Trai Thien Air Cargo, Vietnam’s first private cargo airline, has received a license and is expected to begin operations in October next year, according to the Ministry of Transport.
The private airline, which has a charter capital of VND500 (US$28 million), received approval from the Prime Minister last month.
Licensing done to Trai Thien Airline JSC., who runs Trai Thien Air Cargo, pursues the Vietnam Civil Aviation Law 2006 and Decree on Air Transport Business Activities 2007.
The company has set its sights on the Northeast Asian and Southeast Asian markets. It has registered to operate with five Boeing 737 aircraft, but only one is expected to be put into service initially.
The cargo sector is now shared by 11 foreign carriers including China Airlines Cargo, Korean Air Cargo, Malaysia Airlines System, Federal Express and AirFrance-KLM Cargo.
Six other domestic airlines – Vietnam Airlines, Vasco, Jetstar Pacific, Indochina Airlines, VietJet Air, and Mekong Aviation - are licensed for both passenger and cargo transport. The last three are privately owned but only Indochina has begun operations so far.