Air-India to Rent Out Cargo Space to Meet Export Demand

Strategic Insights -

Air-India, a major Indian carrier, is facing a significant decline in cargo capacity due to the retirement of its wide-body aircraft from key routes. The airline has decided to rent out cargo space from a Dubai-based Express Cargo Airline to meet the urgent demand from exporters, particularly those shipping perishables. This move comes as Air-India prepares to revive its freighter service by 2007, with plans to convert two of its own Airbus A310s into freighters.

Key Takeaways:

  • Air-India will rent out cargo space from a Dubai-based Express Cargo Airline to carry export consignments to the Gulf and Germany, with 80 metric tonnes (MT) of cargo uplifted weekly to the Gulf and 100 MT to Germany.
  • The rental agreement is for a two-year period with a review clause after the first year of operation.
  • The airline has set the ball rolling to revive its freighter service by 2007, with plans to convert two of its own Airbus A310s into freighters.
  • Air-India had earlier operated a dedicated cargo service until 1996, which was discontinued due to unspecified reasons.
  • The airline's decision to rent out cargo space aims to fill the gap left by the withdrawal of Airbus A310s on the Kerala-Gulf sector and Boeing 747 Combis on the India-Frankfurt sector.
  • The lack of cargo space on the aircraft being operated by Air-India Express, which has replaced the wide-body aircraft, has led to the decision to rent out space to meet exporter demand.

Statistics:

  • 80 metric tonnes (MT) of cargo will be uplifted weekly to the Gulf.
  • 100 MT of cargo will be uplifted weekly to Germany.
  • The rental agreement is for a two-year period.
  • 2 Airbus A310s will be converted into freighters as part of the airline's plan to revive its freighter service.
  • The slot for converting the A310s into freighters is available in September 2007.
  • Air-India had operated a dedicated cargo service until 1996.

Sources:

  • Asia Pulse, "Air-India to rent out cargo space to meet export demand"
  • PTI, "Air-India to rent out cargo space to meet export demand"