A CAPA study reveals that over the next 18 months, six carriers will be operating dedicated freighters, signalling a lift-off of this long-ignored segment.
MUMBAI: With passenger planes not really helping them to make profits, the domestic airline companies are now turning to cargo business in a big way.
A study by Centre for Asia Pacific Aviation (CAPA) on freight business reveals that over the next 18 months, six carriers will be operating dedicated freighters in the country signalling a lift-off of this long-ignored segment.
"The next wave of aviation development in India is likely to include establishment of a number of domestic and international cargo airlines. India's increasing international trade combined with strong domestic economy will drive the demand for this sector," CAPA said.
Quoting a forecast made by Airbus, the CAPA study said India's dedicated freighters would grow from eight aircraft at present to around 165 aircraft by 2025, an average of one new freighter delivery every 1.5 months, to service its strong expected domestic and international growth.
There has been a strong growth in the air cargo business over the last few years but bulk of it was handled by foreign airlines.
The study says India's airlines handled only 12 per cent of total freight volumes to and fro India in 2005-06.
As per estimates, export freight and outbound cargo exceeds inbound by a ratio of 3:2. The total market crossed eight lakh tonne mark during 2005-06.
Referring to poor record of Indian carriers, the study said low-cost carriers, which account for over 35 per cent of the domestic market, are not conducive to freight operations due to their focus on faster turnarounds.
Presently Blue Dart Express, the first mover in the country's freight market and the only one to have dedicated freight aircraft, has 40 per cent share in the domestic cargo business. Global express company DHL acquired Blue Dart last year.
Air India has started getting into the act and its first dedicated freighter would be deployed on the Kerala-Gulf sector shortly. Over the next three years, Air India plans to have a fleet of 10 cargo aircraft servicing various markets, the study said.
Air Deccan is planning to launch a domestic cargo service to be operated by a new subsidiary, while Indian which has a 26 per cent market share at present in the freight business is also considering a dedicated freight unit with plans to convert five aircraft from the fleet of Alliance Air.
Jet Airways, which has a 25 per cent share in the freight market, is planning to involve Lufthansa in its freight unit though exact details are not known.
Hyderabad-based Flyington Freighters is also planning to launch dedicated international freight service in July with two aircrafts, the study said.
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