Vietnamese airlines, from big men to rookies, are eager to participate in this fertile, potential market.
Domestic airlines only hold 12% of the air freight market share. Photo: T.L.
According to Nikkei Asia, in 2022, Vietnam's air freight traffic is expected to reach more than 1.52 million tons, up 17% compared to last year, higher than the average growth rate in Vietnam. Last 30 years (15%/year).Up to now, IPP Air Cargo has completed the procedure of leasing 4 B737 800 BCF aircraft. In addition to one aircraft shipped on July 25, three other aircraft are being assembled and are expected to be shipped by the end of this year. The airline also ordered 10 wide-body B777 Freigter aircraft from Boeing (LON:SBA) with a total value of $3.5 billion.
The aircraft of IPP Air Cargo was shipped in July. Photo: IPP.
Vietjet (HM: VJC) Air is also not out of this game. The low-cost airline quickly converted its passenger aircraft configuration to cargo transport and was the first airline to be approved by the authorities for a CPIC (Cargo in Passenger Cabin) license.
In 2021, passenger transport will be affected, but Vietjet and other airlines promote the business of freight transport.
Currently, 80% of Vietnam's air freight market share belongs to foreign enterprises. With the outbreak of the Covid-19 epidemic, airlines had to promote the exploitation of the freight segment to offset the decline in the passenger transport segment.
Specifically, Vietjet's cargo transportation activities reached VND 2,954 billion, in which the revenue from freight transportation reached VND 2,654 billion, Vietjet continued to record rapid growth, with revenue growth in goods reaching over 200% over the same period.