Vietnam News

Vietnam’s first cargo airline hopes to fly high

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IPP Air Cargo, Vietnam’s first cargo airline, would fly to 16 local destinations and a number of foreign ones, and break even in three years, its chairman told VnExpress.

To be established next year by retail company Imex Pan Pacific Group (IPPG), which distributes over 100 global luxury brands in Vietnam, it would carry goods from Noi Bai airport in Hanoi and Tan Son Nhat in HCMC to the other local airports, Johnathan Hanh Nguyen, chairman of both IPPG and IPP Air Cargo, said.

International cargo airlines are permitted to fly goods only into Noi Bai and Tan Son Nhat.

IPP Air Cargo plans to build logistics hubs at two airports and also in Da Nang, Cam Ranh and Can Tho, and another hub at the under-construction Long Thanh international airport in the southern province of Dong Nai.

“IPP Air Cargo has investment of $100 million, but the cost of building the six logistics hubs and 16 warehouses will be many times higher,” Nguyen said.

“We will build not only warehouses and shelves, but also modern conveyor and smart management systems (to facilitate customs clearance and goods delivery).”

IPP Air Cargo will use large aircraft to fly goods such as fresh fruits and frozen seafood from Vietnam to foreign countries, and collaborate with foreign partners to transport goods, including high-value items, from overseas to Vietnam.

“Foreign cargo airlines are eager to see IPP Air Cargo operate because, according to international aviation agreements, more outgoing flights (from Vietnam) will result in more incoming flights (into Vietnam),” Nguyen said.

“When IPP Air Cargo enters the market, foreign cargo airlines’ … cargo output will increase some 50 percent thanks to a larger number of flights.”

Starting with five aircraft in the first year, the carrier plans to expand its fleet to seven in the second and 10 in the third.

“The airline targets becoming operational as soon as possible,” Nguyen, who used to be financial inspector at Boeing Subcontractors and Indochina chief representative for Philippines Airlines, said.

He is also chairman of Southern Airports Services Joint Stock Company, better known as SASCO, a service provider at Tan Son Nhat International Airport, and the Cam Ranh International Airport in the central province of Khanh Hoa.

By Anh Tu – VnExpress.net – June 18, 2021 

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