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Summary
- Air India is focused on expanding its freight and cargo ecosystem, with plans to increase cargo revenue through the growing belly capacity of its fleet over the next five years.
- The addition of new widebody aircraft to Air India’s fleet will support India’s manufacturing and export growth, generating greater employment opportunities.
- Air India is implementing strategic measures and initiatives, including technology integration and infrastructure investment, to optimize efficiency and foster growth in the air cargo industry.
While passenger service remains the key focus for Air India, it is also looking to boost the freight and cargo ecosystem in India and globally. The airline expects its cargo capacity to increase significantly as it expands its fleet in the coming years and has also taken various initiatives in this direction.
Increased aircraft belly capacity
Air India is ready to strengthen the country’s cargo ecosystem and contribute to the development of an efficient air cargo supply chain, accelerating exports from India. The carrier is confident that the growing belly capacity of its fleet over the next five years will significantly increase its cargo revenue as well.
Photo: Media_works | Shutterstock
Air India thinks that the addition of new widebody aircraft to its fleet this year and with most aircraft on firm order set to arrive from 2025, will complement India’s manufacturing and export growth and generate greater employment.
The carrier estimates that the arrival of 34 Airbus A350-1000, six A350-900, 20 Boeing 787 Dreamliner, and 10 Boeing 777X widebody aircraft will increase Air India’s annual cargo capacity by 300%. This will amount to 2 million tonnes over the next five years with non-stop connection to key export markets globally. The airline’s CEO, Campbell Wilson, commented,
“At Air India, we see a huge potential in the air cargo industry, which the Indian Government plans to grow to 10 million tonnes by 2030. Our cargo division is implementing a series of strategic measures aimed at fostering growth and strengthening our market presence. The large passenger belly capacity addition will be augmented with the launch of value-added products and services across the network.”
Various initiatives
To achieve its ambitious cargo goals, Air India has undertaken various initiatives across various spectrums of the operational and logistics matrix. Technology will play a key role, and the carrier is integrating the latest IT solutions to optimize productivity. Short-term changes have been devised in the existing IT Cargo System to enhance efficiency in areas like electronic data interchange, seamless connectivity with trade partners, and real-time flight and shipment status updates.
Photo: Wirestock Creators | Shutterstock
Investment in infrastructure is also being done. Air India has collaborated with joint venture partner SATS to invest substantial capital expenditure for developing airport and logistics infrastructure. The airline is also exploring possibilities of augmenting freighter capacity in collaboration with partners.
Air India will also explore interline partnerships and trucking network connections to foster increased exports. Currently, Air India transports cargo to over 40 international as well as 38 domestic destinations. Its future tie-ups with offline trucking points across the globe will likely expand its base further, besides coordinating with service providers at Delhi, Mumbai, and Bengaluru airports to strengthen trans-shipment efficiency.
Photo: Soos Jozsef/Shutterstock
Growing cargo market
Air India is not alone in wanting to grow its cargo business. There has been significant interest from Indian carriers in capturing the cargo market in the country, particularly after the COVID pandemic.
Even established low-cost carriers such as IndiGo and SpiceJet have dedicated cargo aircraft. Then there are the new players, such as Pradhaan Air Express, that have realized the untapped potential of the air cargo business in India.
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Air India
- IATA/ICAO Code:
- AI/AIC
- Airline Type:
- Full Service Carrier
- Hub(s):
- Delhi Indira Gandhi International Airport
- Year Founded:
- 1946
- Alliance:
- Star Alliance
- CEO:
- Campbell Wilson
- Country:
- India
