Indian carriers get ready to launch cargo flights abroad
With competition hotting up from big-time players such as FedEx and UPS as well as the established international cargo airlines, two of India’s top express players have chalked out plans to go overseas.
Over the past few years, the number of cargo carriers has gone up significantly. From the lone Blue Dart, the only Indian cargo carrier, there are today at least half a dozen more players.
Blue Dart Aviation, a subsidiary of express cargo carrier Blue Dart Express, has drafted a plan to start flying abroad. The plan, said Tulsi Mirchandaney, formerly senior vice-president, marketing and projects, and now managing director of Blue Dart Aviation, is in
the initial stage.
Mirchandaney should know because she was not only instrumental in marketing air cargo products but also involved in route planning and space allocation.
The decision to fly abroad has been prompted by the under-utilisation of Blue Dart’s fleet. Blue Dart has seven planes – four Boeing 737s and three Boeing 757s – that fly around the country for only eight hours at night.
In 2005, DHL Express completed the acquisition of 81.03 per cent of the equity capital of Blue Dart Express. Under the deal, Blue Dart continues to operate as an independent brand and provides a complete spectrum of domestic services through synergies with DHL.
The company is currently in talks with its parent DHL to find out ways in which the two could work together and ensure that Blue Dart planes can be used for international operations.
While Blue Dart firms up its plan, GATI, an express cargo delivery major with experience in distribution and supply chain management solutions, has started its foreign air cargo operations with Air India.
GATI’s managing director and chief executive officer Mahendra Agarwal said that his company had an agreement with Air India to take cargo overseas. This would be a follow-up to GATI’s tie-up late last year with the national carrier.
According to that tie-up, three of AI’s Boeing 727-200 freighters operate with the GATI logo within the country.
Keen to establish its presence globally, GATI has set up offices in China, Japan, Dubai, Hong Kong Thailand, Nepal and Sri Lanka and has plans to foray into other markets. The express major’s revenues have grown from USD 1 46 million to USD 7.04 million over the past three years.
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