More air cargo operators set to take flight
Given the booming domestic trade in a resurgent economy, there seem to be no stopping of companies from joining air cargo operations
By TNN |
Given the booming domestic trade in a resurgent economy, there seem to be no stopping of companies from joining air cargo operations. At the last count, there are at least half-a-dozen companies that are on their wings with plans for dedicated cargo operations.
To begin with, the Bangalore-based Quikjet Cargo will start hauling domestic air cargo from June. Sources said the carrier has already set up necessary infrastructure to complement its cargo operations. "Quikjet will be using two to three Boeing type B737-300 cargo planes for servicing Indian metros from its Bangalore hub," said a senior Quikjet official.
Quikjet's parent company Aviation Consultancy Services is a joint venture between Cardinal Aviation, a private equity firm in Singapore, and Mumbai-based logistics firm AFL.
Quikjet will be having a follower soon, Avicore Aviation. Promoted by Abhay Lodha, managing director of Topworth group, Avicore has plans to invest $100 million to start a new cargo airline before mid-2008 from the country's first dedicated cargo airport at Nagpur.
The country will be having another cargo airline from Hyderabad, Flyington Freighters which will be having domestic and international operations using Airbus type planes.Fourth in the line is from Capt GR Gopinath, who had floated Simplifly Deccan (erstwhile Air Deccan). Capt Gopinath will invest $200 million in a new cargo airline and logistics firm, Deccan Cargo which will begin operations by the end of the year.
The domestic air cargo market is expected to grow at 9.1% a year, but there are just 12 planes serving this market. The size of the Indian international and domestic air freight market in 2006, the most recent year for which data is available, was about 1.5 million tonnes, up 10% from the previous year.
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Passenger carriers are also planning to take a plunge in cargo operations, to exploit the situation. This includes Jet Airways, Kingfisher Airlines, and SpiceJet. Air India has already started separate cargo division under the brand name Air India Cargo, operating international routes and leased some planes to Gati, the south-based road transport company which is branching to other related areas. Kingfisher is also planning to launch Kingfisher Cargo, but has put the project in the backburner as the carrier is focussing on international operations. GoAir, which is known for making air travel affordable to common man with budget rates, is also understood to be firming up its cargo plans.
Jet already has said it is in talks with international carriers to boost its international freight operations.
Even though the airlines have been eyeing cargo for higher revenues for quite sometime, in these days of high fuel prices, it makes more sense. According to analysts, airlines are also trying to offset the impact of rising fuel prices by growing income from cargo operations.
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