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Thursday,  Jun 29,2017,16:01 (GMT+7)

Bamboo Airlines has yet to produce financial confirmation statement

Ngoc Lan
Friday,  Jun 16,2017,23:36 (GMT+7)
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Bamboo Airlines has yet to produce financial confirmation statement

Ngoc Lan

HANOI - FLC Group, the owner of Viet Bamboo Airlines Company Limited (Bamboo Airways), has sent an airline establishment request to the Civil Aviation Administration of Vietnam (CAAV), but has shown no financial confirmation statement as required by the current rules.

FLC Group has yet to produce a confirmation of the airline’s chartered capital as required by Government Decree 92/2016. In a document sent to CAAV, a unit of the Ministry of Transport, the group promises to submit the financial confirmation statement when the scheme for Bamboo Airways establishment is appraised by authorities.

According to the law on civil aviation and Decree 92/2016 providing business conditions in the aviation sector, businesses cannot get an aviation services operation certificate until they have met all required conditions, especially for finance.

In particular, they are required to submit a confirmation statement issued by a commercial bank that holds their money in an escrow account. The money cannot be withdrawn until a license is either issued or denied.

In late May 2017, FLC Group set up Viet Bamboo Airlines Company Limited with total chartered capital of VND700 billion (US$30.73 million).With this amount the carrier can be licensed with a fleet of 10 planes to operate domestic and international flights under the current regulations.

In a related development, in May last year the Government ordered the Ministry of Transport to not consider approving an application for establishment of Vietstar Airlines as its investor had yet to meet the chartered capital condition.

Vietstar Airlines has operated chartered flights and provided aircraft repair and maintenance services since 2010 but has not been allowed to operate commercial flights.

A civil aviation firm must have chartered capital of at least VND700 billion to establish an airline with 10 planes. However, at the time of application, Vietstar had only VND625.7 billion.

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