First cargo airline gets aviation authority green light
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The Civil Aviation Authority of Vietnam has recommended that the Ministry of Transport should issue an air transport license to Vietnam’s first proposed cargo carrier, IPP Air Cargo.
It said the airline meets all requirements, including 100 percent funded ownership by Vietnamese entities.
IPP Air Cargo has a charter capital of VND300 billion ($13.13 million), with Imex Pan Pacific Group holding a 70-percent stake and the family of Johnathan Hanh Nguyen, the company chairman, the rest.
Nguyen had mooted the establishment of the airline last year, but the CAAV said it was not considering applications amid the Covid-19 outbreak.
With Vietnam now resuming international flights, IPP Air Cargo is set to become its first full-fledged cargo airline.
After the air transport license, the company has to get other permits to fly, including the aircraft operator certificate.
IPP Air Cargo plans to start with five freighters (Boeing 737 or 777 or equivalent) and double the number in the fifth year.
It targets revenues of $71 million in the first year of operation.
Questions & Answers
Q.What is the initial capital investment in IPP Air Cargo and who are the main investors?
What is the initial capital investment in IPP Air Cargo and who are the main investors?
IPP Air Cargo has a charter capital of VND300 billion, equivalent to $13.13 million. Imex Pan Pacific Group holds a 70-percent stake, with the remaining ownership belonging to the family of chairman Johnathan Hanh Nguyen.
Q.What steps must IPP Air Cargo complete before it can begin operations?
What steps must IPP Air Cargo complete before it can begin operations?
After receiving the air transport license from the Ministry of Transport, IPP Air Cargo must obtain other necessary permits to fly. These include the crucial aircraft operator certificate before commencing its services.
Q.What are IPP Air Cargo's projected fleet size and revenue targets for its first year?
What are IPP Air Cargo's projected fleet size and revenue targets for its first year?
The airline plans to start with five freighters, such as Boeing 737 or 777, and aims to double this number within five years. It targets achieving revenues of $71 million during its first year of operation.
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