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INDIAN Airline and and Air-India (A-I) will look to integrate their cargo operations to generate combined turnover of around INR10 billion (US$223.76 million) and to give the unified company reach across domestic and international markets, India's Economic Times reported.
The article said that by the middle of next year, both carriers plan to have six dedicated cargo freighters with at least two of them deployed in international routes. A-I is also planning to lease extra belly space in other international carriers and freighters to boost its existing cargo capacity.
"With combined operations we will be more competitive in the market and offer seamless service across international and domestic markets," the report quoted an unnamed senior A-I official. Currently, Indian Airline has a cargo belly space of around 1,000 tonnes a day, and generates business of around INR3 billion annually. The capacity is expected to increase by another 150 tonnes by mid-2007 when the airline plans to convert its fleet of Boeing 737-200 - operated by Alliance Air - into freighters.
With Nagpur being developed as cargo hub, Indian Airline plans to fly the four freighters from Delhi, Mumbai, Kolkata and Chennai to the new hub.
A-I's current cargo capacity is 1,000 tonnes a week and notches up business of INR6 billion annually. The airline also plans to convert its Airbus A-310 into freighters and put out tenders to lease dedicated cargo space with other air carriers, the A-I official said in the report. IATA has estimated that India's international air cargo business is expected to grow 8.2 per cent annually over the next three years.
Globally, 50 per cent of all cargo is carried in the underbelly of passenger aircraft and the remaining through dedicated freighters.
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