News / Air India widens transhipment station network to target cargo market share

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Tata Group-owned Air India is cementing its cargo operations out of India to take advantage of the buoyant market outlook.

The carrier has opened a clutch of new bonded transhipment service locations in smaller cities, boosting its reach,.

The latest from Pune to Kuwait, takes its domestic transhipment station network to 12.

“This signifies Air India Cargo’s entry into international business from Pune, further cementing its position as a key player in the global air cargo industry,” said the airline, now in the midst of a makeover by the new owner.

“It enables seamless cargo movement into Mumbai and Delhi, while also enhancing connectivity to Europe and the US,” it added.

Air India believes that, with Pune as a hub for international transhipment, it has the potential to drive opportunities in air cargo logistics. According to industry sources, the carrier plans to aggregate cargo at Pune and connect loads over daily direct flights out of Mumbai.

Pune, about 150km from Mumbai City, is a major industrial belt, with automotive verticals leading the market, and the move is aimed at targeting cargo sources further in the interior, as competition for market share heightens.

Air India told The Loadstar its new strategies to grab a larger share of air cargo trade included a bonded trucking solution to aggregate cargo from interior locations for connections out of its busiest cargo hub at Delhi and venturing into a specialised temperature-controlled service for the domestic pharmaceutical industry.

Tata last year inked deals to acquire some 470 Airbus and Boeing aircraft, with Air India expected to get six A350s by June.

Vineet Malhotra, co-founder and director of Mumbai-based Kale Logistics Solutions, told The Loadstar Air India was capitalising on the robust growth trajectory of the country’s air cargo sector after the rapid expansion in manufacturing and e-commerce activities.

“This pioneering approach not only benefits Air India, but also presents an opportunity for other airlines to explore similar strategies, consolidating cargo flows from diverse cities to major airports with extensive international connectivity,” he added.

Mahesh Fogla, executive director at Mumbai-based 3PL Patel Integrated Logistics, added: “The government has also shown interest in air cargo and pledged to expand airport infrastructure, thus promoting the growth of the industry and allowing for faster movement of goods.”

And the sector is set to see more belly capacity as airlines expand their fleets and more charter space providers enter the market.

UK carrier Virgin Atlantic has just announced plans for more direct services to India, one connecting Bengaluru starting this month and another to Mumbai from October. With five daily services, the carrier claims it will be able to offer more than 40 million kg of space in and out of India.

In addition to direct long-haul offerings, Virgin Atlantic has a strategic code-share partnership with India’s largest private airline IndiGo. And IndiGo has already indicated ambitious plans to boost its freight arm, CarGo, with a fourth freighter expected to join its fleet shortly.

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