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Vietjet Air launches cargo services

Released at: 15:16, 18/11/2014

Vietjet Air launches cargo services

The fledgling carrier has entered the cargo transport market with the creation of a dedicated affiliate.

by Linh San

Vietjet Air has officially launched an affiliate, VietjetAir Cargo, to transport freight and commodities domestically and internationally as part of the airline’s business development plan.

It will partner with Interlines to enhance and further develop its cargo network. “Air cargo still has huge potential in Vietnam,” said Mr. Do Xuan Quang, Managing Director of Vietjet Air Cargo. “The service has been mainly provided by foreign airlines, as local fleets were not qualified for such services in Vietnam.”

With the establishment of Vietjet Air Cargo, Vietjet Air has formed a new business model in which air cargo is independently and strategically conducted, with the ambition of being the very first air cargo service in Vietnam and Southeast Asia.

After three years of operations Vietjet doubled its fleet this year compared to last year and has transported six million passengers so far in 2014. Vietjet is taking advantage of existing commercial flights and expanding its services into cargo transport on 28 routes this year and 39 next year. Its fleet is expected to be 30 Airbus A320 aircraft by the end of 2015, in accordance with cargo demand locally and globally.

The International Air Transport Association (IATA) has reported that Vietnam’s aviation industry reached 680,000 tons of transported goods in 2013, more than the maritime transport of 300 million tons. Air cargo accounts for 25 per cent of Vietnam’s total exports, which is surprising given that goods transported by air are valuable items such as smartphones, electronic devices, time-sensitive goods (garments, clothes, and fresh seafood), and diplomatic items. For electronic equipment in Hanoi only (especially Samsung mobile phones in addition to Nokia, Microsoft, Canon, and Foxcon phones), air cargo has transported 40 per cent, increasing strongly by to 10-15 per cent every year. This is a good sign for air cargo in Vietnam, with expected revenue to exceed $1 billion in 2015.

In times of growing demand for air transport and ongoing global economic integration, the establishment of Vietjet Air Cargo is a major opportunity but also a challenge for a fledgling carrier like Vietjet.

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