FLC Regains Ownership and Management Control of Bamboo Airways as New Investor Group Lacks Financial and Operational Capabilities

On the morning of September 25th, in Hanoi, the 2nd Extraordinary General Meeting of Shareholders (EGM) for the year 2025 of Tre Viet Aviation Joint Stock Company (Bamboo Airways) took place, focusing on critical matters regarding personnel and the airline’s future operations.

FLC Group Agrees to Take Over Bamboo Airways

During the event, with a candid assessment of the actual management results, Chairman of the Board of Directors of Bamboo Airways, Le Thai Sam, stated: “Continuing to own, manage, and operate Bamboo Airways at this point exceeds the financial and management capabilities of the new investor group.”

“Therefore, I have requested the FLC Group to consider taking over the ownership, management, and operation of Bamboo Airways,” said Mr. Le Thai Sam.

The Chairman of Bamboo Airways’ Board of Directors reported to the EGM on the plan to transfer all shares of the investor group to the FLC Group and requested the EGM to instruct the Board of Directors and the Management Board to support the completion of related procedures, ensuring compliance with current legal regulations.

Mr. Le Thai Sam will continue to accompany the airline as Chairman of the Board of Directors and has committed to taking responsibility for Bamboo Airways’ operational results during the restructuring phase. “Choosing to continue with Bamboo Airways is my affirmation of the effort and commitment in my personal role, as well as in representing the former investor group and advisors such as Mr. Doan Huu Doan and Mr. Duong Cong Minh… We will be fully responsible for resolving outstanding issues and laying the foundation for a new development phase of Bamboo Airways,” said Mr. Sam.

After thorough research and evaluation, the FLC Group has agreed to take over the management of Bamboo Airways.

Additionally, to facilitate the new Board of Directors and Management Board in developing and implementing new business strategies for Bamboo Airways, the EGM approved the principle of provisioning for risks and the definitive handling plan for all existing investments and loans of Bamboo Airways.

Developing a New Plan for a New Era

At the event, Bamboo Airways’ Management Board reported to the EGM on the results of the “Bamboo Airways Restructuring Plan” and the “Air Transportation Business Plan for 2024-2028,” which the airline had developed and submitted to the Prime Minister in Official Dispatch No. 3142/2023/BAV-HĐQT dated November 23, 2023.

Accordingly, after more than two years of implementing the comprehensive restructuring plan, Bamboo Airways has achieved several positive results, such as saving 20% in ground service costs by changing suppliers and self-servicing; maintaining an on-time flight rate among the top in the domestic aviation industry; and achieving an average seat occupancy rate of 90%.

However, most of the operational cost reductions at Bamboo Airways came from downsizing the fleet, route network, and workforce. In 2022, the airline operated a fleet of 30 aircraft, including wide-body Boeing 787-9 Dreamliners, narrow-body Airbus A320/A321s, and Embraer E190 regional jets. With this diverse fleet, Bamboo Airways developed a network connecting to 21 out of 22 domestic airports with 66 routes. Simultaneously, it operated 15 regular international routes and consistently chartered international flights.

After the fleet restructuring, Bamboo Airways currently operates 7 single-aisle narrow-body Airbus A320/A321 aircraft, serving 12 high-demand domestic routes, and has temporarily suspended regular international operations, maintaining only chartered international flights.

Based on these results, Chairman of the Board of Directors Le Thai Sam – a major shareholder representing the investor group accompanying the airline since 2022 – assessed that Bamboo Airways’ operations have not yet achieved the expected goals set during the restructuring phase.

“After managing and operating the company, our investor group has realized that air transportation is a highly specialized business. Objective challenges have significantly impacted Bamboo Airways’ business results, beyond the control of shareholders and the Management Board,” said Mr. Le Thai Sam.

Therefore, the EGM of Bamboo Airways agreed to halt the implementation of the “Bamboo Airways Restructuring Plan” and the “Air Transportation Business Plan for 2024-2028.”

In its role as the new manager of Bamboo Airways, the FLC Group will focus on developing the Bamboo Airways Development Plan for the 2026–2030 period.

Strengthening the Organization, Enhancing Management Capabilities

During the event, the EGM of Bamboo Airways approved significant personnel decisions, including accepting the resignations of two Board of Directors members, Mr. Pham Ngoc Vinh and Mr. Vuong Cong Duc.

To replace the resigned members, the Chairman of the Board of Directors nominated three new members: Mr. Truong Phuong Thanh, Mr. Bui Quang Dung, and Ms. Phung Thi Thu Thao. The EGM approved these nominations.

Thus, the Board of Directors of Bamboo Airways for the 2023–2028 term will consist of six 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.

Additionally, the EGM approved the resignations of four members of the Supervisory Board for the 2023–2028 term and elected three new members: Mr. Dang Ngai, Ms. Tran Thi My Dung, and Ms. Nguyen Thi Thuy Linh.