Air-India to start cargo operations from June 15

New Delhi: National carrier Air -India is all set to commence its cargo operations from June 15. The new cargo fleet will initially start on the Frankfurt and Paris route and will cover more destinations as the number of carrier increases.
“We will begin with the two freighters in the next two weeks and expect to generate revenue of Rs 800 crore in financial year 2007-08,” DS Kohli, executive director, Northern region, Air India told SundayET.
According to the Planning Commission, India’s air cargo movements would grow at over CAGR of 11.5% from 2007-08 to 2011-12. And Air-India is targeting to capture major market share of the freight business. The company is looking forward to increase its fleet as the merger of Air-India and Indian Airlines fructifies on ground.
Already, Jet Airways is in the process of launching a full-fledged cargo service by the year-end. Currently, it gets 6% of its revenue from the cargo operations, while Air-India generates around Rs 250 crore.
According to Indian Logistics Industry Aviation, a report published by Cygnus Business Consulting and Research, during 2006-07, total air cargo traffic is estimated to be over 1.56m tonnes against 1.4m tonnes during 2005-06, registering a growth rate of 14.65%.
03/06/07 Dheeraj Tiwari/Economic Times

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Categories: Air India Jun 2007, Cargo Jun 2007