According to the audited 2022 financial report, Bamboo Airways recorded a sharp 3.3-fold increase in net revenue, from VND 3,557 billion in 2021 to nearly VND 12,018 billion in 2022. However, the company suffered a gross loss of VND 3,209 billion.
Business management costs increased dramatically from more than VND 158 billion in 2021 to nearly VND 12,750 billion in 2022. As a result, Bamboo Airways suffered a heavy loss of more than VND 17,619 billion in the past year.
This is a record loss, much higher than the loss of VND2,625 billion of Vietnam Airlines (HVN), or the loss of VND1,993 billion of VietJet (VJC). By the end of 2022, Bamboo Airways recorded negative equity of VND835 billion.
In the audited financial report, the management cost increased 80 times compared to the same period (up to nearly 12,750 billion VND in 2022) and has not been explained. However, it is likely that this cost comes from the provision for receivables.
Bamboo Airways said that the provision for short-term receivables at the end of 2022 amounted to more than VND9,692 billion. The provision for long-term doubtful receivables was more than VND2,800 billion.
In addition, Bamboo Airways recorded investments in trading securities amounting to nearly VND6,309 billion. However, the airline did not provide a clear explanation of the trading securities portfolio.
Short-term financial leasing debt amounts to VND 10,115 billion.
In 2023, initial information from the board of directors shows that the airline is close to breaking even in the first quarter.
Under pressure from the poor financial situation, the extraordinary shareholders' meeting (May 9) approved the issuance of 1.15 billion new shares, thereby increasing the charter capital to VND30,000 billion. It is likely that Mr. Le Thai Sam will become the largest shareholder, controlling this airline.
Previously, the Board of Directors of FLC Group (FLC) announced a resolution approving the transfer of shares holding Bamboo Airways to Mr. Le Thai Sam, a member of the Board of Directors of this airline.
Accordingly, FLC transferred more than 400 million BAV shares, equivalent to 21.7% of the capital held at Bamboo Airways, to Board member Le Thai Sam, in exchange for liquidating all debt obligations between the two parties.
Along with the transfer of these shares, Mr. Le Thai Sam will provide FLC with a non-refundable sum of money for the group to fulfill its financial obligations as they come due and/or release the mortgaged assets owned by FLC.
According to Mr. Le Thai Sam, from 2022 to April 10, he lent Bamboo Airways a credit loan with both principal and interest of VND 7,727 billion.
Mr. Sam currently owns 231.7 million BAV shares, equivalent to 12.53% of charter capital. Thus, if including the FLC shares that have just been agreed to be transferred, he can hold more than 34% of Bamboo Airways' capital.
In documents preparing for the shareholders' meeting on June 21, Bamboo Airways said the airline plans to replace the entire Board of Directors after five current members resigned.
Bamboo Airways has received resignation applications from all 5 members of the Board of Directors: Nguyen Ngoc Trong, Doan Huu Doan, Le Ba Nguyen, Le Thai Sam and Nguyen Manh Quan.
Bamboo Airways will submit to shareholders for approval the official dismissal of these 5 members at the annual general meeting on June 21 to elect a new Board of Directors for the 2023-2028 term with 7 members.
Recently, on May 21, the Board of Directors of Bamboo Airways approved the Resolution to appoint Mr. Nguyen Minh Hai as General Director from May 24, after approving the resignation of Mr. Nguyen Manh Quan. Mr. Nguyen Minh Hai (1972) is the former Deputy General Director of Vietnam Airlines.
The transfer of the General Director position is part of the restructuring process of Bamboo Airways, especially in the field of administration and management, aiming at market expansion and sustainable development.
The medium-term goal set by Bamboo Airways from 2023 is to strengthen its international flight network, raise service standards, and thereby become an airline brand in Asia and the world.
Recently, NNA Asia news site, affiliated with Japan's Kyodo News Agency, reported that Bamboo Airways is planning to recruit two former senior executives of Japan Airlines to its Board of Directors.
Mr. Nguyen Ngoc Trong, Chairman of the Board of Directors of Bamboo Airways, said that in the context of the airline's strong restructuring after FLC's divestment, to prepare for the "international market battle", the company does not rule out the most drastic changes if necessary, including in senior positions on the board of directors and executive board.
Accordingly, the composition of the board of directors will also be supplemented and renewed to create development momentum. New professional councils will be established, in charge of key operations such as: Safety - security - technology; exploitation and services; business...
According to Mr. Trong, in the immediate future, it is expected that Mr. Hideki Oshima, former Director of International Relations and Airline Alliances of Japan Airlines, will join the Board of Directors of Bamboo Airways and hold a senior leadership position.
Mr. Masaru Onishi, former Chairman of Japan Airlines, will take on the position of Senior Advisor to the Board of Directors of Bamboo Airways. Japan Airlines is the second largest airline in Japan.
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