Air India eyes 20% share in air cargo biz in 2-3 years

livemint.com:

NEW DELHI : Air India plans to bolster its presence in the air cargo segment, with a target of securing a 20% market share over the next 2-3 years by utilizing the airline’s incoming fleet of wide-body aircraft that will double its capacity in the near- to medium-term, two people familiar with the development said. As part of its strategy, the airline plans to engage with companies in the telecom, electronics, and pharmaceutical industries that are key users of airlines to ferry products. The airline is also working on sector-specific packages and looking at long-term arrangements with large companies.

Air India’s market share in the international cargo space was about 8% in 2019. “There is a change of strategy in line with the expanding fleet of wide-body aircraft. The airline is looking to establish direct channels.

Discussions are taking place with big exporters as well. Electronics is one sector where there is potential and preliminary talks have taken place with companies along with telecom and pharmaceuticals," one of the officials aware of the development said on condition of anonymity. The cargo capacity of the full-service carrier is set to get a boost as brand-new Airbus A350 aircraft joins the airline’s fleet by the end of the year.

The airline, which currently has 124 aircraft, recently received approval from the Indian civil aviation regulator for its Rolls Royce-powered A350s and will now start preparing for the induction of the wide-body aircraft. The airline plans to induct six new Airbus A350s, five leased Boeing B777-LR, and nine other Boeing B777-ER by the end of the current fiscal year, increasing its wide-body fleet by 30%. “The airline has also implemented changes in the cargo handling processes and