• PAGE ONE
• INDEX
• HOME

IA decision on freighter operations in six months

Ambar Singh Roy

CALCUTTA, Nov. 26

A DECISION on whether Indian Airlines (IA) should embark upon freighter operations is expected to be made in the next six months. IA is currently engaged in an exercise aimed at examining the viability of proposed freighter operations - both internationa l and domestic - with two Airbus A300B4 aircraft.

According to Mr Anil Goyal, Director (Cargo) of IA, a

decision in this regard would be based on an in-depth assessment of the costs of conversion of aircraft, operating costs and revenue that may be expected from freighter operations. While a preliminary assessment by an outside consultant had been done, an expert committee would soon be formed to decide on the matter after obtaining detailed inputs from engineering, operations and ground-handling departments.

Mr Goyal told Business Line that two ageing Airbus A300B4 aircraft, which had been identified for conversion into freighters, would fetch a very low price if sold. Hence, operational viability permitting, it had been proposed to covert them into freighte rs. If this happened, cargo operations would emerge as a separate profit centre in IA. As of now, cargo operations were more of a ``by product'' and were dependent on passenger operations.

From cargo operations, IA earned Rs 280 crore in 1999-2000, up from Rs 269 crore in 1998-99. Of this, 80 per cent was accounted by domestic cargo while the rest was international cargo. Interestingly, there was a capacity shortage for outbound internatio nal cargo in contrast to an excess capacity for inbound international cargo. As such, the operational viability of IA's proposed international freighter operations would hinge practically on ``one-way load''. The destinations in view were Singapore, Shar jah, Kuala Lumpur, Taiwan, Bangkok, Far East and Central Asia.

Mr Goyal informed that IA, in the meantime, was taking several initiatives to maximise its revenue from cargo operations. An agreement had been entered into with the US logistics major, Emery Worldwide, for international cargo and Gati and Planet Express for domestic cargo.

The agreement with Emery Worldwide provided for committed space and revenue on outbound IA flights from Singapore. The tie-up with Gati ensured door-to-door cargo services while that with Planet Express provided logistic support between nine cities and t owns across Punjab and IA's hub in Chandigarh. It was looking for more such tie-ups with a view to boosting cargo operations, he said.

Besides, the focus was also on upgrading the quality of cargo services. An ISO 9002 certification had been obtained and automation was being introduced shortly. Manpower in the cargo sales division was being augmented, too. ``The idea is to generate more business and, thus, higher revenue''. Presently, IA accounted for about 70 per cent of India's domestic air cargo.