Bamboo Airways Will Launch A New Cargo Subsidiary

Bamboo Airways launches cargo airline company

Bamboo Airways, a private airline founded by FLC Group, launched subsidiary Bamboo Airways Cargo JSC (BAC) on Tuesday.

At the launch ceremony, Bamboo Airways too announced Doan Huu Doan, interim vice lath chairman and deputy CEO of the airline, as board chairman of BAC; Nguyen Khac Hai, deputy CEO of Bamboo Airways, equally CEO of BAC; and Dang Van Vien equally managing managing director of BAC.

The movement is role of Bamboo Airways’ strategy to build a total-service airline eco-system.

On the aforementioned day, Bamboo Airways announced the appointment of Pham Dang Thanh equally its deputy CEO. Thanh has many years working in the aviation industry in roles such equally an executive of Vietnam Airlines Technology Company (VAECO) and Aircraft Factory A76 under the Civil Aviation Authority of Vietnam.

Bamboo Airways was the most punctual airline in Vietnam in the beginning 11 months of 2022 with an on-time performance (OTP) of 95.2%. In the menses, the house conducted 44,932 flights on time, post-obit budget airline Vietjet Air with 92,546 and national flag carrier Vietnam Airlines with 92,071. Vietnamese airlines operated 254,369 flights on schedule in the period, with an OTP of 89.1%.

FLC Group, the founder of Bamboo Airways, saw its buying at the airline reduced from 51.29% to 39.4%, according to the grouping’s newly-released 2020 audited consolidated financial report. Equally its buying is now below the 50% threshold, under the Law on Enterprises, Bamboo Airways is no longer a subsidiary of FLC Group.

Over 2 billion tons of goods were transferred through Vietnam in 2022, upwardly 23.7% twelvemonth-on-yr, according to the General Statistics Office. Of this, 300,000 tons were transferred by air, up 0.3% year-on-yr.

Vietnam is yet to have a cargo airline, with operational carriers transporting both passengers and cargo.

In late October, IPP Air Cargo asked for government’ permission to suspend its proposal to establish a cargo airline in the state, citing negative impacts of the Russia-Ukraine conflict and the global economic recession.

“The global economic recession looms large with surging inflation, rising interest rates and turbulence in the price of free energy,” Le Hong Thuy Tien, CEO of IPP Air Cargo, explained in a certificate submitted to the Government Role, Ministry of Ship, and Civil Aviation Say-so of Vietnam (CAAV).

Tien said the company would seek such a license once more at a more than suitable fourth dimension when the global market recovers.

Bamboo Airways has witnessed multiple personnel changes since Trinh Van Quyet, one-time FLC Group chairman, was arrested in March 2022. Later that month, FLC announced the appointment of Dang Tat Thang as new chairman of both the group and the airline.

In July 2022, Thang retired from all positions at the grouping and Bamboo Airways, saying he was ready to see Bamboo Airways transferred to a new investor.

In Baronial 2022, Bamboo Airways announced a resolution to invite chairman of Sacombank Duong Cong Minh to get a senior advisor to its board of directors.

In October 2022, Bamboo Airways appointed Dao Duc Vu as its new deputy general managing director and caput of flying operations. Before joining Bamboo Airways, Vu was the deputy full general director in charge of flight operations at Vietravel Airlines.