IndiGo is India’s largest passenger airline with a market share of 43.4 percent as of February, 2019. Since its inception in August 2006, it has grown from a carrier with one plane to a fleet of 216 aircraft today. It currently operates flights to 68 destinations – 52 domestic and 16 international. The carrier has been making significant turnaround in performance in the recent past on account of it benefitting hugely from the domestic market ant its international operations are getting favourable tailwinds. The cargo side of IndiGo has also been growing at a steady pace, though not as good as the passenger side, the carrier is focusing on optimising its substantial belly capacity to increase revenue from cargo. William Boulter, chief commercial officer, IndiGo, spoke to Reji John on the sidelines of IATA World Cargo Symposium in Singapore, recently about how IndiGo is building its cargo strategies and how important is cargo to the overall business of IndiGo. Edited excerpts from the interview.
What is the potential in India for air cargo and how important is cargo for Indigo in its overall business?
IndiGo is a large airline. We now got over 200 aircraft. We are growing at 30 percent a year. In fact, in the last two years we have grown 70 percent in terms of our capacity. So, cargo obviously is becoming more and more an important part of our business; even though we are only a narrow-body fleet – a mixture of A320s and ATRs. We have taken delivery of our first A321 and we have 125 of them on order. But even with the A320 fleet we are able to carry substantial payloads for cargo and we are currently carrying about 240,000 tonnes a year. Mainly domestic, but increasingly international. It’s about 80:20 ratio at the moment; but we see the international portion will increase. We just started flights to Hong Kong, which is a key cargo market. We fly many times a day to Dubai from different points in India and again from ex Dubai and Doha there is good cargo demand. Then there are other places like Kathmandu and Dhakka, which are very strong cargo markets. So gradually our focus is really on developing the international side of our business; but of course, India domestically will continue to remain a key part of our business for many years to come. Specifically, for cargo, at the moment we earn less than 10 percent revenue from cargo which is fairly typical of a narrow body airline. But we are focused on growing that. Recently we changed our cargo management and we are very confident that we have the right team in place and working with our partners in the industry and we are making very good progress.
Do you have any specific revenue target for the cargo division?
Esta historia es de la edición May - June 2019 de Indian Transport & Logistics News.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición May - June 2019 de Indian Transport & Logistics News.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Connecting India With Multi-Modal Logistics
Today, logistics cost in India accounts for 13-17 percent of the Gross Domestic Product (GDP) which is nearly double (6-9 percent) the logistics cost to GDP ratio in developed countries such as the US, Hong Kong and France. Much of these escalating costs are due to the absence of efficient intermodal and multimodal transport systems. But with the government giving infrastructure status to the logistics sector, development of multimodal transport networks and initiatives to set up industrial corridors and logistics parks, a massive transformation of the country’s logistics landscape is underway.
By 2020 Our Target Will Be 50 Percent Revenue From Exports
Since 1996 Gandhi Automations has been a leader in manufacturing as well as exporting, distributing and installing entrance automation systems and loading bay equipment that are problem free and easy to operate. The company specialises in designing, manufacturing and installing customised products conforming to the highest safety standards complemented with reliability and energy efficiency. Samir Gandhi, Managing Director and Chief Executive Officer, Gandhi Automations, speaks to Indian Transport and Logistics News, about manufacturing, exports, market share and potential growth in this sector over the coming years.
Why Is Everyone Afraid To Share Data? GPLS Finds
At the third Global Pharma Logistics Summit 2019 organised by Indian Transport & Logistics News, panelists discussed technological advancements, creation of data, the existence of trust deficit in sharing data, need for educating and building a skilled workforce for better handling of pharma cargo.
Toxic Slowdown In Auto Sector, EVs To Disrupt The Market
When festive season sales failed to cheer the auto industry, logistics providers have taken it as an opportunity to utilise this period to create value by streamlining their operations. With the Indian government's ambitious plans of shifting the focus to electric vehicles by 2023, logistics providers are upgrading their capabilities to handle the complex auto parts and developing technology to track the entire supply chain journey.
Looking Beyond IMO's Global Sulphur Cap
The IMO's move to introduce a 'global sulphur cap' presents a significant regulatory move aimed at reducing greenhouse emissions and making shipping more environmentally responsible and friendly. We probe how shipping lines are preparing for the big move and the alternatives like LNG, hydrogen, and LEO, a blend of lignin and ethanol.
Reinventing Global Trade Using Blockchain
It is claimed that blockchain could boost global trade by $1 Trillion in 10 years. Discover how Port of Rotterdam is embracing this technology to strengthen its smart logistics and maritime hub.
Machine Protection Doors: Protecting People And Enhancing Productivity
Machine protection doors are found in many areas of industrial production - they are required to meet stringent safety requirements.
Freightbro Elite- Deliver An Exceptional Freight Forwarding Experience
Freight forwarding has largely remained an industry dictated by inefficiencies due to traditional mandates of conducting business.
Driving Into A World Of Opportunities India Auto Show
India Auto Show, organised by NESCO Exhibitions, will be held from October 3-5 at Hall 8 of Bombay Exhibition Center in Mumbai.
Digitising Freight Forwarding For A Seamless Supply Chain
FreightBro, a digital platform for freight forwarders and Journal of Commerce (JOC.com), a portal for news about container shipping & logistics have organised the latter's first ‘India Logistics Technology Summit’ on August 22 in Navi Mumbai.