New cargo airline unlikely to take off any time soon
New cargo airline unlikely to take off any time soon
The proposal to establish a new cargo airline, IPP Air Cargo, has been placed in cold storage for now by Vietnam’s aviation, citing the pandemic situation.
An aircraft seen near Tan Son Nhat International Airport in Ho Chi Minh City, June 15, 2020. Photo by VnExpress/Quynh Tran.
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The Civil Aviation Authority of Vietnam (CAAV) is not considering the establishment of a cargo airline in order to limit the imbalance in supply and demand of the market and foster sustainable development of Vietnam’s aviation industry amid the Covid-19 pandemic, it said in a response to the Ministry of Transport.
The CAAV also said it would continue to monitor the situation and report to the ministry about the possibility of establishing a new airline after 2022.
IPP Air Cargo was proposed by retail company Imex Pan Pacific Group (IPPG) to be established next year. It would be the first full-fledged cargo airline in Vietnam, with all six existing carriers prioritizing passenger transport.
With an initial investment of VND2.4 trillion ($103.6 million), IPP Air Cargo planned to start with five freighters. It had targeted revenues of $71 million in the first year of operation.
