<p>Air cargo seems to have finally come of age in India. The forthcoming launch of Amazon Prime Air, reviving an old-timer in the Indian skies – Bengaluru-based Quikjet - only underscores this. According to the <a href="https://www.deccanherald.com/tag/dgca" target="_blank">Directorate General of Civil Aviation</a> (DGCA), Blue Dart was the only dedicated cargo carrier in FY 2021-22. The Amazon Prime Air launch scheduled on January 23, will mark the entry of a fifth player in the arena in just a year’s time. This heralds the turning point for the sector, say industry observers.</p>.<p>“The market in India is going to be interestingly crowded. We can expect to see a significant rise in fleet and also stable operations,“ cheered Mark Martin, CEO, Martin Consultancy. Today, while Blue Dart has eight aircrafts in operation, 2022 saw the entry of Indigo with one aircraft, SpiceJet with three and Pradhan with one, in air cargo space.</p>.<p>Quikjet’s revival is tells the story too. The air freighter started operations in 2007 but paused its operations (both domestic and international) by 2012. Today it has a fleet of two Boeing 737-800. While Amazon has refused to divulge any information, a Quikjet spokesperson confirmed they are set to take to the skies on January 23.</p>.<p>This sudden burst of interest in air cargo has also been fed by the volumes most airlines in the country are clocking lately. According to a Ministry of Civil Aviation (MoCA) report, the domestic belly cargo (cargo carried by regular passenger flights), which still accounts for almost 80% of Indian air cargo traffic, registered positive growth of 5.1% in the FY 2021-22 as compared to FY 2020-21. </p>.<p>The total air cargo volume in the fiscal year 2022 for India was 3.14 million tonnes compared to 2.5 million tonnes in 2021, marking an over 25% YoY growth. Of the 3.14 million tonnes, 1.96 million tonnes was international and 1.18 million tonnes - domestic.</p>.<p>Ironically, it was the pandemic that laid the runway for this take-off. True, it was a time that saw the air traffic shrinking - even cargo. According to Boeing’s World Air Cargo Forecast 2022-2040, intra-Asia air cargo volume had contracted by more than 12% during 2019 and 2020, mostly due to trade disputes, pandemic constraints, and related impacts on air cargo capacity.</p>.<p>However, it is also a fact that it was the cargo traffic that sustained airlines during these painful times. The blow the pandemic inflicted on maritime shipping, with labour shortages and elevated transportation costs, pushed suppliers to turn to air cargo. This opened the market for air cargo in India, conveying high-value industrial goods and perishables. Even other stakeholders of the logistics industry started to give bigger importance to air cargo in the country, a Boeing spokesperson said.</p>.<p>“In the air cargo market, we are seeing deepening intra-regional trade, accounting for more than half of Asian trade currently. Intra-Asian exports account for 60% of regional exports, trailing only intra-EU exports (68%), as regional blocs go” said Suvendu Choudhury, Managing Director, International Operations, FedEx Express. </p>.<p><strong>Cargo to drive the aviation market in 2023</strong></p>.<p>“Economic forecasts show improved trade and continued robust GDP growth, which will fuel the expansion of air trade in the region. We forecast an average annual growth of 5.7% over the next 20 years,” said Boeing in an e-mailed response to <em>DH</em>.</p>.<p>“We assume a strong growth for the Indian air cargo market. From a limited number of freighters today we forecast that it’ll reach approximately 50 aircraft by 2040. Demand will be mainly for the small freighter category to begin with and then some mid-sized ones. It could grow further by taking market share away from belly cargo and even non-Indian carriers,” an Airbus spokesperson told <em>DH</em>.</p>.<p>Indian logistic major Bluedart is further enhancing its air and ground network. It has a fleet of 6 Boeing 757 freighters and has acquired 2 Boeaircraftircrafts. “Going forward, the company would continue to add more freighters by expanding its network into Tier II cities based on load factors. Similarly, the company is expanding its ground hub and network to handle the expected growth in volume,” informed Blue Dart’s managing director Balfour Manuel. </p>
<p>Air cargo seems to have finally come of age in India. The forthcoming launch of Amazon Prime Air, reviving an old-timer in the Indian skies – Bengaluru-based Quikjet - only underscores this. According to the <a href="https://www.deccanherald.com/tag/dgca" target="_blank">Directorate General of Civil Aviation</a> (DGCA), Blue Dart was the only dedicated cargo carrier in FY 2021-22. The Amazon Prime Air launch scheduled on January 23, will mark the entry of a fifth player in the arena in just a year’s time. This heralds the turning point for the sector, say industry observers.</p>.<p>“The market in India is going to be interestingly crowded. We can expect to see a significant rise in fleet and also stable operations,“ cheered Mark Martin, CEO, Martin Consultancy. Today, while Blue Dart has eight aircrafts in operation, 2022 saw the entry of Indigo with one aircraft, SpiceJet with three and Pradhan with one, in air cargo space.</p>.<p>Quikjet’s revival is tells the story too. The air freighter started operations in 2007 but paused its operations (both domestic and international) by 2012. Today it has a fleet of two Boeing 737-800. While Amazon has refused to divulge any information, a Quikjet spokesperson confirmed they are set to take to the skies on January 23.</p>.<p>This sudden burst of interest in air cargo has also been fed by the volumes most airlines in the country are clocking lately. According to a Ministry of Civil Aviation (MoCA) report, the domestic belly cargo (cargo carried by regular passenger flights), which still accounts for almost 80% of Indian air cargo traffic, registered positive growth of 5.1% in the FY 2021-22 as compared to FY 2020-21. </p>.<p>The total air cargo volume in the fiscal year 2022 for India was 3.14 million tonnes compared to 2.5 million tonnes in 2021, marking an over 25% YoY growth. Of the 3.14 million tonnes, 1.96 million tonnes was international and 1.18 million tonnes - domestic.</p>.<p>Ironically, it was the pandemic that laid the runway for this take-off. True, it was a time that saw the air traffic shrinking - even cargo. According to Boeing’s World Air Cargo Forecast 2022-2040, intra-Asia air cargo volume had contracted by more than 12% during 2019 and 2020, mostly due to trade disputes, pandemic constraints, and related impacts on air cargo capacity.</p>.<p>However, it is also a fact that it was the cargo traffic that sustained airlines during these painful times. The blow the pandemic inflicted on maritime shipping, with labour shortages and elevated transportation costs, pushed suppliers to turn to air cargo. This opened the market for air cargo in India, conveying high-value industrial goods and perishables. Even other stakeholders of the logistics industry started to give bigger importance to air cargo in the country, a Boeing spokesperson said.</p>.<p>“In the air cargo market, we are seeing deepening intra-regional trade, accounting for more than half of Asian trade currently. Intra-Asian exports account for 60% of regional exports, trailing only intra-EU exports (68%), as regional blocs go” said Suvendu Choudhury, Managing Director, International Operations, FedEx Express. </p>.<p><strong>Cargo to drive the aviation market in 2023</strong></p>.<p>“Economic forecasts show improved trade and continued robust GDP growth, which will fuel the expansion of air trade in the region. We forecast an average annual growth of 5.7% over the next 20 years,” said Boeing in an e-mailed response to <em>DH</em>.</p>.<p>“We assume a strong growth for the Indian air cargo market. From a limited number of freighters today we forecast that it’ll reach approximately 50 aircraft by 2040. Demand will be mainly for the small freighter category to begin with and then some mid-sized ones. It could grow further by taking market share away from belly cargo and even non-Indian carriers,” an Airbus spokesperson told <em>DH</em>.</p>.<p>Indian logistic major Bluedart is further enhancing its air and ground network. It has a fleet of 6 Boeing 757 freighters and has acquired 2 Boeaircraftircrafts. “Going forward, the company would continue to add more freighters by expanding its network into Tier II cities based on load factors. Similarly, the company is expanding its ground hub and network to handle the expected growth in volume,” informed Blue Dart’s managing director Balfour Manuel. </p>
