Wednesday, September 19, 2018

As jet fuel prices and a weak rupee make India’s airlines bleed, flying goods may be the solution

Ferrying passengers alone is not helping India’s airlines. So they are now looking at goods.
On September 10, SpiceJet launched a dedicated air cargo service, SpiceXpress. It will begin operations on September 18, initially covering Delhi, Bengaluru, Guwahati, Hong Kong, Kabul, and Amritsar.
It has been reported that India’s largest airline by market share, IndiGo, also plans to ferry perishable goods like crabs, fish, and betel nuts in its aircraft. An email to IndiGo remained unanswered.
This diversification comes at a time when high jet fuel prices and a weak rupee are eating into companies’ margins.
“Most airlines have empty space which they could monetise by ferrying cargo. And cargo is not price-sensitive at all, like passenger fares,” said Ashish Nainan, research analyst with CARE Ratings. “What aviation companies would be looking at is to get about 25% of their revenue from their cargo businesses.”
19/09/18 Kamlika Ghosh/

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