Vietnam’s transport ministry has sought approval from the prime minister to issue a licence to the country’s first all-cargo airline, Reuters reported last week.
The airline, IPP Air Cargo, owned by luxury retailer Imex Pan Pacific Group, had met all necessary requirements for the licence, according to a statement posted on the government website.
The move comes as air cargo volumes climb steadily in the Southeast Asian manufacturing hub. Vietnam’s air cargo transport is currently handled by five existing airlines, with overall volume this year expected to rise to 1.52 million tonnes, up from 1.3 million tonnes last year, the ministry statement read.
IPP Air Cargo was established in March last year with an initial investment of 300 billion dong (US$13.14 million), the statement said. If approved, Vietnam will see its first all-cargo airline initially operate five aircraft, including Boeing 737, Boeing 777 and Airbus A330 planes, with plans to double in size after five years.
The country’s air cargo volume has grown by an average of 15.3 percent a year since 1991, Reuters noted.