With the support of new investors - Him Lam Group and partners from Japan, Bamboo Airways is determined to stop losses from next year.
At the Bamboo Airways annual meeting on the morning of June 21, the identity of the new investor joining this airline was officially revealed.
Mr. Nguyen Ngoc Trong - Chairman of the Board of Directors of Bamboo Airways voted to approve the proposal to the general meeting on the morning of June 21. Photo: Anh Tu
Mr. Nguyen Ngoc Trong, Chairman of the shareholders' meeting, said that Bamboo Airways' new investor - Him Lam Group, Mr. Duong Cong Minh, has invited Japanese investors to join the airline.
These are the people who saved Japan Airlines from an airline losing 12 billion USD a year, after two years to become one of the most efficient airlines in the world. Japanese experts will help Bamboo Airways establish specialized committees, helping the airline develop professionally and in depth.
Accordingly, two former leaders of Japan Airlines will join Japan Airlines, including Mr. Masaru Onishi, former President of Japan Airlines, and Mr. Hideki Oshima, former Director of International Relations and Airline Alliances of Japan Airlines.
The past 5 years have been the formative and developmental period of Bamboo Airways, the next 5 years will be a period of in-depth, effective and transparent development, Mr. Trong said.
According to CEO Nguyen Minh Hai, Japanese experts joining Bamboo Airways will help the airline reach Asia faster. "We can do it ourselves, but it will take more time. With their experience, experts will help Bamboo Airways join aviation alliances and cooperate in trade with airlines around the world smoothly," Mr. Hai shared.
Mr. Oshima was nominated to the Board of Directors of Bamboo Airways for the 2023 - 2028 term. With 36 years of experience in the Japanese aviation industry, he has worked in various fields such as airport operations, planning, ground transportation services, public relations, and management of overseas representative offices.
Today's meeting is also the first time Mr. Nguyen Minh Hai appeared after being appointed CEO to replace Mr. Nguyen Manh Quan at the end of May. In a nearly half-hour speech to shareholders, Mr. Hai frankly shared his plan to operate Bamboo Airways in the coming period.
Mr. Hai affirmed that with his responsibility, he and the executive board will bring Bamboo Airways to break-even or profit from 2024. This determination was made by him after meeting with the Board of Directors and new investors.
"To me, this is a decree, not what the Board of Directors hopes for," said the CEO of Bamboo Airways. He said he will build a unified and unified apparatus at Bamboo Airways from top to bottom.
Mr. Nguyen Minh Hai, CEO of Bamboo Airways, shared with shareholders at the annual meeting on the morning of June 21. Photo: BAV
He informed that the restructuring of the company at the top level has been completed. The responsibility of the executive board is to implement it to the lower levels in a streamlined and efficient manner. Previously, Bamboo Airways had 11 levels of staff, now reduced to 6, to help better manage and improve labor productivity.
Last year, Bamboo Airways achieved revenue of more than VND11,700 billion, but still operated below cost price by about VND3,200 billion. After deducting expenses and provisions, the airline lost about VND17,600 billion before tax.
According to Mr. Hai, this large loss appeared after the company had a transfer and the participation of new investors. "This is a loss for an entire period, not just 2022," Mr. Hai said.
He said the new investor has set aside provisions for doubtful debts (short-term and long-term). This is to make the reports more transparent so that shareholders can evaluate them. At the same time, it also shows the determination of the new investor in Bamboo Airways to follow international standards, be more open and transparent.
In order for Bamboo Airways to break its loss streak, Mr. Hai said the company is determined to increase production scale and increase aircraft, because the current fleet size of 30 aircraft does not ensure efficiency. However, he also said that the airline will not increase the number of aircraft at all costs in the context of a scarce and expensive aircraft leasing market. He assessed that the airline's leadership in the 2021-2022 period seized the opportunity to lease aircraft at a good price - a level that is currently impossible to lease.
Along with increasing production scale to increase revenue, Bamboo Airways will also proactively cut costs. According to Mr. Hai, during the operation process, the company's board of directors will have specific solutions, focusing on reducing the cost coefficient per seat supplied (CASK).
Anh Tu
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