Thursday, November 19, 2015

Air cargo industry seeks domestic capacity

Development of domestic air cargo capacity should be given top priority, as shippers are heavily dependent on foreign carriers for movement of cargo.

This should be one of the main focus areas to be incorporated in the Civil Aviation Policy, say sources in the air cargo industry.

The Ministry of Civil Aviation had last month released a draft policy to get comments from the trade on various issues.

Comments may be sent by November 21. A strong domestic air cargo capacity will augur well with the Centre’s Make in India programme, and will help shippers reduce cost, said B Govindarajan, Chief Operating Officer, Tirwin Management Services (P) Ltd, a consultancy firm on aviation. According to J Krishnan, former president of Air Cargo Agents Association of India, any economic superpower seeks a dominant logistics of their own flag or else this is a serious threat to the economic prosperity.

During the late 1990s, when there was a demand and supply mismatch, foreign carriers providing freight capacity out of India demanded premium airfreight rates (express rates below 100 kg rate) to accept and move the cargoes.
18/11/15 TE Raja Simhan/Business Line
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