air india cargo finalised new

8/20/2019 Air India Cargo Finalised New

1/37

Executive Summary

This study presents an assessment of total Weight & Value estimates of the Air India cargo

industry and its share. Findings presented in the study have een derived y means of a

comprehensive research conducted covering oth secondary as !ell as primary sources in the

spheres of "omestic freight# International freight and freight for!arders & agents.

$oth segments of Indian air cargo industry in India# "omestic %argo & International %argo

have een covered. umai and "elhi are the usiest ports !ith umai ' "elhi eing the

most important sector. It is estimated that the gro!th in the international sector !ill continue

in the coming years at an estimated gro!th rate of around (.)* on a year to year asis over

the next five years. Air India has around +* total mar,et share.

The Air India %argo in the Indian mar,et has seen unprecedented gro!th in the last decade.

This significant gro!th over the last fe! years is expected to continue over the next decade.

This ma,es it interesting to study. We have studied the facts in terms of all secondary data

availale and also tal,ed !ith industry experts. This is a report !e present from this study.


2/37

Introduction

Air India Cargo !as a cargo airline# it !as the freight carrying susidiary of Air India# ased

in umai. It operated freighter aircraft services off and on at different stages of its history#

the latest eing from -/ to -0-. Although the company has stopped operating as an airline

it continues to manage the elly cargo hold capacity of Air India1s passenger fleet.

Air India %argo !as founded in 02)( and ceased its operationsin -0-. Some important hus

!ere as elo!

• Indira 3andhi International Airport 4"elhi5• %hennai International Airport

• %hhatrapati Shiva6i International Airport4umai5

Air India ltd !as the parent company and its head7aurters !as situated in umai.

History

Air India %argo !as set up in 02)(# and started its freighter operations !ith a "ouglas "%8

9 aircraft# giving Air India the distinction of eing the first Asian airline to operate freighters.

$et!een the 02:s and 022s it operated $oeing +(+ and "ouglas "%8: freighter aircraft on

various international routes through other companies.

In -/ the airline relaunched freighter services follo!ing the merger of Indian Airlines andits domestic susidiary Alliance Air !ith Air India; !hich led to the ac7uisition of a

single $oeing +9+8-% aircraft from Alliance1s fleet# plus ten additional passenger versions

of the aircraft# of five !ere converted to freighters.


3/37

Air India also converted four of its Airus A9089s into freighters# these !ere deployed on

the "ammam8Fran,furt route. After ending international operations t!o !ere leased out to

ne! cargo startup Aryan %argo Express# !hile a third !as sold to an African company.

In =ovemer -+# Air India partnered !ith 3ATI# a leader and pioneer in express

distriution and supply chain solutions for a dedicated freighter service using the +9+s.

With rising competition from local cargo airlines as !ell as financial issues# Air India %argo

ended freighter aircraft operations in early -0-.

Air India %argo served the follo!ing cities !ith freighter aircraft until >anuary -0-; it also

had ground truc,8transportation arrangements on select destinations.

India

• Telangana ?yderaad ' @a6iv 3andhi International Airport

• Delhi Indira 3andhi International Airport Hub

• Goa "aolim Airport

• Gujarat Ahmedaad ' Sardar Vallahhai atel International Airport

• Karnataka $angalore ' $engaluru International Airport

• Kerala

• BoChi,ode ' %alicut International Airport

• Bochi ' %ochin International Airport

• Thiruvananthapuram ' Trivandrum International Airport

• Maharashtra umai ' %hhatrapati Shiva6i International Airport Hub


4/37

• Manipur Imphal ' Imphal International Airport

• Tamil Nadu %hennai ' %hennai International Airport Hub

• Uttar radesh Duc,no! ' Amausi Airport

• !est "engal Bol,ata ' =eta6i Suhas %handra $ose International Airport

International routes included "ammam and Fran,furt# some other routes !ere also operated

re#ious air$ra%t operated

• Airus A9089F

• $oeing +(+8-F

• "ouglas "%89F

• "ouglas "%8:8+9F

%argo


5/37

To support their cargo operations# they have a highly s,illed and experienced team of

professionals ac,ed y their Training division of international repute to constantly upgrade

s,ills of our personnel.

They use the latest state8of8the8art technology for cargo activities called Dogistic

anagement System 4DS5 for cargo sales and handling functions of import and export. The

DS system supports E"I interface !ith Indian %ustoms. The movement of the cargo can e

trac,ed through DS.

Cargo Types

Air India1s %argo operation flies everything to 6ust aout any!here. =ot very surprising#

!hen !e consider ho! far and !ide Indians have settled. Vast population have settled in the

3ulf# the S# B# Africa# Far East and Australia. It is to enale them to maintain lin,s !ith

their friends and families ac, home# and to let entrepreneurs conveniently go aout their

usiness# that Air India has fine tuned its cargo services to their needs.

As an active memer of IATA# Air India carries all types of cargo including dangerous goods

4haCardous materials5 and live animals# provided such shipments are tendered according to

IATA "angerous 3oods @egulations and IATA Dive Animals @egulations respectively.

?ere are some of the items transported y Air India over its domestic and international routes.

erishale %argo

erishale cargo shed !as commissioned in -9# spread over -#(:( s7. mtr. having capacity

of 9/ aircraft pallets.


6/37

Features

Cold &oom ' ( Capa$ity )MT* Temp+ )Deg+ $elsius*

08- +.- -

98( +.- -

) 9./ 8-

/82 0(.( -80

3en. Storage area 9-.( 0-80:

ersonal Effects

To oo, unaccompanied aggage# !e can contact any of Air Indias offices. For facilitating

us in %ustoms clearance for our unaccompanied aggage at Indian airports# !e or our

representative should approach Indian %ustoms at the airport through their office !ith the

follo!ingG

• %opy of Air!ay ill

• assenger1s passport

• $aggage "eclaration Form 4$"F5# duly completed

?uman @emains Shipments

Air India cargo ma,e sure the mortal remains of the deceased are al!ays carried !ith utmost

care and concern.


7/37

$esides passport of the deceased# the follo!ing documents are re7uired for carriage of

sentimental cargoG

• "eath %ertificate from a competent medical authority


8/37

• Emalming and ac,aging %ertificate# %ertificate issued y Emassy 4=ationality of

deceased5 !ith the deceaseds full name# age at the time of death# place of death and

photocopy of passport details.

• hotocopy of cancelled passport#olice certificate.

It is necessary that the aove documents are made in English# other!ise the same should e

translated in English.


9/37

Valuales

In order to ensure security of your valuales# !e have provided a container !ith a security

loc,er on !ide ody aircrafts. The narro! ody aircrafts are also fitted !ith loc,er for

valuale cargo. In fact# the entire operation of loading and unloading is carried out under the

vigilant eyes of our Security personnel.

In order to adhere to the strictest security for transportation of cargo on our flights# !e ensure

that the cargo is loaded on the flight after physical chec, or x8ray.


10/37

Divestoc,


11/37

Follo!ing are the copies of Arrival @eceipt and "eparture @eport

Arri#al &eport


12/37

Departure &eport

%ouriers

%ourier traffic is a rapidly gro!ing mar,et. Air India has een in the courier usiness

transporting small pac,ages and documents et!een destinations for years.


13/37

%argo %apacity and some >argons

Approximate Wee,ly %apacity Availale

Country Capa$ity

sa %anada

Approx. 0/9 tons 490 flights !ee,ly ' + to =e! Jor,# + to =e!ar,# +

to Dos Angeles# 9 to Toronto & + to %hicago. With !ide truc,ing

net!or, in SA to more than ) interior points.

B

Approx. 09: tons 4-( flights !ee,ly ' -0 to Dondon & 9 to

$irmingham.5

Europe

Approx. /: tons 40: flights !ee,ly 8 00 flights to Fran,furt & +

flights to aris5 With !ide truc,ing net!or, to cover interior points in

Europe.

South Asia Approx. 0) tons 49 flights to "ha,a5

Far East Asia Approx. -0( tons 49: flights !ee,ly# 00 to $ang,o,# 0- to ?ong


14/37

Bong# ( to Seoul# 9 to a,arta# 09 to Buala Dumpur

& 0/ to Singapore.5

Africa Approx. 0) tons 49 flights to "ar8es8Salaam=airoi5

iddle East

Country Capa$ity

$ahrain "oha Approx. (- tons 4+ flights !ee,ly5

"ammam Approx. (: tons 4: flights !ee,ly5

"uai Approx. 0+ tons 4-: flights !ee,ly5

>eddah Approx. :( tons 40( flights !ee,ly5

Bu!ait Approx. ): tons 42 flights !ee,ly5

@iyadh Approx. :) tons 42 flights !ee,ly5

Cargo Jargons

Air,ay "ill )A!"* - The cargo e7uivalent of a passenger tic,et !hich means the

document made out y or on ehalf of the shipper. It evidences the contract et!een the

shipper and the carrier4s5 for carriage of goods over routes of the carrier.

Cargo - 3oods carried y airline4s5 on ehalf of its customer.


15/37

Cargo Terminal - A uilding or location !here cargo is received# stored# %ustoms

cleared and prepared for delivery and delivered.

Charter Contra$t - A special agreement !herey carrier for an agreed operation

places at shipper1s disposition the entire capacity of an aircraft.

Charterer - A person !ho has signed a charter contract !ith carrier.

Consignee - A person !hose name appears on the AW$ as the party to !hom the goodsare to e delivered.

Consignor ).hipper* - A person !hose name appears on the AW$ as the party

contracting !ith the carrier4s5 for carriage of goods.

Consignment ).hipment* -


16/37

IATA - International Air Transport Association 8 an Association that estalishes

international rules and standards for participating air carriers.

IATA member - Indicates an airline eing memer of the International Air Transport

Association.

Interline Agreement - A contract et!een t!o or more carriers to expedite exchange

of traffic et!een the parties to the agreement.

%argo %learance procedure%argo gate pass


17/37

Types o% baggages and its $learan$e pro$edure

• Export $aggage

• Export 3eneral %argo erishale %argo

• Import $aggage

• Import 3eneral %argo

re Shipment rocedure for Export $aggage


18/37

0. @egistration# rocessing of shipping ill & pay documentation charges 4@s. /85.

D


19/37

-.


20/37

order# AW$# passport# receipt of purchage of items etc.

D


21/37

a. %onsignment of =o. Invoice Value. "irect "elivery perishale "E$# "E%%

=ature are permitted to clear through manual $


22/37

Floor

09.


23/37

B & Europe

1o$ation Name 2 Designation Area 3%%i$e 4a5

Dondon

%argo Sales

Air India Dtd.

$uilding ))+ 4W 05

Shoreham @oad West

?eathro! Airport# ?ounslo!

TW/ 9@>

Dondon# B

cargosalesLairindiau,.com

?andling

Agent

enCies World %argo

$uildng ))+ 4W05#

Shoreham @oad West#

?eathro! Airport #?ounslo!

TW/ 9@>

Dondon #nited Bingdom

cargosalesLairindiau,.com

((8-: +() 00-9

Fran,furt

ondial Airline Services

AdressG Burhessenstrasse 00

MIG /()(/ oerfelden8

Walldorf


24/37

r. "ir, "ietrich

"ir,."ietrichLs!issport.com

Shift Deader Export

Fra.%argoexp-Ls!issport.com

Shift Deader Import

Fra.ImportLs!issport.com

45/2

N(28

45/2

N(28

45/2

-02+2+0(0

-02+2+0+-

aris

r 3 Attia

%argo Sales anagerAir India

Fret8 0 rue du avO8 Fret )

8 $. 009-) Tremlay en

France8

2)+) @oissy %"3 %edex.

g.attiaLairindia.fr 9980

(:/-

9()(

9())

(:/-

+(

?andling

Agent

s WFS 8 France ?andling

0 rue du avO8 $. 0:9)98

2)+/

@oissy %"3 %edex

fh8export-Lfrance8handling.fr

opsimportLfrance8handling.fr 9980

+9

:2)-

:2)9

+9 ::

to ::+

+9

:2/)

SA & %anada


=e! Jor, Air India# )+ Dexington Avenue#

0)th Floor# =e! Jor, =J 0-- SA

Air India %argo Sales

08

-0-

(+

09/:

(+

0(0/


25/37

%argo $ldg +) @oom -9 $

=. ?anger @oad %argo Area "

>FB International Airport

>amaica# =J 00(9 SA

f,nuthLairindiausa.com

ImportExport%ustomer Svc.

08

+0:

08

+0:

/9-

09-

-((

0)9

-((

:(+

/)/

(-(

=e!ar,

r "ilip atel

%argo +00( SA

dpatelLairindiausa.com

08

2+9

:(

-: -:/

:((

?andling

Agent

%argo Airport Services

9(8$ Airis "rive

=orth Area Air %argo

=e!ar, Dierty Int1l Airport

=e!ar,# => +00(

sas.cascargoLcasusa.com

0

2+9

:(

-:

/-

/-9

%hicago

99 =orth "earorn Street#

Suite -(-) %hicago#

ID //-

08

90-

+:-

:+/0

+:-

/)0

r Tom "empsey

"ist %argo Sales gr8id!est

Air India Dtd.

)0/ Express %enter "rive

%hicago Illinois ////

tdempseyLairindiausa.com

ordcargoLairindiausa.com

08

++9

20+

-/0

20+

-(2


26/37

?andling

Agent

Alliance 3round International

)0/ Express %enter "rive

%hicago# Illinois ////.

r. i,e $orden,ircher 8 gr.

$


27/37

Wor,ing ?oursG

2 hrs 8 0+9 hrs

4on 8 Fri except =ational ?olidays5

Dunch $rea, 0-809 hrs

osacargoLairindia.co.6p

%A@3<

?A="DI

=3

A3E=T

%BTS %o. Dtd

Export %argo $ldg. =o. 0#

08$anchi

Senshu,u,o8inami#

Sennan %ity

apan.

Import &

ExportG

8:0+-

()/)

)0

()/)

)/

To,yo

%A@3<

@oom )9:#

assenger Terminal - #

=arita Intl airport#

ACa Furugome#

=arita 8Shi#

%hia -:-8(

Wor,ing ?oursG

2 hrs 8 0+9 hrs

4on 8 Fri except =ational ?olidays5

Dunch $rea, 0-809 hrs

tyocsmLairindia.co.6p

%argo

Sales@ese

rvationG

8:0

(+/8

9(:-/

-

(+/8

9(:-

/(

%A@3<

?A="DI

=3

A3E=T

s. >AD %argo Service %o.# Dtd.

>AD %argo $ldg.

=arita Int1l Airport# =arita#

%hia -:-8-0.

ExportG

8:0

Import G

8:0

(+/8

9-8

9(/-

(+/8

9-8

99-(

(+/8

9-8

9))/

(+/8

9-8

9-2:

Seoul

%A@3<

+-# Shina $uilding#

9280 Seosomun8"ong#

>ung8gu#

8:-- +)-:+

9

+)-:+

+)-

)(9:


28/37

Seoul808+)-.

icncargoLhanmail.net

6ac,ieLairindia.co.,r 9-

$ang,o,

%A@3<

3SA 8 %ity

A$"A %A@3< I=TE@=ATI


29/37

?A="DI

=3

A3E=T

Asia Airfreight Terminal

0# %hun ing @oad#

?ong Bong International Airport#

Dantau# ?ong Bong

aiQgroupLaat.com.h, expQdocLaat.co

m.h,!illiamQchanLaat.com.h,

ExportG

8:)-

8:)-

8:)-

Import G

8:)-

8:)-

%argo

Tracing

Supervisor

G

8:)-

-2(2

+/:

-2(2

+/9:

-2(2

+/(0

-2(2

++::

-2(2

+++-

-2(2

+/:

--0)

:

Singapore

3eneralSales

%argo

Agent

ER


30/37



31/37

3ulf & iddle East


Au "hai

& Al Ain



32/37

otherairlinesLyahoo.com

"oha

Airline %entre $uilding#

Wol,s!agon @oundaout#

0st floor# < $ox 9/9#

"oha# Patar.

icdohaL7atar.net.7a

airindiaL7atar.net.7a0

anager

G

82+(

82+(

(((-/::2

((9-(000 (9-009(

"uai

"uai International Airport

Airport I#

"uai cargo Village#

"uai < $ox 0+0#

AE.

iacgodxLemirates.net.ae

82+0)

82+0(

2):+(

-:--/: -:--209

Shar6ah

3SA 8 Araain Travel Agency

Air India %argo Sales Agent#

< $ox 0(++# Shar6ah# AE.

cargoLatauae.com 82+0/ )/09:0 )/-/0:

>eddah

Air India %argo eddah8-0(-0# Saudi Araia.

,anoo8aiL6ed.,anoosa.com 82//-

-/9-2)2

ExtnG 09- -/9-2--


33/37

?A="DI=

3 A3E=T

Saudi %argo %% +9/# >eddah8

-0-90#

Saudi Araia. 82//- /:(--)0

Bu!ait

@oom =o 0-# 3round Floor#

Al Alamiya %omplex#

Far!aniya "a6ee6#

Bu!ait.

hotcargoLgmail.com

%argo

anagerG

82/) -(90))9: -(90)):2

uscat

.


34/37

I


35/37

%onclusion

Though the assenger revenue constitute ma6or share in Air India revenue stream# Air India

cargo revenue is gro!ing at consistent rate. %argo and freight have ).(* of total share in

revenue !here as mail and exchange revenue constitute around .(* share in total revenue.

Do! oil prices and etter yields than the passenger segment ma,e the cargo sector an

attractive usiness. $ut Indias infrastructure needs to improve# says Ven,y San6eeva# Senior

"irector & ?ead# Transportation# nisys India.

Air Indias experience in cargo industry has not een pleasant. The comapany didnt succeed

in the cargo space. There is demand in the Indian mar,et ut factors such as the

infrastructure# policies# processes that enale it# needs to improve. And !e ,no! that the

government has tried to set it right. There is a cargo promotion oard that is eing set up. It

!ill help frame policies to improve cargo. $ut the supply chain is long. There are multiple

agencies# custom operators# for!arders and airlines. It is a long chain. It is the technology


36/37

that needs to e leveraged to ring efficiency. Infrastructure is the largest challenge in the

Indian context for uilding cargo. Air India need systems that enale management of cargo

electronically. There is a huge cost to loading papers and to see, approval to move a piece of

cargo. sing paper is highly inefficient.

There is a 7uantum shift from five years ago. any initiatives are eing ta,en gloally in

air cargo industry.


37/37

ta,e it out. So a congestion8,ind of situation can e !ell managed y giving timely

information.

Import

0 @eceiving of Import cargo from Airlines and "eunitiCation destuffing.

- @elease of special cargo such as ?uman @emains ?uman eyes Dife Saving "rugs

=e!spapersagaCines =e!sreels Dive animals erishales "iplomatic mail and

urgent import shipments su6ect to %ustoms permission.

Export

0 Acceptance of %ustoms cleared Export %argo in onded Area.

- nitiCaion of Export %argo on ehalf of Airlines

9 @elease of ready for carriage Export %argo to Airlines.

air india cargo finalised new

Documents