Bamboo Airways plans to issue an IPO in 2020. Currently, this airline operates 10 aircraft on 25 domestic and international routes. — Photo courtesy of FLC Group

Bamboo Airways, a subsidiary of real estate developer FLC Group, is planning to issue an initial public offering (IPO) in 2020 to serve its expansion plans, Chairman and CEO of Bamboo Airways Trinh Van Quyet said.

In an interview with the news site Bloomberg, Quyet said it is expected to raise about US$100 million, which will help Bamboo Airways expand its fleet, targeting to occupy 30 per cent of the market share next year.

Currently, the airline holds about 10 per cent market share of Viet Nam’s aviation market.

Bloomberg said the rapidly growing middle class in Viet Nam is an increasingly abundant source of passengers for the domestic aviation market, which has the fastest growth rate in the world.

In 2018, airports in Viet Nam served 106 million passengers, an increase of 13 per cent over the same period last year, according to data from the Vietnam Aviation Administration.

Bamboo Airways will also list shares next year after the IPO, however, Quyet said he has not decided on a bourse yet.

Currently, Bamboo Airways operates 10 aircraft on 25 domestic and international routes.

In August 2019, Vietnamese Government signed a decision allowing the carrier to increase its fleet to 30 aircraft by 2023, including both narrow-body and wide-body aircraft.

Bamboo Airways expects to be the first airline in Viet Nam to operate a direct flight to the US by the end of 2020, Quyet said.— VNS