From domestic point of view, much of our cargo goes in the belly holds of our passenger aircraft. In May 2024, we lifted more than 34,000 tonnes. The airline is likely to have significant capacity in the next three years, says Mark Sutch, Chief Commercial Officer, CarGo, IndiGo.
CT Bureau
Tell us about IndiGo’s global freighter operations. What kind of cargo is moved to and from India?
We have three freighters in operation—Airbus 321 converted freighters. They are based between Kolkata and Mumbai, and we operate across multiple locations in India. We have one aircraft that is dedicated to South India and the Middle East. We also have two aircraft on charter basis. We are also operating from China to India and vice versa. We regularly operate between Vietnam and India. We have ad hoc operations between Bangladesh and India. We have a scheduled flight operating between Mumbai and the Middle East. Meanwhile, we are also witnessing an increase in domestic flying.
From a domestic point of view, much of our cargo—we recorded over 34,000 tonnes in May—is still proceeding in the bellies of our passenger aircraft. However, there are some who require a lift in the capacity and we are being able to fulfil that. It is quite a challenge because of the short-haul sectors. We do not do have many long-haul sectors; China is the longest so far and Hong Kong. We are doing quite a lot of Hong Kong flying as well for an individual customer. That is where we are with the freighters today.
Today, the world seeks to ship to India, how do you look at it as an investment destination?
There is a huge opportunity for the Indian-based airlines. We have enough capacity coming in. In the next three years, the airline will proceed into wide-body space with A350, which presents a greater opportunity for cargo. The challenge I see in the short-term is the imbalance between trade flows in India. For example, from China and North Asia, there is a lot of import into India, and less export. Many products, such as pharmaceuticals and perishables, are exported out of India into the West, but on the import side, it is slightly lighter. This, I think, will change from medium to long-term. Indian manufacturing is going to go up the value chain. China has been the hub of manufacturing high-value goods such as mobile phones or tablets. But you now see quite a lot of China plus one strategy where organisations are moving their manufacturing into India and a lot of that is now for Indian domestic consumption. But in the next few years, that will also be for export purposes.
“This will boost air freight. Apart from pharmaceuticals and perishables, we have quite a lot of valuable cargo and automotive parts among others. But I think that imbalance in the next five to 10 years will undergop a transformation, which will be beneficial for us. More so, for Indian-based airlines who have got wide-body belly capacity, in freighters and in belly, which I think will be the main driver.”
With the ongoing disruptions, do you think air cargo is gaining momentum?
With disruptions in the shippining lines, we have seen a big spike in air cargo. It has not benefited us, as Istanbul is our farthest point. If we were flying into Europe, that would be a great opportunity for us. In Istanbul, we have recorded a big spike because of people wanting to fly to Istanbul and then ship from there. What is happening in geopolitics is leading to this increase. Of course, it will settle down. I think, these are opportunities for cargo, not necessarily long-term; one cannot build strategies around that. You need to be building strategies around long-term development of sustainable lanes rather than just disruptions.
