Capt Gopinath plans to use franchisee model to revolutionise air cargo industry
Captain Gorur Ramaswamy Gopinath, who founded India's first low cost carrier Air Deccan, is all set to revolutionise air cargo industry using the franchisee model.
By ET Bureau |
Captain Gorur Ramaswamy Gopinath, who founded India's first low cost carrier Air Deccan, is all set to revolutionise air cargo industry using the franchisee model.
He is also hoping that his Deccan Cargo & Express Logistics, an air cargo company floated by him and operating under the brand Deccan 360, is expected to break even in the next 18 months. He expects the company to bring in revenue of $70 million in its first year of operation.
"The strategy of Deccan 360 will be the same as that of Air Deccan. In Air Deccan, we had outsourced all activities to outside agencies to cut cost. Here several entrepreneurs will be providing back-up services for Deccan 360," Capt Gopinath said.
He clarified that the supply chain services would be provided by franchisee where Deccan Cargo will have control on the cargo till it is delivered to the doorsteps of customers.
"We are talking to several franchisee owners and shortly we will finalise those," he added. Capt Gopinath indicated there would be more than 100 franchisees to take care of the supply chain once Deccan Cargo operates in full swing.
Initially, the land transport functions would be taken care by freight forwarders, those who have exposure to air cargo. Capt Gopinath had already met several air cargo agents in key metro cities.
"The airline will have initially three Airbus 310 planes by July and two small ATR planes by October. Deccan will be serving international and domestic market from the day one," Capt Gopinath, who is Deccan Cargo's chairman and managing director, said.
The idea is to create a hub in Nagpur, where the cargo will be aggregated. Later this would be distributed to various international and national points with help of big and small planes.
Jude Fonseka, chief executive officer of the company said the airline is in the process of tying up with at least 100 ground transportation companies that will provide them pick and deliver cargo.
"Deccan is building its own support structure for delivering or picking up cargo through franchisees. It will be having all advance techniques to track the shipment," Mr Fonseka said.
The first cargo plane, wide-bodied plane A310, will fly on route Delhi-Mumbai-Chennai-Hong Kong, five times a week.
He is also hoping that his Deccan Cargo & Express Logistics, an air cargo company floated by him and operating under the brand Deccan 360, is expected to break even in the next 18 months. He expects the company to bring in revenue of $70 million in its first year of operation.
"The strategy of Deccan 360 will be the same as that of Air Deccan. In Air Deccan, we had outsourced all activities to outside agencies to cut cost. Here several entrepreneurs will be providing back-up services for Deccan 360," Capt Gopinath said.
He clarified that the supply chain services would be provided by franchisee where Deccan Cargo will have control on the cargo till it is delivered to the doorsteps of customers.
"We are talking to several franchisee owners and shortly we will finalise those," he added. Capt Gopinath indicated there would be more than 100 franchisees to take care of the supply chain once Deccan Cargo operates in full swing.
Initially, the land transport functions would be taken care by freight forwarders, those who have exposure to air cargo. Capt Gopinath had already met several air cargo agents in key metro cities.
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Deccan Cargo is starting its commercial operations on 27 of this month. Capt Gopinath is investing $25 million initially for the project and the company has signed term sheets with other investing companies to raise at least $30 million to fund future expansions."The airline will have initially three Airbus 310 planes by July and two small ATR planes by October. Deccan will be serving international and domestic market from the day one," Capt Gopinath, who is Deccan Cargo's chairman and managing director, said.
The idea is to create a hub in Nagpur, where the cargo will be aggregated. Later this would be distributed to various international and national points with help of big and small planes.
Jude Fonseka, chief executive officer of the company said the airline is in the process of tying up with at least 100 ground transportation companies that will provide them pick and deliver cargo.
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He said the Nagpur hub is designed in such a way that the cargo will be distributed and redistributed smoothly."Deccan is building its own support structure for delivering or picking up cargo through franchisees. It will be having all advance techniques to track the shipment," Mr Fonseka said.
The first cargo plane, wide-bodied plane A310, will fly on route Delhi-Mumbai-Chennai-Hong Kong, five times a week.
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Mr Fonseka also added that the airline will be offering 105 tonne capacity in the Indian market with the three planes with a capacity of 35 tonne.Start a SIP with as low as ₹500 with ET Money App!
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