Monday, September 09, 2019

IndiGo to grow Middle East cargo business with Heavyweight Air Express

Indian airline IndiGo has picked Heavyweight Air Express (HAE) as its general sales agent (GSA) for the Gulf region, as part of its move to aggressively grow its cargo business between the Middle East and India.

“We are now focusing on growing our cargo business and Middle East is a very important region for us in this drive. We have recently changed our GSA in the region and picked HAE as our new GSA for the region,” Willy Boulter, chief commercial officer of IndiGo, told Arabian Business.

Aviation industry analysts said IndiGo’s decision to go with HAE to boost its cargo business in the Middle East region is likely to be lucrative given the latter’s extensive knowledge of the Middle East market and its comprehensive network in the region.
Cargo business currently accounts for 4-5 percent of the Indian budget carrier’s overall revenue.

“We want to increase the share of the cargo business in our overall revenue significantly in the coming years,” Boulter said, without giving any specific target or timeline for the proposed growth plans.

Aviation industry experts said cargo is a highly profitable business for airlines in terms of revenue per ASMs (available seat miles).
Boulter said IndiGo’s focus is on achieving higher revenue per available seat per kilometres (ASKs) rather than achieving higher passenger load factor (PLF).
Though IndiGo tops the list among Indian carriers in terms of market share (47.8 percent in July ‘19), it’s third in terms of PLFs at 86.2 percent (July), below SpiceJet (92.4 percent) and Go Air (90.4 percent).
08/09/19 James Mathew/Arabian Business
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