Leasing business to boost Air India Cargo revenues

Air India Cargo is looking at plans to leasing freighter aircraft in order to increase revenue by 10% in the period 2008-2009.

This wholly owned subsidiary of the National Aviation Company India (NACIL), created post a merger of Air India and Indian Airlines, plans to lease cargo planes to India Post and logistics firm, Gati. Air India Cargo recently initiated a freighter service to the northeast region of India in partnership with India Post.

"There is an immense opportunity to tap into the cargo leasing business in this country. We can increase our revenue from the cargo business to Rs900 crore from Rs800 crore in the next year. At present, there is some manpower related problems due to the merger of the two airlines but it will be sorted out," said an Air India official.

The company is currently in the process of converting six B737-200 passenger aircraft into freighters and is in the process of acquiring B-737 and A310 passenger aircraft for further conversion purposes.