The Prime Minister directed ministries and branches to remove difficulties for Bamboo Airways.

The Government Office has just issued công văn (official letter) No. 6354/VPCP – DMDN to the Ministries of Transport, Planning and Investment, Finance, and the State Bank of Vietnam, conveying the directives of Prime Minister Pham Minh Chinh regarding the handling of the request from Tre Viet Aviation Joint Stock Company (Bamboo Airways).

Accordingly, Bamboo Airways needs to strive for restructuring and become a strong and large enterprise; proactively report to competent authorities so that they can promptly address difficulties and obstacles according to their functions and duties.

The Prime Minister has assigned the Ministry of Transport to take the lead, in coordination with the Ministry of Finance, the Ministry of Planning and Investment, Bamboo Airways, and other relevant agencies, in studying the company's report in the aforementioned document to consider, support, and handle the matter according to their functions, duties, authority, and legal regulations in order to develop this airline. If the matter exceeds their authority, they must report to the Prime Minister for consideration and decision.

Specifically, the Ministry of Transport is considering maintaining the operating conditions of Bamboo Airways to ensure security and safety in civil aviation. This Ministry is also assigned to preside over and coordinate with the Ministry of Finance to handle difficulties in transferring shares to a new group of investors that have been prolonged due to the need to coordinate with many related parties (old investors, banks, related state agencies, etc.); the Ministry of Planning and Investment is having difficulty in appraising the proposal to adjust the investment policy to allow the increase of the fleet size to over 30 aircraft.

The Ministry of Transport must report the results of the handling of these matters to the Prime Minister before September 15, 2023.

The Prime Minister assigned the State Bank to work with Bamboo Airways to resolve difficulties in capital issues and equity participation of qualified banks. In cases beyond its authority, it is necessary to report to the Prime Minister for consideration and decision. The State Bank shall report to the Prime Minister on the results of the handling before September 15, 2023.

The Prime Minister instructed the Government Office to monitor and urge the Ministry of Transport and the State Bank of Vietnam to ensure the timely implementation of the assigned tasks. Based on reports from the Ministry of Transport and the State Bank of Vietnam, the Government Office will compile a report and submit it to the Prime Minister in September 2023.

Previously, Bamboo Airways said that it was facing some difficulties related to the transfer of shares to a new group of investors, which took a long time due to the need to coordinate with many related parties (old investors, banks, relevant state agencies, etc.); the appraisal of the proposal to adjust the investment policy to allow the airline to increase the size of its fleet to over 30 aircraft was prolonged, slowing down the recovery and development process as well as losing business opportunities for Bamboo Airways.

In particular, access to capital, especially capital with preferential interest rates and mechanisms from credit institutions, remains limited, while the capital needs for recovery and development of the aviation industry in general and Bamboo Airways in particular are very large.

(Source: Investment Newspaper)

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