Bamboo Airways axes flights from Vietnam to Sydney and Melbourne as airline shrinks its route network in major restructure

An international airline has abruptly axed its flights into Sydney and Melbourne as it embarks on a major restructure in the wake of a massive financial loss.

Vietnam-based airline Bamboo Airways will no longer fly into Australia as it shrinks its route network just months after posting a hefty financial loss. 

The airline launched services into New South Wales and Victoria early last year, taking on Jetstar and Vietnam Airlines in the Vietnam to Australia market.

The carrier’s routes included Ho Chi Minh City to Sydney and Melbourne and Hanoi to Melbourne, which were all operated with Boeing 787-9 aircraft.

However, Sydney and Melbourne now no longer appear as global destinations on the airline’s website, while all Australian-based staff have been let go.

“It is with a heavy heart that I advise all Bamboo Airways Australia staff have been made redundant including my National Sales Manager role,” former National Sales Manager Australia and New Zealand Brad Crawford posted on LinkedIn over the weekend.

Bamboo Airways – which reportedly recorded an AU$1.1 billion loss for 2022 – said in a recent statement it was embarking on “long-term restructuring to rebuild the airline more efficiently and streamlined”.

The airline said it has moved to improve “commercial efficiency by reducing the frequency of a number of inefficient routes with low passenger demand while increasing operation on routes recording high demand”.

The Boeing 787-9 aircraft will no longer be part of Bamboo Airways’ fleet, meaning further services it offered to London and Frankfurt have also been withdrawn.

“The carrier’s fleet structure is expected to incorporate narrow-body aircraft and jets, which will be deployed on key domestic routes, strongly emphasizing trunk routes such as Hanoi, Ho Chi Minh City, and Da Nang,” Bamboo Airways said.

“The airline will also offer services on domestic tourist routes with high demand and international routes to Southeast Asia.”

When Bamboo Airways confirmed plans to fly into Victoria in late 2021, the Andrews government boasted it was “backing tourism and trade by supporting the first new international airline to commence flights to and from Melbourne since the pandemic”.

Melbourne was also selected as the location for Bamboo Airways’ Australian headquarters.

“We are thrilled to call Melbourne our Australian home and look forward to working closely with the Victorian government on creating more direct links between Vietnam and Australia via Melbourne,” then Bamboo Airways CEO Dang Tat Thang said.

Customers who had been due to fly Bamboo Airways in the coming weeks have taken to social media to vent their frustration flights have now been pulled from schedule.

“I booked our direct flights from Melbourne to Hanoi back in April. I called last week to confirm our special meals, and was informed that our direct flights had been cancelled and that our flights would now be via Ho Chi Min City,” one person posted.

“Just received a phone call advising that our flights have been cancelled all together… we were supposed to fly in 28 days.”

By Bryant Hevesi – SkyNews.com.au – October 24, 2023