Vietnam’s First Freight Airline IPP Air Cargo Eyes November Start

IPP Air Cargo may begin operations in November if its permits get approved in time.

IPP Air Cargo, Vietnam’s first cargo airline, looks to begin operations as early as November. The airline is awaiting approval for different licenses from six various government organizations. The airline has received its Air Transport License but is awaiting several other permits, including the Aircraft Operator Certificate. It has officially begun the rental process for four Boeing 737-800BCF aircraft. One has been delivered; the other three are scheduled to be delivered in December and April. The airline has also purchased 10 Boeing 777 aircraft. Once the permits have all been received, the airline intends to launch its inaugural flight from the Cat Bi Airport in Hai Phong.

An early start

IPP Air Cargo has announced that it may begin operations this November. The startup cargo carrier will be Vietnam’s first international air freight service. The coastal nation’s authorities have stated that the necessary permits for the airline may be ready as early as November. The airline, which has been years in the making, has already received its Air Transport License.

It awaits approval from six authoritative federal bodies before it can commence operations. The most significant permit it is pending is the Aircraft Operator Certificate. The airline approached the Civil Aviation Authority of Vietnam in 2021 seeking a permit but was turned away as it said it was not approving permits during the COVID-19 pandemic.

Two parties own the startup. Imex Pan Pacific Group holds 70% of the shares, and the company chairman’s family owns the remaining shares. The airline has $12.81 million worth of capital. It anticipates seeing $71 million in revenue during its first year of operations.

First routes

The airline has signed shipment deals with several companies. It has signed agreements with two of the world’s largest chip manufacturers. These companies have factories in northern Vietnam. The airline’s Chairman, Jonathan Hanh Nguyen, has stated that the first route it will operate will be from Cat Bi Airport in the northern city of Hai Phong.

This route will be geared to serve these two manufacturers primarily. Nguyen reported that both 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 Da Nang City, Vietnam. The route will begin at the start of next year. It will carry agricultural produce between the two countries.

The fleet

IPP Air Cargo is currently in a rental agreement for four Boeing 737-800BCF aircraft. Only one has been delivered. The other three will arrive in December 2022 and April 2023. This sole 737 in the airline’s possession will be used to fly the airline’s Inaugural flight later this year. It has signed a $3.5 billion deal to acquire 10 Boeing 777 aircraft over the coming years. No official date has been set for the first of these deliveries. It is believed that these 777 aircraft will be used to fly produce between Vietnam and Australia as a part of the recent agreement. The 777 has greater range and capacity than the 737 making it more suited for this route.

Source: Simple Flying