Air India Cargo reveals leasing ambitions

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New lease of life for Air India.

Air India Cargo has revealed its plans to lease freighter aircraft in order to increase revenue by 10% by 2008 to 2009.

The wholly owned subsidiary of the National Aviation Company India (NACIL) was created following a merger of Air India and Indian Airlines and plans to lease converted cargo planes to India Post and the logistics firm, Gati. Along with India Post, Air India Cargo recently initiated a freighter service to the Northeast region of India.

"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 Rs 900 crore from Rs 800 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 aircrafts into freighters and is in the process of acquiring B-737 and A-310 passenger aircrafts for further conversion purposes. With the first A-310 freighter aircraft currently in operation between the Gulf and Europe, plans are on schedule to meet the target of at least ten aircraft by the end of this fiscal year.

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