© Reuters.
In a sudden turn of events, Bamboo Airways, the Vietnamese airline, has decided to withdraw from the Australian market as part of its global restructuring strategy. The company had initiated services connecting Sydney and Melbourne to Ho Chi Minh City and Hanoi just last year. However, all flights are now listed as unavailable on their website.
Brad Crawford, the National Sales Manager (AU/NZ), announced the redundancy of all Australian staff, including his own position, on LinkedIn. The broader strategy includes discontinuing all long-haul flights and selling off their Boeing (NYSE:) 787 fleet.
The airline is in the process of implementing a comprehensive restructuring plan that aims to enhance competitiveness, capacity, and self-sufficiency. The carrier will now deploy narrowbody aircraft and jets on high-demand domestic routes in Hanoi, Ho Chi Minh City, and Da Nang while also servicing popular domestic tourist routes and Southeast Asian international routes.
The final Bamboo Airways 787 flight is currently en route from Hanoi to Melbourne before the route closure. The Melbourne to Ho Chi Minh service will operate one last time on Thursday with no future flights available for booking.
In an official statement, Bamboo Airways confirmed that it is undergoing a long-term restructuring process aimed at enhancing competitiveness and capacity by optimizing route efficiency. Its fleet of around 29 aircraft includes two Boeing 787-9 Dreamliners used for long-haul routes, Airbus A320 Family aircraft, and Embraer E190s. The airline is working with Airbus and Boeing to implement aircraft purchase agreements for ten 787-9 Dreamliners, preparing for a fleet expansion in 2024.
Despite its aggressive entry into the Australian market with plans to increase flights between Australia and Vietnam to six per week, Bamboo Airways has faced fierce competition. Airlines like Vietnam Airlines, Vietjet, and Jetstar offering nonstop flights from Melbourne to Vietnam have intensified the competition. Specifically, Vietjet’s thousands of $0 fares have made the market more challenging for Bamboo Airways.
The airline is determined to attract strategic investors and high-quality resources through these changes. It has also committed to assist affected passengers according to its policies and laws.
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