Air India scraps cargo plans even as others press ahead

21 October 2008

New Delhi: In a surprise move ensured to delay its air cargo plans for quite a while, Indian flag carrier Air India has decided to exit the cargo space and lease out its freighters. This, even though, cargo is a big revenue earner.

According to reports, Air India is seeking to lease two of its Airbus 310s, which were converted to freighters. The carrier is also converting six Boeing 737-200s into freighters, each with a payload capacity of 12 to 15 tonnes, which will bring its freighter fleet strength to eight.

Freight operations would have commenced under the banner of Air India Cargo (AIC).

Air India Cargo had entered into a leasing agreement for a Boeing 737 with India Post, as well as with domestic logistics major, Gati. India Post intends to lease three more freighters by the end of the year and use them for speed post services to 15 major cities.

Gati plans to charter five or more aircraft from AIC over the next five years.

Reports suggest that AIC could also lease out its freighters to postal services of some East European countries and the US Mail.