FLC Signs MOU with HASDC to Study PPP Upgrades at Phu Cat and Pleiku Airports

Overview

FLC Group (UPCOM: FLC) has signed a memorandum of understanding with HAS Development Corporation (HASDC), a US-based firm with 25 years of airport development and PPP experience, to study investment and upgrades of Phu Cat and Pleiku airports in Gia Lai province under a public-private partnership (PPP) model. The initiative is part of FLC’s broader strategy to rebuild its aviation ecosystem, which includes Bamboo Airways and aircraft leasing operations.

Key Facts

• FLC signed a memorandum of understanding with HAS Development Corporation (HASDC) on July 22, 2025.
• HASDC is a US company with approximately 25 years of experience in airport development, management, and PPP projects.
• The two airports studied are Phu Cat (Binh Dinh) and Pleiku (Gia Lai), both dual-use (civilian and military) facilities.
• Total investment needs for Phu Cat Airport to 2030: VND 8,785 billion (3 million passengers/year capacity).
• Total investment needs for Pleiku Airport to 2030: VND 12,660 billion (2 million passengers/year capacity).
• Combined capital requirement exceeds VND 21,000 billion.
• FLC regained control of Bamboo Airways in September 2024 and established an aircraft leasing company earlier this year with charter capital of VND 6,000 billion.
• Bamboo Airways currently operates only three aircraft as of July 23, 2025, down from eight at end-2024.

What Happened

FLC Group announced on July 22 that it had signed a memorandum of understanding with HAS Development Corporation (HASDC) to study investment and upgrades of Phu Cat and Pleiku airports under a PPP model. HASDC is described as a US enterprise with about 25 years of experience in airport development, management, and PPP project implementation. The two parties plan to assess capacity expansion, service quality improvement, and capital mobilization for the two airports.

This is the latest move by FLC Chairman Trinh Van Quyet to re-enter the aviation sector. In September 2024, the group regained management and operation rights of Bamboo Airways. Earlier this year, FLC established a company specializing in aircraft investment and leasing, later raising its charter capital to VND 6,000 billion. These actions indicate FLC’s intent to rebuild a full aviation chain from aircraft leasing, passenger transport, to airport infrastructure investment.

Market Context

FLC shares closed at VND 4,000 on July 25, 2024, unchanged with zero volume, reflecting low liquidity typical of UPCOM-listed stocks. The group’s aviation ambitions come amid significant challenges: Bamboo Airways’ fleet has shrunk to three aircraft, limiting route expansion. The broader Vietnamese aviation sector is recovering post-pandemic, but high capital requirements and regulatory hurdles for airport PPP projects remain. FLC’s real estate core business has also faced headwinds, with the stock trading near its all-time low.

Strategic Significance

For long-term investors, this MOU signals FLC’s strategic pivot to integrate airport infrastructure into its aviation ecosystem, potentially creating synergies with Bamboo Airways and its tourism-related assets. However, the PPP model for airport upgrades involves long payback periods and depends on passenger traffic, service revenue, and non-aviation income (retail, parking, logistics). The dual-use nature of the airports adds layers of regulatory approval from defense and security authorities. FLC’s ability to secure financing and demonstrate project feasibility will be critical, especially given its recent financial constraints and the need to revive Bamboo Airways.

What to Watch

• Approval from Gia Lai provincial authorities and central government for the PPP proposal.
• Bamboo Airways’ fleet expansion and route network development, particularly international charter flights to Gia Lai planned for 2026.
• FLC’s ability to raise capital for the airports, given its current market capitalization and debt profile.
• Progress on the aircraft leasing company’s operations and any aircraft acquisitions.
• Regulatory clearances related to dual-use airport investments (defense, land, public assets).