The Ministry of Transport (MoT) has asked the Prime Minister to allow the ministry to grant a licence in aviation cargo transportation for IPP Air Cargo Joint Stock Company – the first cargo airline in Vietnam.
In late February, the ministry received an appraisal report on the application for an air transport business license for IPP Air Cargo from the Civil Aviation Authority of Vietnam (CAAV).
IPP Air Cargo, with a charter capital of VND300 billion (US$13.1 million), applied for a licence in air cargo transportation business. It will operate with five aircraft in the first year using Boeing 737, Boeing 777, Airbus A330 planes and similar aircraft. The number of airplanes will double in the fifth year.
The airline will provide connections between production centres such as Can Tho, Da Nang, Khanh Hoa, Central Highlands provinces of Lam Dong and Pleiku, Hai Phong, Quang Ninh and transshipment centres in Ha Noi and Ho Chi Minh City, before connecting with those in Northeast Asia, Southeast Asia, South Asia regions as well as European Union.
According to MoT, Vietnam’s air cargo transport is currently handled by its five existing airlines but there has been no carrier specialised in cargo.
The establishment of a specialised airline like IPP Air Cargo is in line with the overall development goal and the general strategy of transportation services development by 2020, with a vision to 2030, the ministry said, adding the airline meets all requirements, including 100% ownership by Vietnamese entities.