The IPP Air Cargo Joint Stock Company wants to set up the first cargo airline in Vietnam.(Photo logistics.gov.vn) CAAVDeputy Director Vo Huy Cuong announced the agency had received an applicationto invest in the project from IPP Air Cargo Joint Stock Company.
Cuongadded the MoT’s policy has clarified that establishing a new airline wouldbe considered after the aviation market recovers from the COVID-19 pandemic's impacts,expected to be next year.
Tohave a basis for answering IPP Air Cargo, which hopes to get approval in thethird quarter of 2021 and operate commercial flights in the second quarterof 2022, Cuong said: “The CAAV would consult with the MoT for more guidance onbuilding and appraising the application for an air transport business licensefor IPP Air Cargo."
OnApril 21 last year, the International Air Transport Association (IATA) forecastmarket demand would decrease by 80 percent in the near future,threatening 25 million jobs in the aviation sector. In Vietnam, the MoTreported COVID-19 pandemic has greatly impacted the local aviation industry.
Itwas estimated that by the end of 2022, the total transportation market willreach 78 million passengers, equal to 74 percent of the reported forecast.
Accordingto the most optimistic scenario, the indicators for the Vietnamese airtransport market in 2022 would be only approximately equal to 2019 and thelocal airlines could only operate at a ratio of less than 50 percent comparedto capacity.
TheMoT said this was why it proposed the Government focus on restoring thedomestic and international air transport market and not consider any newairlines until 2022.
OnJune 4, the Import-Export Pan Pacific Group (IPPG), chaired by Johnathan HanhNguyen, confirmed the IPP Air Cargo Joint Stock Company, a member of the group,would like to establish the first cargo airline at a total investment of 2.4trillion VND (100 million USD).
Arepresentative of the group said local logistics has not yet exploited its fullpotential, adding 30,000 logistics enterprises were operating in Vietnam andaccounted for less than 20 percent of market share, with the restheld by about 30 foreign companies.
Inthe aviation sector, Vietnam has no carrier specialised in cargo and 88 percent ofthe market share is in the hands of international cargo airlines such as UPS,FedEx, DHL, Cathay Cargo and Airbridge Cargo.
Inaddition, the local logistics system is not yet developed and the cost oftransporting goods is much higher than the world average, which leads to lowcompetitiveness.
Inthe context of the deeply integrated economies, along with the tendency ofsupply chain shifting, logistics services are considered one of the fields withgreat potential in Vietnam.
TheIPP Air Cargo Joint Stock Company hopes to transport about 115,000 tonnes ofcargo, with a revenue of 71 million USD in its first year and is aiming tobegin making a profit from the fourth year since the first flight is operated./.
VNA
