CAAV discusses creation of VN’s first cargo airline | Business
Hanoi (VNS / VNA) – The Vietnam Civil Aviation Authority (CAAV) recently reported to the Ministry of Transport (MoT) about a plan to establish the first cargo airline in Vietnam.
CAAV deputy director Vo Huy Cuong announced that the agency had received a request to invest in the project from joint-stock company IPP Air Cargo.
Cuong added that the policy of the Ministry of Transport clarified that the creation of a new airline would be considered once the aviation market recovered from the COVID-19[female[feminine the impacts of the pandemic, which are expected to be next year.
To have a basis for responding to IPP Air Cargo, which hopes to gain approval in Q3 2021 and operate commercial flights in Q2 2022, Cuong said: HOW ARE YOU would consult with the Ministry of Transport for further advice on developing and assessing the air transport operator license application for IPP Air Cargo. “
On April 21 of last year, the International Air Transport Association (IATA) predicted that market demand would decline by 80% in the near future, threatening 25 million jobs in the aviation industry. In Vietnam, the MoT reported that the COVID-19 pandemic has had a huge impact on the local aviation industry.
It has been estimated that by the end of 2022, the total transport market will reach 78 million passengers, or 74% of the reported forecast.
In the most optimistic scenario, the Vietnamese air transport market indicators in 2022 would only be approximately equal to 2019 and local airlines could only operate at a ratio of less than 50% to capacity.
The Transport Ministry said that was the reason why it proposed to the government to focus on restoring the domestic and international air transport market and not to consider new airlines until 2022.
On June 4, the Pan Pacific Import-Export Group (IPPG), chaired by Johnathan Hanh Nguyen, confirmed the IPP Air Cargo Joint-Stock Company, member of the group, wants to establish the first cargo airline for a total investment of 2.4 trillion VND (100 million USD).
A representative of the group said local logistics have yet to realize their full potential, adding that 30,000 logistics companies operate in Vietnam and account for less than 20% of the market share, with the remainder held by around 30 foreign companies. .
In the aviation sector, Vietnam does not have a specialized freight carrier and 88% of the market share is held by international freight airlines such as UPS, FedEx, DHL, Cathay Cargo and Airbridge Cargo.
In addition, the local logistics system is not yet developed and the cost of transporting goods is much higher than the world average, which leads to low competitiveness.
In the context of deeply integrated economies, as well as the trend of supply chain shifting, logistics services are seen as one of the high potential areas in Vietnam.
The IPP Air Cargo Joint Stock Company hopes to carry around 115,000 tonnes of cargo, with a turnover of $ 71 million in the first year and aims to start making profits from the fourth year since the first flight./ .