‘Collaborations with airlines will improve connectivity, cargo traffic’

Focusing on the current disruptions in the air cargo market, and how BIAL has responded to it by expanding its cargo capacity to meet demand, Satyaki Raghunath, COO, Bangalore International Airport (BIAL) shares, ”In April 2024, as per IATA, the global airline industry recorded 21.7 billion Cargo Tonne-Kilometers (CTKs) globally, which represents an 11.1% increase year-on-year (YoY). The industry counted 85.3 billion CTKs year-to-date (YTD) in April, indicating a 12.7% increase compared to 2023. The industry experienced a 7.1% annual increase in Available Cargo Tonne-Kilometers (ACTKs) in April 2024. Global international air cargo capacity also saw a significant increase of +10.3% in the month of Jan 2024. In 2023, the air cargo industry faced significant challenges with collapsing market demand and rates leading to revenue declines, forcing many all-cargo carriers to scale back operations. Supply chain disruptions and capacity constraints impacted demand despite economic conditions remaining favourable for the sector. BLR Airport has actively responded to these disruptions by expanding its cargo handling capacity to accommodate the potential rise in air cargo movement. In FY ’24, BLR Cargo continued its growth momentum, with several notable achievements including: In May 2023, BLR Airport achieved a significant milestone with the successful transition of two of India’s brownfield cargo terminals. The cargo terminals are now primarily managed by Menzies Aviation (Bengaluru) Private Limited (MABPL) and WFS (Bengaluru) Pvt Ltd (WFSBPL). Additionally, a new Domestic Cargo Terminal project initiated by MABPL is underway and scheduled to be operational within the year. Air India SATS Airport Services (AISATS) has taken on the development, financing, operation, and maintenance of a new greenfield logistics park at KIAB for a 15-year period. The 370,000 sq. ft. park will offer Grade-A warehouse space with features such as cold storage and custom bonded warehouses. Furthermore, collaborations with airlines, is likely to improve cargo connectivity and attract more cargo traffic. Over the next decade, we firmly believe that Bengaluru will develop into a premier aviation hub for Southern and potentially even Central India. BLR Airport is strategically positioned to capitalise on this trend by expanding its capabilities and collaborating with industry partners.”