The Hindu Business Line : Air India's budget airline draws flak from cargo agents

THE move to commence budget airline by Air India to various Gulf countries has drawn flak from cargo agents association in Kerala on the ground that the airline has so far not made the required provisions to carry the cargo in these flights.

Air India had announced starting of its budget airline Air India Express to Dubai, Abu Dhabi and Muscat from Thiruvananthapuram, Kochi and Kozhikode airports with effect from March. However, details regarding the operations such as mode of reservation for passengers, trips and fares have not been made available as yet, Mr Shaji Varghese, Treasurer, Air Cargo Agents Association of India, has said.

Once the budget airline commences operations without providing adequate space for cargo, this would adversely affect cargo agents and exporters, who export perishable cargo from Kerala. At present, it is estimated that more than 50 tonnes of cargo are being uplifted on a daily basis from the three airports in the State to the Gulf sector and there was no mention on the cargo storage facility provided in the proposed flights, Mr Varghese said.

Consequent to the space constraint, he pointed out that exporters would be forced to use private airlines, which might in turn hike their freight rates in the long run. Exporters from Kerala would suffer a lot and their prices would no longer be competitive nationally or globally, he added.

Meanwhile, it is reported by the exporting community in the State that Air India had started reducing cargo capacity available for perishable exports from Thiruvananthapuram to the Gulf sector and West Asia from last week. Circulars issued by the AI Cargo Complex had mentioned about the reduction of cargo capacity in a calibrated manner on a fortnightly basis by the time the new airliner is ready to take off.

Sources in the exporting community said that AI was the only operator with a daily direct service in the Thiruvananthapuram-Dubai sector and the move would deprive the State Government of annual foreign exchange earnings of Rs 150 crore.

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