What happened to Bamboo Airways after Mr. Trinh Van Quyet was arrested and detained?

 Mr. Trinh Van Quyet, Chairman of the Board of Directors of FLC Group, is also the Chairman of the Board of Directors of Tre Viet Aviation Joint Stock Company (Bamboo Airways). After Mr. Quyet is prosecuted and detained, how will this airline operate?

According to a press release issued on the evening of March 29 by FLC Group, this business confirmed that Mr. Trinh Van Quyet had authorized Ms. Vu Dang Hai Yen, Deputy General Director of FLC Group to represent him to carry out the activities. perform related work. In which, Ms. Yen is authorized to hold the role of Chairman of Bamboo Airways' Board of Directors and Mr. Quyet's shareholder rights in this airline.

A source from Bamboo Airways confirmed that the airline's business and exploitation activities are still taking place normally.

News from the Ministry of Transport (Transportation) said, the Ministry has just received information that Mr. Quyet has been prosecuted, not knowing the specifics. This is the first time in the history of Vietnamese airlines that a leader of an airline has been prosecuted and detained while still holding the position of leader of the airline.

"As an active airline, Bamboo Airways still has to ensure safe operation, maintain normal operation and fully ensure the interests of customers," the source said.

According to the Ministry of Transport, aviation is a very specific field, when operational safety requirements are put on top. In addition, airlines often sell tickets many days or even months in advance of the flight time, so the interests of customers who have purchased tickets must always be guaranteed. In addition, any problems with airlines can affect not only domestic airlines, but also the commitments, assessments, etc. of global aviation organizations, world aviation authorities with cargoes. not Vietnam.

After Mr. Trinh Van Quyet was prosecuted and detained, Bamboo Airways' activities attracted much attention from the public and its customers.

At the time of being licensed to operate, Bamboo Airways was a subsidiary of FLC, with this group holding 100% of the charter capital.

However, after many times of capital increase and divestment, according to FLC Group's consolidated financial report for the fourth quarter of 2021, as of December 31, 2021, FLC only holds a 21.7% stake in Bamboo. Airways (at the beginning of 2021, FLC still holds 51.29% of the capital of this airline).

Most recently, in February 2021, Bamboo Airways increased its charter capital from VND 7,000 billion to VND 10,500 billion (an increase of VND 3,500 billion), after this capital increase, FLC's ownership ratio in the airline decreased from 51.29 % to 39.4%. At the same time, this airline was established as an associate company, no longer a subsidiary of FLC Group.

At the 2021 Annual General Meeting of Shareholders of FLC Group taking place in April 2021, Mr. Trinh Van Quyet, in the position of Chairman of the Board of Directors of FLC Group and Chairman of Bamboo Airways, answered questions from shareholders about the ratio. own capital in this airline. The press agencies quoted Mr. Quyet as saying: He and FLC are still owners of over 80% of capital at Bamboo Airways. In addition, about 10% of capital at Bamboo Airways is owned by FLC staff; the remaining shares are owned by outside shareholders (only 10%).

According to FLC's financial report, accumulated by the end of 2021, FLC has poured into Bamboo Airways a total capital of 4,015 billion VND, the airline's loss shared to FLC is more than 501 billion VND. In 2021 alone, FLC has contributed capital to Bamboo Airways with 550 billion dong, and at the same time divested a part, earning more than 121 billion dong.

According to information from the Aviation Corporation of Vietnam (ACV), by the end of December 2021, Bamboo Airways still owes ACV more than 451 billion VND (an increase of more than 125 billion VND compared to the beginning of the year).

Previously, ACV had written requests to Bamboo Airways to repay debts owed by the airline, most of these debts were collected by the airline on behalf of ACV from passengers when selling tickets, such as security service fees, screening fees, service fees. airport…

At the end of 2021, ACV also determined that Bamboo Airways had a bad debt of more than 380.9 billion VND, these are ACV receivables that are overdue, or not yet overdue but difficult to recover.

Bamboo Airways officially took off from January 2019, in the first 2 years of operation, the airline reported profits. FLC had a plan to IPO (selling shares for the first time to the public) in 2020, but due to the pandemic, it had to be delayed until now. At the same time, the airline is promoting procedures to operate a regular direct route between Vietnam and the United States. In addition, due to the impact of the COVID-19 epidemic, in order to support the company to overcome difficulties, in the past year, the company has several times petitioned the Government, ministries and sectors to consider lending the company 5,000 billion VND with interest. preferential rate.

According to FLC's financial report, by December 31, 2021, FLC still has to pay more than 24.1 billion VND of Social Insurance, Health Insurance, Unemployment Insurance, and more than 9.6 billion VND. Union funds.

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