SATS Ltd. (SATS), one of the world's largest providers of air cargo handling services, and Vietnam Airlines JSC (VNA) signed a Memorandum of Understanding (MoU) to build and operate an air cargo terminal at the new Long Thanh International Airport (LTIA) in Vietnam.

The two companies will also collaborate on strategic initiatives, including enhancing the support of ground and cargo handling services across VNA's international network.

In a statement, the companies noted that LTIA, located 35 kilometres from Ho Chi Minh City in Dong Nai province, is being constructed to alleviate congestion at Tan Son Nhat International Airport in the country's capital city.

LTIA is due to launch operations in phases, with Phase 1 expected to commence operations by the second half of 2026.

It will have the capacity to handle up to 25 million passengers and 1.2 million tonnes of cargo annually, and it will eventually expand to its full capacity of 100 million passengers and 5 million tonnes of cargo by 2050.

 [Source: SATS]

"The collaboration will combine SATS' air logistics expertise and global network with VNA’s plans to launch Vietnam's first all-freighter airline, positioning both companies as pivotal contributors to the country's growing airfreight and logistics sector," the statement said.

Furthermore, the MoU seeks to expand the existing cooperation between the two companies in ground and cargo handling services across VNA's international network.

This includes efforts to co-develop customised airfreight and logistics solutions, such as trucking and middle-mile services, through SATS and its strategic alliances.

"We are pleased to formalise this Memorandum of Understanding with Vietnam Airlines JSC, as it strongly aligns with our strategic objectives and reflects our dedication to achieving mutual goals," said Kerry Mok, president and chief executive officer of SATS.

"This partnership offers significant growth potential as we jointly explore new opportunities in global markets. At SATS, we bring extensive expertise and experience to the table, ensuring the provision of efficient cargo terminal and ground handling services at Vietnam’s newest airport," he added. 

Vietnam Airlines, the flag carrier of Vietnam, has a fleet of over 93 aircraft and currently flies to more than 22 domestic and 30 international destinations.