New kid on the block Bamboo Airways wants to expand its current 10 percent market share to 30 percent by next year. For this, it first plans to expand its fleet and increase the number of domestic routes before starting international services to destinations like South Korea, Thailand and Taiwan.
Its chairman Trinh Van Quyet last month said it would be the first Vietnamese airline to fly directly to the U.S.
The carrier is preparing for an evaluation by the International Air Transport Association for issuing a safety certificate, which would allow it to partner with international airlines, the statement said.
It is preparing to file for permission to operate direct flights to the U.S. using wide-bodied Boeing 787-9 aircraft.
The firm plans to raise $100 million next year in an initial public offering, Reuters reported recently.
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Its entry has eaten into the market share of other airlines. The passenger market share of national flag carrier Vietnam Airlines and its two affiliates, Jetstar Pacific and VASCO, as of June was down 5 percentage points from last year to 51 percent.
Budget carrier Vietjet suffered a 2.7 percentage point drop from 44 percent to 41.3 percent.
Bamboo Airways, which began flying in January, last month received permission from the government to expand its fleet from 10 to 30.
Vietnam expects the aviation market to grow by 16 percent a year in 2015-20 and 8 percent in 2020-30.
This means there will be a possible 117 million air travelers by 2023, 85 percent by Vietnamese carriers, which will require 340 aircraft, according to the Civil Aviation Authority of Vietnam.