Category Archives: Aviation

“Although, many trade experts are sceptical of positive growth of air cargo in 2023; I strongly feel the slow but steady growth of air cargo next year. Seasonality may vary, and certain markets will perform better, says Dipen Lalsodagar, Deputy Director – Cargo Sales, Global Aviation Services. He adds, “From an Indian perspective, Indian domestic air cargo market will be robust due to strong economy and high demand for consumer durables. Also, with many industry setting up productions under Make in India programme, we can see India as a big exports hub in Heavy industry, Technology, IT & Defence sectors in years to come. Also, Digital development will create efficiency for air cargo in future. Sustainable aviation using energy efficient technology will also bring changes in the air cargo transportation.” “As India opened up for travel, airlines started restoring and adding new routes. This year, our principal carriers also increased their capacity into India, and as GSSA, we have been working hard to enhance their market share. The best way to sum up 2022 is with the proverb “What goes up must come down”. Ukraine war not only affected supply chain distribution but also economies worldwide resulting drop in exports and widening trade deficit. A supply and demand mismatch resulted in persistent yield decrease. A distinct demand trend was seen for commodities. From India; Heavy industry, Pharma & Perishables exports were up while general merchandise saw a decline. High airfreight + GST also shifted some business to the sea.”

“Moving towards the decarbonization air transport sector shall be the priority as we track towards 2030, hence capacity disruptions and cost increases are bound to happen during this period. Hence there could be an extra demand for space, while older aircrafts and engines go for scrapping or an engine refit to meet the goals related to emission reduction,” says Ashish Asaf, CEO, S.A Consultants & Forwarders. “Air freight demand will be offset by the near and medium-term challenges posed by a host of challenges like inflation, reduced purchasing power, consumption pattens and as well the geopolitical issues in Europe. During this time probable incremental volumes can arise due to increase in the E Commerce segment from certain Southeast Asian countries as well from the probable disruptions in the ocean freight due to port congestion or lockdowns,” he adds.

BOC Aviation has recently announced that it has entered into an agreement with The Boeing Company to purchase 40 new Boeing 737 MAX 8 aircraft. All aircraft are scheduled for delivery in 2027 and 2028, said release. “We are pleased to continue to build on our existing relationship with Boeing, with this 40-aircraft incremental order for the fuel-efficient Boeing 737 MAX 8 aircraft. The incremental aircraft takes our total 737 MAX 8 order book with Boeing to 80 aircraft,” said David Walton, Deputy Managing Director, and Chief Operating Officer. “We look forward to continuing to provide one of the industry’s most technologically advanced aircraft for delivery on lease to our airline customers, to support their sustainable growth over the balance of this decade.” BOC Aviation is a leading global aircraft operating leasing company with a fleet of 612 aircraft owned, managed, and on order. Its owned and managed fleet was leased to 81 airlines in 38 countries and regions worldwide as of 30 September 2022. “We are proud that BOC Aviation continues to invest in the 737-8 with its industry-leading versatility and ability to fly almost any short and medium-haul market profitably,” said Ryan Weir, vice president of Global Leasing Sales, Boeing Commercial Airplanes. “We look forward to more opportunities to expand our relationship to support BOC Aviation and its customers.”

Satyaki Raghunath, Chief Strategy & Development Officer, Bangalore International Airport Ltd (BIAL) says with government’s support and initiatives like Gati Shakti and NLP, BIAL is expecting to have an extremely favorable environment to grow its cargo business. He shares, “According to internal analysis, the Airport’s cargo potential is estimated to be 1.7 – 1.9 million metric tonnes per annum (MTPA) by 2038. With the fast-paced growth in business and rising demands, we intend to remain at the forefront of providing world-class facilities, infrastructure and technology to our customers, partners and stakeholders. We are looking at the development of a new domestic cargo terminal, refurbishing the existing cargo terminals with enhanced capacity and the expansion of cold-chain facility. With the government getting involved and focusing on logistics efficiency and infrastructural development through initiatives like Gati Shakti and NLP, we are expecting to have an extremely favourable environment to grow our cargo business. We believe that we can cater to around 1.5 million MT of cargo annually in the next decade and we are preparing for that.”

In India, to ensure customers can make greater strides in accessing cross border opportunities with ease, FedEx Express has introduced new time-definite international delivery service – FedEx International Priority® Express (IPE) that addresses businesses, heightened demand for trackable, time-definite delivery, ” informed Suvendu Choudhury, Managing Director, International Operations, FedEx Express. “Small and medium-sized enterprises (SMEs) are the foundation of the global economy, representing about 90% of all business and employing half of the world’s workforce, according to the World Bank . FedEx is committed to helping these vital companies succeed and grow. To give SMEs the right resources, tools and solutions they need to accelerate their business on a global stage, we conducted the AMEA Small Business Grant Contest, through which an Indian e-commerce start-up won a business grant of US$ 30,000, amongst 100 participants across 14 markets,” he added. FedEx also recognizes that economic growth and sustainability must go hand in hand for the future of our people and planet. “That’s why we are working every day to help create a more sustainable future. We’ve committed to make our operations carbon-neutral by 2040. Creating a more sustainable delivery fleet is a top priority, which is why FedEx is focused on vehicle electrification, alternative transportation options, and modernizing our aircrafts. We’re committed to operating a fully electric parcel pickup and delivery fleet by 2040. In January 2022, we conducted our maiden EV trails in India, and thereafter contributed electric-bikes to a local NGO. In the year ahead, technology and sustainability will have a substantial impact on how we work to ensure greater efficiencies in the supply chain. The future will witness newer technologies, further digital transformations, and higher levels of …

According to IATA’s 2023 Trends – Transport of dangerous goods by air, more than 1.25 million dangerous goods (DG) shipments are transported by air every year, and with the volume of air cargo expected to increase, the number of dangerous goods shipments will also grow, particularly those containing lithium batteries. Consumer demand for electronic devices such as tablets and small personal mobility devices such as e-bikes is a key factor in driving this increase. As a result, there are new entrants in the market, which creates a need for training, process improvement and adoption of new technologies. As per the report, Compliance will continue to be a challenge as supply chains evolve and regulations are developed and refined. To keep pace, it is critical for organizations to assess their DG operations to identify opportunities within their compliance infrastructure and processes. Improving and streamlining your DG operations can be implemented in phases and through a blended approach including: *Technology: Automate DG operations and establish repeatable and reliable processes across the supply chain utilizing DG software and integrating it with your ERP or other systems; *Training: Utilize gamification or 3D training experiences to better train and recertify employees, and do so quickly and remotely; *Packaging: Refine your packaging strategies to further improve efficiency, safety and compliance throughout the supply chain; and *Regulations: Keep your employees and supply chain partners up-to-date on the latest regulations using digital regulatory materials.”

“As 2022 comes to a close, we have seen demand for air cargo soften when compared to 2021. While forecasts have been adjusted downwards, the air cargo sector is still projected to grow and outpace pre-pandemic levels in 2023. We will likely see a reduction in capacity constraints, especially out of the Asia Pacific region,” says Martin Drew, Senior Vice President Global Sales & Cargo, Etihad Aviation Group. He adds, “We can expect to see some softening of global yield levels with the return of more belly-hold capacity. However, an imbalance between strong demand and available supply in key cargo origin markets along with a relatively high share of freighter capacity will continue to demand higher yields. Some of the challenges we have faced in 2022 will remain in 2023. We will need to closely monitor macroeconomic factors, high fuel prices, supply shortages and ongoing border and travel restrictions. However, even with these challenges, tremendous opportunities are available to carriers who are agile, work collaboratively with stakeholders across the sector, and can adapt to evolving market conditions. We are continuously exploring introducing new territories and countries and focusing on our existing network to provide market-leading services based on customer demand. As we come to the end of 2022 and look ahead to 2023, we will continue to evaluate new markets and opportunities to grow our offering to our customers as part of Etihad Cargo’s wider cargo strategy.”

Our enhancement in both air and ground package handling capacity is on track, and the company has initiated actions to build furthermore on the infrastructure front. Blue Dart will expand its fleet with two Boeing 737 aircraft,” Ketan Kulkarni, Chief Commercial Officer, Blue Dart This aircraft is ideal as it can reach smaller airports to increase connectivity further and create value for stakeholders. In 2022, the company also signed the UNFCCC Climate Neutral Now pledge as a step towards its sustainability roadmap, making significant strides towards creating technology that is future-ready, thereby opening the door for stakeholders to accept sustainable logistics that aim to shrink the ecological footprint. The recently launched National Logistics Policy also supports this and will accelerate the development of transportation and logistics infrastructure in the country. With the digitization of the logistics industry, there will be further developments in the coming years as artificial intelligence, cloud, automation, robotics, block chain, big data, and IOT will be used in mainstream logistics, making the industry smart while being time sensitive. The future of logistics indeed is exciting with the introduction of independent drones delivering packages to their destinations among various significant overhauls within the logistics industry. Businesswise, the people piece of our industry is a crucial one given the VUCA world we work in, with continuous investments needed in Talent. The government support through the National Logistics Policy, including PM Gati Shakti National Plan (NMP) for multimodal connectivity infrastructure to various economic zones, is also a tailwind for the industry. This will help towards creating an integrated, cost- efficient, resilient, and sustainable logistics ecosystem in the country as it covers all bases of the sector along with streamlining …

The International Air Cargo Association (TIACA) has predicted another tough 12 months for air cargo demand. In its latest newsletter, the association said that high inflation, high interest rates, high energy costs and concern over job security have compounded to create an air of defensive consumer spending, which is in turn affecting the air cargo industry. “However, the current situation is temporary and we can hope that later in 2023 central banks will start reducing interest rates when inflation is considered to be under control,” TIACA said. “Although before things improve, we can expect a further slowdown as energy costs are expected to remain high through winter 2022, particularly in Europe. “But structurally the industry is in a good place and towards the second half of 2023 we could see demand picking up compared to this year.” The association added that current retail inventory levels are high but when consumer spending resumes this should come down. Meanwhile, the relaxation of Covid of the zero covid policy in China should help production levels improve in the country. Elswhere, the air cargo industry continues to innovate. “There are many positive things which we can focus on such as innovation, which since early 2020 has been phenomenal, from process innovation to technical innovation to people and skills innovation,” TIACA added.

Celebi Delhi Cargo at Indira Gandhi International Airport, New Delhi, launched WhatsApp Chatbot Connect service for cargo tracking to elevate customers’ experience. Cargo customers can get a real-time update on Celebi WhatsApp Connect and track the status of international cargo using the Air Waybill number. WhatsApp Connect will facilitate hassle-free, quick, and simple two-way communication where customers can get secure and trustworthy information at their fingertips. Kamesh Peri, CEO, of Celebi Delhi Cargo said, “As a leading Cargo Terminal Operator our aim is to provide the best services to our customers each time and provide maximum visibility of their cargo. With Celebi WhatsApp Connect, we bring to our customers, real-time visibility of international cargo handling along the various stages of terminal operations. Our WhatsApp Connect enables a two-way communication medium where our customers can get reliable information about their cargo at Celebi Delhi Cargo Terminal. This is part of our ongoing digitalization initiative to simplify the transaction process and provide ease of access to information. We believe it will help our customers not just in terms of visibility but also to plan resources, increasing overall efficiency.”