Vietnam Airlines and SATS, one of the world's biggest providers of air cargo and ground handling services, have signed a strategic partnership agreement in Hanoi where the two companies will recognise each other as preferred partners for ground handling and cargo services across their networks.

The agreement marks a new phase of cooperation between Vietnam Airlines and SATS, aimed at strengthening aviation services and supporting future logistics development. It builds on an earlier MOU to explore cargo‑terminal projects in Vietnam, including at Long Thanh International Airport (LTIA).

SATS has long been one of Vietnam Airlines' international partners, delivering ground handling and cargo services at major airports across the airline’s global network including Singapore (SIN), Bangkok (BKK), Bangalore (BLR), Hyderabad (HYD), Delhi (DEL), Hong Kong (HKG), London (LHR), and Paris (CDG).

Its joint venture TCS (Tan Son Nhat Cargo Services), involving Vietnam Airlines and SATS, serves as Vietnam Airline's core cargo arm, focusing on ground handling and logistics.

With operations in 27 countries and a long-standing service relationship, SATS says it plays a key role in supporting Vietnam Airlines' international network.

SATS said it will provide enhanced operational support, while Vietnam Airlines will extend corresponding partnership benefits in suitable markets to strengthen operational collaboration and service excellence.

Both companies will also explore future collaborations, including developing a new cargo terminal in Vietnam.

Lê Hồng Hà, president and CEO of Vietnam Airlines said the cooperation between Vietnam Airlines and SATS marks a "pivotal step" in the airline's ongoing commitment to elevate service excellence, optimize operational costs, and reinforce its international operating capabilities.

"We strongly believe that SATS' partnership will bring tangible value to our customers and fuel Vietnam Airlines' long-term growth," he said.

Kerry Mok, president and CEO at SATS Ltd., noted that the partnership reflects the two companies "shared commitment" to operational excellence and customer-focused solutions.

"Together with Vietnam Airlines and TCS, we are enhancing the consistency, safety, and efficiency of ground and cargo handling services across the network," Mok said.

"Building on more than three decades of trusted partnership, we are deepening our collaboration to drive innovation and infrastructure development that support the evolving needs of our customers and Vietnam's growing aviation industry," the SATS CEO added.

Beyond strengthening the foundation for ground handling and cargo operations, the agreement expands the scope of cooperation into advanced areas such as aviation logistics chain development and operational process optimization.

The alignment of service standards with global best practices, supported by SATS' technical expertise, will enable Vietnam Airlines to enhance customer experience and sharpen its competitive edge across international markets.

At the same time, the partnership paves the way for joint research and adoption of innovative technologies, driving operational efficiency and sustainable development.

The announcement said Vietnam Airlines and SATS will immediately begin implementing the agreed initiatives, ensuring timely and high-quality execution to deliver long-term benefits for both organizations and contribute to advancing service quality and the overall development of the aviation industry.