Vietnam’s low-cost carrier Vietjet Air has launched a cargo unit to transport merchandise and commodities between Vietnam and overseas destinations, particularly those in Southeast Asia.
With Vietjet Air Cargo, Vietjet Air has “formed a new and breakthrough business model in which air cargo is independently and strategically operated with the ambition to be the very first air cargo service in Vietnam and Southeast Asia,” said Vietjet Air in a media release.
Ho Chi Minh City-based Vietjet Air said its cargo subsidiary will operate 28 routes by the end of this year and increase the number to 39 by next year.
Vietjet Air is holding discussions with other interline carriers about chartering cargo services to development its domestic and international network as Vietnam continues to attract a growing number of multinational manufacturers with its low production and labor costs.
The company said it sees a huge opportunity in Vietnam for airfreight service, as cargo operations are dominated by international airlines since most local carriers are not yet qualified to offer the service. The Southeast Asian nation has a large number of producers that ferry their goods via air, such as smartphones and other electronic devices, as well as time-sensitive goods like fresh produce and seafood.
In Hanoi alone, some 40% of electronic goods from global manufacturers such as Samsung, Microsoft, and Canon are shipped as air cargo, and the percentage continues to rise by 10% to 15% every year. Air transport of commodities from the city is seen to derive earnings of more than US$1 billion in 2015.
Vietjet Air has been in operation for three years with 16 units of A320-200 aircraft, and has placed orders for 63 planes more in the A320 family. The carrier plans to operate about 30 A320s by the end of 2015.
It schedules more than 770 flights per week that connect to key economic regions such as Ho Chi Minh City, Hanoi, Hai Phong and Da Nang, with international flight destinations including Singapore, Bangkok, Taipei, and Seoul.
