In a bid to solidify its position in the cargo industry, Air India has announced its ambitious plans to increase its market share to 20% within the next 2-3 years. According to reports by Live Mint, the national carrier’s share in the international cargo market stood at approximately 8% back in 2019.
To achieve this goal, the airline has outlined a comprehensive strategy that includes doubling its cargo capacity with the introduction of a new widebody fleet. Air India plans to add six new Airbus A350s, five leased Boeing B777-LR, and nine other Boeing B777-ER aircraft to its fleet by the end of the current fiscal year. This significant expansion will result in a 30% increase in the airline’s wide-body fleet.
Air India is not only focusing on the cargo market but also aims to enhance its presence in the domestic and international passenger sectors. The airline has set an ambitious target of capturing 30% of the market share in both these areas within the next five years. Earlier this year, Air India placed an order for 470 new aircraft, including 70 wide-body planes. Among these, 40 A350s, 20 Boeing B787s, and 10 Boeing B777s will be part of the new wide-body fleet.
To attract key industries that heavily rely on cargo transportation, such as telecom, electronics, and pharmaceuticals, the airline plans to engage with companies in these sectors. Air India aims to form long-term arrangements with large firms and create sector-specific packages to cater to their unique needs.
The cargo market’s landscape in India witnessed a significant shift when Jet Airways, the former largest Indian airline in the international cargo segment, ceased operations in April 2019.
As part of its evolution and in line with global practices, Air India has also undergone policy changes in cargo handling. The airline now offers a uniform platform to a wide range of cargo agents, moving away from its earlier preferential approach.
With these ambitious plans and strategic initiatives, Air India aims to cement its position as a major player in both the cargo and passenger aviation sectors. As the airline forges ahead with its expansion efforts, industry watchers will keenly observe its progress in achieving the set targets and transforming the Indian aviation landscape.
