New Airlines in India Transforming Air Cargo Connectivity

Reshaping India’s Aviation Landscape

India’s civil aviation sector is experiencing a significant transformation. With the recent launch of four new airlines, the domestic aviation profile is about to change for the better. New players like Shankh Air, Air Kerala, Alhind Air, και Fly91 are entering the market with strategies that could significantly enhance connectivity and potential growth in the logistics sector.

New Entrants and Their Cargo Potential

The primary objective of these carriers is to serve the often ignored passenger routes. However, their approach and operational strategies indicate a robust potential for cargo, particularly to tier-2 and tier-3 cities in India. Despite the fact that over 85% of air freight still passes through major metro airports, these new airlines might just hold the key to unlocking further cargo opportunities by connecting the economic fringes of the country to its bustling centers.

How Regional Airlines Meet Air Cargo Demands

India’s National Civil Aviation Policy (NCAP) and the Ude Desh ka Aam Nagrik (UDAN) scheme emphasized regional connectivity. Historically, though, focused cargo capacities at smaller airports were sidelined. This narrative is shifting rapidly. Fly91 has already positioned itself as a suitable model with over 150 weekly flights operated using ATR 72-600 aircraft. These flights are launching from their hub in Goa, perfectly poised to aid in dispersing cargo across regions that need it. Similarly, Alhind Air plans to serve intra-state routes with turbo-prop aircraft, further enabling the quick transport of perishable goods.

Shankh Air και Air Kerala have also made significant moves, adopting the Airbus A320 family to carry passengers across India’s heartland. Their routes—connecting cities like Lucknow, Varanasi, and Kannur—provide a modest yet functional bellyhold cargo capacity, valuable for small businesses and exporters looking to reach larger markets.

The Cargo Landscape in India

In the fiscal year 2023–24, India reported handling about 3.4 million tonnes of air cargo, with expectations to see this number triple by 2030. However, most of this capacity converges at the likes of Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, and Kolkata, who collectively siphon off nearly 88% of the national air cargo load. This leaves tier-2 cities like Gorakhpur and Kolhapur under-resourced in dedicated air cargo infrastructure.

Such gaps mean industries reliant on efficient logistics, such as e-commerce and agriculture, struggle to thrive. Recent reports suggest that Uttar Pradesh, for instance, has contributed over $2 billion in agricultural exports. Timely air freight services from tier-2 cities can help mitigate post-harvest losses by as much as 15-20%, especially for perishables. Meanwhile, India’s burgeoning e-commerce sector, currently valued at $70 billion, may stand to gain massively from expedited delivery services enabled by these emerging carriers.

Προκλήσεις και προβληματισμοί

While the prospects are promising, operational constraints present significant hurdles. The ATR 72-600 aircraft, utilized by Fly91 και Alhind Air, carries a maximum bellyhold capacity of 1.8 to 2.5 tonnes—a number that varies based on passenger and fuel loads. In comparison, the A320 aircraft employed by the other two airlines can handle around 4 to 5 tonnes, data still pale in comparison to larger freight carriers.

For operators, maintaining optimal load plans becomes critical, especially at smaller airports with limited runways and cargo-handling capabilities. A lack of cold storage for perishable goods and inadequate customs clearances complicate logistics considerably. As new carriers expand their routes, establishing efficient logistics frameworks becomes fundamental for success.

Addressing Infrastructure Gaps

Infrastructure gaps continue to pose challenges in India’s regional aviation landscape. Smaller airports generally lack efficient last-mile connectivity and trained personnel for specialized cargo handling. The Ministry of Civil Aviation’s initiative, Krishi UDAN 2.0, aims to enhance air transport for agricultural commodities but hasn’t delivered consistently. Additionally, a call for financial backing or operational incentives for airlines focusing on cargo is gaining momentum among policy experts.

Furthermore, expanding initiatives like the Unified Logistics Interface Platform (ULIP) to regional airports could streamline essential customs documentation and improve tracking processes, facilitating smoother cargo operations. With a strategic push and clearer regulations, dedicated short-haul cargo operations can evolve from being an offshoot of passenger flights to a focal business line.

Conclusion and Future Outlook

The emergence of new airlines in India is about more than just passenger transport; it’s a potential game-changer for the air cargo industry. Enhanced connectivity can reshape logistical frameworks, particularly for underrepresented regions, ultimately improving the transportation of diverse goods. Safety and speed will remain paramount, and higher regional cargo operations might not just boost businesses but also provide significant savings for logistics costs.

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