Bamboo Airways stays among few profitable airlines in the world in 2020

February 10, 2021 | 22:07
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Bamboo Airways reported aggregate earnings before taxes in 2020  at more than VND400 billion ($17.4 billion), up nearly 34 per cent compared to last year.
bamboo airways stays among few profitable airlines in the world in 2020
Bamboo Airways reported a pre-tax profit of VND400 billion in 2020

Being among the few airlines with continuous expansion in fleet size, the number of flights operated, and number of passengers serviced during the catastrophic 2020 were all achievements that paid off financially, marking Bamboo Airways as one of the few profitable airlines in the world.

By seizing the opportunities arising from the government's drastic and effective pandemic prevention policy, Bamboo Airways has proactively innovated and timely implemented a series of solutions to overcome difficulties.

In terms of finance, the airline actively mobilised capital to reinforce its capacity, including raising capital from major shareholders, including its parent company, FLC Group; negotiated with bank partners and financial institutions to raise capital and adjust financial terms accordingly. In addition, Bamboo Airways has always prepared feasible business plans and secured assets.

bamboo airways stays among few profitable airlines in the world in 2020

With its network of service providers, Bamboo Airways actively worked and negotiated to come to acceptable cost agreements to secure the financial health of the airline.

Regarding the flight network, the airline timely restructured and continued to consolidate its flight network concentrating on the domestic market, opening routes to potential destinations, especially niches and routes connecting with the FLC ecosystem.

bamboo airways stays among few profitable airlines in the world in 2020

Some eminent direct flights of the Airlines’ strategy in 2020 include the roadmap connecting Con Dao, Rach Gia-Kien Giang, Phu Yen, and Can Tho, among others.

These new routes of Bamboo Airways received positive reviews from passengers, contributing to accelerating the process of occupying approximately 20 per cent of the airline's market share, nearly doubling that of last year.

With regard to its fleet, the airline is currently operating nearly 30 aircraft, including the most advanced aircraft in the world such as wide-body Boeing 787-9 Dreamliner, narrow-body A321NEO ACF, and Embraer E195 jets. The fleet size is expected to reach 50 aircraft in 2021.

Another critical segment generating great revenue for Bamboo Airways this year was a series of new products and combos, adapting to the needs of the market and passengers at each particular period, which include 5-star nationwide flight-resort-golf package combo, multifunctional Bamboo Pass, and Branded Fares, among others.

In 2020, Bamboo Airways has delivered more than four million passengers, 40 per cent more than in 2019. Bamboo Airways holds the badge of the airline with the fastest recovery after the pandemic, according to statistics of the Civil Aviation Authority of Vietnam.

Especially, the airline continuously affirmed its position as the airline with the highest on-time performance, with the nearly perfect average of 95.8 per cent. In November 2020, Bamboo Airways received the title of Asia's Leading Regional Airline in 2020 for its contributions in the aviation industry throughout the year.

By Thien Huong

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