Quyet made the statement at a forum held in Hanoi on Thursday on Bamboo Airways’ plan on direct flights to US.
FLC Group Chairman Trinh Van Quyet speaks at the forum on August 1
Bamboo Airways has applied to the US aviation authorities for permission to open direct flights from Hanoi or HCM City to the US. The carrier hoped that the route would be launched early next year.
According to Quyet, FLC had carefully considered the plan implementation. Bamboo Airways would hire Boeing 787-9s. It would cost the airline a total VND113 billion (USD4.91 million) every month, including VND23 billion (USD1 million) for hiring aircraft, VND61 billion for fuel and VND16 billion for technical issues.
With the return airfare of USD1,100, Bamboo Airways would earn VND116.3 billion, meaning that it would face monthly losses of VND14 billion per flight in the initial stages.
However, Quyet added that after the route operation becomes stable, Bamboo Airways would increase the air ticket to USD1,300 per passenger, which would help to bring the firm a post-tax profit of VND8 billion per flight (USD347,826).
USD1,300 ticket price is still cheaper than many regional airlines such as Japan Airlines, which charges USD1,600.
If Bamboo Airways used the Airbus A350 at USD1,300 per ticket, the profits would reach VND28 billion per flight.
If bookings weren’t as high as expected, Bamboo Airways would consider adjusting its business strategy. For instance, the firm would reduce the number of flights or offer transits in a third country such as Japan or South Korea.
The FLC Group chairman remained confident about the great potential for non-stop flights due to the number of people of Vietnamese descent living in the US.
Vietnam’s population is nearly 100 million people compared to just six million in Singapore, but Singapore Airlines still conducts flights to the US, Quyet emphasised.
Loc also mentioned a high number of Vietnamese students in the US as well as Vietnam’s tourism growth as potential passengers.
At the forum, Vu Tien Loc, chairman of Vietnam Chamber of Commerce and Industry (VCCI), said that Bamboo Airways would face difficulties in the initial period of operating the route. However, more than two million Vietnamese people are now living in the US which is a big advantage.
Vo Huy Cuong, deputy head of the Civil Aviation Administration of Vietnam, said that last year, the number of passengers who took flights between the two countries reached 700,000. The figure would be much higher with the direct flights.
Cuong, however, highlighted that Bamboo Airways need to make careful preparations to meet the US’s strict technical requirements.
