Monday, December 18, 2006

Budget airlines to boost revenue from cargo

Mumbai: Bleeding Indian budget airlines plan to carry express cargo as they look at alternative revenue streams to boost their financials amid falling passenger fares.
Low-cost airlines such as Air Deccan, part of Deccan Aviation Ltd, SpiceJet Ltd and GoAir expect package and document shipments to make up at least 10 per cent of their revenue in their first full year of cargo operations.
GoAir recently launched cargo operations while SpiceJet hopes to start in the second half of 2007 and Air Deccan plans to lift on-board courier from February 2007.
Currently, air cargo within India is carried primarily by full service carriers Jet Airways Ltd, state-run Indian and express delivery firm Blue Dart Express Ltd. "Cargo revenue will rise substantially from next year, reaching at least a tenth of revenue," GoAir's Chief Commercial Officer Raj Halve told media.
DTDC Courier & Cargo Ltd's Chairman Subhasish Chakraborty added that only 70 per cent of the load offered is carried, with the rest delayed.
18/12/06 Reuters/Economic Times