Vietnamese airline start-up Bamboo Airways has appointed its FOURTH general director, Mr. Luong Hoai Nam (previously with Jetstar Asia and Mekong Air), in 2023 after the previous three resigned or were forced to leave.
Over the weekend, Bamboo Airways decided to end all its long-haul flying to the UK (the last flight was already in September), Germany, and Australia using Boeing 787 aircraft (likely being returned to lessors), refocusing on domestic routes and select destinations in Southeast Asia. It is unclear if medium-haul operations to countries such as Japan will continue.
You can access Bamboo Airways here.
There have been rumors over the summer that the airline would file for bankruptcy protection, and there has recently been an exodus of expat pilots claiming that they had not been paid their salary promptly.
The GDS shows routes to Sydney, Melbourne, and Frankfurt all canceled, and nothing for London (the last scheduled flight to Gatwick was in September)). The airline continues to sell tickets to Tokyo (Narita) and Southeast Asia destinations such as Bangkok and Singapore.
Bamboo Airways was founded in 2017 and started operations in 2019, right before the pandemic. The airline’s chairman was arrested in 2022, and there have been continuous management changes ever since.
The airline planned to expand rapidly, have more than 100 aircraft by the end of the decade, and also fly to the West Coast of the US.
It appears that the airline has the backing of Vietnam’s government, and banks have or are coming to the rescue to recapitalize the airline and ensure that there won’t be an immediate uncontrolled collapse.
Passengers on Canceled Flights?
Passengers traveling on Bamboo Airways flights from Europe are covered by EC 261/2004 legislation that requires the airline to rebook affected passengers to their destination on other airlines and the same level of service without any additional cost.
This might be a challenge, however, and if you paid the flight using a credit card, I would seek a refund immediately (applies to all destinations that they have canceled), and if it is not forthcoming, expediently file a chargeback with the credit card issuer, and book another flight by yourself.
Air Canada Aeroplan has been the only frequent flier partner of Bamboo Airways, and it could be a difficult situation to have those tickets reissued, but at least for flights ex-Europe, it is Bamboo’s responsibility to rebook passengers despite that the ticket (award) was initially issued by someone else.
Bamboo Airways Statement (Later Removed)
Bamboo Airways charts new course, pushing ahead with restructuring
Bamboo Airways’ initial progress lays the foundation for long-term restructuring to rebuild the airline more efficiently and streamlined. This will enhance the company’s competitiveness, capacity, and autonomy, enabling it to become more self-sufficient, attract high-quality resources and strategic investors, and ultimately achieve its objectives.
Over the past few months, Bamboo Airways has been steadfast in its commitment to ensuring the utmost safety, security, and excellence in service quality while drastically implementing comprehensive measures to enhance the efficiency of its production and business activities.
Regarding the fleet, Bamboo Airways has been actively discussing and negotiating with partners to redesign the appropriate structure and size, prioritizing economy, uniformly standardizing aircraft configuration, reducing fuel consumption, and protecting the environment.
Simultaneously, Bamboo Airways is taking steps to expand the potential lessor network, working closely with Boeing and Airbus to implement previously agreed upon aircraft purchase agreements. These efforts aim to prepare for the fleet increase from 2024 onwards proactively.
For the route network, Bamboo Airways has improved commercial efficiency by reducing the frequency of a number of inefficient routes with low passenger demand while increasing operation on routes recording high demand. This has enabled the airline to optimally meet market capacity and enhance the overall performance of its network.
Regarding the booking system, Bamboo Airways has recently upgraded the core system to modernize and optimize its functionality, bringing it to international standards. As a result, passengers can now enjoy a smoother, faster, and more convenient experience when using the service, both before, during, and after their flight.
This set of solutions has enabled Bamboo Airways to chart a new, suitable course for its operations in late 2023 and early 2024. The carrier’s fleet structure is expected to incorporate narrow-body aircraft and jets, which will be deployed on key domestic routes, strongly emphasizing trunk routes such as Hanoi, Ho Chi Minh City, and Da Nang. The airline will also offer services on domestic tourist routes with high demand and international routes to Southeast Asia.
Bamboo Airways has taken significant steps to enhance its customer care policy and extended its support to its network of domestic and foreign partners and agents, all aiming to safeguard the best interests of every party involved. In the event of flight adjustment, affected passengers will be promptly notified and assisted in adherence to the airline’s policies and applicable laws.
Bamboo Airways sees this as a crucial opportunity to grow in the future, aligning with the major development milestones of Vietnam’s aviation. With the expected opening of the T3 Passenger Terminal at Tan Son Nhat International Airport in 2025 and the Long Thanh International Airport in 2026, Bamboo Airways is poised to capitalize on these developments for progress and success.
Conclusion
As we have seen a few times, getting an airline up and running is tough, and then there are usually enormous difficulties down the road. Bamboo Airways had awful timing, starting its operations just before the COVID-19 pandemic began.
Their expansion schedule was overly ambitious and borderline impossible to execute unless you had a deep-pocketed backer such as the state of Qatar, Dubai, or UAE (in the case of the Gulf airlines).
It wouldn’t hurt Vietnam to have a second network carrier to supplement well-established Vietnam Airlines, and there are a few local LCCs such as VietJet, which has expanded to other nearby countries, and Pacific Airlines (previously Jetstar Asia).
I am scheduled to take a regional flight in business with Bamboo Airways from Ho Chi Minh City to Bangkok on Tuesday, and at least the flight did operate today. Let’s see!
