Category Archives: Aviation

The e-commerce giant, Amazon is scaling back on flights this year, citing lower demand and slower economic growth. Air Transport Services Group, which runs a significant portion of Amazon’s air cargo fleet, said it expects to operate Boeing 767 freighters dedicated to servicing Amazon and DHL at reduced schedules and less flight time per aircraft. “Both companies are adjusting their ground and air distribution and fulfillment networks in the United States to conform to reduced U.S. economic growth and consumer spending levels in the first half of 2023,” ATSG said. Air cargo rates, which surged in recent years due to port congestion and high demand for fast deliveries, have slumped. The Baltic Air Freight Index was down more than 33% on Jan. 30 from a year earlier. The International Air Transport Association said last month that air cargo demand in November was down nearly 14% from the year-ago period, while capacity fell 1.9%. Meanwhile, passenger airlines have said travel demand has held up as consumers prioritize trips and other experiences. But coming off Amazon’s weakest year for growth in its quarter century as a public company, CEO Andy Jassy has taken steps to curtail expenses. That includes cutting more than 18,000 jobs, pausing warehouse expansion and shuttering some projects.

Kale Logistics Solutions (Kale) has gone live with its state-of-the-art cargo management system, GALAXY, at GMR Goa Air Cargo (GGAC), completing implementation of 100 percent digital domestic cargo operations at the new Goa airport. Kale’s web-based solution, GALAXY, is enabling end-to-end digital processing for all domestic outbound cargo at GGAC, from acceptance to loading and departure, as well as for domestic inbound cargo from flight arrival and flight check through to cargo delivery at the warehouse. GMR Goa International Airport Limited (GGIAL), a subsidiary of GMR Airports Limited (GAL), was inaugurated in December 2022 by Prime Minister Shri Narendra Modi, and the domestic air cargo operations went live from an interim facility at the airport with Kale’s solution in January. “GMR Goa Air Cargo has set a new record, going digital from the start button,” said Vineet Malhotra, Co-Founder and Director, Kale Logistics Solutions. “Our longstanding strategic partnership with GMR Cargo and deep understanding of their business, challenges, and market dynamics positions Kale well to help them meet higher customer expectations. “Supported by our fully digital solution, we are confident that GGAC will exceed its cargo handling estimates, and look forward to supporting its commitment to sustainable operations.” The GALAXY cargo management system is used by several hub airports and cargo terminals all over the world and is currently operating at more than 100 air cargo stations globally. The solution also covers processing for transshipment and direct delivery, as well as for inbound and outbound cargo. The newly launched Goa International Airport looks to become a hub for cargo movement alongside Mumbai and Bengaluru in Western India.

Debajyoti Bagchi, VP, Trucking and Air Cargo Charters, TT Aviation Handling Services Pvt Ltd. said, “The ‘Bright Star’ 2023 budget of the world’s 5th largest economy reveals people centric agenda and facilitate sustainable economic development. It’s a progressive thought process of new India that has aimed at artificial intelligence, MSMEs as a growth engine, women empowerment, digitization, and most importantly Indian start ups which is the 3rd largest ecosystem globally. The vision of 50 additional airports & aerodromes will expedite the abundance of regional connectivity including passenger and cargo. In addition to that, the prioritization of 100 identified critical transport projects will be a crucial factor for NLP deliverables. Revision of the income slabs in the proposed income tax regime will allow some definite breather for people. However, the budget doesn’t mull anything on the lowering of the fuel/LPG prices to reduce overall inflation.

B Govindarajan, Founder and COO, Tirwin Management Services said, “The big push to Capex would certainly help the logistics sector to grow. It shoukd be kept in mind, mere brick and mortar as infrastructure is not sufficient. The country can not afford to depend on foreign operators for both air and sea cargo capacities. The focus should be on developing national capacities in order to ensure sustainable growth.”

Abhijit Verma, Founder & MD, Avinya Logistics & Industrial Parks said, “The 2023 budget of India is a beacon of hope for the working class, who form the backbone of our nation. The focus on job creation, skill development and providing social security to the working class is commendable. The emphasis on strengthening the technology adoption through payments infrastructure and Digilocker will go a long way in making a big impact in the lives of millions of Indians. The allocation of funds for skilling programmes, start-up ecosystem, and tax sops will benefit businesses and individuals alike. The budget strikes a perfect balance between economic growth and social welfare, making it a step towards a more equitable and prosperous India for all.”

Suresh Kumar R, Chief Executive Officer, Allcargo Logistics says, “The budget is focused on continuity in the direction of macro policies and economic strategy. The seven priorities have a strong positive bias for infrastructure development. Developing national infrastructure and the government’s thrust on capital expenditure of Rs 10 lakh crore indicates that it is pushing forward with its transformative agenda. Furthermore, the first and last mile connectivity has been prioritized by identifying one hundred critical transport infrastructure projects especially for ports, coal, steel, fertilizer, and food grains sectors with investment of 75,000 crore, including 15,000 crore from private sources. To encourage energy efficiency government will promote coastal shipping as low-cost mode of transport for passengers and freight, through PPP mode with viability gap funding. To further ease the movement of the cargo in the country expenditure on the Dedicated Freight Corridor has been raised for the financial year and is 75 percent higher than the Rs 15,710.44 crore allocated for FY23. Additionally, to boost regional connectivity government is looking to revive fifty additional airports, heliports, water aerodromes and advance landing grounds. All of these provisions will help the country to bolster the strength of Indian manufacturing by assisting in seamless movement of goods and accelerate India’s integration into the global supply chain by strengthening its necessary physical infrastructure and helping to boost imports from India by lowering the logistics cost. Focus on Green growth, and tax benefits for lower income slabs aimed at youngsters and senior citizens completes a wholesome budget.”

Vipul Bhalla, Chief Business Officer, Pradhaan Air Express said, “The 2023 union budget reflects a continuation of the Government’s fiscal consolidation strategy. As India’s youngest cargo airline, Pradhaan Air Express is buoyed by the increased effective capital expenditure of 13.7 lakh crores and expected growth of 7% reflecting a bigger positive sentiment as compared to other world economies. Among other things, continuing the tax exemption for start-ups, reduction in Customs duties to spur domestic manufacturing, and allocation of 35000 crores for achieving net zero and Green growth are all welcome steps. Simplification in indirect taxes will also deliver higher exports and value addition in the economy. In related sectors, investments in Aerodromes and tourism, a boost for Electrical vehicles, semiconductors, and Lithium Ion battery manufacturing will all have a positive impact on air cargo capabilities and infrastructure. We believe the budget supports our economic recovery with improvements also expected in international and domestic air cargo volumes as the policies and measures unfold in the coming days.”

Huned Gandhi, Managing Director Air & Sea Logistics Indian Subcontinent, Dachser shares, “The Union Budget 2023 has a comprehensive coverage with a robust capex investment and a high focus on infrastructure development, which will benefit the logistics industry overall. The Budget 2023 also takes a long-term view with Saptarishi (7 top priorities) to help India consolidate its position amongst the top economies of the world. These are certainly challenging times with the slowdown of most global economies and it’s good to see India forecast a strong GDP growth in the years to come.”

Vipin Vohra, Chairman, Continental Carriers says, “This was the first normal budget after the Covid pandemic and amid a global slowdown with 7% growth rate along with Rs 1.97 lakh per annum per capita income. Hon’ble Finance Minister outlined seven priorities ‘Sapt Rishis’ for the ‘first Budget in Amrit Kaal’ • Inclusive development • Reaching the last mile • Infra & investment • Unleashing the potential • Green growth • Youth power • Financial sector It’s a well-balanced Budget that will create strong and stable macro-economic environment for growth and job creation. The Budget is likely to enhance business, tax payer sentiment and consolidate India’s growth prospects during this fiscal year. It has every potential to bring out a broad-based revival in the Indian economy by providing opportunities for citizens with focus on Youth. • Budget laid focus on the introduction of National Data Governance Policy which will ease the KYC process and reduce privacy breaches by using the Aadhar and Digi Locker platforms to simplify individual address reconciliation and verification. • Budget will incentivize the investments in infrastructure which will have multiplier impact on rise in growth and employment.  Increased capital investment outlay by 33.4% to 10 lakh crores.  Highest capital outlay of 2.4 lakh crore for Railways • Simplifying tax benefits for MSMEs and Start-ups. • The decision to scrap old polluting vehicles bodes immense growth for automobile manufacturers and will give a fillip to the electric vehicles industry which in turn will invigorate the components industry.”  Budget 2023 has laid emphasis on reviving of 50 additional Airports under Regional connectivity Scheme (RCS), which it is hoped will ease movement of Domestic cargo also along …

Anish Mathew, Chief Financial Officer (CFO), Gati Ltd: said, “In line with the government’s vision to build an integrated and efficient logistics ecosystem, the budget has proposed a slew of effective measures which will enhance the logistics competitiveness. With the development of transport infrastructure to build end-to-end connectivity, introduction of skill development programmes to build new-age skilled human resources and proposals to boost EV infra and green energy transition reflect an all-encompassing approach towards strengthening logistics efficiency and sustainability parameters. On the other hand, proposals to strengthen the MSME segment will drive demand for logistics service immensely, going forward.”