Bamboo Airways shareholders shoot down capital increase plan
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Shareholders of Bamboo Airways, at an extraordinary general meeting on Monday, rejected plans for a private placement of shares to increase charter capital.
The proposal for a VND9.57-trillion ($405.5 million) issue to increase the capital to VND28 trillion, restructure loans and swap debts for shares based on agreements with creditors was rejected by 56.4% of shareholders.
Bamboo Airways chairman Nguyen Ngoc Trong said he would hold discussions with major shareholders and submit a plan for increasing the charter capital at the next annual general meeting.
Trong said that in the first quarter of this year, with its fleet operating at full capacity, the airline would almost break even.
It is expected to get delivery of six to eight aircraft this year and 10 more in 2024-25, he said.
“Bamboo Airways will become profitable by 2025.”
He said 2026 or 2027 would be an optimal time for it to make an IPO.
The carrier now flies to 21 out of 22 airports in Vietnam, and in April would add Ca Mau to its destinations.
Internationally, it has been resuming services to Europe and Australia post-Covid.
Questions & Answers
Q.What was the purpose of the rejected capital increase proposal for Bamboo Airways?
What was the purpose of the rejected capital increase proposal for Bamboo Airways?
The proposal aimed to increase the airline's charter capital to VND28 trillion, restructure its loans, and swap debts for shares. This was based on agreements the airline had made with its creditors.
Q.When does Bamboo Airways expect to achieve profitability?
When does Bamboo Airways expect to achieve profitability?
The chairman, Nguyen Ngoc Trong, stated that Bamboo Airways is expected to become profitable by 2025. He also indicated that 2026 or 2027 would be an optimal time for the company to launch an Initial Public Offering.
Q.How many new aircraft does Bamboo Airways anticipate receiving in the coming years?
How many new aircraft does Bamboo Airways anticipate receiving in the coming years?
Bamboo Airways expects to take delivery of six to eight new aircraft this year. An additional ten aircraft are anticipated to be delivered to the airline during 2024 and 2025.
Q.What is the airline's current domestic route coverage in Vietnam?
What is the airline's current domestic route coverage in Vietnam?
The carrier currently operates flights to 21 out of 22 airports within Vietnam. In April, Bamboo Airways is set to expand its domestic network by adding Ca Mau to its list of destinations.
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