Atlas Air could double Vietnam operations if infrastructure improves: CEO

Atlas Air, the U.S.-based airline, could potentially double its operations in Vietnam over the next few years if the existing infrastructure improves, according to the company's CEO, Peter Steen. The firm has seen a remarkable surge in flight movements to Vietnam, with 1,269 movements recorded so far this year, marking an impressive 3,200% increase from 2016.

Currently, Atlas operates about 12 weekly flights to Hanoi. However, Steen noted that this level of activity is nearing the maximum capacity the current infrastructure can handle, despite strong demand for more.

To accommodate growth, Atlas requires additional parking stands for large freighters like the Boeing 747-8, along with warehouses and ground handling capacity for preparing and shipping pallets and containers. Digital platforms facilitating the exchange of transport documents and shipment information are also crucial. While new facilities are under construction, Steen suggested that Vietnam could maximize current capacity by improving coordination, communication, and operational planning.

Steen emphasized that expanding manufacturing in Vietnam creates more business opportunities for operators connecting the country's factories with overseas markets. The firm's deployment decisions are based on where manufacturers and customers require capacity. Vietnam's manufacturing sector, especially for high-tech products such as those from HP and Dell, is driving demand for logistics services, with Atlas handling 39% of nonstop cargo from Vietnam to the U.S. through July.

Vietnam's air cargo market is also expanding, with cargo throughput at Vietnamese airports reaching approximately 1.6 million tonnes in the first 10 months of this year, a 9.6% increase from the same period last year, according to the Civil Aviation Authority of Vietnam (CAAV). Although air cargo represents a small share of total freight volume, it accounts for about 30% of the value of Vietnam's imports and exports across all transport modes.

To meet this growing demand, Vietnam is investing in new airports, with Long Thanh International Airport in the south expected to begin commercial operations by December 24, 2026, and Gia Binh International Airport in the north targeting commercial operations by the end of 2028. Steen believes that these infrastructure investments will significantly improve operational efficiency and capacity for Atlas and other operators.