VIETNAM's IPP Air Cargo has asked Hanoi to end the process of licensing its application to launch what would have been the nation's first cargo airline, reports the Vietnam News Agency.
While the Covid scare was on, air travel ended. But 60-70 per cent of air cargo is carried in the belly-holds of then grounded passenger planes. But when the Covid scare ended, passenger aircraft resumed their air freight role, making plans for an air cargo airline unsustainable.
The company's shareholders made the decision and a statement was sent a day later to the Government Office and the Ministry of Transport.
Jonathan Hanh Nguyen, chairman of the airline's parent company Imex Pan Pacific Group (IPPG), said air cargo demand would decline given the current global situation.
Mr Nguyen said air cargo fares have dropped to affordable levels for both FDI and other firms engaging in international trade.
'Thus we have decided to end our plan to avoid causing more damage to carriers that are already making losses,' he said, adding that the company would resume its plan at an appropriate moment when the global market recovers and stabilises.
The company had already completed the procedures to lease four Boeing Converted Freighters 737 800BCF. It planned to start operations from major manufacturing and export locations like Can Tho, Da Nang, Khanh Hoa, Hai Phong and Quang Ninh, connecting them with Hanoi and Ho Chi Minh City as well as foreign countries.
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While the Covid scare was on, air travel ended. But 60-70 per cent of air cargo is carried in the belly-holds of then grounded passenger planes. But when the Covid scare ended, passenger aircraft resumed their air freight role, making plans for an air cargo airline unsustainable.
The company's shareholders made the decision and a statement was sent a day later to the Government Office and the Ministry of Transport.
Jonathan Hanh Nguyen, chairman of the airline's parent company Imex Pan Pacific Group (IPPG), said air cargo demand would decline given the current global situation.
Mr Nguyen said air cargo fares have dropped to affordable levels for both FDI and other firms engaging in international trade.
'Thus we have decided to end our plan to avoid causing more damage to carriers that are already making losses,' he said, adding that the company would resume its plan at an appropriate moment when the global market recovers and stabilises.
The company had already completed the procedures to lease four Boeing Converted Freighters 737 800BCF. It planned to start operations from major manufacturing and export locations like Can Tho, Da Nang, Khanh Hoa, Hai Phong and Quang Ninh, connecting them with Hanoi and Ho Chi Minh City as well as foreign countries.
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