Prime Minister directs ministries and branches to remove difficulties for Bamboo Airways

The Government Office has just issued Official Dispatch No. 6354/VPCP – DMDN to the Ministries of Transport, Planning and Investment, Finance, and the State Bank, conveying Prime Minister Pham Minh Chinh's direction on handling the petition of Bamboo Airways Joint Stock Company.

Accordingly, Bamboo Airways needs to make efforts to restructure and become a strong enterprise; proactively report to competent authorities so that the agencies can promptly handle difficulties and problems according to their functions and tasks.

The Prime Minister assigned the Ministry of Transport to preside over and coordinate with the Ministry of Finance, the Ministry of Planning and Investment, Bamboo Airways and relevant agencies to study the company's report in the above document for consideration, support and handling according to functions, tasks, authority and legal regulations to develop this airline. In case of exceeding authority, it is necessary to report to the Prime Minister for consideration and decision.

Specifically, the Ministry of Transport is considering maintaining the operating conditions of Bamboo Airways to ensure security and safety in civil aviation. This Ministry is also assigned to preside over and coordinate with the Ministry of Finance to handle difficulties in transferring shares to a new group of investors that have been prolonged due to the need to coordinate with many related parties (old investors, banks, relevant state agencies, etc.); the Ministry of Planning and Investment is concerned about difficulties in appraising the proposal to adjust the investment policy to allow the increase in the fleet size to over 30 aircraft.

The Ministry of Transport must report to the Prime Minister on the results of handling these contents before September 15, 2023.

The Prime Minister assigned the State Bank to work with Bamboo Airways to resolve difficulties in capital issues and equity participation of qualified banks. In cases beyond its authority, it is necessary to report to the Prime Minister for consideration and decision. The State Bank shall report to the Prime Minister on the results of the handling before September 15, 2023.

The Prime Minister assigned the Government Office to monitor and urge the Ministry of Transport and the State Bank of Vietnam to ensure the assigned deadline. Based on the reports of the Ministry of Transport and the State Bank of Vietnam, the Government Office will synthesize and report to the Prime Minister in September 2023.

Previously, Bamboo Airways said that it was facing some difficulties related to the transfer of shares to a new group of investors, which was prolonged due to the need to coordinate with many related parties (old investors, banks, relevant state agencies, etc.); the appraisal of the proposal to adjust the investment policy to allow the airline to increase the size of its fleet to over 30 aircraft was prolonged, slowing down the recovery and development process as well as losing business opportunities for Bamboo Airways.

In particular, the ability to access capital, especially capital with preferential interest rates and mechanisms from credit institutions, is still limited while the capital demand for recovery and redevelopment of the aviation industry in general and Bamboo Airways in particular is very large.

(Source: Investment Newspaper)

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