Vietnam Airlines plans to absorb redundant staff from Bamboo Airways

DNHN - Mr Le Hong Ha, General Director of Vietnam Airlines (VNA), confirmed that Bamboo Airways has a surplus of hundreds of pilots and flight attendants after restructuring, and Vietnam Airlines has planned to utilise these personnel.

In a conversation with a reporter from the Business & Integration Journal (doanhnghiephoinhap.vn) on the sidelines of the 2023 year-end review and 2024 task deployment conference of the Ministry of Transport, Mr Le Hong Ha, General Director of Vietnam Airlines (VNA), said that in light of the information that Bamboo Airways has a surplus of hundreds of pilots and flight attendants after restructuring, Vietnam Airlines has planned to utilise these personnel following its needs.

The General Director of Vietnam Airlines believes that although many Vietnamese airlines compete in the business environment, they must still support each other for the common development of the industry.

"Faced with the surplus resources of other airlines, VNA must find ways to resolve the issue and utilise them based on its own needs. We are currently implementing our plan," said Mr Ha.

Citing an example of domestic airlines supporting each other's development, Mr Le Hong Ha said that Bamboo Airways recently reached a cooperation agreement with Pacific Airlines - an airline belonging to the Vietnam Airlines Group - to provide ground services. Pacific Airlines will provide services such as check-in, baggage handling, apron buses, and aircraft pushbacks.

"As a business, we must operate efficiently, but the level of efficiency is another matter. Pacific Airlines is also an airline heavily affected by the COVID-19 pandemic and is undergoing a significant restructuring process, including its fleet and operational organisation.

Pacific Airlines has a ground handling department at three main airports: Noi Bai, Tan Son Nhat, and Da Nang. When Pacific Airlines restructures, it must also handle its ground handling operations at those airports. On the other hand, Bamboo Airways has a demand, and this is an opportunity for Pacific Airlines to support Bamboo Airways in ground handling operations while creating jobs for its staff. This is a process of mutual support and assistance, which is essential," emphasised the General Director of VNA.

Earlier, at the year-end conference of the Civil Aviation Authority of Vietnam, Bamboo Airways General Director Luong Hoai Nam said that the airline now has only 10 aircraft, including 7 Airbus aircraft and 3 Embraer aircraft. The airline currently operates only 16 domestic routes compared to its peak period when it operated more than 60 domestic routes.

Therefore, Bamboo Airways also has a surplus of labour, specifically hundreds of excess pilots and approximately 500 excess flight attendants.

In the context of surplus labour, the leadership of Bamboo Airways said that Vietjet has agreed to help the airline with 50 flight attendants and 20 pilots, while Vietnam Airlines is still considering the matter. Bamboo Airways continues to call on other airlines to actively help the airline address its surplus labour.

Meanwhile, Bamboo Airways CEO Luong Hoai Nam said that if Bamboo Airways goes bankrupt, other Vietnamese airlines will face difficulties in leasing and purchasing aircraft and arranging international credit due to concerns about risk. The Vietnamese aviation industry will be affected if it loses the third-largest airline in Vietnam, which is also a major customer for many businesses providing services at airports, such as fuel, catering, and ground handling.

According to Mr. Nam, Bamboo Airways' restructuring plan is for an airline with a fleet of 30 aircraft, more than 60 domestic routes, and more than 15 international routes. This is a restructuring on a scale dozens of times larger, with a route network much larger than that of previous airlines.

"This is a 'major surgery' that will comprehensively change the airline, from its business model to its target market and fleet. Bamboo Airways' business segments will also be adjusted to suit the new business model and customer base. In terms of governance, Bamboo Airways will undergo a comprehensive transformation towards a leaner and more agile structure," shared the CEO of Bamboo Airways.

Nghe Nhan