Air cargo demand in Vietnam to rise by 30pc in H2

AIR FREIGHT experts are predicting that demand for air cargo transportation in Vietnam will surge in the second half of this year.

"Demand will likely grow by 30 per cent in the second half of this year in comparison with the same period last year due to high demand from Asia, the EU and the US. Hong Kong Airlines return flights connecting HCM City with Hong Kong had an occupancy rate of 80-90 per cent," said Do Xuan Quang, general director of Ho Chi Minh City-based Victor Cargo Transportation Co.

Victor Co works as a general agent for foreign airlines in Vietnam, including Malaysia Airlines, South African Airways and Egypt Air.

According to Vo Huy Cuong, director of Vietnam's Civil Aviation Administration, Cathay Pacific, Eva Air, Korean Air, China Airlines, FedEx, DHL and CargoLux are bolstering freight flights to Vietnam.

Ho Chi Minh City-based Trai Thien Air Cargo is preparing to debut its first commercial cargo flight in September, becoming the first private air cargo carrier in the nation. Trai Thien was established in June 2008 with a registered capital of VND500 billion (US$26.3 million).

Trai Thien plans to transport cargo throughout South East and North East Asia, after receiving a licence from the Civil Aviation Administration of Vietnam (CAAV). However, Mr Cuong said Trai Thien had not yet begun operations as the carrier had not rented aircraft that met CAAV standards as jetliners had to be under 25 years old.

Trai Thien is expected to take delivery of the 18 tonne capacity Boeing 737-300 Freighter in Vietnam later this month to begin operating its scheduled daily Hong Kong-HCM City route. Future destinations include Singapore, Phnom Penh, Bangkok, Guangzhou and Taipei.

It is expected that the airline will receive its second B737-300F in the first quarter next year. This will service domestic routes from HCM City to Hanoi, Danang, Nhatrang and Dalat.

If capacity remains at 60-70 per cent use, the carrier expects to reach break-even point after two years of operation for international flights. So far the company has signed memorandums of cooperation with FedEx, UPS and DHL, and a cargo service company in Hong Kong and Singapore, to ensure enough cargo to meet the 70-80 per cent capacity rate to ensure return flights to Ho Chi Minh City.
(Source:www.schednet.com)