Vietnam’s first cargo airline IPP Air Cargo plans to start November
IPP Air Cargo, Vietnam’s first cargo airline, is expected to begin operations as early as November. The airline is awaiting approval for different licenses from six different government organizations. The airline has received its air transport license but is awaiting several other permits, including the aircraft operator certificate. It has officially launched the leasing process for four Boeing 737-800BCFs. One was delivered; the other three should be delivered in December and April. The airline has also purchased 10 Boeing 777s. Once all clearances are received, the airline intends to launch its maiden flight from Cat Bi Airport in Hai Phong.
An early start
IPP Air Cargo has announced that it could start operations in November. The startup cargo carrier will be Vietnam’s first international air cargo service. Authorities in the coastal nation said the necessary permits for the airline could be ready as early as November. The airline, which took years to establish, has already received its air transport license.
The airline hopes to begin operations in November aboard its first Boeing 737-800BCF. Photo: Getty Images
It is awaiting approval from six authoritative federal agencies before it can begin operations. The most important license pending is the aircraft operator certificate. The airline approached the Civil Aviation Authority of Vietnam in 2021 to apply for a permit, but was denied as it said it does not approve permits during the COVID-19 pandemic.
Two parties own the startup. Imex Pan Pacific Group owns 70% of the shares and the family of the president of the company owns the remaining shares. The airline has a capital of 12.81 million dollars. It expects to see $71 million in revenue in its first year of operation.
The airline has signed shipping agreements with several companies. It has signed deals with two of the biggest chipmakers in the world. These companies have factories in northern Vietnam. The airline’s chairman, Jonathan Hanh Nguyen, said the first route it will operate will depart from Cat Bi Airport in the northern city of Hai Phong.
The inaugural flight will depart from Hai Phong. Photo: Getty Images
This route will be designed to primarily serve these two manufacturers. Nguyen said the two companies had signed agreements with the airline to ensure prompt transportation of their products. IPP has previously discussed a weekly flight between Queensland, Australia and the city of Da Nang, Vietnam. The course will begin early next year. It will transport agricultural products between the two countries.
IPP Air Cargo currently has a lease contract for four Boeing 737-800BCFs. Only one was delivered. The other three will arrive in December 2022 and April 2023. This sole 737 in the airline’s possession will be used to operate the airline’s maiden flight later this year. It has signed a $3.5 billion deal to acquire 10 Boeing 777s over the next few years. No official date has been set for the first of these deliveries. It is believed that these 777 planes will be used to transport products between Vietnam and Australia under the recent agreement. The 777 has greater range and capacity than the 737, making it more suitable for this route.
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Source: VN EXPRESS