IPP Air Cargo Joint Stock Company, whose chairman is well-known billionaire Johnathan Hanh Nguyen, has proposed withdrawing its application for an air cargo transport license.

The proposal was sent by Le Hong Thuy Tien, CEO of IPP Air Cargo and the wife of Johnathan Hanh Nguyen, to the Government Office, the Ministry of Transport, and the Civil Aviation Authority of Vietnam.

IPP Air Cargo reasoned that the Russia-Ukraine military conflict is escalating, while the world is teetering on the edge of an economic recession, resulting in multiple consequences, such as inflation, interest rate hikes, and fuel price fluctuations.

IPP Air Cargo cited the opinions of leaders of the World Bank and the International Monetary Fund as saying that the global cargo market is volatile and the freight transport sector is forecast to face myriad difficulties in the upcoming years due to fuel price fluctuations and the economic recession risk.

According to IPP Air Cargo, once the global market recovers and stabilizes in the future, the company will consider seeking the air cargo transport license again at an appropriate time.

IPP Air Cargo, which is headquartered in Ho Chi Minh City, received the business registration certificate from the municipal Department of Planning and Investment for the first time on March 10 last year, with air cargo transport being its main business line.

In March this year, the Ministry of Transport proposed the prime minister issue an air cargo transport license to IPP Air Cargo JSC.

According to the firm’s dossiers for the establishment of the cargo airline, IPP Air Cargo planned to use five Boeing 737, Boeing 777, and Airbus A330 aircraft from 2022. The number of planes in its fleet would be doubled to 10 in the following five years.

IPP Air Cargo would transport cargo on domestic air routes connecting production hubs, such as Can Tho, Da Nang and Hai Phong Cities, Khanh Hoa and Quang Ninh Provinces, and the Central Highlands region, with cargo transit centers, including Hanoi and Ho Chi Minh City, hereby linking to Northeast Asia, Southeast Asia, South Asia, and Europe.

The project to found IPP Air Cargo required an estimated investment of VND2.4 trillion (US$96.7 million), 30 percent of which was equity and the remaining 70 percent was mobilized.

IPP Air Cargo expected to transport some 115,000 tonnes of cargo and generate $71 million in revenue in the first year of operation. It hoped to begin earning a profit from its fourth year of operation.

If it is established, it will be the first of its kind in Vietnam.

IPP Air Cargo JSC is an arm of Imex Pan Pacific—a retailer that makes up nearly 70 percent of international branded goods distributed in Vietnam and a large shareholder of Southern Airports Services JSC and Cam Ranh International Terminal Company, The Saigon Times reported.

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