New investors pour in 8,000 billion; old members run for new term

Sharing with the media, Chairman of Bamboo Airways JSC Nguyen Ngoc Trong said that the General Meeting of Shareholders (AGM) on June 21 of Bamboo Airways will take place before the end of the term of the current Board of Directors (BOD).

Therefore, the members agreed to resign so that the General Meeting of Shareholders can elect new members of the Board of Directors for the 2023 - 2028 term, with a structure of 1 chairman, 3 vice chairmen and 3 members of the Board of Directors.

Mr. Trong emphasized that most of the old members of the Board of Directors will continue to run for the next term. It is expected that the congress will add a number of new members, who are senior leaders with extensive experience in aviation around the world, to complete the apparatus.

Sharing about the record loss of more than 17,000 billion VND in 2022, the Chairman of Bamboo Airways said that only 4,800 billion VND is the actual loss from the airline's core business activities. The rest mostly comes from non-aviation business activities but were ineffective in the period before the new investor joined.

The new management and investors have clearly understood the situation and have taken actions to accompany the company in overcoming difficulties.

Specifically, the new investor has poured in nearly VND8,000 billion to increase charter capital, restructure capital sources, and convert debt into equity to balance losses. Thereby, bringing the airline's charter capital back to positive, ensuring conditions for the airline to continue its aviation business and possibly request an increase in fleet size.

According to Mr. Trong, since the participation in management, restructuring, and adjustment of business plan orientation of the new investor and the board of directors, the company's operations have changed in a more positive direction and begun to record efficiency.

*Bamboo Airways Chairman Nguyen Ngoc Trong.*

In the coming time, Bamboo Airways will continue to restructure overall, aiming to optimize costs and increase revenue, with the motto "Do it for real, do it right, do it quickly" as General Director Nguyen Minh Hai once shared.

According to the plan, Bamboo Airways will continue to promote the development of its fleet and expand its flight network, especially to the international market. Thereby, improving the efficiency of Bamboo Airways' core business of air transport.

Bamboo Airways will also focus on optimizing costs by building a comprehensive ecosystem that supports core business activities. A specific example is the establishment of aviation service companies such as: Aviation Fuel Company, Aviation Ground Services Company, Aviation Catering Company, which have been implemented since the participation and resource support of new investors.

In addition, in the restructuring plan, Bamboo Airways will continue to improve service quality, which is the airline's strength and core value, as well as promote digital transformation to effectively support management, operations, and customer care activities...

With the plans, Bamboo Airways' board of directors expects that by 2024, Bamboo Airways will record a profit and in the next few years will offset the current gross loss.

In 2023, initial information from the board of directors shows that the airline is close to breaking even in the first quarter.

Chairman Nguyen Ngoc Trong also said that the shareholders' meeting on June 21 is expected to complete the senior personnel structure and officially mark a new development stage of Bamboo Airways.

According to the shareholder meeting documents, Bamboo Airways reported a net loss of VND17,600 billion in 2022 (leading to negative equity of VND835 billion). Of which, the loss was mainly due to provisions for doubtful receivables of up to VND12,500 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.

In addition, 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.

On May 21, the Board of Directors of Bamboo Airways approved a 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.

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.

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.

Bamboo Airways suffered a record loss of more than 17 trillion VND, replacing the entire Board of Directors of Bamboo Airways Joint Stock Company with a net loss of 17,600 billion VND in 2022 and negative equity of 835 billion VND.

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