Air India's bold aspiration: Tripling cargo capacity within 5 years

Tata Group-backed Air Inda is set to play a pivotal role in fortifying the freight and cargo ecosystem both within India and on the global stage. With recent initiatives, Air India aims not only to elevate its status as a major cargo carrier but also to strengthen the country's cargo ecosystem, catalysing efficient air cargo supply chains to accelerate exports from India.

The expansion of Air India's belly capacity is a major focus over the coming years. The airline plans to augment its fleet with new wide-body aircraft arriving from 2025 onwards, complementing India's burgeoning manufacturing and export growth. This strategic move is expected to have a cascading effect, generating increased employment opportunities and bolstering various sectors of the economy.

The firm orders for 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliner, and 10 Boeing 777X wide-body aircraft will catapult Air India's annual cargo capacity by an astounding 300 per cent to reach 2 million tonnes within the next five years. This expansion is poised to establish non-stop connections to key export markets worldwide, reinforcing India's position as a global hub for cargo.

Air India's CEO and MD, Campbell Wilson, expressed enthusiasm for the immense potential in the air cargo industry, aligned with the Indian Government's ambitious plan to grow the sector to 10 million tonnes by 2030. To achieve these goals, Air India's cargo division has embarked on a series of strategic measures, aiming to foster growth and amplify its market presence. The expansion of passenger belly capacity will be further complemented by the launch of value-added products and services across the airline's network.

Initiatives that shape Air India's cargo expansion 

Adoption of technology

Air India is actively integrating cutting-edge IT solutions, including blockchain, AI, and drones, to optimise productivity. In the existing IT cargo system, short-term enhancements are being implemented to improve efficiency in areas like electronic data interchange, seamless connectivity with trade partners, and real-time updates on flight and shipment status. These advancements will empower Air India to offer a diverse range of services with global capabilities, such as pharma logistics, door-to-door logistics with global partners, e-commerce, transportation of valuables, pets, and perishables through cold chains, mail, and trans-shipment with connection windows.

Investments in infrastructure 

Collaborating with its joint venture partner SATS, Air India is committed to significant capital expenditure for developing the airport and logistics infrastructure. The airline is also exploring possibilities for augmenting freighter capacity through strategic partnerships.

Integrated cargo market 

Air India's plan includes launching three 24x7 control centres to enhance customer interface, service, and operational efficiency. As domestic e-commerce and businesses grow in Tier-2 and Tier-3 markets in India, Air India's expanding domestic network will gain momentum. This integrated network, combined with enhanced capacity, will offer efficient, streamlined, and cost-effective connectivity for point-to-point transportation to short and long-haul destinations across the network.

Expanding reach

Air India is actively expanding its reach through strategic partnerships and collaborations. By strengthening interline partnerships and trucking network connections, the airline aims to foster increased exports. Currently, Air India serves over 40 international and 38 domestic destinations for cargo transportation. The airline has also formed partnerships with offline trucking points worldwide to expand its base, while also coordinating with service providers at Delhi, Mumbai, and Bengaluru airports to strengthen trans-shipment efficiency and volume at India's main global hubs.

Diverse capabilities for global stature

Air India's commitment to increasing capacity and adopting technology will further enhance its ability to transport diverse products and services, solidifying its position on the global stage. The airline is poised to handle a range of cargo, from pharma logistics, door-to-door logistics through global partners, and e-commerce to express services, general cargo, valuables, sensitive goods, pet transportation, personal effects, and fortified cold chain solutions for perishables.

As Air India's ambitious vision takes flight, the airline is paving the way for India to become a prominent global hub for cargo, contributing to the nation's economic growth and expanding its reach in the international market.