IPP Air Cargo JSC has just requested the Ministry of Planning and Investment and a number of related ministries and sectors to consider approving the policy of establishing IPP Air Cargo airline, operating domestically and internationally.
|Since the COVID-19 outbreak, a series of Vietnamese airlines have used passenger aircraft to carry goods to improve revenue |
The IPP Air Cargo airline project has a total investment of VND2.4 trillion ($100 million), 30 per cent of which is equity and the remaining 70 per cent is mobilised capital.
It is invested by IPP Air Cargo JSC, a member of Imex Pan Pacific Group (IPPG). Besides, IPPG is a major shareholder in Southern Airports Services JSC, and Cam Ranh International Airport Terminal JSC.
As planned, in the first year of operation, IPP Air Cargo will operate five cargo aircrafts. By the second year, the number of aircraft will be increased to seven, then to 10 in the third year.
In addition, IPP Air Cargo plans to transport about 115,000 tonnes of cargo, with a revenue of $71 million in the first year and is expected to begin making profit from the fourth year since the first flight is operated.
IPP Air Cargo hopes to be approved and obtain an air transport business license in the third quarter of 2021, get the operator certificate in the fifth quarter of 2021, and operate commercial flights in the second quarter of 2022.
Currently, Vietnam still does not have a separate cargo airline. If approved, this will be its first separate cargo airline.
Meanwhile, more than 80 per cent of goods imported and exported by air in Vietnam are transported by foreign airlines. Since the COVID-19 pandemic occurred, a series of Vietnamese airlines have used passenger aircraft to carry goods to earn more revenue.