Vietravel Airlines wants to join the air transport market

, Vietravel Airlines wants to join the air transport market

Mr. Vu Duc Bien, General Director of Vietravel Airlines assessed ‘Vietnam is considered a bright and potential candidate in the production shift. This will be an opportunity for the logistics industry in general and air freight in particular to take off in the near future.’

Recently, Vietravel airline (Vietravel Airlines) has officially signed a cooperation agreement on investment and development of air cargo services (VUAir Cargo) with Asean Cargo Gateway (ACG).

Specifically, Vietravel and ACG cooperate to invest according to the respective capital contribution ratio of 51% – 49%, with this cooperation, Vietravel Airlines and ACG wish to promote goods business, transport exploitation and transport. Air cargo, cargo agent for airlines in the region.

Mr. Vu Duc Bien, General Director of Vietravel Airlines said: ” According to Vietravel Airlines, the aviation cargo market still has a lot of potential and has not been fully exploited. Supply disruption is increasing while the commodity market in Vietnam with China and countries in Southeast Asia, Northeast Asia, Europe, and America is assessed as the region with GDP growth. the highest annual rate in the world and the highest proportion of the population in working age in the world, so production bases will gradually move to this area next to the world’s largest factory, which is China.”

Mr. Bien assessed that “Vietnam is considered as a bright and potential candidate in the production shift. This will be an opportunity for the logistics industry in general and air cargo transport in particular to take off in the current era,” said Mr. Therefore, this is the right time to build and promote the first Air Cargo segment in Vietnam, combining ACG’s experience in logistics and freight forwarding. not of Vietravel Airlines”.

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Vietravel said that in the first year, the airline will focus on transporting goods between Vietnam and large factories in Asia such as China, Malaysia, Indonesia, and Thailand on a fleet of dedicated aircraft B737-800F for for cargo with the quantity of 02 – 04 units in the first year and is expected to double in the next year.

Early realizing the potential of the air cargo market, in early June 2021, Chairman of IPP Air Cargo Joint Stock Company – Mr. Johnathan Hanh Nguyen sent a written request to the Ministry of Planning and Investment and a number of ministries, Relevant sectors consider and approve the policy of establishing IPP Air Cargo cargo airline. This is the first specialized aviation project for cargo transport in Vietnam, with a total investment of 2,400 billion VND, equivalent to 100 million USD, of which 30% is equity capital and the remaining 70% is mobilized capital.

Rookie Vietravel Airlines wants to join the air freight marketRookie Vietravel Airlines wants to join the air freight market

Previously, when the Ministry of Transport sent a written report to the Prime Minister on the granting of the Air Cargo Air Transport Business License of IPP Air Cargo Joint Stock Company, the Ministry also said that the consideration and approval for Vietnamese enterprises Nam’s establishment of a specialized cargo airline is in line with the overall development goals and the general strategy of developing transport services by 2020, with a vision to 2030.

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According to the Ministry of Transport, for the air freight market, starting in 1991, the total market of Vietnamese goods reached 18,384 tons. After more than 30 years of development, Vietnam’s freight market has experienced a tremendous growth with an output of 1.3 million tons in 2021 and expected to reach more than 1.52 million tons in 2022, an increase of nearly 83 million tons. times compared to 1991 and 21.2% compared to 2019; average growth rate of the whole period 1991-2022 is 15.3%/year.

Currently, there are 5 Vietnamese airlines operating in the combination of cargo transportation on passenger flights and no airline specializing in transporting goods by specialized aircraft. Meanwhile, the international cargo market share of Vietnamese airlines was only 18% in 2019 and in the period 2020-2021 only 11% of the international cargo market share.

At the present time, the international cargo market of Vietnamese airlines has 29 foreign airlines operating cargo planes from 16 countries and territories to Vietnam. In the past time, due to a sharp decrease in the number of flights carrying passengers and goods while the demand for transportation increased, international freight rates have skyrocketed by 3-4 times. From time to time, each market, the freight rate increased 5-6 times compared to the time before the COVID-19 epidemic.

Source: CafeF

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