Vietnamese carrier Vietjet and UPS, a global leader in logistics, have entered an agreement to leverage each other’s global and regional network by further growing trade lanes from Asia to destinations in the US.
The agreement provides Vietjet with access to UPS’s extensive global network via the latter’s ‘browntails’ while the logistics company will be able to tap Vietjet’s extensive reach within Vietnam, Thailand, and all over Asia to serve businesses in more areas and at a quicker speed, the airline said in a press release on Friday.
On September 26, both companies successfully operated a cargo flight from Hanoi to the U.S. via Incheon, South Korea.
The service has been operated with one flight per week since then.
The transported cargos, including garment products, seafood, medical commodities, and other general goods, are collected from all of Vietjet’s hubs in Vietnam, Thailand, and other Asian destinations to Hanoi.
Both sides have also conducted cargo flights between Ho Chi Minh City and Kuala Lumpur using UPS planes as well as joining hands for cargo transportation on Vietjet’s flights between Ho Chi Minh City and Hanoi.
“The agreement with Vietjet comes at a significant time for trade in Vietnam,” said Russell Reed, managing director of UPS Vietnam and Thailand.
“As Vietnam’s economy embraces growth momentum, the country is poised to benefit from shifts in global manufacturing and trade flows, and UPS, together with Vietjet, hope to expand import and export opportunities for businesses of all sizes in Vietnam, enabling them to trade with greater ease and confidence on a global scale.”
Prior to the agreement, Vietjet and UPS Express have previously collaborated to handle cargo on Thai Vietjet’s return COB (cargo on board) flights from Hanoi and Ho Chi Minh City to Bangkok.
“Besides operating an expanding passenger flight network in Vietnam and Thailand, Vietjet has been one of the first airlines in Asia to navigate toward air cargo as part of a new business strategy being unfolded in response to the global pandemic,” Vietjet Cargo’s CEO Do Xuan Quang said.
“The cooperation 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 as we further expand our domestic flight network in the countries and boost international services not just within Southeast Asia but also in Northeast Asia.”
Vietjet is the first airline in Vietnam to have been permitted to deploy cargo operations in the passenger cabin (CIPC) and have conducted international cargo flights between Vietnam and Japan, South Korea, mainland China, Hong Kong, Thailand, Malaysia, and Indonesia.
It also plans on new flights to Taiwan from Vietnam and Thailand while increasing its flight frequency on the current routes.