Vietnamese airline Bamboo Airways plans to file for an Initial Public Offering (IPO) this month as it looks to the future of its finances.
What’s the history of Bamboo Airways?
Bamboo Airways is a Vietnamese leisure airline founded in 2017. It has a fleet size of 28 and its HQ is based in Hanoi. The airline was created with the plan to enhance Vietnam’s image and connect the tourist areas in the beautiful country. They wanted to improve the journeys that those take throughout their international travels. However, now the airline are looking to grow in the aviation industry further.
An IPO or a stock market launch is a way for companies to make more money. Shares of the private airline will be offered to the public, thus improving the capital of the company altogether. More capital, means more growth and that’s exactly what Bamboo Airways wants to achieve with this latest move.
Why will Bamboo Airways file for the IPO?
Bamboo Airways are looking to expand and rival their fellow competitors in Vietnam, especially as travel is set to take off again soon. Citizens will be likely to stay in their home country as international travel struggles to regain momentum. Thus, it’s the perfect time to improve the network within Vietnam itself, ready for when international travellers can fly again.
However, the airline are up against the likes of Vietnam Airlines – the country’s main carrier – and VietJet, which have a more budget approach to travel. This means the airline are aiming to meet in the middle, and offer a luxury service at a more competitive price. They label themselves as a five-star orientated airline and it’ll be interesting to see how they find the balance between affordable and affluent.
Do you think the news of Bamboo Airways’s IPO comes at a good time as the aviation industry begins to pick back up again? Let us know below!