The industry has been going through major difficulties due to the Covid-19 pandemic and now is not a suitable time for the establishment of a new airline, even a cargo carrier, the ministry said in a report to the Prime Minister’s office.

Local airlines have been struggling to survive the pandemic and have resorted to turning passenger aircraft into cargo carriers to earn revenues, the report said.

The ministry said that the request to establish IPP Air Cargo can be made after the market has recovered, which is expected to be next year at the earliest, the ministry said, adding that this conclusion was reached at a recent meeting with the Vietnam Airlines Group, Vietjet, Bamboo Airways, Vietravel Airlines and IPP Air Cargo itself.

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. All six existing carriers prioritize passenger transport.

Vietnam Airlines has recently proposed that it establishes a cargo carrier as part of efforts to shore up its business that has been hard hit by Covid-19 outbreaks.

In the first six months domestic airlines served 16.2 million passengers, up 1.9 percent year-on-year, according to the General Statistics Office.