New Delhi : Air India's air cargo business has taken a nosedive as the cargo aircraft they operate are too big for domestic operations and too small for international operations.
More than the deteriorating economic scenario, which is hurting the air cargo business, it is the lack of a critical distribution network, warehousing facilities, mismanagement and lack of other infrastructure that is driving away air cargo business from Air India.
While small and well managed operators like Blue Dart and Gati have been successfully running their air cargo business with a handful of aircraft, national carrier Air India's cargo operations and Captain G.R. Gopinath's Deccan 360 have been making losses.
Air India which was to convert and reconfigure some of its old aircraft, which have been lying idle - there are around 40 such aircraft lying idle - for cargo operations, have not been given a facelift so far. Giving a push to the air cargo business of the national carrier is a part of the turnaround plan worked out to slash the huge losses notched up by Air India.
Recently Deccan 360 laid off around 200 employees and asked others to start looking for jobs elsewhere citing lack of funds for restructuring.
30/07/11 Sanjay Singh/Business Today
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