Global cargo firms keen to fly into India
The air cargo industry in India is all set to expand its wings. According to ministry of civil aviation, three international companies — FedEx, Malaysia Airlines (MAS) and Australia-based HeavyLift Cargo Airlines — have approached the ministry seeking details on setting up and expanding their operations in India.
The three freighter service providers have sought clarification on the recent Cabinet decision to increase the foreign direct investment (FDI) cap from 49 pct to 74 pct in the air cargo sector.
According to ministry sources, MAS plans to start a dedicated freighter service between Kuala Lumpur and Delhi this year and is also considering using Delhi as its cargo transit point from Amsterdam and Frankfurt. At present, MAS has no dedicated freighter services to India.
A World Air Cargo report says India is the leading international freight market in the sub-continent. Out of the total 1.4 million tonnes of international cargo that flew in and out of the region, India moved the maximum with 8.82 lakh tonnes. Kuljeet Singh, partner, Ernst and Young, feels there is a lot of scope for cargo airlines in India.
The air cargo industry in India is all set to expand its wings. According to ministry of civil aviation, three international companies — FedEx, Malaysia Airlines (MAS) and Australia-based HeavyLift Cargo Airlines — have approached the ministry seeking details on setting up and expanding their operations in India.
The three freighter service providers have sought clarification on the recent Cabinet decision to increase the foreign direct investment (FDI) cap from 49 pct to 74 pct in the air cargo sector.
According to ministry sources, MAS plans to start a dedicated freighter service between Kuala Lumpur and Delhi this year and is also considering using Delhi as its cargo transit point from Amsterdam and Frankfurt. At present, MAS has no dedicated freighter services to India.
“There is a burgeoning demand for air cargo and we’ll issue licences for cargo operations once the metro and 35 non-metro airports across the country are upgraded and developed,” ministry official said.
A World Air Cargo report says India is the leading international freight market in the sub-continent. Out of the total 1.4 million tonnes of international cargo that flew in and out of the region, India moved the maximum with 8.82 lakh tonnes. Kuljeet Singh, partner, Ernst and Young, feels there is a lot of scope for cargo airlines in India.
“The problem is that the current players don’t have enough planes to launch a freighter service. The government decision to relax the FDI cap will attract more players,” he said. Recently, Deccan Aviation’s cargo start-up Deccan Cargo was denied permission for not having security clearance. However, Punj Lloyd and Indiabulls got permissions to start non-scheduled cargo airlines.
