When will Vietnam get its own freighter operator?

Despite its status as a rising export powerhouse, Vietnam still does not have an airline with even a single freighter. Momentum is building for that to change. Vietnam-based fashion, hospitality and retail conglomerate IIPG (formerly known as Imex Pan Pacific Group) is seeking approval from the Civil Aviation Authority of Vietnam (CAAV) to launch a cargo airline. While COVID-19 will dictate timelines for the project, Vietnam may be closer to getting its own freighters. [caption id="attachment_416066" align="alignright" width="560"] Could Vietnam soon see locally registered 777Fs? (Photo/Boeing)[/caption] The company, which credits itself for launching the first direct flight between Ho Chi Minh (SGN) and Manilla (MNL) in 1985, hopes to be a pioneer in home-grown air cargo operations as well. Jonathan Hanh Nguyen, chairman of the group, confirmed earlier this year plans to launch an affiliate company, IPP Air Cargo, with $100 million in investment. Plans call for gradual fleet growth, with ten aircraft in operation within three years of launching. Alongside the launch of an airline, IPP Air Cargo intends to build out its network of warehouse and sorting facilities. “We need conveyor belts and a sophisticated intelligent management system,” said Nguyen in a statement. More recently, IPP Air Cargo has signaled at its hopes to sign a memorandum of understanding with Boeing for the purchase of ten 777Fs, according to local media reports. Phillip Nguyen, CEO of IPP Travel, confirmed the company’s intention to add 777Fs in a Sept. 27 social media post . Vietnam-based combination carriers control about 12% of the cargo market share, according to Nguyen. More than twenty ACMI, all-cargo, express and combination carriers operate freighter aircraft into and out of Vietnam’s two largest airports, SGN and Hanoi (HAN). Even though the plan is without vocal opponents, progress could be delayed until COVID-19 fades from the picture. In May 2020, Vietnam’s Ministry of Transport (MOT) proposed postponing the approval of any new startup airlines until the aviation industry recovers. In July, the proposal became policy with the government’s blessing. For now, the CAAV is not issuing any new licenses. Recent recovery progress is backsliding. The CAAV had requested that Vietnamese carriers stop domestic ticket sales in a July 21 bulletin. Domestic flights were allowed to resume in mid-September but on Sept. 28, the CAAV again requested that domestic flights be stopped to curb the COVID-19 outbreak there. The MOT has yet to release a new iteration of its recovery plan. For now, Vietnam Airlines and VietJet continue to sell flights for domestic travel. Flag carrier Vietnam Airlines, which has been operating A350s, 787s and reconfigured passenger A321s for cargo-only flights, hinted in a July shareholders meeting that it too was considering a cargo offshoot. VietJet has long been exploring freighters, and despite not yet having one, has seen its cargo business grow during the pandemic. In its most recent earnings release, VietJet reported cargo volume up 45% year over year during the first half of 2021, to 37,000 tonnes. Extensive passenger-freighter operations have contributed to growth, as have new partnerships. In November 2020, VietJet and UPS began interlining shipments as part of agreement that has seen VietJet carry UPS packages within Vietnam and given the carrier access to UPS’ long-haul export capacity. Cargo Facts Symposium, taking place LIVE Oct. 25-27 at the Wynn Las Vegas, is the essential event for stakeholders in the air cargo industry. Learn more and register at www.cargofactssymposium.com .

When will Vietnam get its own freighter operator?

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