Vietnam is soon to get first dedicated cargo airline by next year as luxury retailer Imex Pan Pacific Group (IPPG) submitted its proposal to the country’s civil aviation authority (CAAV) to establish an airline dedicated to freight transport.
The conglomerate, through its subsidiary IPP Air Cargo JSC, will invest VND2.4 trillion (100 million USD) to develop its logistics capabilites and air network to handle both inbound and out bound shipments in Vietnam.
Luxury retail tycoon and IPPG Chairman Johnathan Hanh Nguyen said the move to launch a local cargo airline comes amidst shipping woes for local exporters who are struggling with the higher air freight rates imposed by foreign carriers who hold over 80 percent of the market share.
“Foreign carriers are controlling prices because they are almost alone in the market, with no one competing. If I don’t do it, the demand for air freight will still be congested, price instability will make it difficult for domestic import and export enterprises,” Nguyen said.
At at a time when capacities are congested, the chairman believes the time is ripe for a new airline to come onboard. Nguyen expects IPP Air Cargo to transport some 115,000 tonnes of cargo and generate revenue of US$71 million in its first year.
