Tuesday, May 16, 2006

Airlines slash cargo rates

Chennai: A sudden drop in air cargo volumes out of India combined with excess capacity has triggered a price war among the airlines.
Sources said that airlines have dropped their rates by almost 25 per cent to compete for the westbound cargo.
On the Chennai-New York sector, the current rates are about Rs 100 per kg (for a break weight of 500 kg) while in March it was about Rs 140 per kg.
The real competition comes from the Gulf carriers which operate out of India through their hubs.
The sources said that some Gulf carriers are offering rates as low as Rs 60 per kg to any point in Europe.
Air cargo volumes dropped from 9,700 tonnes out of Chennai airport in March to 7,400 tonnes in April.
The first two weeks of May have registered exports of about 2,200 tonnes, they said.
16/05/06 Business Line/Sify