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.