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Air India plans to boost its freight and cargo operations over the next few years on the back of an enhanced cargo-handling capacity, thanks to the wide-body planes the Tata group airline has on order from Airbus and Boeing. The 70 wide-body aircraft ordered by Air India as part of its mega 470-plane order will increase the carrier’s annual cargo carrying capacity by as much as 300 per cent to 2 million tonnes over the next five years, the airline said in a statement on Wednesday.
“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,” Air India’s Chief Executive Officer and Managing Director Campbell Wilson said.
The aircraft orders to Airbus and Boeing comprise a total of 70 wide-body aircraft–34 A350-1000, six A350-900, 20 Boeing 787 Dreamliner, and 10 Boeing 777X, which will offer “non-stop connection to key export markets globally”. The airline’s strategy on expanding cargo operations is in line with the government’s push to expand the air cargo and logistics industry in India.
As per Boeing’s commercial market outlook, India’s air cargo growth is expected to average 6.3 per cent annually, driven by the country’s manufacturing and e-commerce sectors. According to Airports Authority of India data, Indian airports handled a total of 3.2 million tonnes of cargo in 2022-23, up 0.6 per cent year on year. Domestic cargo registered around 10 per cent year-on-year growth, while international freight declined 5 per cent.
Air India said that it is implementing various initiatives across the spectrum of operational and logistics matrix in a bid to play a significant role in the air cargo segment. “Air India, in collaboration with its joint venture partner SATS, is committed to investing substantial capital expenditure for developing airport and logistics infrastructure. The airline is also exploring possibilities of augmenting freighter capacity in collaboration with partners,” the airline said.
Currently, Air India transports cargo to over 40 international and 38 domestic destinations.
“Air India is set to launch three 24×7 control centres to integrate and improve customer interface, customer service and operations efficiency. As domestic e-commerce and other business expand in the Tier-2 and Tier-3 markets in India, Air India’s expanding domestic network will add momentum. The integrated network, along with enhanced capacity will provide efficient, streamlined, and cost-effective connectivity in terms of point-to-point transportation to short and long-haul destinations throughout the network,” it added.
The carrier is also working to expand its reach through partnerships and collaborations, particularly by strengthening interline partnerships and trucking network connections. It has tied up with offline trucking points across the globe to expand its base besides coordinating with and service providers at Delhi, Mumbai, and Bengaluru airports to strengthen trans-shipment efficiency and volumes at these hubs.
“Air India’s diverse carriage of products and services will be further enhanced with increase in capacity and adoption of technology and help it to strengthen its position at a global stage. Movement and delivery of pharma logistics, door-to-door logistics through global partners, e-commerce, express services, general cargo, valuables, sensitive goods, pet transportation, and personal effects, as well as strengthened cold chain solutions for perishables, among others,” the airline said.
The carrier said that it is strengthening the use of technologies like blockchain and artificial intelligence to optimize productivity in cargo operations. Short-term changes have been devised in its existing IT cargo system to enhance efficiency in areas like electronic data interchange, seamless connectivity with trade partners, and real-time updates on flight and shipment status.
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