Air India is selling its current freighter fleet and cancelng plans to build a cargo facility in the western state as shrinking cargo traffic and poor economic conditions diminish returns from the operation.

Civil Aviation Minister Ajit Singh says the decision to sell the six converted Boeing 737-200s is also attributed to the lack of a proper distribution network and mismanagement. Moreover, Air India’s cargo aircraft are too big for domestic operations and too small for international ones, he adds.

Until now, enhancing the air cargo business was a core part of Air India’s revival plan, and 40 aircraft were to be converted or reconfigured. It is unclear how this latest development affects that plan.