

    Bamboo Airways signs $2-bln deal with Safran, GE

    Bamboo Airways has signed a EUR1.73-billion ($2 billion) deal with France’s Safran and the U.S.’s General Electric for aircraft engines and equipment.

    The Vietnamese carrier on Wednesday signed a memorandum of understanding with Safran and GE to purchase equipment for 50 narrow-bodied Airbus A321neos and 30 wide-bodied Boeing 787-9s.

    Safran makes high-class airplane seats and other cabin equipment.

    Bamboo Airways currently operates seven A320neos and 5 A321neos.

    “We are looking forward to developing a strong relationship with Bamboo and being part of its future growth,” Alexandre Ziegler, Safran’s senior executive vice president of international and public affairs, said in a statement.

    The deals were signed in the presence of Vietnamese Prime Minister Pham Minh Chinh and French Prime Minister Jean Castex during the former’s working visit to France from Nov. 3-5.

    Earlier low-cost Vietnamese carrier Vietjet also signed an agreement with Safran.

    The two parties had an existing $10-billion deal for engines and engine maintenance, and it has been expanded to cover more aircraft engine deals and a number of other aspects such as seats and interiors.

    Vietjet operates a fleet of 90 aircraft.

    Safran is a global technology company with interests also in the defense and space markets, 76,000 employees and annual sales of 16.5 billion euros ($19.15 billion).

  • Vietnamese carrier announces first Vietnam-UK direct flights

    Vietnamese carrier announces first Vietnam-UK direct flights

    Bamboo Airways announced the launch of the first Vietnam-U.K. direct flight routes Sunday in the presence of PM Pham Minh Chinh, in the U.K. for the COP26 meet.

    The airline also confirmed that local firm APG UK will be its representative in the U.K.

    Bamboo Airways chairman Trinh Van Quyet said that the direct flights could commence as early as this year when the resumption of commercial flights between the two countries is allowed.

    The airline said it expects to operate six round trips a week between Hanoi, Ho Chi Minh City, and London; and increase frequency based on demand.

    Bamboo Airways’s direct flights would help cut travel time between Vietnam and the U.K. to around 12 hours, seven hours quicker than flights that require transit.

    The flights are expected to drop off and take passengers at Heathrow Airport’s Terminal 2, connecting Vietnam’s Noi Bai and Tan Son Nhat airports with the U.K.’s largest airport. The Boeing 787-9 Dreamliner will be used for flights on the Vietnam-U.K. routes, the airline said.

    Nguyen Hoang Long, Vietnamese ambassador to the U.K., said opening direct flights between the two countries would boost commerce and people-to-people exchanges and would be particularly beneficial for the Vietnamese community in the U.K.

    APG UK, a passenger and cargo representation company, will support the airline with sales, marketing, and customer support as also issues related to aviation policies and procedures.

    There are currently over 100,000 Vietnamese studying and living in the U.K., and around 60 percent of them are in London. In 2019 alone, the number of tourists from the U.K. traveling to Vietnam reached 315,000, a 105 percent increase from the same period in 2018, according to the General Statistics Office. Among European countries, the U.K. has the second-highest number of visitors to Vietnam, the office added.

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  • Vietnam Embassy requests hastening nonstop Bamboo Airways flight to US

    Vietnam Embassy requests hastening nonstop Bamboo Airways flight to US

    The Vietnam Embassy in the U.S. expects further favorable conditions from US agencies for Bamboo Airways to operate its inaugural non-stop flight connecting Vietnam and the States.

    In the official dispatch on July 9, the embassy expresses its gratitude to the Department of Homeland Security, Department of State, and Federal Aviation Administration for supporting and facilitating flights to repatriate thousands of Vietnamese citizens stranded in the U.S. due to the Covid-19 pandemic.

    While international commercial flights remain suspended, Bamboo Airways has been granted permission to conduct charter flights to transport goods and passengers to the U.S., the foreign mission of Vietnam emphasized.

    Regarding the plan, the embassy requests continued support from all concerned parties. On Nov. 6, 2020, Bamboo Airways was licensed to conduct flights connecting the States and Vietnam by the U.S. Department of Transport. On June 23, 2021, the airline submitted the necessary documents to the Federal Aviation Administration of the U.S. to complete procedures for its first charter flight.

    “The embassy would appreciate it if the relevant U.S. agencies could consider all the submitted documents by the Bamboo Airways on June 23 at their earliest convenience,” the dispatch stated.

    In fact, Bamboo Airways was officially designated to exploit charter flights to the U.S. in May 2021. The airline has acquired slots to conduct regular non-stop flights from Ho Chi Minh City to San Francisco and Los Angeles.

    As of now, Bamboo Airways has fulfilled technical requirements to conduct non-stop charter flights to the U.S. with its wide-body Boeing 787-9 Dreamliner fleet, approved by the Civil Aviation Authority of Vietnam.

    The airline is rushing to establish a representative office in the U.S., in cooperation with San Francisco International Airport and Los Angeles International Airport.

    According to a Bamboo Airways representative, the carrier is working with U.S. agencies to complete procedures for its first non-stop flight to depart at the end of July or early August.

    Bamboo Airways has officially entered into cooperation with the International Air Transport Association (IATA) to pilot the digital health passport IATA Travel Pass, marking significant progress in the airline’s preparation for international routes reopening. Besides, the carrier is implementing Covid-19 vaccinations for all employees and related affiliates, creating perimeter protection for seamless operation. Bamboo Airways’s Covid-19 prevention process is considered the most comprehensive and effective, achieving an absolute level of 7/7.

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  • Pandemic grounds 39 Vietnam aircraft

    Pandemic grounds 39 Vietnam aircraft

    Vietnam had 39 aircraft, or over 14 percent of its fleet, grounded in the first quarter after a new Covid-19 outbreak cut travel demand.

    Eighteen of the grounded aircraft belonged to national flag carrier Vietnam Airlines, 14 to budget carrier Vietjet, four to Pacific Airlines and three to Bamboo Airways, according to the Civil Aviation Authority of Vietnam (CAAV).

    Vietnam’s fleet of 269 aircraft is 13 more than it had last year.

    The country closed the borders and canceled all international flights in March last year, allowing in only certain categories of people with stringent conditions.

    Vietnamese carriers served 5.8 million passengers in the first quarter this year, down 45 percent year-on-year.

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  • Bamboo Airways plans US IPO in Q3

    Bamboo Airways plans US IPO in Q3

    Private carrier Bamboo Airways is considering an initial public offering of shares in the U.S. this year to raise $200 million.

    The IPO is expected to take place in the third quarter, with the company likely to offer a 5-7 percent stake to secure a market capitalization of up to $4 billion, quoted its chairman, Trinh Van Quyet, as saying on Wednesday.

    It is preparing for the issuance together with an international auditing firm and plans to list on the New York Stock Exchange.

    Last month, Quyet had announced the airlines’ plans to list 105 million shares on either the Ho Chi Minh Stock Exchange or Hanoi Stock Exchange at an initial price of VND60,000 ($2.61), but on Wednesday he said that has now become “a backup plan.”

    “The US IPO will be part of our efforts to expand our services globally.”

    It expected to operate charter flights to the U.S. from July this year and thrice-weekly commercial flights from HCMC to San Francisco from September.

    The airline has received a permit from the U.S. Department of Transportation to carry passengers and cargo to that country.

    This year it also plans to expand its fleet from 30 aircraft to 40, and launch flights to other new destinations like Australia, Germany, Japan, and the U.K. if the Covid-19 pandemic is under control.

    It currently flies on 60 domestic routes.

    Last year, it carried over seven million passengers to account for a 20 percent market share, and hopes to increase it to 30 percent this year.

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  • Bamboo Airways warned for overselling tickets

    Bamboo Airways warned for overselling tickets

    Vietnam’s aviation authorities have ordered Bamboo Airways to stop selling tickets for the wrong flight slots after many passengers complained of canceled and delayed flights.

    Each airline has an allocated number of flight slots, meaning a specific period of time wherein an aircraft can take off or land at an airport depending on the latter’s capacity, but Bamboo Airways has sold tickets for slots that it does not have, according to the Civil Aviation Authority of Vietnam (CAAV).

    In recent weeks customers have been complaining about Bamboo Airways frequently canceling or delaying flights, especially on the Hanoi-Da Nang route.

    On March 4, the budget carrier published a public apology over its changing of schedules, blaming it on maintenance work happening at the Noi Bai International Airport.

    However, a representative of Noi Bai airport said the maintenance work had finished earlier and that flight schedules were not affected by it.

    The CAAV has informed Bamboo Airways that if it ignored the warning and continued to offer tickets for the wrong flight slots, the carrier will not get more slots for six months.

    In January, Bamboo Airways, Vietjet, and Vietnam Airlines all received warnings for selling tickets for the wrong slots for the annual Tet (Lunar New Year) holiday.

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  • Bamboo Airways secures flight slots in London

    Bamboo Airways secures flight slots in London

    Bamboo Airways has got a slot allocated at London’s Heathrow Airport to fly six times a week from Hanoi and HCMC starting in May.

    The flights would be operated using the airline’s long-haul Boeing 787-9 Dreamliner aircraft.

    The carrier had stated its intention to fly to the British capital and Frankfurt in Germany in the first quarter of 2021, but was delayed due to the closure of Vietnamese borders to keep out Covid-19.

    It has announced plans to make an initial public offering this year and raise VND6.3 trillion ($2.73 million).

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