The Hindu Business Line : Cargo subsidiary on Air India radar

Speaking to Business Line here, the Chairman and Managing Director, Mr V. Thulasidas, said that he had deputed a group of people within the company to work on this and decide on the kind of cargo operation to be adopted. The airline wanted to step up its cargo operations, he added.

"We have several options before us. We can have a cargo subsidiary. Within Air India, we can buy right of aircraft. Else, we can take aircraft on lease. We can also lease cargo space on other people's aircraft. All these are being explored."

The about-to-be launched budget airliner Air India Express will have some cargo space but not as much as the regular flights, he said when asked about the post-April, 2005 scenario.

"On cargo movement, there are two conflicting demands. One is from the passengers and pertains to that of the budget airline. But launching Air India Express will not solve the problem entirely. A budget airline can run only on different types of aircraft. Not the kind of aircraft that Air India now has.

"These would have to be smaller aircraft, all economy-class configuration. A totally different kind of operational philosophy is at work there. So when you go for it, cargo space will have to be compromised. For cargo exporters, this could pose a difficulty."

Non-stop flight to US: Air India hoped to launch non-stop flight to US in 2006. "We're looking at a daily flight, for which we have invited offers for aircraft. We've received some. They have to be negotiated and finalised," Mr Thulasidas said.

The aircraft is due for delivery in the summer of 2006. This type of aircraft will have a capacity of around 200 seats. It can accommodate more, but because of the range and flying time involved it's likely to be limited to 200. There are only two aircraft types that can be deployed for this type of service.

The international carrier is open to the question of increasing the frequency depending on passenger demand, he added.