News / Freighter operator Afcom Cargo eyes a share of India's booming airfreight market

Chennai-based Afcom Holdings is the latest budding Indian cargo airline trying to tap into the country’s booming airfreight flow, propelled in large part by ecommerce volumes. 

As Afcom Cargo, the carrier has opened a new route between Chennai and Bangkok, using one of the two converted B737-800 freighters it has on an eight-year lease. Each has a capacity of some 22 tonnes. 

“This marks a new chapter in enhancing trade connectivity and ensuring seamless cargo transit for businesses across the region,” said Afcom. 

It launched freighter operations in late 2022, after providing cargo services for a year or so through strategic arrangements with other carriers on intra-Asia routes. 

Concurrently, Afcom Cargo announced the appointment of Chennai-based Taylor Logistics (TTK Group) as its general sales and service agent (GSSA) to manage its enhanced capacity and network reach, a commercial partnership driven by the “commencement of dry-lease aircraft operations”, it said. 

The carrier estimates its monthly cargo loads will grow from the 250 tonnes it garnered as a traditional forwarder to about 1,250 tonnes as an airline with freighter capacity. 

Chairman Deepak Parasuraman told The Loadstar: “We foresee good and rising demand for air cargo, and we are fully geared up to infuse the required capacity in the market.” 

Vineet Malhotra, co-founder and director of Mumbai-based Kale Logistics Solutions, had noted the growth potential for Afcom’s new routing addition. he said: “Thailand’s reliance on India for pharmaceuticals, perishables and other high-value cargo underscores the critical need for efficient logistics solutions. With Afcom introducing exclusive cargo flights between Chennai and Bangkok, the stage is now set for faster, more reliable transportation.” 

Meanwhile, Delhi-based Pradhaan Air Express and Bangalore-based Quikjet are other home-grown all-cargo airlines betting on a promising market as the economy expands, with hi-tech manufacturing the other potential cargo source. 

Indeed, market research firm Trade Data Service’s latest report projects a bullish outlook for India’s air cargo industry, after the market performed better than the global growth average in 2024. 

“Over the next five years, we expect [Indian] cargo traffic could grow from about 3.7m tonnes today  up to 5.8m tonnes, or about 6%-9% a year,” the analyst said. 

TDS also believes international air cargo volumes out of Indian airports, which account for about two-thirds of the overall market, could grow faster than domestic shipments, a takeaway that has the potential to draw in more global carrier capacity. 

“The Indian international air cargo market outperformed both the global and Asia Pacific average and was on track for around 19% growth in 2024,” it said. 

According to its analysis, the three main Gulf carriers, Emirates, Qatar Airways and Etihad, continue to lead the Indian market share, even though widebody fleet expansion by domestic players Air India and IndiGo could reconfigure that network playbook, longer term. 

Other international players, such as Lufthansa Cargo, have also ramped up Indian services. 

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