Despite the pandemic, the cargo business was a silver lining for the aviation industry. It expanded the cargo business’s revenue potential in the absence of normally scheduled commercial flight operations, both domestically and internationally. According to the India Air Cargo Outlook 2023 by Trade and Transport Group, the Indian air cargo market has generated 2.2 million tonnes of traffic so far in 2023, with approximately 30per cent of that traffic generated on domestic and the remainder on international sectors. The growing e-commerce sector has undoubtedly increased competition for faster and better deliveries. The drone service market in India, which was valued at US$ 130.4 million in 2020, is expected to grow at a 44.4% CAGR to US$ 4,918.9 million by 2030.
We have seen rapid improvements in airport cargo infrastructure, digital cargo infrastructure, and the development of collaborative partnership models in which all stakeholders manage cargo multilaterally. Given the expanding road and rail infrastructure, it is also critical for all parties involved in air cargo, including consolidators, terminal operators, and airlines, to collaborate and reduce dwell time in order to prevent cargo from shifting to alternative modes. The advancement of technology resulted in the country’s long and tedious process becoming efficient, quick, and error-free.
We welcomed our first dedicated cargo aircraft in October 2022 and launched a freighter programme last year with the arrival of two A321 freighters. On November 22, 2022, we launched our first domestic A321 Freighter flight between Delhi and Mumbai, carrying 20 tonnes of general and e-commerce cargo, and our first international A321 P2F Freighter flight between Kolkata and Yangon, carrying more than 19,000 kg.
Digitization and the rapid adoption of emerging technologies will drive the future of the air cargo industry, resulting in increased efficiency, shorter dwell times, and lower total costs. Digitization would also result in the vertical integration of the entire supply chain. So, yes, India has the potential to become a global air cargo hub in the coming years.
Despite the pandemic, the cargo business was a silver lining for the aviation industry