Aviation holds a small share of India’s freight market with air freight being very expensive in comparison to road and rail. There are not many cargo airlines, few attempts on this front have failed to take off. Air Cargo in India: Post the ‘Open Sky Policy’ The demand for services, especially air cargo, is growing with the domestic air cargo traffic. However India still accounts for meager 3% of the size of the world air cargo market which is estimated at 27 million tons valued at $200 billion. The aviation logistics in the country is beset with numerous bottlenecks. Inadequate infrastructure is one of the major problems faced by the sector. India’s air traffic is highly concentrated at a few airports with most of the second tier cities being ignored or having negligible facilities. Another major issue is the poor cargo handling facilities at airports across the country. Other issues like constrictions in inter-State movement of goods, the impeded movement of air cargo between second tier cities and gateway airports and scale of operations add to the woes, leading to lower cost efficiencies. The driver for growth in air cargo will be the demand and the enabler will be infrastructure. Infrastructure development and planning and distribution can prevent many of the bottlenecks faced by domestic air cargo industry. A growth in the volume would attract larger investments. The government can help by increasing the capacity of the airports in tier-II and tier-III cities and simplifying the processes with electronic data interchange (EDI), which would ease the paper work and speed up the transactions. Steps need to be taken to improve cargo handling facilities at all airports. - See more at: blog.gatikwe/2013/06/air-cargo-in-india-post-the-open-sky-policy/#sthash.EMg4mhMt.dpuf
Posted on: Tue, 18 Jun 2013 06:09:19 +0000
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