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Air India freighters too big for domestic operations

  03.08.2011    

Air India's cargo business is reportedly struggling because the freighters deployed are too big for domestic operations and too small for longhaul flights, reports India Today.
It said that in addition "the lack of a critical distribution network, warehousing facilities, mismanagement and lack of other infrastructure is driving away air cargo business from Air India," the national carrier.
According to the report, the same can be said of Captain GR Gopinath's Deccan 360, which recently laid off 200 and asked others to start looking for jobs.
It said that Air India has piled up huge losses, although it plans to convert and reconfigure some of its old aircraft, which have been lying idle, for cargo operations. There's believed to be around 40 such idled aircraft.
The initial plans were to expand the existing runway at the Nagpur airport and add a second runway for future cargo movement. But India's only air cargo hub at Nagpur, the Multi Modal Inter-Hub Airport (MIHAN) project, has been postponed as firms backed out of the proposed SEZ following the slowdown in the global economy in late 2008.
India's freight industry is expected to grow 10 per cent a year until 2014 with the air freight sector expected to expand 8.5 per cent annually for the next five years. According to industry forecasts, the cargo segment will more than triple by 2025.



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