Indian Air Cargo Business Expected to take off this year

Six major Indian air cargo carriers are expected to commence operations within the next 18 months, with even more joining the national airfreight race along the way, according to India's Business Standard.

Apart from Air India and Jet Airways, both with all-cargo units, start-ups like Flyington Freighters and non-scheduled operators like Aryan Cargo Express and Air Cargo Express, are expected to start by year's end or in early 2008.

A Centre for Asia Pacific Aviation (CAPA) study said India is among the top 30 freighter markets in the world with volumes growing nearly 11 per cent last year and the market projected to grow 20-30 per cent for the next 10 years.

Although export cargo still dominates volume by 3:2, domestic cargo is growing faster. According to the Airports Authority of India, there was a 7.3 per cent increase in international cargo for April year on year while domestic cargo traffic grew 13.4 per cent. And with food retail rising fast, speed becomes very important, said Mukul Pathak, spokesman for Aryan Cargo Express.

Indian carriers handle 12-15 per cent cargo volumes while international players handle the rest. Bluedart, with a market share of 40 per cent, is the only carrier with dedicated cargo services. It is followed by Jet Airways, which has 30 per cent of the market after its merger with Sahara.

Flyington Freighters, viewed as one of the most prominent air cargo players, being India's only all-airfreight carrier, runs scheduled operations to China, East Asia, Hong Kong, Japan, Malaysia, West Asia, Los Angeles, New York and Europe from its Hyderabad hub. The airline is expected to start later this month with two leased A330-200Fs.