Cargo moves from aircraft belly to aisle

Airline operators are launching dedicated cargo liners

NEW DELHI: The fledgling air cargo market is about to see some action. Cargo has been largely carried in the belly of passenger aircraft till now-DHL subsidiary Blue Dart Aviation being the only exception-but from hereon dedicated cargo airliners are being launched by various operators.

Besides the national carrier Air India, private airlines such as Jet Airways, Quikjet, MDLR and a Hyderabad-based newspaper group are also expected to enter the cargo business soon.

Let’s begin with Air India, which has roped in Gati as a partner. Managing Director V Thulasidas said AI is initially giving two aircraft to Gati (an express distribution and supply chain company) on charter basis.

The cargo business would have a national hub at Nagpur and the fleet size would touch 10 by the end of next fiscal. “We are looking at Rs 1,000 crore revenue from cargo business by March 2009,” he said.

The AI service would initially connect the six big cities-Delhi, Mumbai, Kolkata, Chennai, Bangalore and Hyderabad-and thereafter cater to smaller cities.

Thulasidas said international operations would also commence next year, initially to SAARC countries, South East and Far East destinations.

MDLR Airlines is another prospective entrant into the cargo business. Harshvardhan, a director with the company, said his company would begin with international operations early next year. “We will begin with one aircraft to destinations in South East Asia.

Only those destinations that have open skies agreement with India are on our radar initially.”

He said domestic operations are still some time away and MDLR would use the international experience to decide on the domestic cargo front later, asserting that no partnerships are being forged at present by MDLR.

But Quikjet, floated by IL&FS Ventures, Mumbai-based third-party logistics service provider AFL and Singapore-based Cardinal Aviation Partners, is taking the joint venture route to cargo business.

This company is expected to begin operations in January and an official said the cargo service would be headquartered in Bangalore, with two 737-300 planes pressed into service initially.

While Jet Airways officials could not be reached for comments, industry sources said it is in talks with German carrier Lufthansa and others for the cargo business. Chairman Naresh Goyal has already indicated his willingness to enter the cargo market next year.

According to DGCA estimates, the cargo market in India is pegged at about 14.5 lakh million tonnes and is expected to grow at an average 13% year-on-year till 2011-12. In a study on the aviation sector, the Confederation of Indian Industry has suggested many measures needed to convert India into a global aviation hub.

These include providing gateway status at all international airports, multimodal connectivity and specialised facilities for valuable cargo such as diamonds and bullion.