Impact of global air freight movement
Due to the Euro-zone crisis, international air freight traffic shrank almost by 4.8% in October 2011, much lower than that in the previous year. This led to a short-term slowdown in India. According to industry research, there might be a moderation in the growth of cargo tonnage due to relatively slower economic growth as compared to the past and the high base effect because of structural shifts in the industry with the arrival of low cost carriers. The cargo tonnage is likely to grow at a CAGR of approximately 7.9% from 1.7 million tonnes (MT) in 2008-09 to 2.5 MT by 2013-14. Also, there will be a steady traffic growth and increasing revenues from development fees and non-aeronautical activities. In spite of that the positive outlook, carriers in the Asia-Pacific region account for about 40% of the global freight markets.
According to Anil Khanna, managing director at Blue Dart Express Ltd, “As part of one of the fastest growing economies worldwide, the logistics industry in India is bound to have high growth potential as key user industries gather growth momentum. The growth in the industry is largely driven by the increase in trade, government policy reforms, increased spending on infrastructure, and the overall economic growth driven by domestic consumption and growing affluence. While at present, the express industry in India is still unorganised and fragmented it still enables the country to attract new businesses and investment. This positive impact paves way for more employment opportunities and therefore economic growth of the country.”
Business aviation picking pace
In context of the business aviation segment in air cargo industry, Capt Karan Singh, managing director of Business Aircraft Operators Association, said, “The concept of business aircrafts being used for air cargo is still nascent in the country. But many companies these days are using business jets to cargo delicate equipment, spares, sensitive document and the like. Aircrafts like Cessna Grand Caravan, Pilatus PC 12 are used effectively for transporting these time-critical components. This enables cargo to reach places with limited air connectivity and it is easier to control timings and schedule. In addition, helicopters are used extensively in the world for utility roles, such as road building in difficult terrain, carriage of medicines and food items in natural calamities, among others.”
India's airfreight operations require proper cargo infrastructure, operational excellence and ease of connectivity. With all these support infrastructure developed, the air freight scene in the country is likely to have a better future.
Priyanka Roy Chowdhury |
According to industry forecasts, the cargo segment of the airline business will more than triple by 2025 and it is believed that the game changing dynamics will be ushered in by logistics specialists like DHL and BlueDart, among others. The Indian air freight has grown rapidly at CAGR of 11.36% in the period 2006-2011. Asia is expected to drive the world exports growth over the next 20 years in which India is projected to take one of the leading roles. India has the geographical advantage to position itself as a hub for air cargo.
