Vietnam’s Bamboo Airways, a start-up airline scheduled to begin operations next year, is to receive up to 24 Airbus A321neo aircraft after its parent company FLC Group signed a Memorandum of Understanding (MoU) with the European airframe manufacturer.

The agreements were signed in Paris by Trinh Van Quyet, chairman of FLC Group and Eric Schulz, chief commercial officer at Airbus, during an official visit to France by Nguyen Phú Trong, General Secretary of the Central Committee of the Communist Party of Vietnam.

The airline will begin operations in 2019 initially using third-party leased aircraft before taking delivery of the new A321neos. The carrier is being launched to focus on linking international markets to Vietnamese leisure destinations, as well as on selected domestic routes.

Bamboo will, in particular, serve destinations where FLC Group – a major conglomerate in Vietnam – has heavily invested in tourism infrastructure. It will be based at Qui Nhon Airport in the south central Binh Dinh province and connect to many of the country’s secondary domestic airports close to FLC’s resorts in locations such as Haiphong and Vietnam’s northern Quang Ninh province, Thanh Hóa (south of Hanoi, in Ninh Binh province), Nha Trang Cam Ranh in Khánh Hòa province, and Phu Quoc island in the southern Kien Giang province.

“After carefully evaluating the competing products, FLC Group and Bamboo Airways have selected the A321neo as the most efficient option for our new operation,” said Trinh Van Quyet. “The A321neo will enable us to combine comfort, efficiency and the right capacity for our planned services, which will primarily serve fast growing leisure markets in Vietnam.”

Schulz said the MoU “once again underscores the position of the A321 as the aircraft of choice in the mid-market segment with its additional capacity and the very lowest operating cost. Vietnam is one of the most vibrant economies in South East Asia and we are proud to play a key role in helping to develop the air transport system in this fast-growing market.” The single-aisle A321neo can seat up to 240 passengers and has a range of up to 4,000 nm.