Bamboo Airways (QH, Hanoi Noi Bai International) has denied rumours it is considering filing for bankruptcy, with the airline issuing a short statement on July 14 saying it was operating "stably." The denial came a week after Dang Ngoc Hoa, chairman of the board at Vietnam Airlines (VN, Hanoi Noi Bai International), publicly stated that he was aware of "a fairly large airline in Vietnam" talking to the government about applying for creditor protection.
Bamboo Airways, which has pursued an aggressive expansion strategy since its first flights in 2019, recently reported a VND17.6 trillion dong (USD747.8 million) loss for calendar 2022 and significant boardroom upheavals, including replacing its most recent CEO, who had served in the role for two months, as well as the board chairman, who served 16 days in the role.
Simmering away in the background is an ongoing series of financial deals to raise capital, rejig shareholdings, and facilitate loans. The newest chairman, Le Thai Sam, now owns a 53.6% stake in Bamboo Airways after he purchased 772 million additional shares in exchange for taking on VND7.72 trillion (USD326.1 million) worth of debt. That accompanied news that another group of investors had extended the airline a VND8 trillion dong (USD340 million) loan, which reportedly prevented the loss-making carrier from suspending some flight operations. However, it is uncertain whether these investors have the financial firepower to continue supporting the airline.
On the same day Bamboo Airways attempted to hose down bankruptcy talk, the director of the Civil Aviation Authority of Vietnam told media that he had "not received the information and have no comment on the issue of which Vietnamese airlines go bankrupt."
"We understand that Vietnamese airlines face many post-pandemic difficulties just like other airlines in the world," said Dinh Viet Thang. "Aviation authorities are always providing them with support."
Separately, Bamboo Airways board member Phan Dinh Tue admitted to the media that the airline is facing financial difficulties but is attempting to restructure and raise even more capital. He added that the airline is also talking to aircraft manufacturers - presumably Airbus (AIB, Toulouse Blagnac) and Boeing (BOE, Washington National) - about renegotiating payment timelines for ordered aircraft. According to the ch-aviation fleets module, in terms of known commitments, the carrier has ten B787-9s due from Boeing.
