HANOI – The Ministry of Transport has written to the prime minister proposing granting an air transport license to IPP Air Cargo JSC, which will specialize in cargo transport, as its documentation meets all the prevailing regulations and business requirements.
The documentation of the airline establishment factors in plans to increase capital and guarantee the number of aircraft for operation, according to Deputy Minister of Transport Le Anh Tuan.
The local market is seeing five air carriers specializing in transporting passengers carrying goods, while having no air carriers specializing in cargo transport, said the ministry.
As such, setting up an airline focusing on cargo transport with a fleet of eight to 10 planes is in line with the country’s air transport development plan in the coming years.
Vietnamese air carriers’ inbound cargo transport accounted for a mere 18% of the market share in 2019 and just 11% in the 2020-2021 period.
Meanwhile, as many as 29 foreign airlines are transporting goods from 16 countries and territories to Vietnam.
Over the past few months, the number of flights transporting passengers with an ancillary cargo transport service has plunged, while demand for transport is on the rise, pushing international air transport up by three or four times, or even six-fold from the pre-pandemic period.
The establishment of IPP Air Cargo is aimed at providing specialized cargo transport services and contributing to the development of Vietnam’s logistics sector, according to the ministry.