Vietnam Airlines plans to establish a cargo airline

(NLDO)- Vietnam Airlines said it is researching the establishment of a cargo airline, with plans to use converted A321 aircraft.

The above information was shared by Vietnam Airlines General Director Le Hong Ha at the Annual General Meeting of Shareholders on the morning of June 25. According to Mr. Ha, the strong recovery of the international air transport market in the second quarter has greatly contributed to the airline's positive business results. International transport revenue currently accounts for 65% of Vietnam Airlines' total revenue. It is estimated that the second quarter's output increased by 1.9% compared to the plan, with revenue reaching more than VND 22,152 billion and pre-tax profit reaching about VND 1,000 billion. In the first 6 months of the year, the airline is estimated to have made a profit of more than VND 4,000 billion.

Vietnam Airlines transports cargo in passenger cabin during COVID-19 pandemic

However, Mr. Ha also frankly acknowledged that the air transport market still has many potential risks such as sharp increases in fuel prices due to geopolitical tensions, especially in the Middle East. At times, jet fuel prices exceeded 95 USD/barrel, higher than the airline's average forecast of 83 USD/barrel this year, putting great pressure on operating costs.

In addition, factors such as war, supply chain disruptions, aircraft shortages, and unusual weather conditions continue to pose major challenges. Vietnam Airlines has had to adjust flight routes to avoid unsafe areas, resulting in longer flight times and higher costs. The airline has also increased aircraft and engine leasing to ensure stable operations.

To maintain efficiency, Vietnam Airlines said it will continue to coordinate tourism promotion, expand its ticket sales network with international partners, accelerate digital transformation, and cooperate with global airlines. At the same time, the airline is aiming to diversify its customer base, reducing dependence on a certain segment.

In its cargo transport development strategy, Vietnam Airlines plans to convert a number of A321 aircraft to operate regional routes from the fourth quarter of 2025, laying the foundation for establishing a cargo airline from 2026.

Vietnam Airlines Board of Directors Chairman Dang Ngoc Hoa also said that Vietnam Airlines is focusing on building logistics centers at domestic airports such as Long Thanh and Gia Binh to serve the expansion of the cargo sector.

Chairman of the Board of Directors of Vietnam Airlines Dang Ngoc Hoa

Previously, Vietnam Airlines had planned to sell 9 A321 CEO aircraft, and had sold and delivered 3 in the first quarter of 2024. To date, due to the increase in aircraft leasing and sales prices and scarcity of supply, the sale of the remaining 6 aircraft will be temporarily postponed to ensure operational resources.

In 2025, Vietnam Airlines will continue to improve the efficiency of fleet utilization to optimize operating resources and improve operational productivity. The airline aims to increase fleet utilization by at least 5% compared to 2024; accelerate the recovery of the international flight market, especially after the A321 NEO aircraft have their engines repaired and return to operation.

Regarding the project to purchase 50 narrow-body aircraft in the period 2025 - 2050, Mr. Dang Ngoc Hoa said that currently, the work with aircraft suppliers has been completed, and the contracts have been selected and signed. The airline plans to receive 14 aircraft in 2030, and 18 aircraft in the period 2031-2032.

According to Mr. Hoa, Vietnam Airlines' current fleet of wide-body aircraft is 31. In the coming time, the airline will continue to seek leasing solutions to increase capacity. By 2035, Vietnam Airlines will need at least 50 wide-body aircraft (20 are expected to replace existing aircraft and 30 additional aircraft). Vietnam Airlines Group's goal is to consolidate 50% of the domestic market share and increase international market growth.

Source: https://nld.com.vn/vietnam-airlines-len-ke-hoach-thanh-lap-hang-hang-khong-van-tai-hang-hoa-196250625170654944.htm