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FLC chairman: I do not locate Bamboo Airways as a cheap airline

Tuesday - 12/06/2018 20:23
Trinh Van Quyet said Bamboo Airways will take off at the end of 2018 with 20 leased aircraft.

Information on the operation of Bamboo Airways is shared by the leaders of FLC Joint Stock Co (coded FLC) at the General Meeting of Shareholders on June 12.

Some shareholders questioned where FLC's use of funds came from to ensure the operation of Bamboo Airways. Regarding the company's investment capital, Trinh Van Quyet, chairman of FLC, said that the unit had deposited money for the production unit and had another deposit in the bank.

However, he also emphasized that the board of administrative Council and the board of directors will have an internal plan or use loans from other financial institutions. Currently, FLC has not issued shares to mobilize capital like other airlines.

Trinh Van Quyet also said that by the end of 2018, Bamboo Airways will take off with about 20 aircraft chartered by contract, aircraft ordered with Airbus in 2019 to be handed over.


On Bamboo Airways' strategy, according to Quyet, the airline will not locate itself as a cheap airline. Instead, Bamboo Airways wants to be a traditional airline that has both super-premium and low-cost service. The airline will have flights to FLC resorts and customers do not have to pay for airfares, only pay for the room. "Everybody who flies to FLC is free of charge, even flying from abroad, not just domestic ones," Quyen said.

Also at the 2018 shareholders' meeting, the market price of FLC shares was low, below the face value when the company's good business is also many shareholders questioned. Answering the issue, Trinh Van Quyet also admitted that the promise of bringing shares up to the par value at the previous congress has not been achieved.

"In fact, last year, FLC shares at about 8,000, but not yet exceeded the par value. That also makes shareholders sad, I very much share, especially the loyal shareholders of FLC. Many older shareholders have been with us for four to five years, but they have not been as expected, "he said.

However, he said that the market was shaken, the code is reduced by 60-70%, but FLC stocks do not suffer such terrible change. Moreover, according to him, FLC shares are still popular with many investors when trading well, easy liquidity.

"I would like to assert that for a while the FLC shares will not stop at face value. All the projects of FLC are doing well, only the share price has not surpassed the par value, "he said.

Chairman of the Board of Directors also said that, at each meeting, compared the total assets, revenue the next year is greater than the previous year. Profit is also adjusted gradually, the index is ensuring the business plan for the next years. He suggested that shareholders should believe in the board and continue to hold FLC shares.

Reported at the congress, Mr. Tran Quang Huy - General Director of FLC said total consolidated revenue in 2017 reached 12,300 billion, reaching nearly 95% of the plan. After-tax profit was VND385 billion, just over 39% of the plan.

The profit reduction in 2017 is not as planned by Mr. Huy explained by the restructuring of products into hotels, resort services. This leads to a sharp increase in COGS from $ 4.5 trillion in 2016 to more than $ 10 trillion in 2017, leaving 2017 earnings down.

In terms of business plan in 2018, FLC targets VND 12,500 billion in revenue and VND 560 billion in profit after tax.

 Tags: Bamboo Airways

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