Category Archives: Aviation

C K Govil, President, ACAAI said, “The temporary closure of airports in Northern India and the suspension of airline operations will have a significant ripple effect on both domestic and international cargo movement. Northern India, particularly cities like Delhi, Amritsar, and Srinagar, serves as a vital hub for cargo consolidation and distribution. The disruption of air traffic in these sectors leads to delays in time-sensitive shipments: Industries such as pharmaceuticals, perishables, and e-commerce will face delays, affecting supply chains and commitments. Airports in Western and Southern India may see increased load, leading to congestion and resource strain. Logistics costs are likely to rise due to extended trucking routes, storage at transshipment hubs, and rerouting charges by airlines. Disruption of International Freight Schedules: Freighter operations and belly cargo in passenger flights connecting to international destinations will be impacted, potentially affecting exports and imports, especially to Europe, the Middle East, and the Americas. Customers and forwarders will need to adjust to rapidly changing schedules, which could cause temporary inefficiencies. The closure of Pakistani airspace has forced Indian airlines to take longer routes for international flights, leading to increased fuel consumption and extended flight durations. This has resulted in additional operational costs estimated at approximately ₹306 crore per month. Longer flight paths necessitate carrying more fuel, which in turn reduces the payload capacity for cargo. This limitation affects the volume of goods that can be transported, thereby impacting supply chains and increasing costs. The ongoing Red Sea crisis has disrupted maritime shipping routes, prompting exporters to shift to air freight for timely deliveries. This surge in demand has further strained air cargo capacity, contributing to higher freight rates. While specific figures for the …

errxes Xerrxes Master, Managing Director, Master Group of Companies said, “The rerouting of flights to avoid Pakistani airspace has resulted in longer flight paths, increased fuel consumption and higher operational costs. For instance, Air India anticipates incurring approximately $600 million in additional expenses over the course of a year due to these detours, prompting the airline to seek government compensation. These increased costs are often passed on to customers, leading to higher freight rates. Additionally, the extended flight durations necessitate adjustments in crew duty times and aircraft utilisation, further escalating operational complexities and costs. The cumulative monthly operational impact on Indian airlines could exceed ₹306 crore, with added costs per flight ranging from ₹5 lakh for Middle Eastern routes to ₹29 lakh for North American routes. The increased freight rates and operational challenges have a cascading effect on the supply chain, potentially leading to delays in cargo delivery and increased costs for businesses relying on air freight. Industries dependent on timely delivery, such as e-commerce, pharmaceuticals, and perishable goods, are particularly affected. In summary, the closure of Pakistani airspace has significantly disrupted cargo operations for Indian airlines, leading to increased freight rates and broader supply chain challenges.” He added, :Delays in time-sensitive goods such as perishables (e.g., fruits, vegetables, dairy, seafood) and pharmaceutical shipments (like vaccines or temperature-sensitive drugs) will face delays or spoilage. E-commerce Slowdowns – companies like Amazon, Flipkart, and logistics partners will struggle to fulfill orders, especially in Northern markets. Manufacturing and inventory bottlenecks: industries depending on just-in-time inventory (like automotive and electronics) will experience raw material shortages or production delays. Redirection to alternative airports: cargo intended for major North Indian hubs like Delhi, Amritsar, or Lucknow …

V Chandra Kumar, Chairman and Managing Director, Active Freight Logistics said, “The immediate closure of 16 airports across Northern and Western India—including major hubs like Amritsar (ATQ) and Chandigarh (IXC) has severely disrupted air cargo operations. These airports are pivotal for the transportation of high-value and time-sensitive goods such as pharmaceuticals, electronics, and perishables. While a significant portion of India’s cargo is transported via sea, the airspace restrictions have particularly impacted the $500 million perishable export market, which relies heavily on timely air shipments. Exporters of garments, gems, perishables, and electronics are facing challenges, especially with the looming July 9 tariff deadline. The closure of Pakistani airspace has compelled Indian carriers, notably Air India and IndiGo, to reroute flights to Europe, North America, and the Middle East. These detours, often over the Arabian Sea or Central Asia, have resulted in increased flight durations by 2 to 4.5 hours, leading to higher fuel consumption and operational costs. Air India estimates an annual loss of approximately $600 million due to these extended routes and has sought government assistance to mitigate the financial impact. Similarly, IndiGo anticipates significant losses, with the combined industry impact projected at ₹7,000 crore (~$800 million) annually. These increased operational costs are expected to translate into higher freight rates. Analysts predict fare hikes of 8–12% to offset the additional expenses, which may burden both cargo operators and passengers. The combined effect of airport closures in Northern India and the suspension of overflight rights through Pakistani airspace has disrupted cargo operations, leading to increased costs and potential delays. While the full extent of the impact is still unfolding, stakeholders across the logistics and aviation sectors are closely monitoring the situation and …

India is quickly becoming a key source for manufacturing aircraft components such as landing gear, electrical switches, fuselage sections and motion control systems,” said Jaideep Mirchandani, Group Chairman, Sky One. He added, “This shift comes at a crucial time, as global aircraft and engine manufacturers are facing part shortages due to worker strikes, labour gaps, and supply chain disruptions. While traditional markets struggle to meet demand, India is stepping up, with several major aeronautics firms in the country now looking to scale up their production capacity.” In March, global aircraft manufacturer Airbus announced annual plans to procure components and services worth US$2 billion from India by 2030. This marks a notable rise from the current figure of US$1.4 billion and highlights India’s growing role in the global manufacturing and supply network.  Not only Airbus, but global majors like Rolls-Royce and Collins Aerospace are also sourcing parts from India. Industry leaders believe that with the strength of India’s technological and component manufacturers, along with the country’s competitive edge in engineering, India has the potential to be a reliable and forward-looking player in the global aerospace supply chain, offering cost-effective solutions beyond the traditional markets of Europe and North America. “India is also benefitting from skilled, young and educated workforce, including technical experts and engineers, which positions the country to move up the value chain into areas such as design, engineering and system integration. It may be too early to say that India has reached the centre stage of global manufacturing, but this is the right time to take decisive steps toward becoming a major hub in a critical manufacturing sector,” added Mirchandani.

Kale Logistics Solutions (Kale), along with its local partner Novel Muscat, has been awarded the contract by the Ministry of Transport, Communications and Information Technology (MTCIT) of Oman to develop a National Port Community System (NPCS). This multimodal cargo community platform will digitalise and streamline operations across Oman’s ports, airports, land ports, and free zones. Announced at the Oman Logistics Day celebration in Muscat, Government Ministers from MTCIT stood alongside governmental delegates from the Gulf Cooperation Council and officials from the World Bank to acknowledge the strategic investment. The NPCS will provide a singular national logistics platform for all modes of transport and will streamline operations across Oman’s transport and logistics sector, facilitating international trade and boosting the state’s business potential. Eng. Abdullah bin Ali Al Busaidi, Acting Head of the Oman Logistics Center at the MTCIT, stated that the Logistics Sector Strategy 2040 is built around four key pillars. The first is Market Development, which focuses on implementing projects and activities to achieve the targeted share in land, sea, and air transport markets. The second is Trade Facilitation, aimed at a qualitative shift in cargo processing systems across land, sea, and airports, as well as supply and logistics chains. The third is Enhancing Employment and Omanisation, which emphasizes the Ministry’s initiatives in labor market governance, regulation, training, capacity-building, and increasing Omanisation within the logistics sector. The fourth is Logistics Technologies, which seeks to encourage companies in the logistics sector to adopt advanced technologies to boost their competitiveness in regional markets. “This is an honour for Kale and we are keen to acknowledge the foresight demonstrated by the Ministry of Transport, Communications and Information Technology in deciding to invest in …

The Express Industry Council of India (EICI) and The Bureau of Research on Industry and Economic Fundamentals (BRIEF), jointly launched the White Paper, titled ‘The Future of Express Cargo Clearance in India – ECCS in the New Customs Integrated System’, underlining the need to ensure the smooth integration of processes and preserve the strengths of the existing Express Cargo Clearance System (ECCS) as it is proposed to be integrated into the forthcoming Customs Integrated System (CIS). Vijay Kumar, Chief Executive Officer, EICI said, “Express cargo industry is a vital part to the logistics ecosystem, powering e-commerce and supporting India’s ease-of-doing-business and global trade integration goals. With the upcoming CIS poised to elevate India’s standing in global logistics and trade facilitation, this White Paper marks an important step in our continued engagement with policymakers. It outlines the express industry’s unique clearance requirements and calls for a seamless integration of ECCS into the CIS. We had a successful collaboration with CBIC in developing the ECCS, and this White Paper sets the course for the next vital phase of partnership—aligned with the government’s forward-looking approach to policy-making involving stakeholders. As India charts its course toward becoming a $30 trillion economy by 2047 under the Viksit Bharat mission, the express cargo industry will play a pivotal role in driving trade and fuelling MSME growth.” The White Paper aims to apprise the regulatory authorities, especially the Central Board of Indirect Taxes and Customs (CBIC), about the critical features of the currently operational ECCS and the express industry’s expectations from the new CIS. It was formally submitted to the CBIC at a consultation held in New Delhi, which was also attended by Yogendra Garg, Member (IT …

Arun Kumar, President, AMTOI reacted on the ongoing India- Pak situation affecting global cargo trade, he said, “The rerouting due to the closure of Pakistani airspace has undoubtedly increased operating costs for Indian carriers such as Air India, IndiGo, and SpiceJet, potentially affecting their freight rates. However, India’s air cargo carriers have consistently demonstrated adaptability under pressure. While this puts them at a temporary cost disadvantage vis-à-vis some foreign carriers, the Indian logistics sector is quick to recalibrate. Moreover, in the event of a wider regional conflict, the impact will be universal across carriers. We’ve seen similar resilience in ocean freight, where Indian trade continues to thrive despite global disruptions like the Red Sea crisis, which forced ships to reroute via the Cape of Good Hope. The Indian logistics industry has consistently turned adversity into opportunity—and will do so again.” He added, “Any disruption in air traffic, including airport closures, does pose a challenge to air cargo operations and leads to an immediate spike in air freight rates—especially with the added burden of increased Security Surcharges in times of geopolitical tension. However, India’s logistics ecosystem has evolved significantly. Today, the country boasts a robust and agile multimodal infrastructure, with efficient road and rail connectivity acting as reliable alternatives. While international air cargo may feel the heat, domestic cargo movement will continue with minimal disruption. The system has proven its resilience in the past and is well-equipped to adapt swiftly in such scenarios.”

DHL Express has announced the successful expansion and relocation of its service center in Agra. The new facility, encompassing 3,900 square feet, is strategically situated and expected to enhance operational efficiency while upholding DHL service quality in Agra’s dynamic export market. R.S. Subramanian, SVP South Asia, DHL Express, said, “Agra has always been integral to India’s export story, and our enhanced facility reflects our decade-long commitment to this vital market. While strengthening our ability to serve customers with greater speed, efficiency, and reliability – the new service center allows linehaul departures to leave up to 30 minutes earlier for onward air connections from the Delhi gateway. This helps us maintain DHL’s impressive 98.1% transit time service commitment from this service center, allowing us to maintain our commitment to service quality while optimizing operational costs, delivering lasting value for our customers.” “This facility demonstrates our focus on strategic improvement within our network,” said Peter Bardens, Senior Vice President – Network Operations, Asia Pacific, DHL Express. “The new Agra service center provides immediate efficiency improvements and can handle significant year-over-year volume growth through 2033, ensuring long-term service stability for this market.” The facility includes dedicated parking spaces for pickup and delivery (PUD) vehicles, a separate Non-Conveyable Goods (NCY) area, and increased processing space. This configuration ensures better on-route productivity while helping Agra’s exporters maintain their competitive advantage in global markets through market-leading transit times. Additionally, in 2025, through DHL Express India’s partnership with the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India, DHL will begin its outreach to facilitate capacity-building sessions, trainings, and workshops for the MSMEs of Agra. This cross-border e-commerce exports promotion plan will …

Pharma.Aero and TIACA have partnered on the Food and Farm for Health project to underscore the economic value and the dual role of air cargo in healthcare access and economic development in low and middle-income countries. Strategically developed in collaboration with CCA (The Cool Chain Association) and HLA (The Humanitarian Logistics Association, the project seeks to optimize air cargo’s potential to deliver life-saving medicines while simultaneously supporting local agricultural economies. Frank Van Gelder, Secretary General of Pharma.Aero said, “The Food and Farm for Health Project is about leveraging air cargo to address two critical needs in low- and middle-income countries: healthcare access and economic empowerment. We, at Pharma.Aero, recognized a critical gap and initiated this project to use air cargo as a dual-purpose tool: flying in life-saving pharmaceuticals and medical supplies while flying out perishable agricultural products—like fruits, vegetables, and flowers—from local farmers to Western markets. By utilising available cargo space on return flights, we create a more cost-effective, efficient trade route. This approach not only ensures faster access to essential medicines and vaccines, but also opens new market opportunities for farmers, boosting local economies and providing better access to international markets”, said Van Gelder. “Air cargo is more than a mode of transport — it’s a critical lifeline for economies and communities across the globe”commented Steven Polmans, Chair of TIACA. “The completion of our Global Market Evolution Analysis marks a major milestone in understanding how perishable goods and pharmaceuticals move, especially in regions where access means everything. From Kenya’s flower exports supporting millions of jobs to India’s seafood sector driving billions in trade, our work confirms that airfreight is a catalyst for opportunity, health, and resilience. As TIACA, we’re …

India and Britain struck a ‘landmark’ trade deal marking progress on lowering and removing tariffs, said UK government in official press release. United Kingdom has secured much-awaited trade deal with India. The two nations’ agreement is “the biggest and most economically significant bilateral trade deal the UK has done since leaving the EU,” the UK Department for Business and Trade said in a press release. As a result of the agreement, it noted, bilateral trade is expected to swell by £25.5 billion ($34.1 billion) per year in the long run. That would be a 60% increase from the 2024 level, based on UK government data. India has agreed to reduce tariffs on a range of UK products, including whisky, medical devices, advanced machinery and lamb. And most of these levies will be removed altogether within a decade, according to the release. In turn, the United Kingdom will lower tariffs on Indian goods, the business and trade department suggested, without providing details. “British shoppers could see cheaper prices and more choice on products including clothes, footwear and food products, including frozen prawns, as (the) UK liberalizes tariffs,” the release said.