Bamboo Airways continues to operate normally despite chairman's arrest

Saturday, Apr 02, 2022 17:55

A Bamboo Airways's jet. — VNA/VNS Photo

The Civil Aviation Authority of Viet Nam (CAAV) has recently sent a report to the Ministry of Transport saying that the Bamboo Airways is still operating normally after the arrest of its chairman Trinh Van Quyet earlier this week on charge of stock market manipulation.

The arrest has not caused any turbulence within the airline so far. Its performance indicators, including on-time performance and airport slots, still remain high, as do its safety indicators.

The airline maintains its postholders for flight operations, the maintenance system, crew training and ground operations.

Its total equity is still sufficient to meet the minimum requirement for an air transport license even if Quyet’s assets are frozen.

Additionally, to date, no jet owners have requested the company to stop operations of their leased jets or demanded any lease payment.

However, the authority claimed that it had to keep a close watch on the company to ensure its stable operation, safeguarding the interests of passengers and service providers.

Notably, Bamboo Airways’s crew training, aircraft maintenance and flight operations will be under close supervision in the next six months to ensure that its financial health is adequate to carry out activities in accordance with air safety regulations.

The authority will also closely monitor its performance indicators, including cancellation rate and air cargo volume, to assess its financial situation.

Its contracts with other service providers, including maintenance service providers and jet fuel suppliers, will be watched closely to resolve unexpected issues promptly.

After the arrest, FLC Group announced on March 31 that Dang Tat Thang would be the next chairman of the group and Bamboo Airways until a new decision from its shareholders’ meeting and board of directors was made.

Thang, an earlier deputy chairman of FLC and deputy chairman and chief executive officer of BamBoo Airways, has replaced Quyet to hold the top job.

Bamboo Airways began its operation on January 16, 2019, and has 29 operating jets currently.

According to its unaudited financial statement, the airline’s equity reached nearly VND16.8 trillion (US$734 million) by late 2021. — VNS

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