Partners launch freighter service

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Launch pad: India Air enters freighter market with Gati.

Air India and Gati have joined together to launch a dedicated freighter service becoming the first public-private partnership in India's air cargo industry.

Combining the networks of each respective partner, the first of five freighters has initially been launched to cover Delhi, Mumbai and Bangalore. It is eventually planned for the service to cater to all of India through a hub based in Nagbur.

"Air India once again has made a pioneering effort in the history of Indian aviation by becoming the first scheduled passenger airline to enter the freighter market. Air India intends to be a loyal and dependable airline partner to Gati and hopes that together this partnership will propel the cargo industry growth by 6.1% per year," said Vasudevan Thulasidas, chairman and managing director, Air India.

The partnership's business model has reportedly been created to cater to the rapidly developing position of Nagpur as a global cargo hub. The destination will serve as a one-stop integration point for the company's fleet, where sorting, exchanging and disseminating of cargo from all parts of the country will occur.

Gati, a major logistics provider in India, plans to invest US$100 million in the next three years towards establishing express distribution centres and developing its network.

The alliance is expected to take the company's business from its present $115 to over $250 million within two years.

"We are proud to partner with Air India, once again on this revolutionary venture. The launch of the dedicated freighter service is aimed at enhancing our connectivity across the entire country," said Mahendra Agarwal, managing director and CEO, Gati.

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