Bamboo Airways Faces Tax Arrears as Fleet Shrinks and Route Cuts Continue

Bamboo Airways owes more than VND440 billion (US$16.8 million) in unpaid taxes, according to Vietnam’s Gia Lai Provincial Tax Department, which has warned it could impose a temporary travel ban on the airline’s beneficial owner if the outstanding obligations are not settled.

The tax dispute comes as the carrier continues to scale back operations following its restructuring. Bamboo Airways has suspended its Hanoi–Lijiang charter service from August 1 after determining the route was no longer commercially viable and has apologized to passengers and travel partners affected by the cancellation.

The airline’s fleet has contracted to just three Airbus narrowbody aircraft, down from a peak of 44 aircraft and eight aircraft at the end of 2025. The reduced fleet has contributed to recent flight cancellations and delays as Bamboo concentrates resources on its highest-performing routes.

Despite the operational challenges, Bamboo Airways has outlined plans to rebuild its business over the coming years. The carrier has previously targeted adding eight to 10 aircraft annually between 2026 and 2030, with the goal of expanding its fleet to around 40 aircraft. It has also held discussions with Boeing, investment firm Eastbridge Partners and South Korea’s RAKSO Holdings, although most of those initiatives remain at the proposal stage.