Financial Daily from THE HINDU group of publications
Tuesday, Dec 21, 2004
Financial Daily from THE HINDU group of publications Tuesday, Dec 21, 2004 |
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Agri-Biz & Commodities
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Exports & Imports Logistics - Airlines Air India Express may hit agri exports Our Bureau
Thiruvananthapuram , Dec. 20 EXPORTS of agricultural products, processed foods and other perishables to the Gulf sector are feared to hit an air pocket with the launch of Air India Express, the budget airliner, by the country's international carrier. Air India's plans to progressively reduce cargo capacity available for perishable exports to the Gulf and West Asia have already taken off with effect from last Thursday. It has blamed the negligible cargo carrying capacity of Boeing 737-800, the aircraft of choice for the budget airliner, for the reduction in cargo. The capacity will be reduced in a calibrated manner on a fortnightly basis to be totally eliminated by the time the new airliner is ready to take off. The decision taken by the cargo headquarters to limit `credit sales' in perishable cargo to Dubai/Abu Dhabi/Muscat was conveyed individually to members of the exporting community here last week. These circulars had originated from the office of the Air India Cargo Complex at the international airport here. The Agricultural Products and Processed Foods Exporters' Association (Appexa) has expressed its concern over the development. The President, Mr G. Kumaran Nair, and the Honorary Secretary, Mr Dil Koshy, told reporters here that the introduction of the narrow-bodied single-aisle aircraft would have disastrous consequences for cargo exports from the State in general and Thiruvananthapuram in particular. Appexa has been informed that initially, the low-cost carrier would replace the wide-bodied twin-aisle Airbus 310 aircraft being currently operated by Air India in the Dubai/ Abu Dhabi/ Muscat sector. The cargo-carrying capacity of Boeing 737-800 is only one tonne, while that of the Airbus 310 is 12 to 14 tonnes. Air India is the only operator with a daily direct service in the Thiruvananthapuram-Dubai sector and carries a cargo of 100 tonnes on a weekly basis. This will be drastically brought down to seven tonnes with the launch of Air India Express. To aggravate the matter further, no other carrier offers direct flights in this sector. According to Mr Nair and Mr Koshy, the market for perishables in West Asia has been built painstakingly over the last 30 years, starting with the migration of Keralites in large numbers to the region. The cargo lifted amounted to 250 kg daily during the initial days, but it has grown phenomenally to seven tonnes currently. Unlike in passenger sales, Air India Thiruvananthapuram has consistently achieved cargo revenue targets set for itself. Given this, there is no reason why the carrier should mull the stoppage of cargo lifting from the international airport, says Mr Koshy. The move will also deprive the State Government of annual foreign exchange earnings of Rs 150 crore. The Appexa has taken up the matter with the Chief Minister, Mr Oommen Chandy, who has, in turn, promised to talk to the Union Civil Aviation Minister.
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