As freight demand grows, Vietnam’s Ministry of Transport has sought the Prime Minister’s consent to grant a license to IPP Air Cargo, marking it to be the country’s first cargo airline.
Accordingly, the brand new cargo carrier is in line with the country’s 2030 transport services development strategy, which calls for the establishment of a fleet of 8-10 cargo planes to help promote the logistics industry. In addition, the cargo airline would also contribute to the generation of foreign direct investment, the facilitation of goods flow, and the expansion of the local economy.
IPP Air Freight Company was founded on March 10, 2021, with an initial investment of USD 13 million. Its primary business is to provide goods transport services by planes. It is expected to contribute roughly 10-15% per year to the growth of cargo carried by Vietnamese airlines.
According to the Ministry, Vietnam’s membership in the ASEAN Single Aviation Market, a 2015 accord on air transport liberalization, allows IPP Air Cargo to expand markets and improve its competitiveness. Hence, IPP Air Cargo’s volume will grow by 18-20% per year.
In the first year of operation, the airline planned to initially takeoff with five planes, including Boeing 737, Boeing 777, and Airbus 330 jets, before doubling the fleet in the next five years.
(Source: The Star)