Vietnam retailer IMEX Pan Pacific Group has given up on plans to launch what could have been the country’s first cargo airline, citing concerns on softening demand and an uncertain economic outlook.

The company’s shareholders made the decision on 26 October to ask the government to end the process of licensing its application to launch.

Jonathan Hanh Nguyen, chairman of IPPG, told local news that air cargo demand would decline given the current global turmoil, noting how air freight fares have dropped to affordable levels for both foreign direct investors and other firms engaging in international trade.

“Thus we have decided to end our plan to avoid causing more damage to carriers that are already making losses,” Nguyen said.

The company in June announced a planned launch for September and had already completed the procedures to lease four B737-800 converted freighters, along with orders for another 10 B777s worth US$3.5 billion.

Nguyen in a statement added that IPPG would resume its plan at an appropriate moment when the global market recovers and stabilizes.