AIR CARG O WEEK


AIR CARGO INDIA REVIEW


CAPITALISING ON INDIA’S GROWING AIRFREIGHT MARKET


“There is a tremendous export niche from India”


S 10 ACW 26 FEBRUARY 2024


urpassing China’s population, and with a vibrant economy set to top US $5 trillion in GDP by 2030, the vast


opportunities across India’s supply chain and cargo sector are clear. This growth is creating demand for the airfreight sector,


bringing questions around boosting fleets and infrastructure. Nikhil Ved, Managing Director of Blue Dart Aviation, stated


that the country has been “slow” to react, making it “challenging so far” to meet market demand. According to Ved, the Indian air cargo industry is in need


of a fundamental policy shift to ensure a more appropriate distribution between freighter cargo and bellyhold cargo, sustaining the expansion of the country’s aviation sector. Mark Sutch, Chief Commercial Officer, Cargo at IndiGo,


asserted that a strategic approach is mandatory for scheduled freighter operations, as the current situation puts India far away from its proposed goal of 10 million tonnes by 2030. It is vital for the Indian air cargo market to focus on the


transhipment market, with smooth and cost-effective strategies, Sutch highlighted, pointing to how a robust fleet, with a mix of long and medium haul aircraft, would boost capacity. Sanjeev Gadhia, Founder and CEO, Astral Aviation, added his


views with more emphasis on network strategies: “The one hub strategy in the air cargo domain doesn’t work in larger markets. It has proved to be a failure in Africa and it will be in the Indian market.” He further added that there must a clear distinguishing line


between passenger and cargo domains of air transportation, citing how there have been cases of dangerous goods being flown onboard passenger aircraft, putting people at risk. Furthermore, aircraft need to undergo a planned phase out process to make a way for new aircraft which will fit the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and COP28 climate conference compliances, allowing the industry to meet its 2030 goal of cutting carbon emissions by 5%. Johnny Rubio, Chief Commercial Officer ISMEA, Silkway West


Airlines asserted “there is a tremendous export niche from India and opportunity enablers for the air cargo industry.” For example, the Indian e-commerce market is becoming a multi- billion dollar industry, allowing operators more ability to provide point-to-point solutions. Nipun Anand, Founder & CEO at Pradhaan Air Express, a new


entrant into the industry in India, stated “asset utilisation has been of tremendous success by far since its inception. Ease of operations has proven to be very comfortable being a non- scheduled operator and the aircraft on its inventory have achieved the operation as far as Southeast Asia.” Elaborating further, Anand stated “Pradhan Air is looking


to enter the potential markets in the United States and the European Union, with the possibility of wider body aircraft joining their fleet over the coming years. “But for now, the carrier will be exclusively focusing on tier 1 and tier 2 city movement as a strategy.”


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