The challenges being faced by the global air cargo industry due to factors such as flucutations in fuel prices and the worsening global economic situation have forced Vietnam’s IPP Air Cargo, which had applied for an air transport business license in January, to withdraw its application.
“The business situation is not good enough, the world economy is having a bad situation, the global recession is becoming more and more present, and fuel price fluctuations will make the global freight industry difficult,” a document sent by the company to the Government Office and State management agencies said.
The decision not to go ahead with plans for the country’s first all cargo airline comes as a suprise as the IPP Air Cargo had, as recently as two weeks before it decided not to seek an air transport business license, said,”There are now four converted aircraft lying in wait. We have all the investments in place, including key staff. We hope to fly as soon as we have a licence and are committed to serving the Vietnamese and FDI business communities.” The country’s first cargo airline had even unveiled an image of an aircraft bearing its own logo and brand colors.
IPP Air Cargo was founded by Imex Pan Pacific Group (IPP Group), which is one of the industry giants in Vietnam operating in many fields from high fashion, food, real estate, commercial mall management, non-aviation services, and duty-free shops. IPP Group was also one of the investors in the development of the Cam Ranh International Airport at a project cost of over 3,735 billion VND. The facility began operations in June 2018 with a capacity of 6-8 million visitors/year.
The company’s relationship with the aviation industry is not a coincidence but comes from the experience it gained through its various business operations and its desire to grasp a market opportunity. Vietnam currently does not have an airline specialized in cargo.
IPP Air Cargo is not the first airline in Vietnam to apply for a license and then go back on its decision. In 2020, Vinpearl Air founded by Vin Group decided to withdraw from the aviation market after more than 2 months of preparation and licensing.
Vin Group is a leading multi-industry corporation in Vietnam with investment in real estate, technology, trade and services. It owns a series of famous brands such as Vinhomes, Vincom, and Vinfast. The Group’s decision not to go ahead with establishing Vinpearl Air was because it wanted to focus on developing the technology – industry segment.
The interest shown by Vietnamese giants is good news for one of the fastest growing aviation markets in the world but the decision to withdraw from the market even before commencing operations has caused concern. However, it cannot be denied that Vietnam’s aviation market still has immense potential and offers many opportunities for investors and businesses.
Defense Technology Institute (DTI) Thailand has delivered two prototypes of the 105mm light howitzer CS/AH2 to the Artillery Battalion, Artillery…
Airbus has announced the launch of the Pléiades Neo Next programme, aimed at bolstering its high-resolution Earth observation satellite constellation,…
Eve Air Mobility joins Japan’s Advanced Air Mobility (AAM) Public-Private Committee, as announced by the company’s press release on Tuesday…
ACIA Aero Leasing, headquartered in Dublin, Ireland, announced the successful delivery of one of two ATR 72-500 Bulk Freighters to…
One TPS-P14ME Mobile Air Surveillance Radar System from Japan was officially handed over to the Philippines Air Force (PAF). The…
Skyllence, an international air charter broker, announced the appointment of Kestutis Abarius as Head of Sales on Monday (Apr. 29).…
Qatar Airways and the United Nations High Commissioner for Refugees (UNHCR) have reaffirmed their commitment to aiding the most vulnerable…
The Philippines Coast Guard (PCG) is set to acquire an additional five Multi-Role Response Vessels (MRRVs) from Japan. These vessels…
Korean Air is set to open a new daily route connecting Seoul Incheon with Macau starting 1 July 2024, as…
Qatar Airways Cargo announced the opening of its advanced Animal Centre and the relaunching of its Next Generation Live product…
All Nippon Airways (ANA) and Air India, India's national flag carrier, have established a commercial agreement to initiate a codeshare…
Saab has completed the delivery of another GlobalEye Airborne Early Warning and Control (AEW&C) aircraft to the United Arab Emirates…
In what seems to be a continuation of Vietnam’s Defence Minister General Phan Van Giang's visit to South Korea in…
GD Helicopter Finance (GDHF), a Dublin-based helicopter leasing and finance company, has secured a contract with Airbus Helicopters and GDAT,…
Indian Low-Cost Carrier (LCC) IndiGo has announced a firm order for 30 Airbus A350-900 aircraft in what is its first…
Racer demonstrator, developed by Airbus Helicopters as part of the European Research Clean Sky 2 initiative, has completed its inaugural…
Lockheed Martin Australia has secured an AUD$500 million contract with the Australian Department of Defence to develop the country’s future…
Artemis Aerospace has announced the addition of a hub in Singapore following the launch of two similar sites in the…
ZeroAvia announced plans to offer key components from its hydrogen-electric engines to fellow innovators in the clean aviation industry on…
Challenge Group has announced the launch of Challenge Technic's specialised A-CHECK line at its hangar facility in Hannover on Wednesday…
Korean Air, alongside Hyundai Motor Company, Korea Telecom (KT), Incheon International Airport Corporation (IIAC), and Hyundai Engineering & Construction, has…
Mayman Aerospace is set to unveil a full-scale model of its high-speed Air Utility Vehicle (AUV), Razor, during SOF Week…
TEKEVER, a provider of unmanned aerial systems (UAS) in Europe, introduced its newest drone the ARX in San Diego, U.S.…
Viasat and uAvionix have teamed up to enhance global communication services for Uncrewed Aerial Vehicles (UAVs), with uAvionix joining Viasat’s…
Korean Air and WestJet have extended their codeshare agreement to provide additional transpacific travel options for passengers on Monday (Apr.…
China Eastern Airlines has reached an agreement with Amadeus concerning international NDC distribution, marking a significant development for both parties.…
Singaporean officials have launched an Invincible-class submarine for the Republic of Singapore Navy (RSN) at thyssenKrupp Marine Systems (tKMS) shipyard…
Ten people died following a midair collision between an AW139 helicopter and a Fennec helicopter belonging to the Royal Malaysian…
Integrated Surveillance and Defense (ISD) has been awarded a contract by the U.S. Naval Air Warfare Center Aircraft Division (NAWCAD),…
ST Engineering AirX (AirX), a joint venture between ST Engineering and Peluca (formerly known as Wigetworks), have announced a strategic…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.