Jet set go: air cargo traffic set for a take off this fiscal

Mumbai: Indian carriers are witnessing growth not only in passenger traffic, but also in air cargo. While passenger traffic rose by 30% over the last six months, carriers are expecting air cargo to grow 15% on international and 6% on domestic routes in FY 2011. Jet Airways carried 96,386 tonne cargo on global routes in FY09, an 87% increase against the corresponding period last year. However, there was a dip in cargo carried on domestic routes. In FY09, Jet carried 85,046 tonne of cargo on domestic routes, down 26%, due to the recession.
Jay B Shelat, vice president, cargo at Jet told FE, "Currently, our cargo division contributes 7-8% of the total revenue. Cargo constitutes 12% of Jet's revenue from international operations and 4% from domestic operations. In two years, we want to boost revenues from air cargo to around 15% and 6% on international and domestic operations, respectively.” He added that a significant growth is seen in the cargo industry due to an increase in economic activities. In FY09, the largest private airline registered revenues of Rs 11,476.98 crore.
Shelat, however, said that constrained infrastructure at various airports is a serious challenge to put up with but is hopeful that the government will take adequate steps to help the cargo sector flourish. Recently, cargo operators raised freight rates between 15% and 30% for both general cargo and perishables due to an increase in demand.
04/05/10 Shaheen Mansuri/Financial Express

To Read the News in full at Source, Click the Headline

Categories: Cargo May 2010