FLC signs US$3-billion contract to buy 24 Airbus planes
Official agreement of purchasing 24 Airbus A321neo aircrafts for Bamboo Airways between FLC Group and Airbus has been signed on March 26, announced FLC Group on its website.
"FLC decision shows the prominent status of A321 class in the market segment for short- to medium- range, thanks to its fuel burn improvement and high efficiency," said Eric Schulz, Airbus's Chief Commercial Officer in the signing ceremony.
Airbus A321.
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The A321neo is considered an ideal model for hybrid low-cost and traditional airlines, the very business model Bamboo Airways is targeting.
"After studying and carefully scrutinizing the options, FLC Group and Bamboo Airways have decided to order 24 Airbus A321neo aircrafts for the airline's operation. This type of aircraft will allow us to provide services in an efficient, appropriate and convenient manner, contributing to the development of Vietnam's leisure industry," FLC chairman Trinh Van Quyet said at the event.
According to Airbus, FLC Group has completed the first payment of the contract, which will lay the foundation for the hand-over of the aircrafts to Bamboo Airlines in the agreed timeline in period 2022 - 2025.
Bamboo Airways has not yet obtained a licence for operation, the airline is expected to order another 24 Airbus A321 LR (long-range) once getting the government's approval, taking its total aircrafts under operation to 50, informed FLC.
Viet Bamboo Airlines, the subsidiary of FLC Group operating Bamboo Airways, was established in 2017 with the charter capital of VND700 billion (US$30.8 million). FLC Group's main business lines are housing, resorts, and golfing.
Bamboo Airways plans to provide direct international flights to destinations where FLC Group has resorts facilities, such as Quy Nhon, Quang Ninh, Hai Phong, Phu Quoc, and Nha Trang, in addition to domestic flights connecting tourist spots in Vietnam.
Vietnam currently has four airlines, including national carrier Vietnam Airlines, budget operator Jetstar Pacific Airlines (partly owned by Vietnam Airlines), budget carrier Vietjet Aviation, and Vietnam Air Services (VASCO).
In 2010-2016, the Vietnamese air transportation market has witnessed a high average growth rate of 14.9% in passenger volume and 10.7% in cargo, informed Vietnam Civil Aviation Administration.
During the first 9 months of 2017, Vietnamese airports have served more than 71.75 million passengers, up 17.9%, and handled 833,000 tons of cargo, up 34.6% compared to the corresponding period in 2016.
A recent World Tourism & Travel Council report showed the tourism industry's contribution to Vietnam's gross domestic product will increase by nearly 90% to $34.6 billion in 2027 from the $18.4 billion recorded last year.
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