Category Archives: Aviation

The global Air Cargo market size is projected to reach USD 111810 Million by 2027, from USD 82570 Million in 2020, at a CAGR of 4.0% during 2021-2027. Key drivers of the air cargo market include the growing demand for faster delivery of cargo, stated Global Air Cargo Market Size, Status and Forecast 2022, “Increasing cross-border eCommerce and low costs related to insurance premiums will drive the growth of the air cargo market during the forecast period. Further, the rapid expansion of the pharmaceutical industry and the need to transport temperature-sensitive goods such as drugs, medicines will aid in market growth. Trends Influencing the Global Air Cargo Market includes consumer demand for faster delivery of cargo. The demand for air cargo is growing as transportation of goods by air takes much less time in comparison to other modes of transportation such as railways, roads, and shipping. There is a fixed arrival and departure time with minimal or no scope for delays. The warehouse requirement is less and clearance is fast. The shipment of goods always arrives on time. Thus the above factors are creating consumer demand for air cargo thereby driving the growth of the air cargo market during the forecast period, Expansion of cross-border eCommerce and low insurance premiums and Growth of pharmaceutical industry and need for transporting temperature-sensitive goods,” he added.

“Our partnership with Airbus for Freighter programme will help strengthen our CarGo business and act as a strong engine of economic growth for the country. We have received our first A321 Freighter aircraft, converted from passenger jet to a full freighter configuration,” informed Mahesh Malik, Chief Commercial Officer- CarGo, IndiGo. The A321P2F (Passenger-to-Freighter conversion) is the most efficient narrow-bodied freighter available, offering 24 container positions and supporting a payload of up to 27 tonnes.” “These have been converted through a programme involving ST Engineering and Airbus with their joint venture, Elbe FlugzeugWerke (EFW). The aircraft is uniquely capable for IndiGo, using our current vast pool of A320 family pilots, and able to service markets between China in the east and the Gulf in the west. IndiGo leased the aircraft from funds serviced by Castlelake Aviation Holdings (Ireland) Limited, part of a global alternative investment firm with 17 years of tenure investing in, financing, and managing aviation assets. IndiGo inducted its first dedicated cargo aircraft in September and will induct the next two by October 2022 and another two in 2023. We have now initiated a proper freighter programme after using our passenger aircraft for cargo operations during covid. We are in the process of converting 4 A321CEO to freighters with a capacity of 25-27 tonnes by 2023. Indian airlines are increasing their cargo capacity, with the segment emerging as a critical and promising revenue stream in the last two years. India’s dedicated freighter fleet has seen a dramatic rise in numbers—from just five to 28 aircraft. The number is set to rise further as airlines are looking to add aircraft only for cargo operations, as it fared better than the …

“We certainly recognise the importance and potential of India as a key trading nation and major air cargo market. We are continually reviewing our programme to provide the services that our customers require, and this includes giving them the best service and experience,” said Alex McEwan, Country Manager- South Asia, Virgin Atlantic. “We have operated service to India, for 22 years, serving both Mumbai and Delhi with daily and double daily frequencies respectively.There is a broad range of commodities flying to India including consumer goods, hi tech, e-commerce and machinery. Exports from India include pharmaceuticals, garments, machinery and perishables.” Earlier this year in June we launched the second daily flight on London-Delhi route. This is our largest ever flying programme in India. We are always exploring partnership opportunities across the globe and it is an inherent pillar of our growth strategy.“Sustainability will be a key driver for the air cargo sector. At Virgin Atlantic Cargo, sustainability, digital distribution and new product development will be key initiatives for us. “Delivering these initiatives, combined with our reputation for high service standards and strong customer relationships will ensure our continued growth in 2023 and beyond.”

According to DHL Global Forwarding’s latest Airfreight State of the Industry report, (October), currently global air cargo market is very unstable. The report found airfreight volumes as suppressed, with demand continuing to remain low on most trade lanes, although transatlantic volumes are comparatively strong. Global demand has softened since April this year and this year’s peak season is expected to see less of a surge than last year. Reduced purchasing power caused by economic lows will not help the sector, found the report, which uses data from various reliable sources including the International Monetary Fund (IMF), the International Air Transport Association (IATA), Seabury, WorldACD, IHS Markit Group and DGF Desk Research. Lower sales and high inventory levels caused by reduced export orders will also not offer the industry any succour, nor will high inflation rates around the world that are causing uncertainty now and are likely to remain in force into 2023. The ongoing war in Ukraine is of course having an impact on the airfreight sector, both in terms of cargo movements and capacity, indicates report. The report also pointed to a trend of air shipments being converted into ocean freight, with shippers likely to shift away from air cargo as ocean-going vessel schedule reliability continues to improve. Overall airfreight capacity was up by 18% in October compared to the same month of 2021, with month-on-month increases continuing (although global airfreight capacity in October was down 5% compared to the same month of 2019). The report described the greater capacity being made available as “encouraging”, but also pointed out that high jet fuel prices remain a challenge, with there having been only small signs of late of fuel prices …

LATAM Cargo and Sonoco ThermoSafe, a unit of Sonoco, global providers of temperature assurance packaging have announced a global lease agreement for the new Pegasus ULD® temperature-controlled bulk shipping container, said release. The agreement enables pharmaceutical freight forwarders access to Pegasus ULD® containers directly from LATAM Cargo. “Sonoco ThermoSafe’s Pegasus ULD® is the world’s first FAA and EASA-approved passive bulk temperature-controlled ULD container for pharmaceutical use, which enables it to speed through international air freight handling and customs processes at the lowest possible cost. With a focus on sustainability, the Pegasus ULD® is engineered with composite materials, offering a lighter solution that is also substantially more damage-resistant than traditional metal containers. Additionally, the Pegasus ULD® contains a fully integrated, FAA-approved telemetry system providing real-time, cloud-based data on payload and ambient temperature and key environmental factors, precisely synchronized with GPS location,” the release added.

Oman-based low-cost carrier, SalamAir has launched a dedicated air cargo service and inducted its first freighter aircraft. It is the first airline in the Middle East to fly with the Airbus A321 passenger to freighter (P2F) conversion aircraft, the airline announced in a LinkedIn post. “The introduction of the A321 freighter by SalamAir is a historical moment in the aviation history of Oman and the region. It backs the Sultanate’s Vision 2040 to make the country a logistic hub in the region,” the post read.

Zongteng Group, a major provider of cross-border warehousing and logistics services for e-commerce sellers, announced the acquisition of its first freighter to help customers reach global markets faster. The news follows a growing trend of online sales platforms, such as Amazon and JD.com, and logistics providers creating private-label airlines to better control capacity and service reliability rather than exclusively rely on scheduled, multiparty carriers, said reports. Shenzhen, China-based Zongteng Group purchased a second-hand Boeing 777 freighter to increase its warehouse fulfillment capabilities, a spokesperson said. Flight-tracking websites show the plane was previously owned by China Cargo Airlines. Zongteng said Chinese startup Central Airlines will fly the large, all-cargo aircraft three to four times per week from Shenzhen to the Middle East and Europe for subsidiary YunExpress. The initial route, which was inaugurated on September 30, connects Shenzhen with Riyadh, Saudi Arabia. The spokesperson said Zongteng will launch service on its primary route, between Shenzhen and Paris’ Charles de Gaulle Airport, in December. The news release suggested air logistics service will eventually extend to North America. The 777 is a long-range twin-engine freighter, with a maximum payload of 112 tons.

Mahesh Malik, Chief Commercial Officer – CarGo, IndiGo said, “The Indian government has been very forthcoming in addressing the requirements of the logistics sector, specially air cargo. PM Gati Shakti National Master Plan (PMGS-NMP) was launched with the purpose of providing multimodal connectivity infrastructure to various economic zones. The launch of the National Logistics Policy is a significant step in making India globally competitive in the logistics space. It will ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers, prevent wastage of agricultural products. The policy constitutes planning, coordination, storing and movement of resources—like people, raw materials, inventory, equipment, etc., — from one location to another, from production to consumption, distribution, or other upstream production points. The policy has also proposed some key targets to be achieved, like a reduction in the cost of logistics from the current 14-18 per cent of the country’s GDP to the global best of around 8 per cent by 2030. India is setting big export targets and is also fulfilling them, strengthening the perception that India is emerging as a leading global manufacturing hub.”

Airport Authority Hong Kong (AAHK) has introduced an autonomous electric tractor developed by Teksbotics and partners to meet expected cargo demand growth. AAHK and Teksbotics have officially launched a project to utilise autonomous tractors to perform routine driving works between West Cargo Apron and Cargo Apron Staging Area at Hong Kong International Airport (HKIA). Currently, there are 20 units of autonomous electric tractors working around the clock at the airport for both cargo and baggage operations. The autonomous electric tractors work in conjunction with human-driven tractors, which are freed up to perform more complicated tasks, said reports. “In this project, autonomous electric tractors are deployed to release pressure of human drivers from the daily routine and simple driving tasks. Human drivers can focus on more skilled tasks in the Cargo Apron Operation,” said an official from Teksbotics.

Alaska Airlines has plans to buy 52 Boeing 737 MAX aircraft for delivery between 2024 and 2027, said reports. With this purchase, the carrier will have confirmed 737 MAX fleet from 94 to 146. According to the reports, to boost growth, the carrier has also secured rights for 105 more planes through 2030. This agreement represents the largest commitment for future aircraft in the airline’s history, says an official release. “This investment secures aircraft to optimize our growth through the next decade, which we know will be a formidable competitive advantage,” said Ben Minicucci, CEO, Alaska Airlines. “We’re proud of the strong financial foundation that uniquely positions Alaska to make this commitment to our future, and of the fantastic partnership we share with our hometown aircraft manufacturer at Boeing,” he added.