Bamboo Airways is set to resume international flights in November adding a daily flight from Ho Chi Minh City to Bangkok, its first international flight in over a year, The Investor is reporting. This is somewhat of a surprise in that the airline has been struggling for the better part of two years during which it has repeatedly downsized its fleet and number of routes.
For background, Bamboo Airways originated as a subsidiary of Vietnam’s FLC, primarily known for real estate development. However, during the pre-COVID real estate boom, FLC decided to diversify by venturing into the airline industry. Unfortunately, when the COVID-19 pandemic struck, it not only devastated the travel sector but also triggered a series of events that led to a significant downturn in Vietnam’s real estate market.
Caught in a precarious situation, FLC faced additional challenges when its General Director, Trinh Van Quyet, was arrested for stock market manipulation. FLC found itself in a difficult position, prompting the need for reform. As part of this restructuring, Bamboo Airways was spun off. However, the new airline carried with it huge debts and losses, making its journey since then a continuous struggle to overcome these financial challenges.