Vietnam’s first cargo airline close to launch
04 / 04 / 2022
Vietnam’s first cargo airline is moving closer to becoming operational.
The country’s transport ministry is seeking approval from the prime minister to issue a licence to IPP Air Cargo, according to Reuters.
Imex Pan Pacific Group (IPPG) which established IPP Air Cargo, said on March 3: “The Civil Aviation Authority of Vietnam has assessed that IPP Air Cargo’s application for an air transport business license complies with regulations.”
Following assessment, the Civil Aviation Authority of Vietnam proposed the Ministry of Transport review the results of the application and submit it to the prime minister for consideration, explained IPPG.
The IPP Air Cargo aviation project has a total investment of 2,400bn VND, about $100m, of which 30% is equity capital. The remaining 70% is mobilised money.
In the first year of operation, IPP Air Cargo is expected to fly five cargo aircraft. By the second year, the number of cargo planes will have increased to seven, and by the third year, there will be ten.
B737, B777 and A330 aircraft, as well as comparable aircraft, will be placed into service. IPPG does not specify whether these will be freighters or P2Fs.
IPP Air Cargo anticipates transporting around 115,000 tons of cargo in the first year of operations, with a revenue of $71m. It aims to turn a profit in the fourth year.