The Hindu Business Line : AI to launch freighter service from July

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Bangalore Jan. 19 Air India expects to launch its freighter service in July with two of its rejigged A310s. The service to Paris, Frankfurt via Mumbai and to Shanghai via Bangkok will bring Bangalore into its freighter loop.

The Air India CMD, Mr V. Thulasidas, who was here to lay the stone for the AI-SATS joint cargo facility at the new Devanahalli airport, said the national carrier also has other big plans for Bangalore.

Non-stop Service

The high-traffic IT city is on the priority list for long-haul US destinations when Air India acquires its Boeing 777 LR (long range) aircraft. "The first of the 777LRs will be arriving in April. We plan to launch a non-stop service to the US, initially connecting Mumbai and Delhi with New York and Chicago. As more aircraft come in, then more cities would be covered. Bangalore is one of them. We recognise that Bangalore has become one of the most important destinations in India both to the East and West coast of the US. Our operational plans for the next few years will factor this in," Mr Thulasidas told a news conference at the venue.

Anticipating the emerging opportunities at Bangalore, Mr Thulasidas said, "We have bought 6.5 acres of land near the new airport."

The airline had ceased its loss-making freighter service in the mid-90s. By resuming a dedicated freighter service, (with 38.5 tonnes capacity per flight) it now wants to be a serious world-class player aiming at trebling its 10 per cent market share in the coming years, Mr Thulasidas said.

Two of its older A310 passenger planes are being sent to Dresden this month for conversion into freighter aircraft. "This is the first step Air India is taking to become a serious cargo player. We have plans to convert more of older aircraft as freighters as we induct new fleet. We are also looking at acquiring more aircraft on lease."

New fleet inductions began with two deliveries from Boeing in December 2006, a year since the orders for 68 aircraft were placed. Three more are expected this month. "From now on, AI will be inducting at the rate of more than one aircraft a month for the next four years," he said. AI has ordered eight Boeing 777-200LR Worldliners; 15 777-300Ers; 27 787-8 `Dreamliners' and 18 737-800s

An internal group is also studying the viability and the timeframe of converting two 747 `combi' (passenger plus cargo) planes into full-fledged cargo carriers.

Also being considered are lease of either a couple of 747-400s or five 737-200s. All this would be in addition to the belly space for cargo in the new fleet.

POST-MERGER PLANS

The merger proposal of Air India and fellow public-sector airline Indian, he said, was "making good progress in the process of approvals."

The final approval is expected "to come through without delay" early in the next fiscal.

When that happens, the A310 conversions will be supplemented by Indian's 737s for domestic short and medium hauls. We need more of medium hauls now and long ranges later," Mr Thulasidas said. Discussions are on to enter the new combined airline entity in a global alliance and an announcement would be made soon, he said.

The cargo business is one of the five new profit centres or SBUs proposed by the consultant, Accenture, and now being examined by the Civil Aviation Ministry. The other SBUs are MRO (maintenance, repair, overhaul of aircraft); engineering, ground handling and low-cost airline (Air India Express). Air India, he said, is yet to decide on joining Boeing's $100-million MRO project at Nagpur.