WEEKLY NEWS


SHIFT IN CONNECTIVITY BETWEEN UK AND INDIA


AIR CARG O WEEK


Sectoral priorities Among the major cargo categories impacted,


pharmaceutical


logistics will likely emerge as a key beneficiary. India is a leading global supplier of generic medicines and vaccines, while the UK is a significant importer and distributor across Europe. The removal of tariffs on medicinal products and medical devices, alongside customs simplification provisions, will facilitate cold chain logistics and reduce dwell times. Perishables and seasonal agri-exports—such as mangoes, tea,


spices, and marine products—also stand to gain from preferential access. The agreement’s commitment to expedited customs release (within 48 hours where documentation is in order) aligns with industry requirements for


freshness and shelf-life optimisation.


For UK exporters, the removal of duties on processed foods and specialty products creates new opportunities in Indian Tier 1 and Tier 2 cities—many of which are now served by growing regional airport infrastructure.


BY Ajinkya GURAV


THE formal signing of the UK–India Free Trade Agreement (FTA) in July represents a watershed moment


relations. While it is widely recognised as the most comprehensive trade accord signed by the United Kingdom since its exit from the European Union,


its implications for in bilateral economic the global air cargo


industry—and for associated policy, regulatory, and infrastructure ecosystems—are particularly notable. The agreement not only reduces tariffs and unlocks market access across a broad spectrum of goods and services but also catalyses the development of high- velocity, digitally enabled air freight corridors between two of the world’s fastest-growing economies. The Comprehensive Economic and Trade Agreement, as it


is 02


officially titled, is expected to double bilateral trade to US$120 billion by 2030. From an air logistics perspective, the accord arrives at a critical time when the industry is seeking to recover momentum post-pandemic, address capacity constraints, and align itself more closely with sustainability and digital compliance imperatives. For freight forwarders, integrators, customs authorities, and airport planners, the FTA offers a blueprint for more seamless trade across borders—underpinned by efficiency, predictability, and resilience.


Air cargo corridors The FTA eliminates tariffs on approximately 99 percent of Indian exports to the UK, which include key commodities such as textiles,


Modernising customs The FTA incorporates a dedicated chapter on customs procedures and trade facilitation, calling for predictable release timelines, transparency in border procedures, and the deployment of modern digital tools. This aligns with broader air cargo industry shifts toward IATA’s ONE Record data-sharing standard and e-freight documentation protocols. The agreement encourages the use of pre-arrival processing, post-clearance audits, and coordinated border management


to leather goods, gems and jewellery, processed foods,


pharmaceuticals, and engineering products. On the UK side, phased tariff reductions will benefit aerospace components, electronics, cosmetics, alcoholic beverages, and medical devices. According to the UK government’s impact assessment, the agreement could contribute up to £4.8 billion to UK GDP and £5.1 billion to India’s GDP over the long term. These volumes are not merely statistical projections;


they


translate directly into demand for air cargo capacity—especially for time-sensitive, high-value goods. Trade lanes between Mumbai, Delhi, Bengaluru, and Chennai and key UK airports such as London Heathrow, East Midlands, and Manchester are expected to see substantial growth in airfreight volumes. IATA’s March 2025 market analysis already noted a 6.1 percent year-on-year


international cargo tonne-kilometres (CTKs), and this FTA is likely to act as an additional stimulant, particularly for bellyhold and freighter capacity utilisation.


accelerate cargo movement. For authorities in both nations, this will necessitate the integration of digital clearance systems, risk profiling tools, and harmonised data standards—especially for goods such as pharmaceuticals and dual-use equipment. Such provisions also enhance the ability of air cargo operators


and ground handlers to plan accurately, reduce delays, and manage warehouse space and cold chain inventories more efficiently. These systems, once integrated with freight forwarders’ visibility platforms and airline operations control, can offer near-real-time supply chain transparency.


increase in


Labour mobility and services trade While the FTA does not liberalise immigration broadly, it does provide for the mobility of skilled professionals—facilitating the movement of Indian service suppliers under managed quotas. Approximately 1,800 professionals per year may benefit from streamlined visa processes and exemptions from national insurance contributions for short-term assignments. This has implications for aviation services, logistics management,


Did You Know ? BY Michael SALES


ABOUT CHRISTOPHER FOYLE He founded Air Foyle in 1978 with one


Piper


If you had been a student in London during the 1960s and 70s, you would know all about Foyles bookshop in Charing Cross Road, the shabby, dusty treasure trove full of books on just about everything, a mecca for researchers, students, and book lovers. In 1999, on the death of his aunt


Christina Foyle, who had run Foyles bookshop for 55 years, Chris Foyle, a passionate lover of books and language, took over responsibility for, and control of, Foyles and its associated companies. In 2005, he became a trustee of his


family’s charity, the Foyle Foundation, which gives £5 million a year to UK charities in the fields of education and learning. But he was best known as an outstanding leader in the developing airfreight industry.


ACW11 AUGUST 2025 Aztec, for passenger and cargo


charters, growing the fleet to eight aircraft, and started overnight courier charters between the UK and Europe. TNT, with BAe 146 aircraft converted to freighters, appointed Air Foyle in 1987 to operate and manage a fleet of ten aircraft operating at night around Europe. In 1989, he signed with the Antonov


Design Bureau of Kiev, then in the Soviet Union, to represent them worldwide for the charter of the massive AN-124 Ruslan


cargo aircraft. Starting with


two,*increasing to seven, plus the even larger six-engined, one and only, AN-225 Mriya aircraft. Air Foyle handled the entire commercial, and


financial, operational management


of the fleet worldwide, operating in the Gulf Wars, Afghanistan, and all the United


Nations peacekeeping operations, in


addition to civil commercial charters for major industrial companies. Outsize cargo included locomotives, cranes,


aircraft, bulldozers, oilfield


equipment, pressure vessels, generators, transformers, yachts, and a variety of animals. In 1998, Air Foyle joined with the three


other principal British cargo airlines to form the British Cargo Airline Alliance, chaired by Chris Foyle. After serving as chairman of the committee


operations and as vice


president, Chris Foyle became chairman and CEO of TIACA in 1997 and 1998. He was a deputy lord lieutenant in Essex


and the recipient of an OBE for services to publishing, aviation and charity. He died of acute myeloid leukaemia on 10 August 2022, aged 79.


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