In just two months after Air India flagged off its first fully dedicated freight carrier, it has toted up an impressive capacity utilisation of 80%.
80% capacity utilisation spurs carrier to expand business
MUMBAI: In just two months after Air India flagged off its first fully dedicated freight carrier, it has toted up an impressive capacity utilisation of 80%. Buoyed by this, the carrier plans to spread its wings by taking its freighters beyond Europe — to markets like China, Japan and the US.
“As more aircraft are being converted into freighters, we may go to markets like China, Japan and even the US. The announcement may come in a few months,” said Mahesh Palkar, manager, marketing, tariff and industry affairs, Air India.
Currently, the two fully dedicated freighters (converted A 310s) of AI are flying to European destinations, including Paris and Frankfurt, with seven trips a week via Bangalore and Chennai and a capacity of 34 tonnes per aircraft.
The cargo carried by the freighters is general cargo, including pharmaceuticals and garments among others.
“The utilisation of the two freighters is 80% plus,” said Palkar. He said this figure was achieved during the lean season of export-import. Once the busy season kicks off — October to March - the company expects to achieve much more.
Air India currently enjoys a market share of 9% in cargo which it estimates will go up to 15% in the first year of the launch of the fully dedicated cargo business.
To support its cargo operations, the airline has set up dedicated cargo units and appointed cargo sales managers at various destinations — even at places where it doesn’t operate freighters.
If you are an exporter in Ahmedabad wanting to export cargo to Paris, then you can load the cargo in the belly space used by the airline for cargo at Ahmedabad bound to Mumbai, where it is offloaded and transferred to the fully dedicated freighter carrier and send to Paris. While analysts believe there is greater demand for such services, backed by huge trade and retail explosion, players like DHL have give a version. “Capacity is outstripping demand in the country,” said Madhav Thapar, executive director, air freight, DHL Global Forwarding.
“Indian freighters may look at emerging markets in the near future,” Thapar said.
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