The Hindu Business Line : Air India to re-enter freight market

AIR India plans a major re-entry in the freight market after a gap of almost a decade. The airline, currently a marginal player with about 10 per cent market share, has decided to dry lease four freighters to launch a dedicated cargo service, according to Mr V. Thulasidas, Chairman and Managing Director.

The airline, which had discontinued its loss-making freighter service in the mid-90s, now aims to become a major player with at least 25 per cent market share in the next couple of years.

To begin with, the airline has decided to lease `belly space' from other airlines. AI will lease cargo space in freighters or passenger planes operated by other international airlines to meet the capacity constraints in the short term.

Mr Thulasidas said the airline is planning to dry lease one Boeing 747-400 and three A310 aircraft, with the former to be deployed on long-haul routes and the latter for handling the short and feeder routes.

AI is also planning to convert some of its A310 aircraft into freighter aircraft, he said.

Talking to Business Line, Mr Thulasidas said: "Many international carriers have made use of the open sky policy for cargo operations. As a national carrier, we want to offer both inbound and outbound cargo services. The only constraining factor is the inadequate capacity, which we are now addressing."

He said AI will be offering dedicated cargo services on the India-Europe-US and the India-Japan sectors.

The Indo-China sector is another promising market for cargo services. Perishables exports from Kerala to the also Gulf offered good potential for capacity expansion.

Air cargo volume also has been growing and with additional capacity, Air India will be able improve its presence in the market.

Garments, machinery, components, pharmaceuticals, dyes and chemicals, and perishables such as fruits and vegetables, flowers, fish and meat are among the major cargo being exported from India.

AI, currently, has a fleet strength of 35 passenger aircraft.

It will take delivery of two Boeing-777 aircraft in March, besides three Boeing 737-800 aircraft to commence its low-cost operations under the Air India Express banner.

The airline's cargo carrying capacity should increase quite significantly once it takes delivery of the 50 wide-body aircraft it plans to buy for its own operations and 18 smaller capacity aircraft for Air India Express.

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