VietJet Air, UPS launch cargo service between Asia and US - Food & Hotel Vietnam

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VietJet Air, UPS launch cargo service between Asia and US

foodnhotelvietnam - November 17, 2020

Vietnam’s low-cost airline VietJet Air and UPS, the world’s largest package delivery company of the US, have recently unveiled the start of joint operations aimed at flying cargo planes between Asia and the United States, according to the world’s largest financial publication Nikkei Asia.

Collaboration between VietJet Air and UPS began in September when garments, seafood, medical goods, and other products from Vietnam, Thailand, and neighbouring countries began to be shipped from Hanoi to the US on weekly flights via Incheon in the Republic of Korea.

In addition, the firms also collaborated on deliveries between Bangkok, Kuala Lumpur, Hanoi, and Ho Chi Minh City.

Similar to other airlines bearing the brunt of the COVID-19 pandemic, VietJet has suffered the impact of low demand.

Vietnam welcomed 3.8 million travelers during the first nine months of the year, representing an annual drop of 70.6%, according to the General Statistics Office.

The Vietnamese airline also halted the majority of cross-border services, operating only 15,000 flights during the third quarter, the majority of which were within Vietnam and Thailand, down from 34,000 flights across 12 Asian countries during the third quarter of 2019. The enterprise therefore posted a loss of VND926 billion, equivalent to US$40 million, in air travel in the third quarter, versus a loss of VND1.1 trillion in the second quarter.

Despite these challenging times, the company’s future prospects appear to be looking up. “VietJet has been one of the first airlines in Asia to navigate toward air cargo as part of a new business strategy unfolding in response to the pandemic,” said Do Xuan Quang, CEO of the company’s cargo operations, in a statement.

The airline became the first to use excess space in passenger cabins to carry cargo for flights between Vietnam and Japan, the Republic of Korea, China, Hong Kong, Thailand, Malaysia, and Indonesia. The recent move to work alongside UPS will likely see it expand its cargo business.

“The co-operation with UPS paves the way for VietJet to make Hanoi, Ho Chi Minh City, and Bangkok regional logistics hubs for one-stop-shop cargo transportation services from Asia to Western destinations,” Quang stressed.

VOV/Nikkei Asia