Air India plans to build a fleet of 15 freighters to enter the emerging domestic air cargo market in a bid to significantly boost its coffers.

In support of these aspirations, the flagship carrier has started work on converting two of its Airbus 310 aircrafts into freighters.

The goal is to convert over phases the two Boeing 747-300s into freighters, along with six more Airbus 310s. The carrier's proposed merger with Indian is also expected to free up a further five Boeing 737-200 aircraft that are being used by Indian's subsidiary, Alliance Air, but have been earmarked for conversion into freighters, according to a report by The Hindu News which cited comments made by Air India's chairman V Thulasidas.

"We have identified air cargo business as a major revenue stream for us going forward," said Mr Thulasidas.

These plans come as the company is pursuing an aggressive US$9 billion fleet expansion programme that calls for the purchase of 68 new Boeing aircraft. So far the carrier has secured US$7 billion in financing from ABN Amro and acquired four 737-800s for its low-cost airline, Air India Express.

Mr Thulasidas said the airline anticipates it will take delivery of one new aircraft every month from now until 2011. The bumper aircraft order is made up of 18 737-800s for Air India Express, 23-777s for long-range operations and 27-787s.