VN Aviation Market: Billion-USD Deal To Be Made Public This Month

VietNamNet Bridge - A deal worth $6 billion is expected to be officially inked in Washington DC at the end of June between Bamboo Airways, belonging to FLC Group, and Boeing.

Trinh Van Quyet, president of FLC Group

Bizlive quoted its sources as reporting that the Vietnamese aviation market may expect a large deal under which the US aircraft manufacturer Boeing will provide 10 latest-generation aircrafts. The planes are Boeing 787-9 with 5-star interiors which will be used for long distance from Vietnam to Europe and the US, commencing from 2020.

According to the Civil Aviation Authority of Vietnam (CAAV), by the end of June 2017, Vietnam had 157 aircraft registered under its name, or 17 aircrafts more than the same period of 2016. Of these, 96 aircraft belong to the nation’s flag air carrier Vietnam Airlines, 13 to Jetstar Pacific and 40 to Vietjet Air.

Meanwhile, Vasco, Hai Au, Hanh Tinh Xanh and Ngoi Sao Viet own the remaining eight aircraft.

Prior to that, in March 2018, FLC signed a contract with French Airbus on purchasing 24 A321NEOs worth $3.108 billion, or 2.5 billion euros. 

The signing ceremony was organized with Vietnamese Communist Party Secretary General Nguyen Phu Trong and President of France's National Assembly Francois de Rugy.

As such, with both contracts, Bamboo Airways has now ordered 44 aircraft.

Dat Viet newspaper on May 4 reported that Bamboo Airways still has no operation license, but it has launched its brand identity and is recruiting workers.

Most recently, speaking to the local press, FLC chair Trinh Van Quyet affirmed that Bamboo Airways would take off in 2018.

Quyet, when answering VnExpress, said Bamboo Airways will take off in late 2018 with 20 chartered aircraft. The ordered aircraft will come in 2019.

As for Bamboo Airways’ strategy, Quyet said it is not a low-cost air carrier. It will be a traditional airline which provides both high-end and low-cost services. The passengers flying on Bamboo Airways to FLC’s resorts will not have to pay for air tickets and will only pay for hotel rooms. 

A source from FLC said the group plans to organize a big workshop in Washington DC in the US on June 25 which would discuss investment opportunities in potential business fields in Vietnam and introduce the group’s products and services to the world market.

Real estate, aviation, travel & golf, and agriculture will be discussed by panel speakers and leading experts with 400 participants.

RELATED NEWS

Bamboo Airways faces pilot shortage, lack of infrastructure

Bamboo Airways prepares for take-off

Thanh Lich