Vietnam’s first cargo airline grounded before takeoff

The company’s shareholders made the decision at a meeting Wednesday 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), told VnExpress Saturday that air cargo demand would decline given the current global turmoil.

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 stabilizes.

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.