Singapore airlines cargo - A leading brand in air freight sector

(VLR) Singapore Airlines Cargo is still one of the world’s leading brands in airfreight sector. Although the aviation industry is undergoing the severe global crisis, it has maintained its growth and stayed in its position in the airfreight. Vietnam Logistics Review had an exchange with Mr. Vo Trung Hieu – Representative of Singapore Airlines Cargo branch in Vietnam.

Singapore Airlines Cargo is still one of the world’s leading brands in airfreight sector. Although the aviation industry is undergoing the severe global crisis, it has maintained its growth and stayed in its position in the airfreight. Vietnam Logistics Review had an exchange with Mr. Vo Trung Hieu – Representative of Singapore Airlines Cargo branch in Vietnam.

Where is the position of Singapore Airlines Cargo in airfreight sector after 50 years of development?

Singapore Airlines Cargo has been considered one of prestigious airlines with long legacy of experience. (It is now in top 3 of leading airfreight businesses)

We have “uplifted as booked” parameter up to over 96% and Singapore has been one of the most effective transshipment post of the world.

The development of Singapore Airlines Cargo in Vietnam is accompanying with the growth of the economy. From 3-4 flight/ week with A310s with capacity of 3tons/flight, now we have 2 flights/ day with B777-200s with capacity of 13-15 tons/ flight.

Our growth rate in Vietnam is over 12%/ year and we have around 6% of the market share for there are many other airlines in Vietnam with fast growth rate.

What are existing services of Singapore Airlines Cargo?

We are providing global transport services as conventional cargo transport, raw cargo transport, valuable cargo transport, express delivery, mail and packages transport.

The world’s aviation industry has been seriously affected by the global economic crisis, do you have any comment on the global airfreight sector in 2012 and 2013? How has Singapore Airlines Cargo dealt with changing economic situation?

In general, the crisis has seriously affected business of most airlines in the world, and we are not of exception. However, according to IATA evaluation and some market researches, the airfreight in Vietnam will bounce back in around the 3rd quarter and then will have positive growth of 10-15% in next periods. With existing experience of Vietnam cargo market, we believe the forecast.

To deal with the crisis, we have been carrying out series of cost-cutting measurements and effectively exploiting important routes.

What are targets and orientations for Singapore Airlines Cargo’s branding?

Our target is to maintain the position of one of the leading airline cargo businesses in the world. To do this, we have been continuously upgrading our staff effectiveness and professionals and updating our customers with information about their cargo’s conditions.

We are now supporting trucking cost to spots outside our on-line system and cold room storage in Singapore. And we have been updating ourselves regularly to offer the most flexible and competitive price to customers.

Do you have any ideas about airfreight market in Vietnam?

Although it is considered as a potential one, Vietnam airfreight market is in the stage of “abundance of supply but lack of demand” for there have been around 40 airlines operating while the market growth has been slow down for being affected from the global crisis, especially being affected from the two traditional markets: EU’s and the U.S’s.

What are your ideas of Vietnam airlines and infrastructure serving the airfreight sector in Vietnam?

Vietnam airlines are under rapid development. However, only Vietnam Airlines has proved itself as a potential and active one in the airfreight market. It has had more planes, opened new routes, and been our big competitor in many markets.

With two modern cargo terminals in HCMC: SCSC and TCS, airfreight conditions in Vietnam are much better than in other regional countries. However, there are still long distance to catch up with other countries in the region for the limited number of planes, the shortage of experienced experts and the fact procedures of customs, quarantine inspections, local transport have not been transparent enough.

Does Singapore Airlines Cargo have intention to expand its market in Vietnam? And has there been any cooperation with Vietnam?

For the slow growth of the market, we have not had any intention to expand the market in Vietnam. However, when there are demands growing, we are ready to bring freighters to Vietnam to meet the need of our customers. And we have not had any particular cooperation with Vietnam so far, but we are willing to offer training services or code-share on routes that Vietnam needs our cooperation.

Thank you!

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