India Post to extend express network with Air India deal
India Post is looking to improve its air links with different parts of the Indian subcontinent, in a new agreement with national airline Air India.
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DHL sign deal with Air India
DHL Global Forwarding has signed a security partnership with Air India-SATS, Bengaluru.
Read MoreAir India scraps cargo plans even as others press ahead news
In a surprise move ensured to delay its air cargo plans for quite a while, Indian flag carrier Air India has decided to exit the cargo space and lease out its freighters. This, even though, cargo is a big revenue earner.
According to reports, Air India is seeking to lease two of its Airbus 310s, which were converted to freighters. The carrier is also converting six Boeing 737-200s into freighters, each with a payload capacity of 12 to 15 tonnes, which will bring its freighter fleet strength to eight.
Freight operations would have commenced under the banner of Air India Cargo (AIC).
Air India Cargo had entered into a leasing agreement for a Boeing 737 with India Post, as well as with domestic logistics major, Gati. India Post intends to lease three more freighters by the end of the year and use them for speed post services to 15 major cities.
Gati plans to charter five or more aircraft from AIC over the next five years.
Reports suggest that AIC could also lease out its freighters to postal services of some East European countries and the US Mail.
Read MoreGati Ltd. is new GLS partner in India
On April 1st, parcel exchange between GLS and Gati Limited will begin. The two companies signed a partner agreement on 25 February 2008
With its full-area coverage distribution network, only Gati Ltd. delivers to 594 out of 604 districts in India. The company has over 3,500 employees and operates with 2,000 business associates to provide these services. Freight and parcel shipments are as much a part of the portfolio as are warehousing and supply chain management solutions. In addition to road and rail-based transports, Gati operates closely with Air India to realise national air express deliveries. Ship transports are also available for freight and container transports in the Asia Pacific region. The company is listed on the Indian National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Parcels from India are distributed by GLS through the airfreight office in Frankfurt as well as the central hub in Neuenstein, Germany, to the hubs of its subsidiaries and partners in Europe. In India, shipments from the GLS system first arrive at the central distribution center in Delhi. From there, Gati sends them to their respective destination via 19 express distribution centers. This all serves to bring the seventh largest country in the world, covering an area of 3.2 million square kilometres, with its 1.1 billion inhabitants, a lot closer to European parcel consignors.
Read MoreAir Cargo imports in Mumbai airport rise 32%
Air cargo imports into Mumbai airport rose 32% to 13,336 tons in November ’06, compared to November ’05, as per the latest available airports authority of India data. Exports from Mumbai dropped 1.9% in the same month, over last year, to 12,405 tons.
On the imports side, Air India maintained its lead, with 1,925 tons imported in November ’06, a rise of 24% over November ’05, followed closely by Cathay Pacific, with 1,407 tons, showing a 164% year on year growth.
Singapore airlines came in third, with 1,376 tons, up 19% and Lufthansa was fourth with 1,020 tons, up 20%.
In all cases, high industrial activity and demand for materials is showing up in rising imports cargo tonnage and origin. With China-India opening up to trade with each other, imports of machines, tools, garments, raw material, samples is rising exponentially, which benefits Cathay Pacific as the largest Hong Kong/ China based carrier.
Air India was the top carrier in exports out of Mumbai, with 2,424 tons in November ’06, up 1%. In the year 2005-06, it held 18% market share of air exports from Mumbai, which has already moved up to 19.5% in November ’06. Taking second slot is Emirates, with 1,176 tons, up 4% over November ’05.
It held 9.5% share in November ’06. Garments, textiles, gems, food items form major chunks of the cargo for both Air India and Emirates. The logistics majors FedEx and UPS turned in a 43% and 25% increase in cargo exported in November ’06 over November ’05.
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