Bamboo Airways takes over FLC Group

FLC Group agreed to take over the management of Bamboo Airways, at the request of the Board of Directors, because 'continued ownership, management and operation of the airline exceeds the financial and administrative capacity of the new group of investors'.

The second extraordinary general meeting of shareholders (AGM) in 2025 of Bamboo Airways Joint Stock Company took place on the morning of September 25 in Hanoi , focusing on important issues regarding the airline's personnel and operations in the coming time.

At the event, based on actual operating results, Chairman of the Board of Directors of Bamboo Airways Le Thai Sam frankly assessed: "Continuing to own, manage and operate Bamboo Airways at the present time exceeds the financial and administrative capacity of the new group of investors."

"Therefore, I have proposed that FLC Group consider taking over ownership, management and operation of Bamboo Airways," said Mr. Le Thai Sam.

The Chairman of the Board of Directors of Bamboo Airways reported to the General Meeting of Shareholders on the plan to transfer all shares of the investor group to FLC Group; at the same time, he requested the General Meeting of Shareholders to direct the Board of Directors and the Executive Board to support the implementation of related procedures, ensuring compliance with legal regulations.

Bamboo Airways held its second extraordinary general meeting of shareholders and announced the transfer of investors. Photo: BAV

Continuing his role as Chairman of the Board of Directors, Mr. Le Thai Sam committed to taking responsibility for the performance of Bamboo Airways during the restructuring period.

"Choosing to continue accompanying Bamboo is my affirmation of my efforts and commitment in my personal role, as well as in my role as a representative of the group of previous investors and advisors such as Mr. Doan Huu Doan, Mr. Duong Cong Minh... We will be responsible to the end in resolving the remaining issues, and creating a foundation for the new development phase of Bamboo Airways," Mr. Sam pledged.

Based on careful research and evaluation, FLC Group has agreed to take over the management of Bamboo Airways.

In addition, to facilitate the new Board of Directors and Executive Board in developing and implementing new strategies and business plans for Bamboo Airways, the General Meeting of Shareholders approved the policy of setting up risk provisions and a final settlement plan for all existing investments and loans of Bamboo Airways.

Also at the event, the Bamboo Airways Board of Directors reported to the General Meeting of Shareholders the results of the "Bamboo Airways restructuring plan" and the "Air transport business plan for 2024-2028" that the airline has developed and reported to the Prime Minister by the end of November 2023.

Accordingly, after more than 2 years of implementing a comprehensive restructuring plan, Bamboo Airways has achieved some positive results, such as saving 20% ​​of ground service costs; maintaining the highest on-time flight rate among domestic airlines; and an average seat utilization rate of up to 90%.

However, most of Bamboo Airways' operating costs have been reduced by reducing the size of its fleet, route network, and personnel. In 2022, the airline operated a fleet of 30 aircraft. Thanks to that, the airline has developed 66 routes, connecting to 21/22 domestic airports and operating 15 international scheduled routes.

However, after the fleet restructuring process, Bamboo Airways only operates 7 Airbus 320/A321 aircraft, operates 12 domestic routes with high passenger demand and temporarily stops operating the international flight network, only maintaining the operation of international charter flights.

According to the assessment of Chairman of the Board of Directors Le Thai Sam - a major shareholder representing the group of investors, Bamboo Airways' operations "have not achieved the expected results when restructuring".

Realizing that air transport business is a very specific business; objective challenges strongly impact business results, beyond the control of shareholders and the Board of Directors, Bamboo Airways Shareholders' Meeting agreed to stop implementing the "Bamboo Airways Restructuring Plan" and the "Air Transport Business Plan 2024-2028".

After taking over, FLC Group will focus on building the Bamboo Airways Development Plan for the 2026-2030 period.

At the extraordinary general meeting of shareholders this morning, the Bamboo Airways General Meeting of Shareholders also passed important personnel decisions, including accepting the resignation of two members of the Board of Directors, Mr. Pham Ngoc Vinh and Mr. Vuong Cong Duc.

Three additional members of the Board of Directors were elected: Mr. Truong Phuong Thanh, Mr. Bui Quang Dung and Ms. Phung Thi Thu Thao.

Thus, the Board of Directors of Bamboo Airways for the 2023-2028 term includes 6 members: Mr. Le Thai Sam, Mr. Nguyen Ngoc Trong, Mr. Le Ba Nguyen, Mr. Truong Phuong Thanh, Mr. Bui Quang Dung and Ms. Phung Thi Thu Thao.

At the same time, Bamboo Airways' General Meeting of Shareholders approved the resignation of 4 members of the Board of Supervisors for the 2023-2028 term and elected 3 new members to replace them, including: Mr. Dang Ngai, Ms. Tran Thi My Dung and Ms. Nguyen Thi Thuy Linh.

Mr. Luong Hoai Nam resigned, Bamboo Airways has a new general director. Chairman of the Board of Directors of Bamboo Airways Joint Stock Company, Mr. Pham Ngoc Vinh and General Director Luong Hoai Nam both resigned from their positions for personal reasons.

Source: https://vietnamnet.vn/bamboo-airways-tiep-quan-lai-tap-doan-flc-2446052.html