Air Cargo - India - Sample


Published on

One of the major segments of the aviation industry is the air cargo segment. The growth in international trade coupled with strong domestic demand for goods has boosted the market. The current scenario has shifted the focus of players in the aviation sector from passenger traffic towards developing their air cargo operations in order to capitalize on the opportunities in the market. Many new entrants have been seen as they take cue for the high profits accumulated by dedicated air cargo carriers over the years.

The report begins with an overview of the industry indicating market size, growth, and domestic and international air cargo traffic figures. The international air trading partners, by region, has been highlighted based on the major goods imported and exported. The report highlights the various domestic and international terminals in India for air cargo and the facilities available at each of these terminals.

An analysis of drivers explains factors contributing to the huge potential based on strong macroeconomic fundamentals, growth in retail, developing transportation system and growth in clearing and forwarding agents. The key challenges identified include rising air traffic fuel (ATF) prices, growing congestion at airports and delays in cargo handling & clearance. The report covers the initiatives taken by the government towards the development of the air cargo segment including changing FDI policy to attract investors, introduction of the Open Sky policy, various bi-lateral agreements and large scale investment to develop infrastructural capabilities.
Competition section profiles the major players in the market. The section contains a snapshot of their corporation, financial performance and business highlights, providing an insight into the existing competitive scenario.

Published in: Business, Travel
  • Be the first to comment

Air Cargo - India - Sample

  1. 1. Air Cargo - India July 2009
  2. 2. Executive Summary Market valued at INR X bn in 2007-08; Expected to grow at x% p.a. Cargo transported is dominated by pharma, textiles fashion goods, telecom, IT hardware, gems Market and machinery parts x % of all cargo is transported as belly cargo in domestic airlines LE International operations expected to grow at x% p.a. while domestic operations expected to P grow at x% p.a. by 2011-12 Drivers & Challenges Drivers – – – – AM Strong macroeconomic fundamentals S Growth in retail Development of transportation system Growth in clearing and forwarding agents Challenges – Rising air traffic fuel (ATF) prices – Growing congestion at airports – Delays in cargo handling & clearance Changing FDI policy to attract investors Government Introduction of the Open Sky policy Initiatives Various bi-lateral agreements Large scale investment to develop infrastructural capabilities Many domestic and international players have entered the market in order to capitalize on the growing opportunities Competition Domestic Players AA BB CC DD International Players UU VV WW XX AIR CARGO – INDIA.PPT 2
  3. 3. •Introduction •Market Overview •Drivers & Challenges •Government Initiatives •Competition •Key Developments AIR CARGO – INDIA.PPT 3
  4. 4. Air cargo traffic in India has been growing due to strong domestic demand and rising international trade Overview Market Size and Growth •Air cargo market is estimated to grow at x% p.a. and reach INR X bn by 2011-12 INR bn •Largely dominated by pharmaceuticals, textiles 150 x% Z LE Y fashion goods, telecom (like mobiles), IT X 100 P hardware, gems and machinery parts which are W V time critical 50 domestic airlines S M •x % of all cargo is transported as belly cargo in A Growth Rate of Modes of Transportation 0 2007-08 Cargo Traffic 08-09e 09-10e 10-11e 11-12e ‘000 tonnes Air – Import Cargo x% Domestic 2,000 International G F Ports (cargo) y% 1,500 E D B C Railway (freight) z% Air cargo observed 1,000 A the highest growth Air – Export Cargo v% in the cargo 500 transportation sector (2007-08) 0 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 Source: AIR CARGO – INDIA.PPT 4
  5. 5. Cargo Terminals: International Location: Chennai Overview Cargo Traffic Established Feb 1, 19-- Export LE Area x sq. m. Import ‘000 MT P Export Wing 300 +13% G H F M Covered Area X sq. m. 200 E D C A Build up Stations x manual A B 100 Cargo Apron Capacity Import Wing Covered Area x sq. m. S x wide bodied aircrafts with ULD parking area, hydrant refueling set-up 0 2001-02 02-03 03-04 04-05 Infrastructure and Developments 05-06 06-07 07-08 08-09 Perishable Cargo Facility • x airport terminals with one dedicated to cargo flights; equipped with modern cargo handlers such as Total Area x sq. m. forklifts and power hydraulic pallet trucks. o o Cold Chambers X sq. m. each, 0 -4 C • A new Integrated Cargo Terminal o o This is being planned and is expected to span over x sq. m. Examination: x sq. m., 12 -18 C and Phase 1 has been commissioned Other Sections Work Station: x sq. m.,7 ton capacity o o Receiving Area: x sq. m., 15 -18 C • Expansion of the airport is expected and is going to be constructed in Sriperumbudur taluk at an investment of INR X bn Source: AIR CARGO – INDIA.PPT 5
  6. 6. Drivers and challenges Challenges Drivers Rising Air Traffic Fuel (ATF) Prices Strong Macroeconomic Fundamentals Growing Congestion at Airports Growth in Retail Delays in Cargo Handling & Clearance Development of Transportation System Growth in Clearing and Forwarding Agents AIR CARGO – INDIA.PPT 6
  7. 7. Government has taken various measures towards developing this segment by introducing major changes in the FDI policy Sector Policy Cargo and Non- • Hiked to x% FDI from the initial permissible rate of y% scheduled Airlines Greenfield Airports • FDI up to x % is permitted through automatic approvals FDI Policy • FDI up to x % is permitted through automatic approvals and up Existing Airports to y% with special permission from FIPB • x% FDI is allowed in domestic airlines under the automatic route (but not by foreign airline companies) Domestic Airlines • y% equity ownership by Non-Resident Indians (NRIs) is permissible • x% FDI in maintenance, repair and overhaul (MRO) organizations, flying training institutes (FTIs) and helicopter Others services • y% tax exemption for airport projects for a period of X years in order to attract investors SAMPLE Source: AIR CARGO – INDIA.PPT 7
  8. 8. Domestic Players (1/10) Company Snapshot: ABC Ltd Corporate Information Financial Performance Headquarters New Delhi LE Revenue Revenue Profit Founded 19-- INR mn Profit / Loss INR mn P Fleet Size X 30,000 0 0 Parent ABC X Y Subsidiaries Key People N.A. •Mr.-- (Founder) SAM •Mr. -- (Owner, Jet Airways) •Mr. -- (CEO) 20,000 10,000 0 Z -2,000 -4,000 -6,000 2005-06 06-07 07-08 Business Highlights Operational Performance • It expanded its operations by introducing new daily Average Weight Load Factor flights between Delhi-Srinagar via Jammu and Tonnes/day Cargo Carried % Mumbai-Srinagar 70 D 80 60 C E F • Plans on introducing flights between Dubai-Nagpur as 50 B 60 Nagpur is expected to become a major logistic hub in 40 A G 40 India 30 • Cargo carried ranges from carriage of various 20 20 10 perishables, household pets, life saving drugs, 0 0 valuables and general goods 2001-02 02-03 03-04 04-05 05-06 06-07 07-08 Source: AIR CARGO – INDIA.PPT 8
  9. 9. Thank you for the attention The Air Cargo – India report is a part of Netscribes’ Aviation Industry Series. For more detailed information or customized research requirements please contact: Gagan Uppal Gaurav Kumar Phone: +91 22 4098 7530 Phone: +91 33 4064 6214 E-Mail: E-Mail: Research on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick insights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries on About Netscribes Netscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growth objectives. Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. AIR CARGO – INDIA.PPT 9