Air India eyes 20% share in air cargo biz in 2-3 years

Air India plans to bolster its presence in the air cargo segment, with a target of securing a 20% market share over the next 2-3 years by utilizing the airline’s incoming fleet of wide-body aircraft that will double its capacity in the near- to medium-term, two people familiar with the development said.

- Anu Sharma & Mihir Mishra

As part of its strategy, the airline plans to engage with companies in the telecom, electronics, and pharmaceutical industries that are key users of airlines to ferry products.

The airline is also working on sector-specific packages and looking at long-term arrangements with large companies. Air India’s market share in the international cargo space was about 8% in 2019. “There is a change of strategy in line with the expanding fleet of wide-body aircraft. The airline is looking to establish direct channels. Discussions are taking place with big exporters as well. Electronics is one sector where there is potential and preliminary talks have taken place with companies along with telecom and pharmaceuticals," one of the officials aware of the development said on condition of anonymity.