New passenger airlines dream up cargo plans to shore revenues. Oversupply may be a rude awakener
TANEESHA KULSHRESTHA
Saturday, June 17, 2006 at 0000 hours IST
Good things come wrapped in packages, or so believe carriers like Jet Airways, Kingfisher Airline, Air India and their expanding group of peers. With profits from the passenger side of the airline business coming under pressure with ever-dropping airfares and the break-even date getting pushed further into the horizon, more and more of India’s growing airlines have now trained their sights on the air cargo business. Indian airlines have flirted with the cargo business before. Air India has already burned its hand with the freight business once and had to shut down its dedicated cargo business 15 years ago after losses mounted.
But the national carrier, whose cargo revenues account for around Rs 600-crore or 10% of its total revenues, expects things to be different this time around. Says an Air India official: “Fifteen years ago imports were not restricted into the country. A plane carrying export goods returned empty. Now this is not the case.”
Adds India Infoline aviation analyst Alok Dalal, “Moving into cargo is a logical step for these airlines for shoring their revenues.”
Industry experts say India is on the verge of a logistics boom. Exports growing at 20%, factories working round-the-clock shifts and a global economy that facilitates cross-border movement of goods have increased demand for logistics services in the country and air-freight is feeling the pressure too. Says Blue Dart Express’ marketing and projects vice-president Tulsi NMirchandaney: “There is a direct co-relation between GDP and air cargo growth. With the Indian economy witnessing steady growth, logistics industry will do better.” A sentiment that has been echoed in the corridors of power. Civil aviation minister Praful Patel expects 150 cargo planes to fly to India till 2010 and is working on developing Nagpur as a national air cargo hub.
The total tonnage handled at all the airports in India, both domestic and international, was 1.4 million tonnes for 2005-06, up 9.4% from 1.28 million tonnes the previous year. According to Transport Corporation of India (TCI), executive director, Vineet Agarwal, the air cargo industry in India stands at Rs 10,000 crore at present and is expected to reach Rs 40,000 crore in the next five years. Air Express or the day-to-day, non-bulk parcels and letters, also a subset of air cargo, is estimated at about Rs 4,300 crore, according to the latest data available, with an estimated growth of 20%.
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How will cargo operations impact the bottomlines of Indian airline companies? Worldwide cargo generates about half the revenues a passenger-led operation. Despite this, a cargo business makes sense — especially when loads are high — given the tight economics of the passenger business.
The downside is that cargo business is cyclical and too many entrants may vitiate a market already facing a problem of oversupply. For instance, airlines had to drop their prices by more than a fourth last month, especially on international routes. In May the rates on the Chennai-New York sector were about Rs 100 per kg down from Rs 140 in March.
And, then, there are the pure play cargo operators like Blue Dart Aviation, the country’s biggest air cargo operator with a market share of 39%, that always enjoy the advantage of economies of scale over passenger-cum-cargo airlines. Blue Dart has added two Boeing 757-200 ‘freighters’ in May that enables it to expand the number of city-pairs, the two ends of an in-bound and out-bound flight it serves, by more than half. Newcomers like Chennai’s Crescent Air Cargo Service could further play spoilsport.
Several international airlines are looking at launching more freight flights to and from India. Cathay Pacific plans to start operating a twice-weekly freighter on the Hong Kong-Mumbai-Chennai-Hong Kong sector later this month, while Sri Lankan Airlines had recently started operating a cargo-only service to Coimbatore. Besides, Etihad Crystal Cargo, the cargo division of Etihad Airways, has also started a weekly flight between Abu Dhabi and Delhi.
well if the timings have not changed then there is a Blue Dart B737 at the cargo terminal at 3.30 in the afternoon now i dont know what time it leaves or arrives i saw while my IC flight was taxing to rwy 09-27
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Light travels faster than sound...thats why people appear bright, until you hear them talk!
BDA/DHL Two B732SF & Two B752SF operate Every Night between 0215 hrs & 0515 hrs Except on Sundays.
So you need to be a Day Sleeper to check it out.Maybe watch from the 1C terminal as Bay #12 & 13 are allotted to them.You might Notice them Landing & Taking off on 09-27.
If you want to just check out the BD aircraft, go to the Indian Airline terminal 1A at BOM arrivals section at 1:00 am at the corner where the ticketing office of KF and IC are you will see a sole IC 320 parked always and then you can see the international heavies take off upclose and when they land they back taxi really close that you can even make out the people seated inside.
At around 1:05 you will hear a huge freaking roar of the JTD-90 engines and then see a white comet scream pass you, that is your BD aircraft there
Air India Cargo & Cargojet Announce Strategic Alliance in Canada TORONTO, July 27 /CNW/ - Cargojet Income Fund (the "Fund") (TSX: CJT.UN) - announced today Air India Cargo and Cargojet are entering into a strategic marketing and operational alliance for the Canadian market, effective August 1, 2006. Through this alliance Cargojet will provide sales, marketing and operational support to Air India Cargo in Western and Atlantic Canada. Cargojet will receive cargo sales, marketing and interline support from Air India Cargo who currently serve over 44 destinations in more than 23 countries. All Air India Cargo originating from, or destined to Western and Atlantic Canada will connect with Cargojet's premium domestic overnight service flights. This partnership will enable both carriers to share and benefit from one other's expertise in the marketplace and extend their global networks. Both organizations and their customers will now receive seamless air cargo service from anywhere in the world to all destinations into and out of Canada. "Both companies will benefit mutually, as Cargojet can now assist Air India Cargo in servicing the complete Canadian marketplace. Cargojet and its customers will also benefit with the expertise Air India Cargo has developed over the years in terms of sales and marketing, handling and information technology," said Ajay Virmani, President and CEO of Cargojet. "Air India is pleased to enter a Strategic Alliance with Cargojet in Canada, as this will enhance the movement of cargo between Canada and India. With Air India's vast domestic network within India, complimented by Cargojet's strong presence in Canada serving 13 cities, this arrangement will ease the flow of cargo to interior points in both countries," says Mr. R.B. Chopra, Manager Canada for Air India. With a buoyant Indian economy coupled with increased trade Ex India to all countries including Canada, substantial growth in cargo movement is anticipated, on this route. The tie up between the two airlines will see promotion of cargo to Europe over Birmingham, as well as, to destinations beyond India on the carriers. Air India presently operates five direct flights a week from Toronto to New Delhi, via Birmingham and Amritsar.
Cargojet is Canada's leading provider of time sensitive overnight air cargo service. Cargojet operates its network from coast to coast transporting over 500,000 pounds (226.8 tonnes) of volumetric time sensitive air cargo to thirteen major cities in Canada each business night.
Oh what a shame. Although its possible to check them out, unfortunately we will not get to photograph them. Any other places where you can catch them in daylight
The B752SFs are parked at MAA & CCU.While the B732SFs are at BLR,DEL & MAA.
The Lighting at BOM Tarmac is Excellent.When did you check last.
From the 1A Terminal you can see all Landing Aircraft taxi pass on Taxi Track D as Taxi track C is closed for Mx.
Karan.....The B732Sfs are powered by JT8Ds....not 9Ds those are on the B742.
Currently Two B752SF & Two B732SF transit BOM Tue-Sat Mornings 0145,0215,0345,0410 hrs.
Freighter service from Shanghai to Mumbai, Chennai planned
Santanu Sanyal
China's air cargo sector undergoing structural changes
Kolkata , Aug. 8
Great Wall Airlines, a Sino-Singaporean joint venture that officially started operation in end June this year, proposes to shortly launch a freighter service connecting Shanghai with Mumbai and Chennai, according to airlines industry sources. The services will be the first and only direct scheduled freighter services between the two countries , the sources add.
Initially, it will be a twice-weekly service, departing Shanghai every Wednesday and Saturday; the route being Shanghai-Mumbai-Chennai-Shanghai. From September a third weekly freighter, operating on Sundays might be added. Based at Shanghai's Pudong International Airport, Great Wall Airlines has a fleet of two Boeing 747-400 freighters.
Structural changes
Meanwhile, China's air cargo sector is undergoing some structural changes. Air China Cargo, the freight-carrying arm of China's largest airline by revenue, Air China, has become an independent carrier.
With this, the number of independent freight carriers in China rises to four, two of which Air China Cargo and Great Wall Airlines are already in operation, while the two others, namely, Jade Cargo International and Shanghai International Cargo Airlines, are both scheduled to go into operation in coming months, it is learnt.
Air cargo market
Air China Cargo and China Cargo Airlines, which is a subsidiary of China Eastern Airlines, together accounting for a third of the domestic air cargo market, are believed to be exploring opportunities for mutual cooperation. The move is seen by observers as an attempt to ensure domestic carriers a larger share of the domestic air freight market, half of which is currently controlled by foreign carriers such as Lufthansa, Singapore Airlines and Korean Airlines.
New entity
If the two airlines join hands, the new entity will be the largest cargo carrier in China and the fifth largest in the world. However, Air China Cargo's current agreement with Cathay Pacific could influence the agreement between Air China Cargo and China Cargo Airlines, sources point out.
During the first half of the current year (2006), Chinese airlines collectively handled 1.17 million tonnes of cargo, registering 12.7 per cent over the same period last year. According to one estimate, China's air freight volume is expected to maintain an annual growth of over 10 per cent in the next two decades, higher than the projected world average of 6.2 per cent.
Malaysia launches airport cargo terminal in Johor state
KUALA LUMPUR, Aug. 14 (UNI)
Malaysia on Monday launched the Senai Airport cargo terminal in its southernmost state of Johor, said reports reaching here. The role played by the cargo terminal is in line with the SouthJohor Economic Region (SJER) development plan announced recently, said Prime Minister Abdullah Ahmad Badawi at a launching ceremony. ‘‘The SJER needs various facilities and the cargo terminal and Senai Airport argued well for the plan,’’ Badawi was quoted by the Bernama news agency as saying. Senai Airport Terminal Services (SATS) chairman Ismail Yusof said, the company plans to develop the airport into an air cargo transporting hub for the region. SATS is committed to investing 1 billion ringgit (270.27 million U.S. dollars) in the first 10 years of operations, Ismail said. Meanwhile, the SATS is building warehouses for cargo agents andairline companies which are expected to be completed this September, Ismail added. STS will also upgrade the runway and several basic infrastructure. When completed, the airport will have the capacityof accommodating Boeing 747 and other bigger aircraft, said Ismail. Badawi announced the concept of SJER at the end of this July, hoping Johor could lead the future development of four new economic growth corridors in the country. The SJER will stretch from the Johor Causeway to Gelang Patah and include Senai International Airport, Johor Port in Pasir Gudang and the Port of Tanjung Pelepas.