Cargo Breaking News
Nihar Parida, Air Cargo Consultant says, “ In the Indian context, expanding the Open Sky Policy for air cargo is an essential step toward improving the nation’s logistics network, boosting export efficiency, and enhancing global competitiveness. It aligns well with India’s broader economic ambitions and has the potential to transform India into a key player in global air cargo logistics, provided there is concurrent investment in infrastructure and technology.”
He adds, At the same time India should carefully consider the scope of an Open Sky Policy for air cargo, balancing the potential benefits of increased efficiency and global connectivity with the risks of market saturation, security concerns, and the need to protect domestic airlines and infrastructure. A more calibrated approach—allowing selective access to foreign airlines, strengthening domestic infrastructure, and ensuring national security—may be a wiser strategy for fostering long-term growth in the air cargo sector.
India should keep in Mind:
1. Impact on Domestic Airlines and Logistics Companies
2. Risk of Overcapacity and Market Saturation
3. Security Concerns
4. Underdeveloped Infrastructure
5. Regulatory and Operational Complexities
6. Economic Imbalance
a. Asymmetrical Trade Benefits: Many foreign airlines may use Indian airports as hubs to transport cargo between other countries, rather than primarily serving Indian exporters or importers. This may not result in significant economic benefits for India in terms of job creation or local investment.
b. Revenue Loss: If Indian airlines lose market share to foreign competitors, it could result in a loss of revenue for the domestic aviation industry and reduce the potential for job growth within India.
7. Strategic Economic Protection: Some degree of protectionism may be necessary to ensure that key industries, such as logistics and aviation, remain under domestic control and continue to contribute to national growth.
8. Lack of Reciprocity”
