Category Archives: Aviation

Rajen Bhatia, MD, Tulsidas Khimji said, “The recent escalation in India-Pakistan tensions has led to significant disruptions in both domestic and international cargo movement. Time-sensitive cargo, including pharmaceuticals, perishables and e-commerce shipments, is experiencing delays or rerouting. Northern states like Punjab, Haryana, Jammu & Kashmir, and parts of Uttar Pradesh, which are logistics hubs, are particularly affected.  With air routes compromised, there’s an increased reliance on road and rail transport. This shift may lead to overburdened highways, delayed deliveries and increased costs. Numerous airlines have rerouted or canceled flights to avoid the affected airspace. This includes long-haul flights that typically traverse the region’s airspace. Indian airlines are incurring additional weekly costs of approximately ₹77 crore due to rerouted international flights from northern cities. The cumulative monthly operational impact could exceed ₹306 crore. There may be an increase in insurance claims due to cargo delays or spoilage. The ongoing situation underscores the far-reaching consequences of geopolitical conflicts on international air travel and cargo movement.

Gautham R, Senior Manager – Global Air Freight, Head – Air Freight, India said, “The closure of PAK airspace has any which way impacted the cost of operations of the Indian airlines like Air India, SpiceJet and Indigo. This had not only impacted the flying time and operational cost of Indian Airlines but also the few international carriers like Air France, British Airways, and Swiss Flights, which are followed by Lufthansa, ITA Airways, Lot Polish Airlines and many more, which obviously increased the cost of operations for every airline, which will impact the freight rates till this situation prevails based on the demand. The flights departing from Northern India, especially to Europe and the Middle East, have to take a long route (45 minutes to 1 hour of extra travel time), which will make them carry extra fuel, which affects the payload (reducing the tonnage capacity of cargo that can be carried), which will make airlines increase the cargo rates slowly with no other choice due to operational reasons. Considering the current border tensions, we believe the overall impact may not be too severe when weighed against the safety measures implemented by the Government. Moreover, short-term alternatives are available to navigate the disruption. The greater impact is expected on perishable cargo, especially for domestic shipments with limited shelf life. This season marks the harvest of mangoes, lychees, pineapples, apricots, and other fruits in Northern India—making timely logistics crucial. Given the situation, we recommend that customers opt for road transport to Delhi, from where the cargo can be dispatched both domestically and internationally. The closure of Amritsar airport—an important hub for international perishable cargo movement—has further affected operation.

Vipin Vohra, Chairman, Continental Carriers said, “The temporary closure of airports in Northern India has disrupted cargo operations and may led to delays, missed connections, and rerouting of shipments via alternate airports. Time-sensitive cargo, including perishables and pharmaceuticals, will face the brunt of these disruptions, and logistics operators are under pressure to maintain service levels amidst limited capacity and rising costs. With longer flight paths and increased fuel consumption due to airspace restrictions, operating costs have risen. However, freight rates have not been officially increased by airlines as of now. They have requested support to manage the financial strain and maintain operational continuity under the current circumstances.

Sunil Kohli, MD, Rahat Cargo said, “The closure of Pakistan airspace is bound to result in a considerable negative impact on both domestic and international cargo movement thereby consequently resulting in enhanced flight durations and resultant cost escalation on fuel. The longer time taken during the flight operations may adversely affect perishable goods and pharmaceutical shipments since these are time-sensitive with limited shelf-lives. An intake of increased fuel due to longer flight paths may further shrink the cargo capacity. On international routes, some of the airlines, which do not face space closure such as Etihad Airways, Thai Airways & few more, may derive an advantage over the Indian carriers as these won’t require extra fuel without reduction in their space for cargo especially on India-Europe & Gulf sectors. The Indian airlines operating to US/Canada routes may also have to opt for technical halts en-route for refuelling which entail higher costs with pruned cargo capacity. As regards an increase in the airfreights by Indian carriers, it has not yet been overtly done on a published basis. However, due to lesser cargo capacity being available to the exporters, the spot rates offered by the airlines as per practice evidently reflect an escalation justifying the longer routes requiring additional fuel coupled with the vital factor – higher demand & lesser space.

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 …