FLC, U.S. partner to study central Vietnam airport upgrades

The Vietnamese conglomerate announced the preliminary deal late Wednesday, describing its U.S.-based partner as an aviation firm with roughly 25 years of experience in airport development and management.

The proposed upgrades target Phu Cat Airport, located in the erstwhile Binh Dinh Province, and Pleiku Airport in Gia Lai Province.

Under Vietnam's airport development plan through 2030, Phu Cat requires an estimated VND8.7 trillion ($334 million) to expand its annual capacity to three million passengers. Meanwhile, Pleiku is projected to need VND12.6 trillion ($481 million) to handle two million passengers per year.

Leveraging the PPP model is expected to mobilize private investment and ease pressure on the state budget.

However, airport infrastructure typically involves long payback periods, with project viability depending on passenger traffic, commercial revenues and non-aeronautical income streams such as retail, parking, advertising and logistics.

As a result, any investor will need to demonstrate not only financing capability but also a sustainable financial model throughout the concession period.

For now, the Gia Lai People's Committee has merely authorized FLC to conduct initial research and submit proposals, with no formal investment approval or developer selection finalized.

Both Phu Cat and Pleiku are dual-use airports serving civilian and military operations.

Consequently, any investment proposal will be subject to reviews covering planning, national defense and security, land use, public assets, financing arrangements and investment recovery mechanisms.

Vo Huy Cuong, deputy CEO of FLC-run Bamboo Airways, said the upgraded airports could strengthen connectivity between the coastal tourism hub of Quy Nhon and the Central Highlands area of Pleiku.

The airline also plans to operate international charter flights to Gia Lai in 2026, subject to regulatory approval and operational readiness.

Ambition of strengthening aviation presence

The agreement represents the latest step in FLC chairman Trinh Van Quyet’s efforts to re-establish the group’s presence in the aviation sector.

In September 2025, FLC regained management control of Bamboo Airways.

Earlier this year, the conglomerate established a company specializing in aircraft investment and leasing before increasing its charter capital to VND6 trillion ($230 million).

The moves signal FLC’s ambition to rebuild an integrated aviation business spanning aircraft leasing, passenger transportation and airport infrastructure development.

Before 2022, Bamboo Airways played a central role in connecting travelers to FLC’s tourism and resort destinations across Vietnam.

Despite FLC’s renewed aviation push, Bamboo Airways continues to face operational challenges.

The carrier expanded its fleet to eight aircraft late last year after taking delivery of an Airbus A320.

However, only three aircraft are reportedly in active service as of Thursday.