Category Archives: Aviation

Stressing on the swiftness with which the entire machinery; whether it is government, airports, airlines, freight forwarders or truckers are moving to grasp the needs of the times, Vandana Aggarwal, Senior Economic Adviser, Ministry of Civil Aviation shares the cataclysmic impact of the pandemic in the second digital conclave of CargoTalk. She says, “This crisis has brought out the most humane side of aviation as well. It’s something that needs to be recognised. That humanity actually raised, on the commercial side, an important collaborative approach. Till now, everything in cargo business was used to be contract bound. But here we found that everybody looked to strengthen the weakest among them and to somehow bridge the gap in our supply chain in whatever way possible.”

Agility and Chapman Freeborn Air chartering have decided to unite their efforts in delivering CT scan and MRI machines to Malé, Maldives. The Ministry of Health in Maldives ordered approximately 41 tonnes of cargo consisting of MRI, CT scan machines and other health equipment for distribution to four different hospitals across the chain of islands and atolls that make up the nation. Agility airlifted the cargo into Dubai from various locations in the USA, China, France, Japan and India. The seamless movement of more than 287 pieces from five countries into Dubai was a challenge, especially when availability of flights and space became limited due to the COVID-19 outbreak. Agility worked with Chapman Freeborn and chartered a B747 freighter from Al Maktoum International Airport in Dubai. Using B747 aircraft provided significant cost savings when compared with alternatives such as the Antonov An124 or the smaller Ilyushin Il-76 aircraft, which would have required three separate flights. Satish Lakkaraju, Chief Commercial Officer of Agility India, says, “From the countries of origin, to the consolidation point in Dubai and to the final destination in Male, we were pleased to have such talented people working on this global project. We thank our Agility Dubai team and our trusted global partner, Chapman Freeborn, for expertly handling all challenges that arose.” Vikas Chaturvedi, Chapman Freeborn’s Dubai Commercial Manager-Cargo, says, “Transporting this type of medical equipment on short notice requires careful planning and close attention to detail. Our strength is the global aviation professionals working with Agility and Chapman Freeborn.”

Hyderabad International Airport got connected to African markets with the touchdown of the maiden cargo flight of Ethiopian Airlines from Addis Ababa. This new direct connection between Hyderabad and Ethiopia opens new opportunities to reach out to the markets in Africa and beyond leveraging the robust cargo network of the Ethiopian Airlines. The airline is expected to be operating one frequency per week. With a capacity of 50 MT per flight, it will be operating Boeing 777-300 aircraft.

The service providers are facing a cash flow crisis because of not getting payments on time from their clients. To tide over the crisis, apex bodies; Federation of Freight Forwarders Association in India, Association of Multimodal Transport Operators of India and The Air Cargo Agents Association of India has decided that for the next six months, logistics service providers will handle shipments only against 100 per cent advance payments by their clients. Generally, the payment by an exporter or importer to service provider is done only after handling the shipment and paid in advance. The service provider pays the bill and waits for the payment from their clients.

“In times of crisis, expectation from the bigger brother are justified. While the airlines also need money, a sensitive approach is needed. IATA’s insistence will have very different reactions and the results could be varied. A number of IATA agents will be forced to default, even if they have always been compliant. Member airlines may also want to exit the CASS since business is generated not by the airlines but by the agents. A simple fact missed out in the insistence of remaining insensitive,” says Samir Shah, Advisor, Federation of Freight Forwarders Association in India (FFFAI). He adds, ”The problems are many and the biggest is continuity of business. The model is based on rotation of funds; clients’ payments have dried up or are delayed. This break in cycle will break many organisations.”

IATA CASS is not unique to India but is a worldwide payment gateway and no exclusive dispensation is available country wise. AV Vijaykumar, Chairman, Federation of Freight Forwarders Association in India (FFFAI), says, “I understand there was been some relief granted only in the form of deferment by a few days in our neighbouring countries. I wish Indian agents were also extended this deferment from IATA. Indian forwarders have been caught snapping as their payments from the shippers on the agreed timelines have not materialised. This has caused untold misery in the liquidity of the forwarders who also have to face the added strain of maintaining their establishment intact. There is a steep drop in business thereby impacting future revenue streams.”

IATA has decided not to give any extension for fortnightly freight to airlines through its CASS program. Calling it not a trade friendly move, Sunil Arora, President, The Air Cargo Agents Association of India (ACAAI), says, “The freight forwarding industry is already suffering due to the entire EXIM under lockdown. All payments from clients are blocked. In such scenario, how IATA and their member airlines can expects us to pay freight on time? Our member community is not in a position to meet the CASS calendar for freight payment to airlines. It establishes, once again, that IATA is inconsiderate towards its approved agents. IATA has asked for relief from government of India on various grounds but want agents to pay on time and no extension is even granted. ACAAI has requested government to intervene and ask IATA and Air India to consider our plea.” In fact, we feel they would be able to secure their freight payment by allowing extension of time. The trade is not asking discounts waivers or financial help on salaries etc but just little grant of time. This does not signify principal to principal relationship but seems like master to slave scenario. India is one of the biggest markets worldwide for IATA members and still Pakistan and Bangladesh and many other jurisdictions have got relief from IATA, then why not India?

In order to aid the nation in its fight against the COVID-19 pandemic outbreak, Blue Dart Express has reduced its retail tariff prices by 25 per cent. This will be applicable to all local retail customers as well as all MSME’s. Commenting on the same Ketan Kulkarni, CMO & Head Business Development, says, “Blue Dart has stepped up with ‘FIGHT COVID 19 – PRICE (FC19-P)’ initiative to fight against this crisis. Businesses across sectors and geographies are disrupted due to mobility suspension. The (FC19-P) is an effective platform to offer a speedy and hassle-free experience, when dispatching and delivering testing kits, reagents, enzymes, medical equipment (ventilators), masks, respirators, surgical masks, gloves and other items. Some of which are manufactured by the MSME sector and delivering them to the point of consumption was a challenge for them.

CBIC has taken a number of measures to facilitate and expedite customs clearance process and making it more contact-less i.e. automated and online as well as paper-less in order to mitigate the unprecedented situation due to Covid-19 pandemic. These measures include the facility to clear goods on the basis of an undertaking (not bond), acceptance of electronic Country of Origin (CoO) certificate etc. These steps also complement the earlier reforms unrolled as a part of ‘Turant Customs’ such as online query module, eSanchit, web based goods registration, electronic processing of DGFT issued licenses, machine release of imported goods based on customs compliance verification and electronic transmission of PDF based first copy of Bill of Entry (BoE) to customs brokers and registered importers. The aforementioned reforms combine to expedite Customs clearances and reduce the transaction cost. At the same time, Board notes that the specific measures that reduce interface between the Customs authorities and the importers/exporters/Customs Brokers are especially relevant in these challenging times, to tackle the scourge of Covid-19 pandemic. In this direction, Board has now decided to enable electronic communication of PDF based Final eOoC (electronic Out of Charge) copy of BoE and eGatepass to the importers/customs brokers. This electronic communication would reduce interface between the Customs authorities and the importers/customs brokers and also do away with the requirement of taking bulky printouts from the service centre or maintenance of voluminous physical dockets in the customs houses. The Final eOoC copy of BoE and eGatepass copy will be emailed to the concerned customs broker and/or importer, if registered, once the Out of Charge (OoC) is granted.

More than 214 Lifeline Udan flights have been operated by Ministry of Civil Aviation (MoCA) to transport essential medical cargo to the remote parts of the country. The North East region, island territories and the hill states have got the special focus with the collaboration of Air India and IAF primarily for J&K, Ladakh, North-East and other island regions. Bulk of the cargo comprises light-weight and voluminous products like masks, gloves and other consumables, that consume relatively larger storage space on the aircraft. Special permission has also been taken to store cargo in the passenger seating area and overhead cabins, with due precautions. Out of 214, 128 flights have been operated by Air India and Alliance Air and cargo transported till date is around 373.23 tonnes. The aerial distance covered by Lifeline Udan flights till date is over 1,99,784 km, informs, Usha Padhee, JS, MoCA. The cargo load carried on 11th April 2020 was 108 Tons. Domestic cargo operators; SpiceJet, Blue Dart and Indigo are operating cargo flights on a commercial basis. SpiceJet has operated 286 cargo flights covering a distance of 4,01,290 km and carrying 2334.51 tonnes of cargo. Out of these 87 were international cargo flights. BlueDart operated 94 domestic cargo flights covering a distance of 92,075 km and carrying 1479 tonnes of cargo. Indigo has operated 25 cargo flights covering a distance of 21,906 km and carrying around 21.77 tons of cargo. This also includes medical supplies carried free of cost for the government. The Ministry of Civil Aviation and the aviation industry is determined to support India’s war against COVID-19 by transporting medical air-cargo within India and abroad in the most efficient and cost-effective manner.