Bamboo Airways Witnessed Threefold Increase in Revenue after 6 Months of Launch
15th August 2019 - 4:41
According to the People’s Committee of Binh Dinh where Bamboo Airways is registered and headquartered, the Airline’s revenue had tripled by quarter II/2019 after the first 6 months of launch.
Statistics from the balance sheets of the Municipal People’s Committee of Binh Dinh revealed that by June 30, 2019 the negative profit of – VND -14.2 million had declined gradually since April 20, 2019.
The outlook is extremely positive as Bamboo Airways’ turnover had risen sharply by quarter II/2019, reaching USD 48 million – an increase of 242% compared to Quarter 1.
The Municipal People’s Committee of Binh Dinh emphasized that during the three first months of launch – the period of market penetration, Bamboo Airways offered numerous incentives for the customers. Along with that, the Airline also had to pour money into the investment in new facilities, equipment, and fleet expansion.
As a result, the costs in the first 3 months of operation were calculated by the earned revenue. The rest was equally distributed in the remaining months. Not only did this prove the efficiency of the Airline’s operation but also its competence of mobilizing capital investment from the net revenue so that the increase of capital expenditures can be offset.
As reported by the Municipal People’s Committee of Binh Dinh, there was a decrease of 7% in Bamboo Airways’ loan, from VND 45.8 billion to VND 42.5 billion between 30-6-2019 and 30-4-2019.
Those loans were from the regular partners of FLC Group, for the purpose of optimizing the business cash flow of both Bamboo Airways and FLC Group. The recall of this source of money for Bamboo Airways is relatively simple with the support of FLC Group when needed.
As representative of Bamboo Airways stated that almost all new entrants in the aviation industry would suffer losses in the first years, FLC Group had already devised a detailed plan for fleet expansion, budgeted expenditure and aircraft exploitation.
Today (August 14), the Government officially granted the permit so-called the Decision No. 1014 / QD-TTg approving the investment plan in air transport project of Bamboo Airways.
According to the Decision, Bamboo Airways fleet will be allowed to expand to 30 aircraft by 2023, including narrow-body Airbus A319 / A320 / A321 and wide-body Airbus A330, A350 or Boeing B787. At the same time, the contributed capital will increase to VND 1,300 billion.
Bamboo Airways has completed the documents for the fleet investment project as requested by the relevant Ministries and Departments, including the plans for fleet expansion, workforce training, socio-economic and financial efficiency evaluation, etc.