• Vietnam Airlines Getty
    Vietnam Airlines
    IATA/ICAO Code:
    VN/HVN
    Airline Type:
    Full Service Carrier
    Hub(s):
    Noi Bai International Airport (Hanoi), Tan Son Nhat International Airport (Ho Chi Minh City)
    Year Founded:
    1956
    Alliance:
    SkyTeam
    CEO:
    Lê Hồng Hà
    Country:
    Vietnam

While analysts say the air cargo market could be facing a downturn, airlines are still busy ordering dedicated freighters and conversions. Joining the pack is Vietnam Airlines, which will be taking two passenger-to-freighter (P2F) Airbus A321 aircraft, and entering the dedicated cargo market.

As reported by ch-aviation, during the quarterly earnings call of US-based Air Transport Services Group (ATSG), the company shared that it had entered into a sale, P2F conversion, and lease-back agreement with Vietnam Airlines for two of the carrier's Airbus A321-200 jets. ATSG's Chief Executive Officer and President, Rich Corrado, stated matter-of-factly,

"We are acquiring two A321s from them. We're converting them to freighters, and we're leasing them back to them."

Vietnam Airlines has 48 Airbus A321ceo aircraft in its fleet, of which it owns all except for 14. Meanwhile, the carrier also has 20 A321neos, all of which are leased. The forthcoming P2F conversions will be the first dedicated freighters operated by the airline.

Airbus A321neo Vietnam Airlines
Photo: Airbus

Interlining between passenger and freighter versions

The Airbus A320/A321P2F conversion program was launched in 2015 as a joint venture between ST Engineering, Airbus and Elbe Flugzeugwerke (EFW). A converted A321 offers up to 27 tonnes of payload, with up to 14 full container positions on the main deck, plus what Airbus called the "unique A320 family container" with up to ten container positions and pallet loading capability on the lower deck.

According to data from ch-aviation, eight units have been converted thus far, operating for customers such as Qantas Freight, EAT Leipzig, and Lufthansa Cargo.

In a 2021 interview by Airbus' technical editor Martin Fendt, EFW's Thomas Centner described the advantages of a P2F A321 in comparison to its competitors,

"The strength of the A321 is clearly its capability to accommodate fully containerised cargo on both decks – a game-changer in this freighter size segment, and something which is not available on competing freighter platforms up to the B757. We also highlight the A320 Family’s unique cargo “belly” hold (ie lower deck) which allows for mixed-fleet operation and interlining between Airbus single-aisle passenger aircraft and freighters, which is a significant operational and commercial advantage for airlines."

Conversion features infographic A321P2F
Photo: EFW

Cargo market hitting a post-pandemic growth snag

High on expectations after a few years of unprecedented airfreight boom, it seemed the industry could stay on a positive trajectory forever. While the passenger aircraft that were temporarily converted to so-called preighters during the height of the pandemic have since been reverted to transport their originally intended cargo - people - airlines have frequently been investing in dedicated cargo aircraft.

However, in July this year, the air cargo market was 9% smaller than it was in the same month one year earlier. Economic and political uncertainties have impacted global trade and, subsequently, airfreight. Meanwhile, rates are up 121% compared to June 2021. Jet fuel price was up just over 60% in the same period, so it is not all fuel cost related but driven in large part by demand. But the boom for cargo-only services initiated by the pandemic does seem to have come to a halt.