The Vietnamese government has reiterated its support for Bamboo Airways (QH, Hanoi Noi Bai International), telling government agencies and departments to report back on how they can help the carrier by December 31, 2023.
Local media outlets are reporting on a December 12 meeting during which Deputy Prime Minister Le Minh Khai told officials from the Ministries of Ministry of Transport, Planning and Investment, Finance, and Public Security, as well as the State Bank of Vietnam, and the State Capital Management Commission, to do what they can to help the airline.
In August, following a request from Bamboo Airways, Prime Minister Phạm Minh Chính also instructed government agencies and departments to assist the carrier's restructuring efforts in a bid to prevent it folding. After recording a loss of VND17.6 trillion dong (USD722.5 million) in calendar 2022, Bamboo Airways has since moved to overhaul its operations and finances, including downsizing its fleet and abandoning routes. The airline hopes to turn around its financial fortunes by the end of calendar 2024. In the meantime, it expects to record a loss of VND1 trillion (USD41 million) this quarter.
During this month's meeting, Khai also told officials from state-owned entities such as the Vietnam National Petroleum Group, Airports Corporation of Vietnam, Vietnam Maritime Commercial Joint Stock Bank, Saigon Thuong Tin Commercial Joint Stock Bank, Orient Commercial Joint Stock Bank, and Vietnam - Russia Joint Venture Bank, and National Citizen Bank to assist where they can. Most of these entities are lenders or suppliers to Bamboo Airways.
The exact nature or extent of the proposed assistance was not made clear. However, Bamboo is reportedly asking for measures to ease its financial and operational constraints. That may entail agencies and departments rewinding red tape and speeding up the approvals process, while lenders and suppliers may be asked to extend repayment holidays
ch-aviation has contacted Bamboo Airways for comment.
