VietJet Air Appoints Teleport for Cargo Operations on Indian Routes

VietJet Air, the largest Low Cost Carrier from Vietnam has appointed Malaysian company, Teleport to manage the airline’s cargo operations on a specific Indian route. As part of this agreement, Teleport will have the exclusive rights to manage the freighter operations of the VietJet Air on Saigon to Delhi route.

This is not the first such deal for Teleport to handle cargo to and from India. It earlier signed a similar deal with world’s first A320P2F operator – Pradhaan Air Express.

VietJet Air Cargo To Be Handled By Teleport

VietJet Air and Teleport have signed an agreement. As part of the agreement, Teleport will have exclusive rights to manage the belly cargo space of VietJet aircraft operating between Ho Chi Minh City and Delhi.

VietJet Air operates four times a week between both cities. Other than the direct flight, the airline offers passengers with seamless connections to destinations like Melbourne, Sydney, Singapore, and Auckland.

Teleport is the part of Malaysia-based AirAsia Group. This airline operates dedicated freighters. It has a fleet of three Airbus A321P2F aircraft, which it inducted in 2023.

This partnership extends the capabilities of Teleport. It will provide similar services to VietJet Air as it does for all the six airlines coming under the AirAsia group. This agreement also strengthens the partnership between both airlines. The demand of cargo to and from Southeast Asia is on a boom. This collaboration will help fulfill this demand. Last year, in November month, Teleport and the cargo wing of VietJet Air signed an MoU to expand their networks, combining the Southeast Asian network of Teleport and Asia Pacific Network of VietJet Air.

Just A Beginning

Managing Director of VietJet Air Cargo, Nelson Wu expressed his enthusiasm about the new partnership signed between both airlines. He stated that this is just the initiation of this relationship. Under this, the goal is to use the cargo management capabilities of Teleport to make sure that flights between Delhi and Ho Chi Minh City never flies with an empty belly cargo space.

VietJet Air has two hubs in Vietnam: Ho Chi Minh and Hanoi. Both these hubs seamlessly integrates with Teleport’s key hubs. Teleport comes under the AirAsia group, which has a cluster of airlines in the Southeast Asian region. These airlines are based at Kuala Lumpur, Jakarta Soekarno Hatta, Bangkok Don Mueang, Manila, Singapore, Kuching, and Kota Kinabalu.

By complementing the hub network of each other, both airlines can unlock a huge number of destinations, extending their reach beyond point-to-point shipping routes. For Wu, he and his team is committed to make this dream a reality. Their aim is to cultivate an atmosphere that fosters new opportunities and encourages innovation.

Eyeing Increment in Revenue Growth

Pete Chareonwongsak, the Chief Executive Officer of Teleport emphasized the importance of this partnership and thanked VietJet Air Cargo for its continued trust. He explained how Teleport made the use of technology to maximize the belly capacity of LCC airlines like AirAsia, specifically in the e-commerce market. The airline was built in 2018 and since then, its hard core focus has been on the E-Commerce segment.

With this strategy, AirAsia has witnessed an ample revenue growth. The ancillary revenue contribution of Teleport has increased from $50 million in 2018 to $162 million in 2023. Percentage wise, it has increased from 2% to 6%.

For Low Cost Carriers looking to maximise cargo operations, this is the perfect model to follow. With its past record and results, Pete believes that this model will also benefit VietJet Air Cargo.

Before this, Teleport signed a similar partnership with Pradhaan Air Express of India. This airline is well-known because it is the world’s first airline to receive delivery of an Airbus A320P2F aircraft. In May 2023, Pradhaan Air Express signed an MoU with Teleport to increase its freighter network on routes connecting India to Southeast Asia.

Often, low cost carriers signs such partnerships with dedicated freighter airlines to fulfill their cargo wishes. Recently, Indian regional carrier Star Air signed a similar partnership, which provides SpiceXpress exclusive rights to manage the belly cargo space of Embraer jets belonging to Star Air.

What do you think about this agreement signed between VietJet Air Cargo and Teleport? Discuss in the comment section.