Category Archives: Aviation

Allcargo Logistics has forayed into the express logistics space by acquiring a controlling stake in Gati. The company has added another domestic service to its portfolio by entering a segment which has been growing exponentially through this transaction. “The exponential rise in cross-border and domestic e-commerce has opened up new markets for traditional express players such as Gati. With Allcargo’s existing strength in the ocean transportation business and Gati’s expertise in land and air transportation, we are now in a unique position to offer our customers a suite of truly multimodal solutions,” comments, Shashi Kiran Shetty, Chairman, Allcargo Logistics. According to a study led by Deloitte in 2018, the express logistics industry is expected to reach Rs48,000 crore (US$ 7 billion) by 2023. This growth will primarily be driven by domestic consumption, shift from unorganised to organised trade, e-commerce (domestic and cross border) and significant demand from the small and medium B2B segment.

SpiceJet and Gulf Air have signed a Memorandum of Understanding (MoU) to examine areas of potential synergy, including looking at co-ordinating cargo services, interline or codeshare agreements, shared engineering services and pilot training. The MoU was signed by Ajay Singh, Chairman and Managing Director, SpiceJet, and Krešimir Kučko, Chief Executive, Gulf Air. Singh comments, “This agreement is going to play a very important role for airline’s next phase of growth as we continue to explore the innumerable opportunities around us.” SpiceJet’s cargo division, SpiceXpress, took delivery of its first 737-800 Boeing Converted Freighter (BCF) earlier this autumn. The standard-body freighter, the first 737-800BCF to be operated in south Asia, was leased from NGF Alpha Limited, a division of Spectre Cargo Solutions.

In order to take the ease of doing business initiatives to next level, customs department is rolling out the concept of faceless assessment of cargo across the country in next few months. The consignments will be assessed by virtual group irrespective of where the Bill of Entry is filed. Baswaraj Nalegave, Commissioner of Customs (City and ICD), Bengaluru, says, “We are moving ahead with the concept of faceless assessment,” in adding, “From now onwards, in a phased manner, we will ensure that the assessment of cargo need not be done at the same place where the Bill of Entry is filed,” he stated. “We have already started the pilot in Bangalore. So, all machinery will be assessed by a virtual group no matter where the Bill of Entry is filed. In Chennai, it’s already being done. It’s a matter of a few months before it is rolled out across the country,” he noted.

Sichuan Airlines (3U) is commencing freighter services from Delhi to Chengdu, China effective from November 27, 2019. This service will be operated with AB330-200F which offers maximum payload capacity of 60 tonne. After the inaugural flight, the freighter will operate twice weekly service every Monday and Friday to enhance their frequency to four weekly services Sichuan Airlines has built a world-class fleet of 152 aircrafts that connects five continents, improving its network capability and opening more international routes to build a bridge between Western China and the world.

The 45th Air Cargo Agents Association of India (ACAAI) annual convention was held in Phuket, Thailand. With the theme of ‘End-to-end logistics – A way forward’, the 45th annual ACAAI convention saw an eminent presence of the industry experts from various quarters of the world under one roof. The chief guest of the evening was Fitsum Abadi, Managing Director, Ethiopian Cargo & Logistics Services and the event was also graced by Anis Chakravarty, Partner and Leader, Global Transfer Pricing Center, Deloitte. The convention was formally inaugurated by lighting the lamp and release of convention souvenir by the chief guest Abadi, Sunil Arora, President, Air Cargo Agents Association of India (ACAAI), Anil Vazirani, Chairman, ACAAI Convention 2019 and all other dignitaries.

China Airlines Cargo has announced Group Concorde as the general cargo sales agent for its new Mumbai freighter service starting on November 16. Prithviraj Singh Chug, Director, Group Concorde, said, “The pharma business is the airlines target business for us and it’s important to connect the pharma agents and their shippers with the airline. CI being CEIV certified will have the edge in Mumbai market to carry the goods and safely deliver across Europe, Asia, Oceania & Americas.” The airline will operate four flights a week, two per week coming from Taipei to Mumbai and going forward to Amsterdam, and two per week coming from Amsterdam and going to Taipei.

Proffering twice-a-week service, China-based cargo airline SF Airlines has added second cargo service to India as it commenced services on the Shenzhen-Delhi route on October 17, 2019. The service is operated with the carrier’s B747-400 aircraft, that offers a maximum payload of 110 tonnes. Cargoes exported are mainly consumer electronics and industrial equipment, and cargoes imported are mainly e-commerce parcels and general cargoes. Reports suggest that the Indian e-commerce market has taken a leap forward since the development in 2005. By 2018, the transactions have amounted to over USD19.5 billion, with mobile phone products as one of the main drivers, said the airline through a statement. As the e-commerce industry booms and the trade flows are on the rise, the demands for cross-border aviation logistics between the two places are emerging.

Due to the trade diversion effects of Washington’s tariff war with China, India gained about $755 million in additional exports, mainly of chemicals, metals and ore, to the US, in the first half of 2019 , says a study called ‘Trade and trade diversion effects of United States tariffs on China’ by UNCTAD, the UN trade and investment body. It shows that the ongoing US-China trade war has resulted in a sharp decline in bilateral trade, higher prices for consumers and trade diversion effects and increased imports from countries not directly involved in the trade war. The US tariffs on China resulted in India gaining $ 755 million in additional exports to the US by selling more chemicals (US$ 243 million), metals and ore (US$181 million), electrical machinery (US$ 83 million) and various machinery (US$ 68 million), as well as increased exports in areas such as agri-food, furniture, office machinery, precision instruments, textiles and apparel, and transport equipment, UNCTAD said.

UPS has announced the routing of its latest freighter aircrafts to India, from its fleet of Boeing 747-400/-8 and Boeing 767 at Indira Gandhi International Airport (IGIA), Delhi. Businesses in North India will gain faster access to markets in the West, with extended pick up time, later commercial clearance and shorter time in transit to capitalise on growth opportunities in Europe and United States. This plane is part of UPS’s investment of adding 10 million pounds of new lift capacity globally – the largest current expansion by any carrier. UPS has already taken delivery of 18 of 49 new aircraft previously announced and will receive the remainder by 2022.

China Airlines Cargo is set to launch a freighter service from Mumbai. Group Concorde, which has been the airline’s general cargo sales agent in India, will look after the sales in Mumbai. The airline will operate four flights a week, two per week coming from Taipei to Mumbai and going forward to Amsterdam, and two per week coming from Amsterdam and going to Taipei. The operations will focus on active and passive pharma. For pharmaceuticals, the airline offers services for products requiring the strictest temperature control, products that need to be kept in a certain range of temperature, and products that need to be stored in temperature-controlled facilities or room temperature. The first flight is scheduled to operate on November 16 (subject to all government approvals) westbound, and November 17 eastbound. Pukhraj Singh Chug, Chairman, Group Concorde, said, “China Airlines Cargo is a premium carrier and well-known brand in Delhi. It’s time we showcase its strength to customers in Mumbai. It is a service-oriented carrier and have always satisfied its customers. We are positive that the Mumbai market will be elated to have the services of CI to enhance the customer experience.”