IPP Air Cargo suddenly asked to stop granting a license
IPP Air Cargo would like to withdraw all applications for approval for an air transport business license submitted in early January 2022.
Ms. Le Hong Thuy Tien, General Director of IPP Air Cargo Joint Stock Company has just sent a document to the Government Office and specialized State management agencies to stop licensing air cargo business for IPP Air Cargo.
Accordingly, IPP Air Cargo would like to withdraw all applications for approval for an air transport business license submitted in early January 2022 and stop its flight licensing activities in accordance with regulations on the grounds that “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.”
The document signed by Ms. Le Hong Thuy Tien states: When the world market has a recovery and stability in the future, this airline will consider returning at an appropriate time and accept the re-submission of the application. license to transport goods by air from scratch.
The project of establishing the IPP Air Cargo airline has a total investment of 2,400 billion VND, equivalent to 100 million USD, of which 30% is equity and the remaining 70% is mobilized capital.
As planned, in the first year of operation, IPP Air Cargo will operate 5 cargo aircraft; in the second year will increase to 7 units and increase to 10 units in the third year.
In the first year of operation, IPP Air Cargo plans to transport about 115,000 tons of cargo, earning $71 million in revenue. The business is expected to start making profits from the 4th year since the first flight is operated.
Earlier, the Civil Aviation Administration said that IPP Air Cargo signed a Memorandum of Understanding with Boeing to buy 10 B777F aircraft to serve the long-term plan. This enterprise also signed a Letter of Intent (LOI) with BBAM on the lease of 4 aircraft B737- 800BCF, of which, 1 aircraft has completed the configuration transformation (cargo compartment, painted aircraft according to the registered logo) to be ready to exploit according to the reported plan after being granted the License.
All aircraft that meet the requirements for aircraft age as prescribed in Decree 89/2019/ND-CP are ready to submit the application for approval for the lease of aircraft in accordance with regulations.
Translated from: IPP Air Cargo bất ngờ xin dừng cấp phép bay (baogiaothong.vn)