Ribbon cutting ceremony for VietjetAir Cargo. — VNS Photo

HCM CITY (Biz Hub) — On November 15, VietJet launched an affiliate company, VietJetAir Cargo, paving the way for the new-age carrier to transport freight globally, as part of the airline's business development plan.

With the establishment of VietJet Air Cargo, VietJet has developed a breakthrough business model in which air cargo can be strategically and independently transported. The firm aims to establish the first air cargo service in Viet Nam and Southeast Asia.

While it will transport air cargo via domestic and international commercial flights, VietJet Air Cargo also plans to have a fleet of aircraft to carry freight and operate chartered flight services nationwide and across the world. The firm will partner with international airlines to enhance and further develop the cargo network.

"Air cargo service has a huge potential in Viet Nam. It is mainly operated by foreign airlines currently, because the local airlines are not qualified to offer such services in Viet Nam," the airline said.

According to the International Air Transport Association (IATA), Viet Nam's aviation industry transported 680,000 tonnes of commodities in 2013, compared to the shipments of 300 million tonnes of import-and-export goods annually.

However, experts forecast that the country's air cargo services will have room to further develop, with revenues exceeding US$1 billion in 2015.

At a time of growing demand for air transport and the present economic integration, the establishment of VietJet Air Cargo is a great opportunity and a challenge for the three-year-old VietJet airline, which has doubled its fleet in the last one year and has transported six million passengers in 2014.

In line with the growth in passenger traffic, the carrier is taking advantage of existing commercial flights and expanding cargo services with 28 routes this year, and 39 new routes planned for next year.

VietJet is expected to have 30 Airbus A320 aircraft by the end of 2015, in accordance with the rise in the domestic and international cargo services demand. — VNS