The Hindu Business Line : Continental Airlines achieves breakthrough

The US carrier Continental Airlines' cargo business in India has begun to take off, according to airlines industry sources. Continental Airlines, the world's sixth largest, has achieved breakthrough in cargo transportation out of India ever since it introduced online services between New Delhi and Newark in November last year, say the sources.

In the first month of operation, the traffic jumped 10-fold to 2,17,000 kg as compared to the throughput when the airline was functioning offline.

Previously, all Continental's cargo was flown to London on interline partners for transfer into the carrier's aircraft from London Gatwick. Not any more. It now operates daily B777 passenger aircraft on the route and the cargo is carried in the passenger aircraft as no freighter service is operated by it on the route.

However, the combination of long haul flight, heavy passenger and baggage loads ensure that the cargo capacity is filled in most flights.

But then, Continental uses its discretion while accepting cargo. Its first priority is small shipments, more so to avoid transfer problems in London.

Second, it has so far chosen to concentrate on the market in and around Delhi.

The sources do not rule out the possibility of the airline increasing its number of services in not too distant future and of extending the marketing to other regions depending on the additional capacity to be available.

The airline hopes to receive two 757-300s aircraft in the first quarter of 2006 and another six 737-800s by December.

It might be noted that the US carrier globally recorded a net loss of $68 million for the full year 2005. The net loss would have been much more, as much as $205 million, but for the special items, which included sale of Copa stock and other special charges.