India's air cargo market is a perfect example of an industry in its infancy. Fewer than 10 freighters operate within the country, but huge growth is expected in the coming years.
"Cargo is one sector in our country that we have completely neglected over the years," says civil aviation minister Praful Patel. But he expects India's dedicated air cargo fleet to grow to around 150 aircraft over the next five to 10 years, as the economy continues its rapid expansion.
There are only two dedicated freighter operators in India, the well-established Blue Dart Aviation and the recently launched First Flight Couriers, both of which carry express freight on domestic routes.
But the market is set to open up. Flyington Freighters is a planned new operator that has already placed firm orders for Airbus A330-200Fs and Boeing 777Fs - the first Indian carrier to order new-build widebody freighters. Several of the country's privately owned passenger airlines say they are also looking at adding freighters, or at least focusing on growing their bellyhold freight carriage businesses.
State-owned Air India, which has Boeing 747 Combis, has not operated dedicated freighters since the mid-1990s. The carrier says that some of its Airbus A310s will be converted from passenger configuration by EADS EFW in Germany, with the first due to be put into service on international routes this year.
Fellow state-owned carrier Indian Airlines, which is being prepared for a merger with Air India, is also looking to have some of subsidiary Alliance Air's Boeing 737-200 passenger aircraft converted into freighters for use on domestic services.
The growth potential is seen as huge, both on the domestic and international fronts. In the 2002-3 financial year, for example, just over 210,000t of freight was carried by air within India. This grew by 11.3% in 2003-4, rising to 38.7% in the following 12 months before levelling off in the 2005-6 financial year with growth of 5.3%.
"There is big interest in getting into the market from both foreign and domestic players, as even a conservative estimate puts growth at 6% annually," says Boeing Commercial Airplanes senior vice-president for sales Dinesh Keskar.
Keskar also sees growth in the passenger-to-freighter conversion market in India, noting that one suggestion is for Air India to have some of its 747-400 passenger aircraft modified into Boeing Converted Freighters. "This will probably take some time, but it is a viable option," he adds.
One of the government's aims is to see Nagpur airport in central India expanded to become a major cargo hub. Patel has said airlines will be given incentives to use the airport as a base for freighter operations. Indian Airlines says its planned 737-200 freighter operation will be based at Nagpur, while some of the country's privately owned airlines have also said they may add freighters and base them there.
Late last year, low-fare passenger carrier Air Deccan said that it planned to establish a new subsidiary to operate dedicated freighter aircraft. The subsidiary will most likely start with ATR turboprops, serving smaller cities within India.
The largest privately owned Indian airline, Jet Airways, has meanwhile said it is looking seriously at adding cargo aircraft. It says cargo revenue from bellyhold carriage currently only makes up around 5-6% of its total domestic revenue, although this is expected to grow rapidly as it takes delivery of additional widebody passenger aircraft with more cargo space.
Source: Flight International
