Monday, July 24, 2023

Air India eyes 20% share in air cargo biz in 2-3 years

As part of its strategy, the airline plans to engage with companies in the telecom, electronics, and pharmaceutical industries that are key users of airlines to ferry products.

The airline is also working on sector-specific packages and looking at long-term arrangements with large companies. Air India’s market share in the international cargo space was about 8% in 2019. “There is a change of strategy in line with the expanding fleet of wide-body aircraft. The airline is looking to establish direct channels. Discussions are taking place with big exporters as well. Electronics is one sector where there is potential and preliminary talks have taken place with companies along with telecom and pharmaceuticals,” one of the officials aware of the development said on condition of anonymity.

The cargo capacity of the full-service carrier is set to get a boost as brand-new Airbus A350 aircraft joins the airline’s fleet by the end of the year. The airline, which currently has 124 aircraft, recently received approval from the Indian civil aviation regulator for its Rolls Royce-powered A350s and will now start preparing for the induction of the wide-body aircraft.

The airline plans to induct six new Airbus A350s, five leased Boeing B777-LR, and nine other Boeing B777-ER by the end of the current fiscal year, increasing its wide-body fleet by 30%.

“The airline has also implemented changes in the cargo handling processes and is preparing the infrastructure to manage sector-specific cargo as well. Equipment is being bought to cater to niche needs of a sector such as pharmaceuticals. Gradually, pharma is also a sector that can become significant for Air India in cargo,” a second executive said on condition of anonymity.

Air India is also working on increasing its market share in the domestic and international passenger space to 30% in the next five years.

24/07/2023 Share Price India

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


Post a Comment