[photopress:air_southern_airlines.jpg,full,alignright]Wang Weixiong, general manager of China Southern Airlines’s office in Ho Chi Minh City, said that the airline, one of the largest air carriers in China, will postpone the launch of cargo flights from Vietnam to Europe and the United States.
The exchange rate is the major reason for postponing the freight business in Vietnam.
China Southern reports a 10% annual growth in recent years.
However, the lower exchange of the Vietnam dong against the US dollar and continuous dropping exchange of the US dollar against the Chinese renminbi affected the profitability of the projected routes.
This plus the higher aviation oil price in Vietnam, RMB2,000-RMB3,000 per ton more than Guangzhou made it a non-starter.
There is no suggestion as to when it will be reintroduced.
Source: Trading Markets
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