Air India to hive off cargo business by April 1

National Aviation Co of India (Nacil), which runs Air India, is all set to hive off its cargo operations into a separate unit from April, a senior official said.

Anita Khurana, head of the cargo unit, said details of the same are currently being worked out. “We are currently in process to chalk out the details of a separate staff and balance sheet for the same, as we want to start our operations by the April 1,” said Khurana.

The air cargo segment is currently a part of the airline’s balance sheet and contributes around 8% to total revenues. “This new unit will have a fleet of 8 aircraft, of which six will be Boeing 737s and
two will be Airbus A310s,” Khurana said.

She said the unit will restart international operations by the first half of the year, beginning with flights to the US and Germany. “Other than these two markets, we are also looking to tap into China and Japan,” Khurana said.

Air India had suspended international cargo operations in September 2009, due to the economic slowdown.  According to the turnaround plan Air India had tabled last August, the airline expects to generate Rs 500 crore annually from its cargo unit.