Teleport has announced that it will be managing the exclusive commercial rights of Vietjet Air Cargo’s New Delhi – Ho Chi Minh City belly space.

The agreement signed between both parties marks the start of a deeper partnership between Vietjet Air Cargo and Teleport to better serve the growing air cargo demand coming in and out of Southeast Asia. In November 2023, Vietjet Air Cargo and Teleport signed a Memorandum of Understanding to mutually extend its network, combining Teleport’s largest Southeast Asia air logistics network with Vietjet’s Asia Pacific flight network.

Nelson Wu, Vietjet Air Cargo Managing Director says, “We see this as the beginning of a deeper partnership with Teleport to leverage their end-to-end Total Cargo Management capabilities, and their experience to ensure we never fly empty on our New Delhi to Ho Chi Minh City sector. Vietjet’s hub out of Ho Chi Minh City and Hanoi greatly complement Teleport’s seven key Southeast Asia hubs in Kuala Lumpur, Jakarta, Bangkok, Manila, Singapore, Kota Kinabalu and Kuching. By synergising our cargo networks, sales operations and e-commerce logistics across strategic markets, Vietjet Air Cargo will mutually unlock a wider range of destinations, far beyond point-to-point shipping.”

Sharing further insights into the partnership, Nelson affirmed, “We believe in the tangible benefits of this partnership and are committed to turning our shared vision into reality. By expanding this network of cooperation, we aim to create a more extensive and valuable ecosystem, unlocking new possibilities and driving further innovation.”

Pete Chareonwongsak, CEO of Teleport says, “This partnership is very meaningful for Teleport as it shows Vietjet Air Cargo’s trust in us to commercially manage their New Delhi-Ho Chi Minh City sector on their behalf. When we combined AirAsia’s belly capacity as one and built it on a Total Cargo Management foundation using technology, we learned how to help low-cost airlines maximise their passenger belly capacity. Because we were founded in 2018, we had a good headstart in capturing the emerging e-commerce opportunity at the time, and built that into one of our core capabilities.”

“As a result, we have been successful in providing value-added incremental revenue on AirAsia’s available belly space – AirAsia’s ancillary revenue contribution by Teleport grew from 2% (RM209 mil/USD50 mil) in 2018 to 6% (RM761 mil/USD162 mil) in 2023. This is a highly scalable model for low-cost airlines to maximise their cargo operations. With this track record, we are confident VietJet Air Cargo will benefit as our newest Teleport Air Partner,” he added.