Lack of facilities keeps air cargo sector grounded

Mumbai: Lack of infrastructure continues to be a roadblock for the Indian air cargo market, slated by industry estimates to touch Rs 13,300 crore by 2011-12, a growth of 20 per cent.
Earlier this month, Air India had announced its decision to hive off its cargo business into a separate entity by April.
Kingfisher Airlines launched Kingfisher Xpress – a door-to-door cargo delivery service.
There were also reports of Jet Airways being in talks with a foreign logistics company to float a dedicated cargo service.
Yet, the sector struggles for proper cargo warehousing facilities and multi-modal links for local distribution.
Passenger airlines in the country, till recently, did not look at the cargo business seriously. The cargo division contributes only 5-10 per cent of their revenues. According to Ms Anita Khurana, Director, Air India's air cargo division, the country has only about 20 freighters.
Most cargoes are transported through the belly of aircraft.However, companies are now focusing more on this space, according to industry experts, as they are realising it has a good margin business.
In terms of capacity, experts say there is enough in the country.
There is sufficient aircraft belly capacity which if utilised efficiently can make good business opportunity for the airlines, said Mr Chethan Kambhi, Frost and Sullivan's Senior Research Analyst, Aerospace and Defence.
“The Indian air cargo industry is still in a gestation period. Entrants like Deccan 360 or players like Kingfisher are still trying to understand the real dynamics of the business,” said Mr Chethan Kambhi, Frost and Sullivan's Senior Research Analyst, Aerospace and Defence, adding it will take at least three to four years before it starts picking up.
23/02/10 Shubhra Tandon/Business Line

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Categories: Cargo Feb 2010