Jet Airways set to make its entry into cargo operations

NEW DELHI: Naresh Goyal-promoted Jet Airways is set to make its entry into cargo operations with the civil aviation ministry granting in-principle approval for the wet lease of a freighter from Etihad, which owns a stake in the Indian carrier.

“We have allowed Jet to wet lease an Airbus 330-200 freighter from Etihad for a period of six months. The airline had asked for permission for two years but the airline can always come back for permissions after six months,” said a senior aviation ministry official who did not want to be identified. In a wet lease the plane comes with crew, insurance and maintenance services. Jet planned to launch cargo earlier as well but the plan got shelved due to adverse business environment.

Currently, no domestic airline operates long-haul cargo planes. All carry belly cargo—freight borne by passenger planes. Demand has risen in step with the economy.

India’s international freight traffic grew 2.6% to 1,406,334 tonnes last fiscal from the year before, while domestic freight traffic rose 6.6% to 784,215 tonnes. Worldwide demand for airfreight should expand 4.5% in 2015, similar to that in 2014, according to a report.