NEW DELHI: Mukesh Ambani-controlled Reliance Industries is charting a new flight path for its mega retail foray. The firm, sources said, has set its sights on establishing a captive cargo airline venture to meet the logistics needs - particularly for transporting farm and dairy products - for its pan-India retail venture.
Sources told The Times of India that Reliance has roped in Air India's director (engineering) VK Mehra to spearhead its fleet of cargo planes, which will be used to transport perishables, like fruits and vegetables, from its warehouses to the various retail outlets spread across the length and breadth of India.
Mehra, who has been the key man behind ensuring smooth operations for all of AI aircraft during its recent expansion programme, is due to retire in September this year. "But mehra has sought to be relieved by July-end. He will join the Reliance Retail venture and will spearhead the cargo aviation arm," a source said.
Reliance plans to induct around 40 35-40 tonner cargo planes to create a high-speed supply chain a crucial backbone for its food and beverage supplies.
"Having a captive cargo operation would ensure that perishables, like farm and dairy products, are transported from warehouses to retail outlets at a much faster pace, without having to rely on third party service providers," the source added.
Though the firm intends to use these aircraft to address the captive needs of its retail venture, sources pointed out that the possibility of extending this business into a full-fledged cargo airline operation at a later date is not be ruled out.
This would also mark the first major foray into the aviation sector for Reliance Industries, who is also planning to set up a small airport in Punjab to support this operation. The firm plans to invest over Rs 4,000 crore in north India, especially in Haryana and Punjab
It used to be all about flying people as cheaply as possible. But now it's about flying crates at low rates. CNBC-TV18 learns that the next most exciting market for the aviation industry is the air cargo business.
Two big Indian logistics companies - First Flight and Shreya Shipping are planning to launch cargo airlines.
First Flight expects to launch with two aircrafts by the end of July. It has ordered three propeller aircrafts that will initially service key metro cities. The company hopes to get bigger aircrafts after a year and expand operations to smaller cities as well.
Shreya Shipping is some distance away from launching a cargo airline. Officals say the company is conducting preliminary meetings to study the feasibility of such a project.
Shreya is expected to take to the skies within 1.5 - 2 years. The launch will make it an integrated logistics player. Of course, Kingfisher and Jet have been eyeing the cargo space for a while now, and are firming up plans.
Greetings, its nice to be a part of an indian aviation chat forum - free of cost. Keep up the good work boys.
I guess Reliance is eyeing the large fleet of AI A310s, there is existing crew, engineers and repair available for this type within India. The appointment of V.K. Mehra further suggests this. B757 will need far more investment to set-up, especially maintenance. India doesn't have any RR RB211 or PW2000 overhaul capability. This could mean longer and costly pre-start cycle.
I hope reliance decides to convert these within india, 40 aircrafts are a good volume to invest in freighter conversion this will boost the countries aerospace industry. I am sure they won't have a problem roping in a risk sharing partner.
tayara mechanici wrote: India doesn't have any RR RB211 or PW2000 overhaul capability. This could mean longer and costly pre-start cycle. I hope reliance decides to convert these within india.
I dont think Freighter Conversion of A310 is Available in the Country.
tayara mechanici wrote: India doesn't have any RR RB211 or PW2000 overhaul capability. This could mean longer and costly pre-start cycle. I hope reliance decides to convert these within india. I dont think Freighter Conversion of A310 is Available in the Country. regds MEL
HAWK,
below is the complete sentence, obviously meant India needs to start freighter conversions to boost the aerospace industry.
I hope reliance decides to convert these within india, 40 aircrafts are a good volume to invest in freighter conversion this will boost the countries aerospace industry.
HAWK, below is the complete sentence, obviously meant India needs to start freighter conversions to boost the aerospace industry.
Welcome to u firstly...
Its a large investment and will the GoI a lot of years to take this decision not possible unless some private carriers or better companies agree to do this
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Light travels faster than sound...thats why people appear bright, until you hear them talk!
the_380 Welcome to u firstly... Its a large investment and will the GoI a lot of years to take this decision not possible unless some private carriers or better companies agree to do this
Cheers the_380
As i mentioned in my post 40 aircrafts are a good number to expect ROI plus a decent profit, it all depends on the learning curve. Not to mention the tech transfer benefits.
Reliance are good project managers, there are plenty of engg firms within india that can join them to develop the aerospace industry in india........ i am probably dreaming or thinking aloud when i say this. GOVT should keep out of this, if they can create a enabling enviournment that will be appreciated.