CAAV denies Viet Bamboo rumour

Civil Aviation Authority of Viet Nam (CAAV), Lai Xuan Thanh. - Photo baogiaohthong.vn

Thanh said media reports on the matter were incorrect and the licence request by the company, a newly established subsidiary of the FLC Group, is under consideration.

Earlier this month, Dang Tat Thang, FLC Group’s deputy general director cum general director of the Viet Bamboo Airways Company, submitted the application with charter capital of VND700 billion (US$31.2 million). The application included plans for human resources, labour contracts, operation regulations and agreements on aircraft leasing.

Viet Bamboo Airways said it signed agreements to lease seven Airbus A320 for the launch of the airways scheduled by the end of 2018. It also submitted information on business plans, development strategies, market demand and trends, competitive level.

According to the current regulations, companies granted aviation licences must have at least three owned or leased aircraft in their first five years of operation.

The CAAV will report to the Ministry of Transport (MoT) on the assessment results within 30 working days. The ministry would submit the report to the Prime Minister for approval within the next 15 days. The final decision on the licence will be issued within 10 days of receiving the report by the Prime Minister Office and the MoT will act according to this decision in a maximum of five days since its issuance.

Bamboo Airways’ representative said it would focus on direct services connecting international markets with emerging tourist destinations in Viet Nam, instead of major urban areas where the aviation infrastructure is already overloaded.

He added that priority would be given to localities where FLC has built major tourist complexes, including Quang Ninh and Hai Phong in the north, Thanh Hoa and Quy Nhon (Binh Dinh Province) in the central region, and Nha Trang (Khanh Hoa Province) and Phu Quoc (Kien Giang Province) in the south.

The local market has three airlines waiting for licences or adjustment of their licences to expand operations, including Hai Au, Viet Bamboo Airlines and Vietstar Air.