Indian summer
by ArabianBusiness.com staff writer on Tuesday, 21 August 2007
Air India's recent merger and subsequent launch of cargo operations is currently the talk of town. With ambitions set high, Wolfgang Scholinz, cargo sales manager of Air India, describes what's in store for the national flagcarrier.
Air India recently initiated freighter routes to Europe. What prompted the airline to increase its cargo operations in this region?
The decision to increase cargo operations is logical, considering the upsurge in import-export demand between Europe and the Indian subcontinent, coined with an open skies policy and growing globalisation factors. We therefore commenced European freighter operations in June, connecting Frankfurt to the cities of Mumbai, Madras and Bangalore. In addition, we have introduced a route connecting Paris to Mumbai. These services are being operated using Airbus A310 aircraft, which were converted from passenger planes into freighters by the European Aeronautic Defence & Space Company (EADS).
Does this mean that Air India's primary focus in terms of freighter operations is currently Europe?
Yes, the current focus is definitely between Europe and India. However, as the Indian economy continues to flourish, I think Air India's cargo operations will inevitably evolve further afield. For example, during the second half of 2008, we are planning to initiate routes to locations in the United States, such as New York, Atlantis and Houston. These routes will be served with converted or rebuilt Boeing 747-300s or 747-400s. The Far East is another important market. We're basically planning to create an efficient and seamless network throughout the world, which will require a suitable fleet of aircraft. By 2009, Air India plans to have a fleet of 15 to 16 pure freighter aircraft.
Has the merger between Air India and Indian Airlines affected your cargo ambitions?
As a result of the merger, we've effectively doubled the Air India fleet, which is obviously a huge benefit in terms of future growth plans. The process of bringing together both entities is still ongoing - Indian Airlines will eventually disappear and be renamed Air India. However, the new freighter routes are not actually a direct result of the merger. It's more about the current boom in India's export industry, which is placing pressure on Civil Aviation Authorities to match demand.
How does the Middle East fit into this overall picture?
The Middle East is very much on Air India's radar. Out of Bombay alone, we currently operate 27 flights a day to the Gulf. A lot of this traffic comes from South India, primarily due to the Kerala people who are very skilled labourers. Also you have to consider the huge Indian expatriate community in the Middle East, which is roughly 3.5 million. This community demands their own style of food to be transported across, which means we fly enormous amounts of Indian food to the Gulf on a daily basis.
In your opinion, what potential does India currently offer the international airfreight industry?
I believe India will become one of the world's biggest economic players in the future. In ten years time, the Indian middle class is expected to consist of 300 million people, while Europe, in comparison, has a total of 300 million inhabitants. India has another advantage over other Asian countries, because most of the population can speak English, which will undoubtedly create smoother business interaction. So the writing's on the wall. There is a golden opportunity for everyone to enter the booming market, especially companies operating in the logistics sector, where the infrastructure currently needs a certain amount of improvement.
Which airlines are your biggest competitors in the Indian aviation industry?
I would say our main competitor is Jet airways, which has recently gained permission to fly internationally. In India, the rules specify that airlines must operate locally for five years before offering international routes. None of our other competitors currently possess an international licence, but we foresee Kingfisher airlines becoming a serious competitor in the future. It's the first airline in India to order the Airbus A380. However, with such a vast market to serve, I think there is plenty of business to share between the different players. Unfortunately, India's transport infrastructure is poor, but the government has highlighted the problem and will make significant investments to rectify it.
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