Israeli MRO provider IAI Bedek has won a new contract in the Asia-Pacific region: Vietnam’s Bamboo Airways selected it to provide maintenance for six CFM International CFM56-5B engines over the next year, and IAI will also lease the airline one spare CFM56-5B engine.
The engines power Bamboo’s Airbus A320-family aircraft which, according to Vietnamese media, the airline wants to increase to 12 units by the end of 2024.
However, last month the troubled carrier’s total fleet shrank to just six aircraft, from 30 aircraft 12 months ago, after a lessor repossessed three Embraer 190 regional jets.
The airline has also lost its widebody aircraft after falling behind on rents, as well as A321neos and other A320-family aircraft that were retrieved by a variety of lessors.
While the airline insists that it maintains stable operations, it is still searching for an investor after not managing to turn a profit since its launch in 2019.
Last year, Vietnamese conglomerate FLC Group announced plans to sell its remaining 21.7% shareholding in Bamboo Airways to Le Thai Sam, the airline’s chairman.
This followed FLC’s delisting and the arrest of Trinh Quyet, its former chairman and founder of Bamboo, on allegations of securities fraud.
IAI called the contract a “milestone” for the company in the Asian market, but while the deal is said to be worth $36 million, questions linger about the viability of Bamboo going forward.
These questions are due not only to Bamboo's performance so far, but also to recent recovery of its two main rivals, Vietnam Airlines and Vietjet.
Vietnam Airlines ended 16 consecutive quarters of losses in the first three months of 2024, posting a $179 million profit, while Vietjet's revenues rose 38% and it made a net profit of $21 million.
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