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Vietnam Airlines seeks to establish cargo airline

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HCMC – Struggling with the heavy impact of the Covid-19 pandemic on its passenger transport business, Vietnam Airlines plans to establish an air cargo carrier, Vietnam Airlines chairman Dang Ngoc Hoa said at a meeting on July 14.

Vietnam Airlines has removed the seats from seven of its passenger aircraft to transport cargo. In June, its revenue from cargo transport exceeded the revenue from passenger transport services, while it accounted for only 10% of its total revenue in the pre-pandemic period, the local media reported.

Over the past two years, cargo transport activities have proved their importance.

Earlier, IPP Air Cargo, whose chairman is businessman Johnathan Hanh Nguyen, had proposed establishing a cargo airline but the proposal was rejected. Meanwhile, Vietjet has also used its four aircraft to transport cargo.

According to a report by the Ministry of Transport, the proportion of air carriers’ revenue from cargo transport activities during the pandemic has tripled that of the pre-pandemic period.

As for Vietnam Airlines’ performance since early this year, the air carrier operates some 40 flights, mainly transporting cargo, per day, much lower than the 500-550 flights in the same period in previous years.

In the first half of the year, it incurred losses of some VND10.8 trillion.

If it can sell 11 aircraft, the Government allows international tourists to visit Phu Quoc, Covid-19 vaccine passports are applied and a 12-trillion credit package is fully disbursed, its consolidated revenue this year might reach VND37.4 trillion, down 11.6% year-on-year, and its consolidated losses may be VND14.5 trillion, up 30%.

It will seek opportunities to open new domestic air routes.

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