To state the obvious, it’s usually not a good sign when an airline can’t pay pilots on-time (thanks to Zach for flagging this)…
In this post:
Vietnam’s Bamboo Airways losing pilots, can’t pay on-time
Bamboo Airways is a Vietnamese airline that launched operations in 2019. The airline has a fleet of roughly 30 aircraft, and operates everything from domestic to long haul flights. Bamboo Airways is even an Aeroplan partner, and I’ve reviewed the carrier’s A321neo business class and 787-9 business class (both of which were very pleasant).
Unfortunately it looks like the financial situation at Bamboo Airways isn’t very good. Reuters is reporting that 30 foreign pilots have left the airline in the past two months, which makes up over 10% of the carrier’s total pilots. The decision for some pilots to depart is reportedly because the airline has struggled to pay pilots on-time.
In an internal forum, the airline reportedly told foreign pilots that they would receive 35% of their regular monthly pay a week after when they’d normally receive their entire salary, and that they’d be advised at a future point when they’d get the rest of their pay.
This isn’t the first time that the airline has been late paying employees. However, historically late payments have been to the domestic employees, and not foreign ones (presumably since they can quite easily find jobs elsewhere).
Bamboo Airways has acknowledged that the airline is in the process of restructuring, including reducing its route network, fleet, and employee count. Currently seven of the carrier’s 30 aircraft are parked. The airline reported a loss of $722 million in 2022, which is absolutely massive for an airline this size.
What has gone wrong with Bamboo Airways?
I’ve taken an interest in Bamboo Airways since launch, since I always find ambitious airline startups to be interesting. Vietnam has a fast growing economy and the demand for air travel in the country is increasing rapidly. So, why is Bamboo Airways in such a dire financial situation?
The way I see it, there are two main factors…
For one, Bamboo Airways’ business model just doesn’t make a whole lot of sense, and the airline lacks discipline. Bamboo Airways is a full service carrier, and operates everything from domestic flights, to long haul flights to Australia and Europe.
The airline is essentially going head-to-head against Vietnam Airlines, except that airline has been losing money for years, despite being much better established, having a broader route network, and having significant partnerships. While Vietnam’s economy is growing, that demand is largely for low cost flights, given the average income in the country.
Bamboo Airways has had some wild plans, and at one point even planned to lease Airbus A380s to fly to the United States. At another point the airline wanted to order Boeing 777Xs. Like, it’s hard to take an airline seriously when that’s the business plan.
Bamboo Airways’ struggles have gone beyond the above, though. Bamboo Airways was initially owned by FLC Group. However, in the past 18 months or so, the airline has been through three CEOs, and has seen a change in majority ownership. In March 2022, the company’s former chairman was arrested over allegations of stock market manipulation, and then the airline really came tumbling down.
The company is now looking to raise capital from new investors, with the airline claiming that Vietnam’s Sacombank has expressed confidence in the company’s long-term prospects. The company’s new CEO also claims that the government is committed to supporting the airline. Interestingly all of these statements (both about investors and the government) come from company employees, and not from the investors or the government.
So yeah, Bamboo Airways has a not-great business model, lost $722 million last year, and has been dealing with corruption. It’s not a good situation…
Bottom line
Bamboo Airways lost a staggering $722 million in 2022. The company is undergoing a restructuring, and is reportedly struggling to pay its pilots, leading to dozens of foreign pilots leaving. While the company is claiming it will continue operating as planned and weather this storm, I’m a bit more skeptical.
Honestly, it blows my mind how easy it is to raise hundreds of millions of dollars with a bad business plan…
What do you make of Bamboo Airways’ situation?
Wondering if anyone can help?
I purchased Bamboo Airways flight tickets from LGW to Hanoi for Jan 2024 through Lastminute.com. My flight was cancelled in August and I still have not received my refund. Last Minute have apparently been trying to get hold of the airline to no avail. I have also been trying to get in contact with no response.
Not really sure what else I can do as all of my contact...
Wondering if anyone can help?
I purchased Bamboo Airways flight tickets from LGW to Hanoi for Jan 2024 through Lastminute.com. My flight was cancelled in August and I still have not received my refund. Last Minute have apparently been trying to get hold of the airline to no avail. I have also been trying to get in contact with no response.
Not really sure what else I can do as all of my contact attempts have been ignored by the airline. Can't help but feel like I have been scammed!
Is anyone else in the same situation or similar? Or does anyone have any suggestions?
Thanks
Not just me then
That’s a great shame. I flew LGW-HAN this year in J via Aeroplan miles and thought the food and seat etc were on a par with SQ. Of course the flight attendants didn’t speak much English.
The cabin only had a handful of passengers and I did wonder how they would survive. Covid has really hit a lot of airlines hard and if they are not well capitalised and in the main alliances I guess they will struggle as we are seeing here.
With the London route canceled, my wife is booked to return to Vietnam January. Do I get any money back? What’s the process to claim?
Good luck if you booked it via Aeroplan and have to ring their call centre. They take about half a day to pick up the phone and there’s no way to message them.
Hi Chris,
Has your wife received her refund yet or been able to get in contact with the airline? I was planned to fly in January from LGW to Hanoi but they cancelled it back in August. Still waiting on my refund!
Well Bamboo was nice at the beginning, thing changed abruptly after FLC left, pilots were committed to stay there yet Company didn’t renew contacts from expats since June with less than a week notice periods, now we are most of us unemployed.
Explains the cancellation of long-haul routes like London Gatwick then...
Not a surprise, from the very beginning, everything does not make senses as a plan. I recently kind of trying to look for specifically flying them, but their network just too much making no senses, cannot even fit in any of my travel plan, so unfortunately.
Great shame of Bamboo go down !
Used them this year from Sydney to UK - great service and staff
Howard
Sydney
Vietnamese here. Pretty much everyone that has aviation knowledge knows that Bamboo is doom from the start. Awful strategy, getting the 787, opening routes to Europe, and planning to fly to US in first 2 years of its existence without any partners or alliance (they only have interline agreements with 5 airlines !) is insanity. Vietnam Airlines took 20 years to fly to San Francisco because they know the first couple of years operating that...
Vietnamese here. Pretty much everyone that has aviation knowledge knows that Bamboo is doom from the start. Awful strategy, getting the 787, opening routes to Europe, and planning to fly to US in first 2 years of its existence without any partners or alliance (they only have interline agreements with 5 airlines !) is insanity. Vietnam Airlines took 20 years to fly to San Francisco because they know the first couple of years operating that routes would incurred heavy financial losses. A startup airline with no financial backing won’t survive this kind of losses. And then also another factor: Covid, the founder went to jail because of insider trading, … 7 out of 30 planes is not parked, they are being returned to the lenders, and there will be at least 5 or 6 more by the end of 2023. To be fair, I am surprised that they are still operating, but I don’t think it will last for 1-2 more year(s)
Flights to London have been cancelled as of October, that was one of there higher occupancy routes thanks to fares less than VN circa £800 VN to £450 Bamboo.
So I fly for another Vietnamese airlines. My colleagues over at Bamboo have been complaining about the lack of pay pretty much since the pandemic. We took heavy handed actions to prevent the spread so airlines took a big hit and while our airlines have the resources of being a long established large airline with Vietnam Airlines obviously having government backings Bamboo was in its infancy and FTC group for all purposes is pretty shady...
So I fly for another Vietnamese airlines. My colleagues over at Bamboo have been complaining about the lack of pay pretty much since the pandemic. We took heavy handed actions to prevent the spread so airlines took a big hit and while our airlines have the resources of being a long established large airline with Vietnam Airlines obviously having government backings Bamboo was in its infancy and FTC group for all purposes is pretty shady anyhow. I want to see Bamboo succeed as I want to see competition in this space but they came at the worst time possible to survive.
Are you the German speaking captain on Vietnam Airlines?
I have too taken an interest in this airline. The flight I took was good but not above average to compete with Vietnam Airlines, but that is just one experience. Love their livery of course.
I recently flew on Bamboo from Tokyo (NRT) - Hanoi (HAN). One of the strangest flights I've been on. They moved me to the exit row during check in, saying I needed to sit there because I was the only English-speaking passenger. They must have been at 30% occupancy, max. Every pax got a row to themselves. The food was quite good, though!
I guess their investors and staff have been bamboozled
Did they use weather as an excuse to not paying on time?
Sounds like what happened with Kingfisher Airlines in India about 10 years ago (And Vistara should be careful now for similar reasons)
Trying to launch a full service airline with luxury amenities unfortunately doesn't seem to work too well in super value conscious countries where the majority will choose a low cost carrier zero frills airline seat even if the price difference is a tiny bit higher for a full service carrier.
@Luke - Kingfisher was an ego project masquerading as an airline. Not a fair comparison. When your owner insists on interviewing all flight attendants personally (bonus points if they participate in the swimsuit round?), makes his son the airline CEO for a day as a birthday present, and believes fleet planning is "five of each" (including the A340-500 and A380) it really isn't fair to compare them even to the Bamboo train smash.
Airline CEO for the day is quite possibly the best birthday present ever
'Course, then there was that Aeroflot pilot who made his kid Captain-For-A-Minute.....
Vistara's owned by Tata/SQ and is already in the process of merging into Air India. Better fate than folding altogether but hopefully the service standards of Air India are brought up to Vistara's and not the other way around