Korean Air and Vietnam Airlines have announced plans to enhance their cooperation in the cargo sector, as part of a bilateral initiative to meet rising freight demand in Southeast Asia, the South Korean flag carrier confirmed on Wednesday.
Under a newly signed memorandum of understanding (MoU), the two airlines will leverage Long Thanh International Airport—currently under construction near Ho Chi Minh City—as a strategic hub for cargo operations. The agreement was formalized on Tuesday during the Korea–Vietnam Business Forum in Seoul.
Strategic Location for Regional Connectivity
Long Thanh International Airport is expected to offer significant logistical advantages due to its proximity to key Asian markets, including Malaysia and Singapore. This strategic positioning will enable more efficient cargo routing and expand market reach for both carriers.
Joint Development of MRO Facilities
Beyond cargo operations, the airlines will also collaborate on establishing a maintenance, repair, and overhaul (MRO) facility at Long Thanh. The center will provide services such as aircraft maintenance, component repairs, and cabin refurbishment. Additionally, both airlines will jointly develop training programs to cultivate skilled technical personnel for the facility.
Korean Air brings decades of expertise in defense and aviation MRO services and aims to expand its global MRO footprint through this partnership, particularly across the ASEAN region. The airline has identified MRO services as a core growth engine and is concurrently developing a new aircraft engine maintenance center on Yeongjong Island, home to Incheon International Airport.
Strong Growth Outlook
According to estimates by iM Securities, Korean Air’s new engine maintenance facility in Yeongjong could boost the airline’s annual operating profit by up to ₩150 billion (approximately $108 million) upon its completion, projected for 2027. Industry experts believe the airline will continue to generate significant earnings from MRO operations in both South Korea and Vietnam, given the sector’s high entry barriers and long-term demand.
An aviation industry official noted, “This partnership will strengthen Korean Air’s global MRO capabilities and position it to secure more orders from major Asian clients over the long term.”
Market Potential
According to Mordor Intelligence, the Southeast Asian logistics market is expected to reach $478 billion by 2030, driven by Asia’s robust economic growth and the rapid influx of global technology and manufacturing companies. The cargo sector is set to expand in parallel, creating new opportunities for regional carriers.
Incheon International Airport Corporation projects that the global MRO market will grow by 19.44% between 2024 and 2034, fueled by surging logistics demand both domestically and internationally.
Source: https://www.koreatimes.co.kr/business/companies/20250813/korean-air-vietnam-airlines-to-join-force-in-cargo-business
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