The Hindu Business Line : Outsourcing boom to propel BA's revenue from here

BRITISH Airways World Cargo expects revenues from its India operations to grow up to 10 per cent every year, riding on the country's outsourcing and economic boom.

"This financial year itself we expect a jump of two per cent in revenues to 10 per cent," Mr Kamal Kikani, area commercial manager for India & Nepal, told Business Line. The airline also plans to make Delhi and Mumbai mini hubs for its freighter operations, to service neighbouring countries and even Australia.

British Airways is also adding capacities across the country with at least five flights scheduled to take off every week from Bangalore to London from October 30. By March, two more flights will be added to this sector while the number of flights per week will be doubled from Delhi and Mumbai. This will increase the number of flights out of India to 45 from 19 currently.

At present, India contributes 10 per cent of the company's total revenues, which was around £650 million last year.

Mr Kikani said even though the service was competitively priced, fuel surcharge had hit operations slightly. From October 27, fuel surcharge is expected to increase by Rs 3 to Rs 31 per kg, he said. "This financial year alone, BA is forking out £525 million more because of rise in fuel price," he said.

The company operates 10 freighters a week from India which carry 1,000 tonnes of cargo every month, he said, comprising among other things textiles, pharmaceutical, auto parts, gold jewellery and minerals.

According to Air Cargo World Online, British Airways World has bucked the trend in the UK market, which is experiencing a downturn, and has in fact expanded its business.

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