The Vietnamese Ministry of Transport has sought the Prime Minister’s approval to issue a licence for the first cargo airline in the country, that plans to operate five aircraft initially, including Boeing 737, Boeing 777, Airbus 330 aircraft.
The ministry said Viet Nam’s first cargo airline was appropriate to the country’s transport services development strategy for 2030, which targeted the development of a fleet of 8-10 cargo aeroplanes, which would contribute to promoting the logistics industry.
Earlier, the Civil Aviation Authority of Vietnam had recommended that the Ministry of Transport should issue an air transport license to IPP Air Cargo.
Civil Aviation Authority of Vietnam said ,
The upcoming airline meets all requirements, including 100 percent funded ownership by Vietnamese entities, and other obligations .
With a charter capital of VND300 billion ($13.13 million) , Imex Pan Pacific Group holds a 70-percent stake in the IPP Air Cargo and remaining shares are held by the family of Johnathan Hanh Nguyen, the company chairman.
Civil Aviation Authority of Vietnam (CAAV) had carried out the Evaluation of Mr. Johnathan Hanh Nguyen's application for an air transport business license for IPP Air Cargo Joint Stock Company.
In early June 2021, Mr. Johnathan Hanh Nguyen, Chairman of IPP Air Cargo Joint Stock Company, formally requested that the Ministry of Planning and Investment and a number of related ministries and sectors consider approving the establishment of IPP Air Cargo.
The IPP Air Cargo aviation project has a total investment of 2,400 billion VND, about 100 million USD, of which 30% is equity capital, the remaining 70% is mobilized money.
In the first year of operation, IPP Air Cargo will fly five cargo aircraft, as anticipated. By the second year, the number of cargo planes will have increased to seven, and by the third year, there will be ten. The B737/B777/A330, as well as comparable aircraft, will be placed into service.
IPP Air Cargo anticipates transporting around 115,000 tons of cargo in the first year, with a revenue of $71 million, and turning a profit in the fourth year since operating the first flight.
