The Ministry of Transport proposes the Prime Minister to grant an air transport license to Mr. Jonathan Hanh Nguyen
The Ministry of Transport (Transportation) has just sent a document to report to the Prime Minister on the granting of a license for air transportation of goods of JSC. IPP Air Cargo.
Accordingly, the Ministry considers that the consideration and approval of Vietnamese enterprises to establish a specialized airline for freight transport is in line with the overall development goals and the general strategy of developing transport services until the year 2020. 2020, vision to 2030.
According to the Ministry of Transport, for the air freight market, starting in 1991, the total market of Vietnamese goods reached 18,384 tons.
After more than 30 years of development, Vietnam’s freight market has grown by leaps and bounds, with an output of 1.3 million tons in 2021 and expected to reach more than 1.52 million tons in 2022, an increase of nearly 83 million tons. times compared to 1991 and 21.2% compared to 2019; average growth rate of the whole period 1991-2022 is 15.3%/year.
There are 5 Vietnamese airlines operating in the combined transport of goods on passenger flights, and there is no airline specializing in transporting goods by specialized aircraft. Meanwhile, the international cargo market share of Vietnamese airlines only reached 18% in 2019 and in the 2020-2021 period, only 11% of the international cargo market share.
“At the moment, the international cargo market of Vietnamese airlines has 29 foreign airlines operating cargo planes from 16 countries and territories to Vietnam.
“In the past time, due to the sharp decrease in the number of flights carrying passengers and cargo while the demand for transportation is increasing, the international freight rates have skyrocketed by 3-4 times, even From time to time, each market, the freight rate increases 5-6 times compared to the time before the COVID-19 epidemic“, said the report of the Ministry of Transport.
In that context, the Ministry of Transport recognizes that the birth of IPP Air Cargo JSC to bring specialized and quality freight services to customers, contributing to promoting the development of Vietnam’s logistics industry is appropriate for The overall development goals and general strategy for development of transport services up to 2020, with a vision to 2030, were approved in Decision No. 318/QD-TTg dated March 4, 2014 of the Prime Minister. The goal according to Decision No. 318/QD-TTg is to develop a fleet of about 8-10 cargo aircraft).
Cargo airlines will contribute to promoting the growth of cargo transportation of Vietnamese airlines by 10-15%/year. IPP Air Cargo’s air cargo volume is expected to increase gradually over the years, with an expected average annual growth rate of 18%-20%, the Ministry of Transport analyzed.
IPP Air Cargo Joint Stock Company has a business registration certificate issued for the first time by the Department of Planning and Investment of Ho Chi Minh City on March 10, 2021. Chairman of the Board of Directors of IPP Air Cargo is Mr Jonathan Hanh Nguyen – Chairman of the IPPG Board of Directors. The General Director – the legal representative of IPP Air Cargo – is Ms. Le Hong Thuy Tien, the wife of Mr. Hanh.
According to the project to establish a cargo airline IPP Air Cargo submitted to the competent authority, IPP Air Cargo is expected to operate with Boeing 737, Boeing 777, Airbus A330 aircraft with 5 aircraft in the first year of operation and increase gradually to 10 units in the next 5 years.
By Business and Marketing
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