facilitating trade through air cargo - acaai...

A sneak peek into Air Cargo India 2016 which opens on February 23

Preview

12 16 For Air France-KLM Martinair Cargo India is still a bright spot

Focus Airline

18 Hyderabad international airport is aiming to become the logistics hub in India

Focus AirPort

Facilitating trade through air cargo

Voice of Indian Air Cargo Industry

Vo l 7 - I ssue 1 | JAN - MAR 2016

ww

w.a

caai

new

s.co

m

•MaritimeTradeLanes•Ports•ShippingLines•Shipbuilding&ShipRepair•CoastGuard•ManpowerTraining•CruiseTourism•InlandWaterways•PortEquipments•ITSolutionProviders&manyothers

aStrongMaritiMe nation20 21 22 Sept 2016International Convention Centre, Navi Mumbai

[email protected]

REbuILdInG

For bookings contact

A major event titled “Make in India

Week” is currently taking place

in Mumbai. This event is being

attended by our Honourable Prime

Minister, Honourable Chief Minister

of Maharashtra, senior Ministers of

the Union and State Governments,

Government officials, investors from

India and overseas, dignitaries, etc.

This is a landmark event which aims to

promote and give a thrust to “Make in

India”, which is one of the most path-

breaking initiatives of the Government

in the history of independent India. This

programme is likely to propel India into

the league of the major export-oriented

economies of the world.

ACAAI has recently held its 42nd annual

Convention for 2015 at Ho Chi Minh

City, Vietnam, in December 2015.

The theme of the Convention

was “Make In India – Local Is Now

Global”. This event was attended by

a large number of ACAAI members

and invited dignitaries, including

Her Excellency, Smt. Preeti Saran,

Ambassador of India to Vietnam,

and Her Excellency, Smt. Smita Pant,

Consul General of India in Ho Chi Minh

City. The keynote address

was delivered by

an eminent

economist, Dr. N. R. Bhanumurthy,

Professor, National Institute of Public

Finance and Policy, New Delhi, who has

authored several books and numerous

research papers. In her address, the

Honourable Ambassador spoke at length

about the importance of Vietnam to

India, and the prospects for bilateral

trade and commerce between the

two countries. The business sessions

had topics which focused on the

theme of the convention. Eminent

speakers from the air freight industry,

Custodians, Consultants, etc. addressed

the delegates. Meaningful deliberations

and interaction took place during these

sessions, and follow-up action will be

taken on the relevant issues which have

emanated through this process.

There are a number of issues of concern

to the airfreight industry which are

being actively pursued by ACAAI. These

include taxation issues, bank guarantees,

security declarations, etc. These issues

have a major impact on the day to day

operations of ACAAI members, and high

priority is being accorded to satisfactory

resolution of these concerns. All these

matters have been taken up with the

concerned authorities and organizations

in an endeavor to achieve the desired

results. It is hoped that our efforts will

lead to a favorable outcome in the near

future.

Hemant Bhatia President

Air Cargo Agents Association of India

(ACAAI)

FroM tHe PresIdent's desK

The air cargo industry in India

is on the cusp of a period

of immense possibilities

in the coming days. The

various initiatives of the

Union Government, such as “Make in

India”, “Ease of doing Business”, etc. are

an indication of the determination of

the government to make our country

a major player in global markets.

In order to attract investments and

promote trade and exports, a host of

rules, regulations and procedures are

being either revamped or abolished to

facilitate modernisation in these areas.

Our industry is bound to benefit from this

process.

Immense possibilities for

Indian air cargo

Contents

Cover Story Facilitating trade through air cargoHeld in Ho Chi Minh City in Vietnam, the 42nd annual convention of the Air Cargo Agents Association of India reiterates and strengthens India’s trade potential with Vietnam and how air cargo fulfills it.

The most popular and the best networked global air cargo industry exhibition cum conference, AIR CARGO INDIA, will open its sixth edition in Mumbai on February 23 at a new venue. Discover how air cargo makes many things happen in human life.

Previewall set For take oFF12

VOL 7 - ISSUE 1 • JAN - MAR 2016

ForeCaStWhat’s in store For indian air cargo industry

What’s in store for Indian air cargo industry? Indian air cargo industry stakeholders share their thoughts on what to expect in the year ahead.

1 1

3

THE OFFICIAL MAGAZINE OFAIR CARGO AGENTS ASSOCIATION OF INDIA

(ACAAI)

ACAAI OFFICE BEARERS

PRESIDENTHemant Bhatia

VICE PRESIDENTT A Varghese

SECRETaRy gENERalSunil Arora

TREaSURERPraveen Menon

EDITORReji John

[email protected]

SPECIal CORRESPONDENTSJasleen Kaur

[email protected]

Lionel Alva [email protected]

MaRKETINgVikas Khadtale

[email protected] Mobile: +91 9820397514

DESIgN CONSUlTaNTPrasad Mohite

gRaPHIC DESIgNERRajesh Natrajan

DISCLAIMERViews expressed in the magazine

are not of aCaaI

EDITORIAL & ADMIN. OFFICE710, Vindhya Commercial Complex,

Sector 11, CBD Belapur, Navi Mumbai - 400 614 INDIa

Email: editorial@ acaainews.com [email protected]

www.acaainews.com

Printed by lingam Fine arts C-221, ghatkopar Industrial Estate

Behind R City Mall, ghatkopar (West) Mumbai – 400086 – INDIa

Published by Priyo Patra on behalf of STaT MEDIa gROUP

from 710, Vindya Commercial Complex Sector – 11, CBD Belapur

Navi Mumbai – 400614 – India

Ph No: 022 27578891 / 022 27570550

Editor: REJI JOHN

a STAT MEDIA GROUP venture

GueSt Columnthe logistics oF keeping FloWers Fresh

With more than 100 million stems shipped, flowers may be the most-loved cargo in the cold-chain logistics process. Domingo Mendez of UPS writes about flower logistics during peak seasons.

15

SPeCial rePortlive animals by air: sloW groWth in india

Transportation of live animals by air is still negligible in India, largely because of inadequate infrastructure and complicated documentary requirement. For this sector to grow in volume and value there has to be a more calculated approach by airlines and airports.

airline FoCuSups and doWns oF air France

Air France KLM cargo is under pressure globally and has a plan to scale back its fleet by June 2016. However, its India operations are doing well.

Rajiv Gandhi International Airport in Hyderabad has been seen as an airport that records rapid growth and delivers enviable performance. The airport is just one step away from making itself into the logistics hub of India.

16 airPort FoCuSaimed at becoming logistics hub in india18

24 IndIa to be thIrd largest avIatIon market by 2026India is likely to be the third largest aviation market in the world, displacing the UK, by 2026, according to a forecast according to a forecast by global airlines grouping International Air Transport Association.

25 ChangI team InspeCts ahmedabad aIrport market by 2026Changi Airport officials recently visited the Sardar Vallabhbhai International airport for an inspection.

27 sharjah InternatIonal aIrport handles 10 mIllIon passengers In 2015Sharjah International Airport has handled 10.039 million passengers in 2015, representing a 5.5 percent annual increase compared to the previous year.

neWs

JAN - MAR 2016 | www.acaainews.com4

CoVer storY | ACAAI ConventIon

Facilitating trade through

Air Cargo

(From the left) Praveen Menon, Treasurer, ACAAI; N R Bhanumurthy, Professor, National Institute of Public Finance; T A Varghese, Vice President, ACAAI; and Hemant Bhatia, President, ACAAI

JAN - MAR 2016| www.acaainews.com 5

ACAAI News BureAu

Held in Ho Chi Minh City in Vietnam, the 42nd annual convention of the Air Cargo Agents Association of India, themed “Make in India - Local is now global”, inspired by the ambitious ‘Make in India’ initiative of the Government of India, reiterated and strengthened the country’s trade potential with Vietnam and how air cargo gears up to fulfill that vision.

ARE YOU LOOKING FOR AN HONEST SERVICE PROVIDER?

Why try Air Menzies International?� 100% GUARANTEED NEUTRALITY SINCE 1976

– el iminates customer poaching

� ONLY NEUTRAL FORWARDER IN INDIA with network of own worldwide off ices

� HONEST SERVICE WITH CLARITY OF PRICING

� LOCAL PAYMENT SAVES YOU ON FOREIGN BANK CHARGES

Cargo – Air Imports to all Indian airports – Ex-works or FOB� DOOR TO AIRPORT SERVICE from most worldwide location using our own off ices

� AIRPORT TO AIRPORT SERVICE consigned directly to you or via our consolidation

Courier – Air Imports

� DOOR TO DOOR SERVICE from UK and USA to India

� HIGHLY COMPETITIVE PRICING and fast service on shipment

� IMPORTS�

Air Exports – Services� DDU / DDP SERVICES to most worldwide destinations using our own off ices

� CHARGES COLLECT SERVICE AVAILABLE

� �exPORTS

Please contact us for more details –

[email protected] 022 6152 0403

NETWORK PARTNERS

AMI LOCATIONS

CHICAGO

ATLANTA

NEW YORK

AMSTERDAM

FRANKFURT

DALLAS

LOS ANGELES

MANCHESTERLONDON LGW / LHR

GUANGZHOU

SHANGHAI

CHENGDU

MUMBAI

DARWIN

PERTH

MELBOURNE

CHRISTCHURCH

SYDNEY

BRISBANE

AUCKLAND

CAPETOWN

JOHANNESBURG

DURBAN

MIAMI

HOUSTON

SAN FRANCISCO

DELHI

CHENNAI

BANGALORE

AMI HONG KONG


Held in Ho Chi Minh

City in Vietnam, the

Air Cargo Agents

Association of India's

(ACAAI) 42nd annual conven-

tion focussed on the challenges

associated with the Indian

Prime Minister’s initiative ‘Make

in India’. With more than 250

people and around 180 reg-

istered delegates, the discus-

sions and deliberations moved

around the theme ‘Make in

India - Local Is Now Global’. The

agenda was to tell the world

that all that is made in India has

the potential to become global.

The promise is that the ser-

vices offered match world class

standards. The convention was

opened by Preeti Saran, Ambas-

sador of India to Vietnam. Also

present on the occasion was

Smita Pant, Consul General of

India along with the members

of the Indian embassy.

Vietnam is a growing

economy. It has come up with

sound infrastructure in such a

short time. The rapid growth

of Vietnam’s export-oriented

manufacturing sector has

boosted demand for logistics

services. Hence the choice of

venue for the convention was

perfect and timely. However,

many at the convention were

of the opinion that before the

Indian Government-backed ini-

tiative takes off in earnest, the

air freight sector has to counter

challenges at hand. These,

of course, include the most

important issue of infrastructure

along with skill development,

regulations, procedures, and

mindsets.

Huned Gandhi, MD, Dachser

India, talked about processes

versus global benchmarking

at the convention. “Reduce

transit bottlenecks and prepare

for good distribution practices

(GDP),” said Gandhi.

The focus of the convention

was on all that is made in India

matches international standards

and on encouraging bilateral

“India’s bilateral trade has already crossed the target and achieved $9billion and the target has been revised to be at $15billion by 2020. We (India) are forging economic and political partnership with Vietnam.”

Preeti Saran Ambassador of India to Vietnam

relations. Vietnam is one of the

fastest growing economies.

Interestingly, a quarter of Viet-

nam’s trade by value is shipped

by air, and according to indus-

try estimates the country is to

be the world’s fastest-growing

air cargo market over the next

three years, expanding at 6.6

percent a year.

But the heavy reliance on

regional connections and its

lack of adequate airport infra-

structure are putting the brakes

on the emerging Southeast

Asian powerhouse. Routes

within Asia dominate Vietnam’s

air cargo market, with limited

direct connectivity to Europe

and Australia, and no non-stop

North America connections.

The Vietnam government

has also announced plans to

open some airports to foreign

investment and management,

as well as to privatize the Air-

ports Corporation of Vietnam.

Vietnam has been a signifi-

cant benefactor of a manufac-


(From the left) Sanjiv Edward, Chairman, TIACA; Manoj Singh, VP & Head of Cargo & Express, GVK MIAL; Keshav Tanna, Past President & Member, Board of Advisors, ACAAI; Keku Gazder, Regional Director, Indian Sub-Continent, Saudia Cargo; and Sahil Mehta, CEO, Sovika Aviation

turing shift out of China, and

companies such as Intel, LG

Electronics, Nokia, and Sam-

sung have established produc-

tion facilities in the country.

It has been reported that by

2015, more than 40 percent of

Samsung’s smart phones will be

produced in Vietnam.

The convention came at an

appropriate time. While on one

hand, air cargo growth remains

stymied, putting stakeholders

under immense pressure, on

the other hand opportunities

are opening up or are in the

process of opening up with

Prime Minister Modi’s ambitious

‘Make in India’ move.

It is this move that ACAAI

wants to get next to and

expand; hence, the theme for

the convention is ‘Make in

India - Local is now global.’

The ‘Make in India’ initiative

has the potential to transform

Indian business and industry

into global enterprises. For its

part, the government of India

is keen to ensure that the

processes required to kick start

this initiative are in place. To

begin with, the challenges–and

indeed, there are many, starting

with a change in regulations

and development of proper

infrastructure to simplifying the

rules for doing business–have to

be overcome.

ACAAI understands that to

ensure the success of the ‘Make

in India’ initiative, what is of

utmost importance is a national

logistics strategy that will help

in the transformation of the

country into a global manufac-

turing hub.

Preeti Saran, while address-

ing the gathering said India

have an old historical strategic

partnership with Vietnam.

“Vietnam’s growth predicted

“Micromax is investing Rs 300 crore under ‘Make in India’ campaign. We will manufacture 500 million phones and provide 15 lakh plus employment by 2020."

Jatinder PanJwani Micromax Informatics

“E-commerce will be the highest growth segment in the cargo industry. Speed to delivery is extremely critical to e-retail industry.”

PradeeP Kumar Jet Airways Cargo

to be 6.4 percent. Vietnam

continues to enjoy confidence

of many global economies and

have recently signed many

economic partnerships,” Saran

said. “India’s bilateral trade

has already crossed the target

and achieved $9billion and

the target has been revised to

be at $15billion by 2020. We

(India) are forging economic

and political partnership with

Vietnam,” she added.

One of the important topics

of discussion was around the

rapidly growing eCommerce

sector across the world, but

particularly in the Asia re-

gion. Pradeep Kumar, SVP, Jet

Airways Cargo delved on the

rapidly evolving eCommerce

section. “It’s going to be the

(From the left) Sunil Arora, Chairman, ACAAI Convention; Huned Gandhi, Managing Director, Dachser India; Pradeep Kumar, Senior Vice President, Jet Airways Cargo; S L Sharma, Immediate Past President, ACAAI; and K Vaitheeswaran, Advocate and Tax Consultant

OCT - DEC 2015 | www.acaainews.com10

highest growth segment in

the cargo industry. Speed to

delivery is extremely critical to

e-retail industry,” said Kumar.

S L Sharma, Member, Board

of Advisors, ACAAI and Im-

mediate Past President of the

Association sought clarity and

direction from the Ministry of

Civil Aviation of a variety of

proposal and recommendations

made by the industry asso-

ciation to the ministry. Sharma

said that ACAAI supported the

government’s keenness to

establish manufacturing hubs

and to set up air freight stations

(AFS) under the ‘Make in India’

programme.

“Indian government is very

keen to make the air cargo

industry attain high standards

which will improve the growth

of various products. “There is

also the need to transform the

country into a global hub since

efficient logistics do not just

reduce transportation costs, but

help in decreasing the overall

production costs. “The modali-

ties, processes, and evaluation

of bringing improvement and

growth in our industry that de-

mand immediate attention will

be deliberated and interacted

during the convention,” said

Sharma. Overall, he said, the

steps towards ‘ease in doing

business’ have to come in so

that “we are able to compete in

the global market.

According to him the

much needed priority is the

tax reforms and secondly the

development of highway corri-

dors that will reduce transaction

costs. Sharma also insisted that

the Ministries of Finance, Com-

merce and Civil Aviation should

promptly take up the issues

raised by ACAAI and ensure the

implementation of their deci-

sions within a timeframe.

Kapil Kaul, CEO, South Asia

for CAPA was in line with the

demands of many others at

the convention. Kaul said

massive focus on job creation

is very urgent and removing

all barriers is too important

for a long term and sustain-

able development. “Make in

India without connectivity and

integrating with international

trade is not possible. Air cargo

industry required critical at-

tention of the central govern-

ment; MoCA needs to lead the

industry, said Kaul.

In one of the sessions the

deliberations were on “Make

in India: New logistics arena,

evolving customer mandates”.

Speaking at the panel discus-

sion Jatinder Panjwani, VP,

Logistics, "Micromax Informat-

ics said Micromax is investing

Rs 300cr under ‘Make in India’

campaign. “We will manufac-

ture 500million phones and

provide 15 lakh plus employ-

ment by 2020,” said Panjwani.

Other key speakers at the

convention included Sanjiv Ed-

vard, Chairman of TIACA; Manoj

Singh, VP, Cargo, GVK MIAL; Keku

Gazder, regional director, Indian

sub continent, Saudia Cargo; and

Sahil Mehta, CEO, Sovika Avia-

tion; Shankar Iyer of SwissWorld

Cargo, Prithviraj Singh of Group

Concorde, Ramesh Mamidala of

Celebi and Sam Katgara of Jeena

& Company.

The industry stakeholders

spent considerable effort to

identify the latest trends in air

cargo industry. It is said that other

commodities that air cargo

industry should be looking at are

readymade garments, computer

chips and semi conductors. The

trend today is that manufacturers

are not building inventory and

they want aircrafts to be

warehouses; collapsing the

traditional concept of keeping

inventory at warehouses.

“Make in India without connectivity and integrating with international trade is not possible. Air cargo industry required critical attention of the central government; MoCA needs to lead the industry.”

KaPil Kaul Capa

“Reduce transit bottlenecks and prepare for good distribution practices (GDP). We need to benchmark global practices.”

Huned GandHi Dachser India



ForeCAst | AIr CArgo 2016

Two highlights of the Indian air cargo industry for the year 2015 were the rapid growth of the domestic eCommerce sector that offered huge opportunities for express logistics sector and the potential value of the government of India-led ‘Make in India’ campaign that intends to make India a world-class manufac-turing hub. The Ministry of Civil Aviation has been reiterating the fact that air cargo is crucial to India and the sector has been recording tremendous growth. However, there are several challenges both in terms of regulatory framework and infrastructure. We ask industry leaders of what they expect in the year ahead.

What’s in store for Indian air cargo industry

SanJiv edwardHead of Cargo Business, DIAL

ricHard tHeKnatHJet Freight Logistics

Sameer J SHaHDirector, JBS Group

cyruS KatGaraPartner, Jeena & Co

S l SHarmaFounder, Skyways Group

eCommerce and Make in India are big

opportunities and air cargo industry is

moving fast to build the right capabilities

and capacity. India’s eCommerce business

though growing fast on a small base is

way far behind Chinese eC0mmerce busi-

ness. While certain higher costs due to in-

frastructure inefficiencies can be absorbed

in bulk movements where logistics costs

are relatively smaller to total value of the

goods produced by much cheaper.

Looking at the air cargo sector in 2016, the

only thing that comes to mind is Make in

India, an initiative where we have already

seen some major players making commit-

ments in aviation, retail and other industries

but this needs to be matched with reduced

cost in logistics, efficient and reliable technol-

ogy, with minimum human interaction and

paperwork. Make in India campaign will cer-

tainly lead to an increase in manufacturing

in India which will create a great opportunity

for the logistics sector.

Make in India is going to be a big boost

to the air cargo sector. Airports will play

a major role in making this happen.

Hence, adequate infrastructure has to

be available at airports and also the road

infrastructure should be developed to

make logistics fast and efficient. eCom-

merce is expected to grow significantly

and with a rapid rate making it neces-

sary for airport infrastructure to be ready

to address this demand.

I see more airlines increasing

capacity and a fight for the

size of the pie that remains

the same. eCommerce

definitely has a bright future

in India, but payments are

a concern. It is too early for

Make in India to bloom. The

government is making it very

difficult for us to survive with

all the various kinds of taxes.

I am hoping for simplicity in

tax policies. I plan to expand

in tier-2 cities as we are al-

ready in most tier-1 cities.

There will be a significant

increase in the movement of

capital goods, raw materials

and finished goods. It will

also create a demand for

domestic and international

transportation, warehousing

and distribution. GST (goods

& services tax) will also play a

key role in the expansion of

the logistics sector in India.

3PL in India is still in its nascent

stage and holds phenomenal

growth opportunities that can

be unlocked.


PreVIew | ACI 2016

TAKEOFFAll SET FOR

The most popular and the best networked global air cargo industry exhibition cum conference, AIR CARGO INDIA, will open its sixth edition in Mumbai on February 23 at a new venue. Discover how air cargo makes many things happen in human life.

Indian Prime Minister Narendra

Modi in his message to the

organisers of AIR CARGO

INDIA wrote: “The air freight

sector has a key role to play

in the success of the ‘Make in

India’ initiative.” “I hope that the

deliberations and exchanges

shall lead to productive

outcomes,” Modi added.

Themed around “Make

in India – air cargo makes it

happen”, the sixth edition of

the popular biennial global

air cargo industry exhibition

cum conference AIR CARGO

INDIA will open in Mumbai on

February 23. Unlike its previous

editions, the international air

cargo event, organised by

The STAT Trade Times, the

flagship publication from the

multimodal transport media

specialist STAT Media Group,

will take place at a new venue

in Grand Hyatt in Mumbai from

23 to 25 of February, 2016.

The ‘Make in India’

campaign announced by

the Prime Minister of India

has caught the attention and

imagination of the trade and

businesses within the country

and outside. The campaign,

designed to facilitate

investment, foster innovation

and build best-in-class

manufacturing infrastructure,

has already attracted the

attention of global companies

and got commitments from

some of them either to increase

the existing facilities or to set

up new manufacturing bases

within India. For the ‘Make in

India’ initiative to be successful

the logistics sector of India,

particularly air logistics, is so

crucial and the air cargo sector

is going to play a vital role in

making it happen.

India is a key aviation market

and its potential for manifold

growth is supported by policy

reforms like privatisation of

airports and foreign investment

in airport infrastructure around

the country. According to the

International Air Transport

Association (IATA) India is the

second fastest growing air

cargo market in the world.

The IATA Industry Forecast for

2014-2018 also predicts India

“The air freight sector has a key role to play in the success of the ‘Make in India’ initiative.” I hope that the deliberations and exchanges shall lead to productive outcomes.”

narendra modi Prime Minister, India

to be among the ten largest

international freight markets by

2018 and it is expected to grow

at a compound annual growth

rate (CAGR) of about seven

percent over the next five years.

“The air cargo industry

plays an important role in the

development and growth of

any country. It has contributed

a lot in the Indian economy

as a result of which India is

considered to be the second

fastest growing air cargo

market,” wrote P Ashok

Gajapathi Raju, India’s Minister

for Civil Aviation, in his message

to the event organiser.

The three day event

has already attracted huge

interest among the global

air cargo community. Major

airports, airlines and service

providers have booked their

space at the AIR CARGO INDIA

exhibition to showcase their

products and services. They

include Etihad Cargo, Emirates

SkyCargo, Saudia Cargo, Kenya

Airways Cargo, Ethiopian

Cargo, MasKargo, Cargolux,

Oman air, Skyteam Cargo,

Turkish Cargo, Brussels Airport,

Sharjah International Airport,

GMR Hyderabad International

Airport, Airport Authority

of India, Frankfurt Airport,

Chapman Freeborn, Celebi, Fast

Logistics and many others.

AIR CARGO INDIA will

feature the best of the global

air cargo industry under one

roof reiterating the fact of air

cargo’s value proposition in

the modern age of disruptive

technology and innovation.

The event will also demonstrate

how different stakeholders

are creating product and

services to suit rapidly evolving

customer demands. Along

with the exhibition, the event

will see a galaxy of best minds

and resources participating in

a three-day conference sharing

the latest and modern business

ideas that will help air freight

industry to optimise your

resources using cutting edge

cost efficient solutions.

Leadership round tables

and panel discussions are

on a variety of subject that

matter to the air cargo industry.

They include: delivering the

‘Make in India’ vision to the

world the air cargo way; India

as a global air cargo force

potential and pitfalls; freight

forwarding evolving paradigms

and embracing global best

practices; India as world’s

pharma export hub global

perspective from pharma

shippers.

As always, AIR CARGO INDIA

goes the extra mile and does

its best to bring the shipper to

the heart of every conversation.

Therefore, on the first day

Brussels Airport will host the

Pharma Air Shippers Forum

for logistics and supply chain

heads of leading pharmaceutical


PreVIew | ACI 2016

manufacturing companies,

pharma exporters, specialist

forwarders, airports, airlines,

handlers, truckers, cold chain

experts, pharma logisticians,

drug controllers and government

regulators. The objective of the

forum is to bring together the

Indian pharmaceutical exporters

and offer them a platform to

discuss and analyse various

segments of the air logistics

industry thereby addressing

key areas of challenges and

opportunities in the pharma

export and supply chain.

“For several years now, we

are investing a lot of our time

and energy in bridging the

pharmaceutical industry and

the air cargo industry. There is

still not enough understanding

between both, resulting in

unhappy customers and

suboptimal supply chains. In

Europe we managed to take

big steps forwards and we are

convinced we can make this

event in India a huge success

for all shippers and players in

the air cargo industry,” said

3,200 sqm

7

3 30+

32

70+ 400+Specially built exhibition hangar at Grant Hyatt Ground

In-depth panel discussions

Fun filled networking evenings

Expert Speakers

Categories of awards

Exhibitors Air cargo professionals

“The air cargo industry plays an important role in the development and growth of any country. It has contributed a lot in the Indian economy as a result of which India is considered to be the second fastest growing air cargo market.”

aSHoK GaJaPatHi raJu Minister, Civil Aviation, India

Steven Polmans, Head of Cargo,

Brussels Airport.

Similarly on the second day,

Frankfurt Airport will host the

Air Shippers Forum bringing

together air shippers from

the automotive and apparel

industries.

For the first time, AIR

CARGO INDIA will feature a

session on the rapidly growing

e-commerce/e-retail industry

particularly focusing on

the logistics aspect. Titled,

“e-Commerce: delivering the

future” the panel will include

speakers from e-commerce

companies, logistics service

providers both the traditional

and startup, airports and

airlines.

Etihad Cargo and GVK

Chhatrapati Shivaji International

Airport Mumbai are the key

supports of the event as

diamond and platinum

sponsors respectively. GMR

Rajiv Gandhi International

Airport Hyderabad and

Hyderabad Menzies Air Cargo

are gold partners for the event.

Silver partners include Liege

Airport, IBS, Miami International

Airport and GVK Kempegowda

International Airport Bengaluru.

Other partners include Cologne

Bonn Cargo, Sovika, Lufthansa

Cargo, Brussels Airport, Frankfurt

Airport and National.

For more information visit stattimes.com/aci2016/ and follow the event @AirCargoIndia

and #AirCargoIndia2016.


doMIngo Mendez | gUeSt CoLUMn

The Logistics of Keeping

Flowers FreshWith more than 100 million stems shipped, flowers may be the most-loved cargo in the cold-chain logistics process.

ball courts with an average

round-the-clock temperature of

38 degrees Fahrenheit.

The flowers’ journey starts

at sunrise, when workers at

South American flower farms

cut blooms, hydrate them, and

quickly place them in coolers

on site.

Refrigerated trucks bring

them to gateways like Quito,

Ecuador, and Bogota, Colombia

where they are loaded onto

UPS 767 and 757 cargo planes.

The flowers, which are

placed in boxes of as many

as 250 blooms, are carefully

loaded onto pallets that inter-

lock to distribute weight.

After about four hours, the

flower-filled cargo planes land

in Miami in the afternoon.

In the run-up to Valentine’s

Day and Mother’s Day, UPS

increases operational resources,

adding staff and equipment

to expedite incoming flower

shipments.

The roses in your

living room. The

blueberries in your

salad. The fish you’re

having for dinner.

These products have likely

traveled thousands of miles

before arriving in your home,

so how are they as fresh as the

day they were harvested?

The answer lies in the logis-

tics “cold chain” that speeds

flowers and other highly perish-

able goods across oceans and

through customs checks to

preserve their freshness.

Around major flower-buying

holidays like Valentine’s Day and

Mother’s Day, the cold chain

goes into overdrive, offering a

glimpse into the logistics net-

work that keeps fragile goods at

their peak even after a long trip.

Several weeks before Valen-

tine’s Day, UPS nearly doubles

the number of flights from

Bogota, Colombia and Quito,

Ecuador to Miami International

Airport, where 90 percent of the

world’s imported flowers arrive

during this season.

That’s also where UPS, the

airport’s largest air cargo carrier,

maintains a massive cooler the

size of more than five basket-

To increase efficiency, UPS

parks its wide-body planes

almost directly in front of the

cooler.

UPS staff move quickly:

From the first pallet to the last,

it only takes about 45 minutes.

Each pallet might take five

minutes to be unloaded from

the plane and moved into

the cooler, so that’s the only

time it’s not in a refrigerated

environment. And all that time,

the flowers that are still on the

plane remain cool.

At this point, inspectors from

US Customs and Border Protec-

tion step in to check random

flower packages – for example,

to ensure the boxes contain the

correct contents, and that there

is no sign of insects.

These inspections take place

in a separate room in the cooler

to maintain cold chain opera-

tions throughout the examina-

tion process.

Once the shipments have

cleared customs, importers and

wholesalers bring their own

refrigerated trucks to the UPS

cooler and pick up their flowers,

delivering them to customers

around the country.

From the flower farm to the

importer, the journey only takes

24 to 48 hours – which is why

that bouquet of roses in your

home will maintain its beauty

for several more days.

The cold-chain process for

flowers is similar to what UPS

deploys when shipping delicate

goods like okra from Nicaragua,

blueberries from Argentina, or

fish such as tilapia from Hondu-

ras and Costa Rica.

But with more than 100

million stems shipped via UPS

cargo planes during the peak

weeks of the Valentine’s Day

season, flowers may be the

most-loved cargo in the cold-

chain logistics process.

“Around major flower-buying holidays like Valentine’s Day and Mother’s Day, the cold chain goes into overdrive, offering a glimpse into the logistics network that keeps fragile goods at their peak even after a long trip.”

dominGo mendez UPS

The author is the Air Cargo Marketing Manager of uPs Americas region

Reprinted with permission of Longitudes, the UPS blog devoted to the trends shaping the

global economy.


Air France JAsleeN KAur

Ups and downs of

Air France KLM cargo is under pressure globally and has a plan to scale back its fleet by June 2016. However, its India operations are doing well.

FoCUs | AIr FrAnCe KLM

historic and important chapter.

In India, Air France started flying

freighters decades ago and

KLM has been flying in India

for several years as well. In the

last few years, Air France-KLM-

Martinair has developed a

significant and steady freighter

project in India. Stanislas Brun,

director, Middle East, Gulf and

Indian Subcontinent, said,

“Though we have restricted our

freighter capacity worldwide,

we have expanded our

footprints in India in terms

of creating freighter capacity

simultaneously. The idea

is not to increase capacity

tremendously but get a set up

where we can better optimise

our presence. The idea is to

maximise the profitability of the

India hosted French President

Francois Hollande as the

chief guest at the Republic

Day celebration reiterating

New Delhi’s close diplomatic

relationship with France.

Among several areas of

collaboration between the two

nations, aviation tops the list.

Negotiations between India

and France on closing the deal

for 36 Rafale multi-role fighters

have entered their last, hectic

phase.

The biggest French carrier

which is present in Indian

aviation sector is Air France and

its cargo division Air France-

KLM Martinair.

The positioning of Air

France- KLM in the Indian air

cargo industry seems to be a


France-KLM Group is also

using the space available on

regular commercial flights that

Air France-KLM operates to

various Indian cities to transport

cargo. In addition, the cargo

airline has bellies (in passenger

flights), which are of course

combined with the cargo – in

that sequence.

From March 27, 2016, the

KLM Royal Dutch Airlines

hub at Amsterdam Airport

Schiphol will become the main

European hub of the Indian

airline Jet Airways for its clients

travelling through Europe or

to North America, departing

from India and beyond. As a

result, KLM and Air France-KLM

are thus strengthening their

position between India and the

transatlantic area.

In total, with the combined

network of Jet Airways,

KLM Royal Dutch Airlines

and its partner Delta Air

Lines within the framework

of the transatlantic joint

venture, this agreement will

provide customers of the

three airlines with optimised

connecting flights from

Amsterdam-Schiphol to 8

Indian destinations as well

as Kathmandu (Nepal) and

Dhaka (Bangladesh) on flights

operated by Jet Airways and

KLM; 30 European destinations

on flights operated by KLM; 11

North American destinations

on flights operated by Delta Air

Lines and KLM departing from

Amsterdam. Furthermore, KLM

and Delta Air Lines customers

will also enjoy improved

connections on Jet Airways'

domestic Indian network.

The European group’s

full freighter operations have

been under pressure globally.

Martinair Cargo is to scale back

its fleet by June 2016 and will

continue as a freighter operator

for Air France-KLM-Martinair

Cargo using three Boeing

747-ERFs and a Boeing 747-BCF.

The company has reached

this decision after thorough

deliberation with all the parties

involved.

In September 2014, Air

France-KLM-Martinair Cargo

announced it would be

reducing the amount of

freighter capacity it needs

in its network. Both KLM

and Martinair Cargo have

discussed the consequences

of this decision with the works

councils. The decision to scale

back the full-freighter fleet

has been taken to restore the

division’s financial health. The

decision seems to affect more

than 330 employees.

Air France-KLM-Martinair

Cargo has decided on a

business model which requires

less freighter capacity, rather

than a model with no freighters

at all. Consequently, as an

operating carrier within the

KLM Group, Martinair Cargo

will scale back its fleet and use

just one type of aircraft (Boeing

747). This decision affects

around 170 ground staff FTEs in

the Netherlands, 50 FTEs abroad

and 110 cockpit FTEs.

A number of voluntary

measures have recently been

rolled out for pilots at Martinair

Cargo. Reassignment options

within the group have been

explored over the last few

months and a number of pilots

have taken the step to join

Transavia. Recent changes

in the financial conditions

mean KLM is unable to offer

pilots the same salaries they

were receiving at Martinair.

With KLM’s help, Martinair

will continue to make every

effort to find solutions for

the pilots outside the KLM

group. Negotiations between

Martinair Cargo and the unions

are ongoing and are based on

the existing collective labour

agreement (CLA). However,

the possibility of compulsory

redundancies cannot be

excluded. Air France-KLM-

Martinair Cargo deeply regrets

the social consequences

of these changes, but the

reduction is unavoidable if the

cargo business is to be restored

to good health.

From 2016, Air France-KLM-

Martinair Cargo will continue

to operate with a mainframe

fleet of six Full Freighters (two

Boeing 777Fs at Paris Charles

De Gaulle and four Boeing 747-

400s at Amsterdam Schiphol),

supplemented by 15 Boeing

747 Combi’s. Air France-KLM-

Martinair Cargo is convinced

that the remaining flexible

freighters will continue to

provide its clients with a full

range of solutions to meet their

needs. The freighter network

at Schiphol will concentrate

on Africa and North, Central

and South America and will,

of course, continue to serve

important markets, such as the

flower sector. The company will

also continue to invest in Cargo

(Express, Pharma, e-commerce).

Cargo remains a core

business for the Air France-

KLM Group. It generates

income of EUR 2.5 billion per

year and contributes around

EUR 1 billion a year to the

passenger network. It goes

without saying that pulling

out of the cargo business is

out of the question.

“As an industry, the issue is not only to get the freighter full but to get the right cargo at the right rates.”

StaniSlaS BrunAir France-KLM-Martinair

flight.” While pharmaceutical

products remain important, Air

France-KLM-Martinair Cargo is

also trying to see that it gets

mail and couriers on board its

flights. “As an industry, the issue

is not only to get the freighter

full but to get the right cargo at

the right rates,” he added.

Apart from operating

full freighter aircraft, the Air


logistics hub in India

JAsleeN KAur

Aimed at becoming

Rajiv Gandhi International Airport in Hyderabad has been seen as an airport that records rapid growth and delivers enviable performance. The airport is just one step away from making itself into the logistics hub of India.

FoCUs | HyderAbAd AIrport

Having many accolades

of being the best

cargo airport in the

country, Hyderabad

airport has taken many

initiatives to accelerate the air

cargo growth, which includes

cargo terminal, express terminal,

free trade zone, dedicated

pharma zone and now the

airport is targeted towards

making the airport ‘a logistics

hub’, said proudly Hemanth

DP, COO of GMR Airports Sector

Hub Development, Cargo

Business and Free Trade Zone.

GMR has 63 percent

shareholding in the Airport

SPV called GMR Hyderabad

International Airport (GHIAL).

MAHB holds 11 percent, the

Government of Andhra Pradesh

and the Airports Authority of

India (AAI) each hold 13 percent.

“The Rajiv Gandhi International

Airport (RGIA) cargo village

currently consists of the

main cargo terminal located

adjacent to the Cargo Satellite

Building (CSB) and the express

terminal operated by Blue Dart.

The facilities are modularly

expandable and work is already

underway to build an extension

of the CSB to boost the

warehousing facilities for the

trade. The cargo terminal has

a total built up area of 14,370

sq mt and the current annual

handling capacity is 100,000

MT that can be expanded

to 150,000 MT. The overall

master plan for the airport has a

provision to enhance the total

annual handling capacity up to

1,000,000 tonnes and sufficient

space has been reserved

within the airport boundaries

to accommodate the same,”

informed Hemanth DP.

Cargo at RGIA has been

experiencing a consistent

robust growth. “We have grown

at a CAGR of 11.2 percent in

the last six years. In FY15, the

exports have grown 11 percent

y-o-y while total international

volumes have grown by seven

percent. We have also taken

certain strategic steps for future

growth, such as launch of our

FTZ (Free Trade Zone), which is

the first and only airport based

FTZ. The last few months saw

some significant action wherein

we signed two clients for our

FTZ,” he mentioned.

According to Hemanth

DP, at RGIA, nearly 1,600 air

traffic movements take place

every week connecting 31

domestic and 18 international


destinations across all major

hubs in Asia, Middle-East

and through Europe to the

Americas, thereby serving all

major GDP producing areas

of the world. “We are in talks

with several major airlines

that have evinced interest in

connecting new destinations

as well as boosting frequency

and capacity on existing routes.

We see tremendous promise on

certain emerging market routes

that had hitherto remained

underserved but are potentially

attractive both for airlines as

well as forwarders,” he added.

Hyderabad airport is known

for pharma as it created pharma

zone at the airport and then

other airports came with the

same concept. And today the

sector has become more or

less lifeline of the Indian air

cargo fraternity. He said, “India

in general and Hyderabad in

particular have been important

pharma production centres

catering to geographically

diverse markets across the

globe. Hyderabad, having

already been branded the

pharma hub of India, enjoys

an enviable manufacturing

base and a substantial share

in global pharma business.

These pharma products

quintessentially are shipped via

air to major global destinations

across the world.”

Recognising the need

to support and strengthen

Hyderabad’s unmatchable

position, the airport envisaged

and created a unique

temperature controlled facility

called Pharma Zone. This

distinctly designed facility

exclusively caters to the special

needs of the pharma zone

and provides truck-dock to

airside unbroken cold chain

which ensures that such

life savings drugs are not

exposed to temperature spikes

and contaminants during

any stage of handling. “The

response from both the trade

as well airlines has been very

encouraging so far. All our

airline partners have been

delighted by the development

of Pharma Zone and have been

extensively using this facility.

Currently, the capacity is being

exploited to the maximum by

our customers,” says Hemanth

DP. Besides pharma, the airport

handles defence and heavy

industry, dangerous goods,

engineering goods, electronics,

garments, mobile phones, fruits

& vegetables among others.

Besides this, to match up

the international standards,

number of steps have been

taken by the airport in terms of

infrastructure, which includes:

� India’s first integrated air

cargo terminal with domestic

and international terminals

situated under one roof.

� Only terminal with dedicated

cargo apron, adjacent to the

cargo terminal

� First terminal in India to start

dedicated Pharma Zone

(dedicated temperature

controlled warehouse for

storage and handling of

pharmaceuticals)

� RGIA is the only airport in the

country to establish FTZ for

attracting logistics centric

business that will further

boost throughput and create

new opportunities, jobs and

boost foreign exchange

earnings. We have recently

signed 2 anchor customers in

our FTZ.

� We have a multi-purpose SEZ

consisting of an aerospace

park with functional MRO,

Augusta-Westland helicopter

assembly unit, CFM engine

training center. We have

recently signed up with Pratt

& Whitney for another engine

training center.

� Only cargo facility in the

country with a functional

cargo village having

dedicated Cargo Satellite

Building for cargo agents

offices, government

regulatory bodies and

warehousing space under

one roof in addition to a

dedicated Express Terminal

operated by Blue Dart

� First cargo terminal certified

by ISAGO

� Only airport in India with an

Envirotainer base for Asia

Pacific region

A good logistics hub

requires four primary

ingredients strategic

location, world class service

offerings, state-of-the-art

infrastructure and excellent

connectivity to major

international hubs. “Our

service offerings have not

just been well received

by our patrons, but well

recognised too by the

industry bodies such as

ACAAI. We have state-of-the-

art infrastructure that stands

best on an international

scale,” averred Hemanth DP.

RGIA enjoys excellent

connections with major

international hubs on wide-

body Main-Deck lift, thereby

connecting us with all

the major GDP producing

regions of the world. All these

complement our medium to

long-term growth ambitions.

In addition, it is in the process

of further strengthening its

hinterland connectivity by

setting up Air Freight Stations

(AFS) in key regional centers

and linking them to RGIA by

Road Feeder Services (RFS).

For 2016, one of the priority

areas for the airport is efficiency

enhancement and continuous

improvements across different

levels and players involved in

the air cargo value chain at

RGIA. “We have made good

progress on reduction in cargo

dwell time. We are also working

towards setting industry

benchmarks and becoming the

best in India in 2016. We are

about to introduce India’s first

‘End-to-End Cold Supply Chain’

and ensure the cargo

operations are fully geared to

handle Shipper Built Units (SBU)

at our terminal.”

“We see tremendous promise on certain emerging market routes that had hitherto remained underserved but are potentially attractive both for airlines as well as forwarders.”

HemantH dPGMR Airports


sPeCIAL rePort | LIve AnIMALS

and knowledge necessary to

make the transportation safe

and humane,” said Vipan Jain,

regional manager logistics,

Lufthansa Cargo.

In India, live animals are

transported by all modes

and most of the cases which

appeared to be are from air

transport, when a group of

animals were transported from

Amsterdam Schiphol airport

and when Pandas were carried

in the Lufthansa flight or horses

transported through Emirates

SkyCargo for horse racing.

At a logistics

conference, a

speaker rightly made

a statement that

‘logistics is like an art and every

stroke is different with the

handling of each and every

good’. This goes aptly with the

transporting of animals which

involves lot of intricacies. “Few

people understand the large

logistics exercise involved

in transporting animals.

Logistics fraternity, however,

knows that transporting

animals needs a strategy

slow growthIndia

JAsleeN KAur

Live animals by air

Transportation of live animals by air is still negligible in India, largely because of inadequate infrastructure and complicated documentary requirement. For this sector to grow in volume and value there has to be a more calculated approach by airlines and airports.

in


live animal logistics with more

airports and air freight stations

in hinterlands.” The International

Air Transport Association (IATA)

has specified global standards

for transportation of live animals

by air. The IATA Live Animals

Regulations (LAR) is an essential

guide in transporting animals by

air in a safe, humane and cost-

effective manner. Whether you

are a shipper, a freight forwarder,

an airline, or an animal care

professional, the LAR is a must for

transporting animals humanely

and in compliance with airline

regulations and animal welfare

standards. According to the LAR

guidelines:

� Up-to-date airline and

government requirements

pertaining to the transport of

live animals

� Requirements related to

handling, marking and

labeling

� Information about the

necessary documentation

needed when transporting

live animals

� A comprehensive

classification of animal

species along with the

container specifications

required for their transport

� Guidelines for the non-air

transport of live animals and

plants

Jain from Lufthansa said, “Air

transportation of live animal is

getting to the organised way

and with the governance of

IATA’s regulations, the uplift

in this cargo movement is

the foreseen. The animals

can be carried either through

passenger terminal on payment

of applicable charges or

they can be booked in cargo

terminal.” Narrating his own

experience, Patel said that

Emirates allow specified type

of pets in the passenger cabin.

“Cargo terminals at the airport

generally have dedicated

area for handling of the live

animals,” he added.

However, according to

“Air transportation of live animal is getting to the organised way and with the governance from IATA regulations, the uplift in this cargo movement is expected to grow.”

viPan JainLufthansa Cargo

Kohli, today the case is still

that animals are moved as pets

with the families like cats and

dogs. “Hence, there is a minor

increase of pet movement in

the recent years.” To accelerate

the movement, Delhi airport

Keki Patel, Emirates' Cargo

manager, India and Nepal,

said, “Today, the industry

has no problem bringing live

animals to a warehouse and

delivering it within 24 hours.

Major movements out of India

are for Gulf countries, African

countries, Nepal and some of

Fareast destinations,” adding

that carriers like Emirates have

opened new routes for live

animal logistics out of India.

Sunil Kohli, managing director

of Rahat Cargo informed, “India

is gradually moving towards the

“India is gradually moving towards the live animal logistics with more airports and air freight stations in hinterlands.”

Sunil KoHliRahat Cargo

Phot

o: L

ufth

ansa

Car

go


sPeCIAL rePort | LIve AnIMALS

has recently opened a helpdesk

to ensure a friendly journey for

pets, taking care of formalities

including quarantine, passport,

Custom clearance, travel

(domestic and international),

flight booking, pick, drop,

inspection and consultation.

The Help Desk also provides

physical handling of the pet

during check-in at airline

counter and facilitates security.

Despite various

developments with regard to

animal transportation, there

are several challenges yet

to be addressed. According

to a report of IATA, only six

airports in India have animal

quarantine facility and can

handle complete imports

as well as exports of pets.

At some airports like Netaji

Subhash Chandra Bose

International Airport (CCU), live

cargo movements are mostly

constrained up to live crabs

to Far East and on very few

instances, live pets are handled

for both import and exports.

Jain said, “The infrastructure at

some airports or cargo terminals

is a challenge.” While according

to Kohli, there is a need to

correct documentation related

to various country regulations

pertaining to health checks

and the necessary approvals

from the government or

designated veterinarian before

the commencement of the

“Facilities for pets are still lacking by far at the international and domestic airports in comparison to western countries.”

KeKi PatelEmirates SkyCargo

journey, for the smooth flow of

such cargo.

Patel said, “Pet friendly cabs

are difficult to find and airport

staff is also not pet friendly.

Facilities for pets are still lacking

by far at the international and

domestic airports in comparison

to western countries.”

So to make this cargo

movement with ease,

according to Jain, the pet

has to be carried in kennel of

appropriate size and strength

having arrangements of food

and water and proper locking

arrangements to prevent

its escape. Handling and

carriage under proper ambient

temperature as well as oxygen

supply should not be ignored

at any cost. “During air carriage,

a pet may face longer duration

of air travel with intervening

transit halt at an airport too.

The concerned airline should

take care of its all needs such

as walking, freshening, refilling

of food and water bowls and

also medical needs, if required,”

he added. Kohli listed the

following points that should be

considered before relocating

animals to domestic and

foreign cities:

� Utmost safety and comfort

� Creating awareness about

travel of pets, which is now

becoming a general trend

� Informing pet owners about

the rules and regulations

to be followed for import

and export in the respective

country

� By following simple

tips provided by expert

veterinarian and pet travel

consultants

According to Patel, modern

infrastructure, separate animal

clearance terminal or lounge,

more trained professionals in

industry and more transparency

and electronic mode of various

permissions will facilitate the

customers and drive growth in

this sector. “Growth in this

sector can achieved when

proper care and handling

facilities at the airport for

departing, arriving and

transiting animals and simpler

regulatory clearances will be in

place,” Jain concluded.


Sovika, the Mumbai

headquartered airport-

to-airport logistics

specialist, launched its

domestic freighter operation with

its inaugural flight from Delhi

to Kempegowda International

Airport, Bengaluru (KIAB) on

February 16.

Formal celebrations took place

in front of the aircraft involving

QuickJet’s crew, Sovika officials

and members of the Cargo team

from the Bangalore International

Airport Limited. The terminal op-

erator for QO at KIAB is Menzies

Aviation Bobba Bangalore (MABB)

and Globe Ground India which

is the airline’s ground handling

partner.

Last year, the company had

announced the launch of its dedi-

cated domestic freighter service.

Sovika had then leased a

737-400F from QuikJet, the ASL-

owned, Bangalore-based carrier,

which has already secured its

Scheduled Air Operators Permit

from the Indian Directorate Gen-

eral of Civil Aviation (DGCA).

The airline has operations

to KIAB six times a week. The

aircraft, with a 19-tonne payload,

operates in the domestic network

between Delhi, Chennai, Hyder-

abad and Bangalore. The aircraft,

with a new livery, featuring both

Sovika and QuikJet Airlines, will

be based in Delhi.

According to an official at

Sovika, the company will test

the service until February 29 and

starting March 1, it will optimize

and rationalize the network op-

erations. The official also added

that the freighter service will ride

on the rapid growth in the eCom-

merce sector and the air express

UpdAte

Sovika launchesDomestic freighter operations

sector. The service will operate at

night perfectly serving the eCom-

merce logistics sector which

demands next-day delivery.

Sovika is also looking at the

international bonded cargo

destined for other metro cities

of India. Given that it is a general

sales agent (GSA) for domestic

carriers like Vistara and Air Costa,

Sovika is well placed to leverage

its strengths to connect cargo at

other locations.

Sovika has offices in every

major city in India and at strategic

business locations globally. Over

the years it has gained substantial

experience in every aspect of

aviation: be it aircraft leasing,

charters, ground handling, cargo

handling, warehousing and

terminal management. Currently

Sovika’s operations span 31

airports across India.


NEWS

Changi team inspects Ahmedabad airport

Jet Airways contemplates options for long-haul planes

CHANgI AIrPorT officials recently visited the

Sardar Vallabhbhai Patel International airport for

an inspection, recently. This is the first visit by

the Changi Airport team, after being nominated

by the Singapore Government, in December last

year, to facilitate operations and management of

Ahmedabad airport. Ahmedabad airport director,

A K Sharma, confirmed that officials of Changi

Airport were on a one-day visit.

Upon conclusion of their visit, the Changi

airport officials are expected to hold discussions

with the AAI in New Delhi on the modalities of

the Memorandum of Understanding signed

between Airports Authority of India (AAI) and

Singapore Co-operation Enterprise (SEC).

The AAI had signed a MoU with SEC,

during Prime Minister Narendra Modi's visit to

Singapore in November 2015, to co-operate in

the planning and development of Ahmedabad

and Jaipur airports, besides helping in other

aspects including design, planning, traffic and

commercial development, service quality and

operations and management. The operations of

both the airports, however, will remain with AAI.

Security was stepped up at the airport for the

team's visit. A high number of CISF personnel and

AAI officials were deployed at the city airport.

"CISF personnel in plain clothes were deployed

in higher numbers than usual. Also, Sushil Kumar

Shinde, former home minister was scheduled

to arrive, hence the extra deployment," said an

airport official.

In 2014-15, Ahmedabad airport had handled

5.05 million passengers, out of which 1.22 million

were international travellers. According to an

estimate by AAI, Ahmedabad is expected to

handle a total of 6.77 million passengers annually

by 2023-24.

JeT AIrwAys is in discussions with Air Serbia to

lease an A330 aircraft and is evaluating options

to operate or sell Boeing 777 planes upon return

from Etihad Airways. Jet Airways has seven

aircraft on lease with Etihad, including an Airbus

A330 and six Boeing 777s, and its lease terms will

end this year.

Sources said Jet was considering launching

a second Delhi-London flight with a Boeing

777 aircraft upon end of lease term. It may also

deploy an Airbus A330 plane (currently on

Brussels-Newark route) on Mumbai-Singapore

route.

Jet Airways has a fleet of 115 planes, a mix of

turboprop, narrow-body, and wide-body planes.

This includes 10 Boeing 777s and 12 Airbus A330.

Ten of these planes are on lease and the rest it

flies to London, Paris, Brussels, Newark, Toronto,

and Hong Kong. Already Etihad has announced

that it will replace the leased 777s on US routes

with its own planes. Currently, the Gulf airline

uses Jet Airways planes on San Francisco and

New York routes and will deploy its own aircraft

on these routes beginning April and June,

respectively.

Surat airport infrastructure set for overhaul

surAT AIrPorT has come a

long way as far as infrastructure

and safety aspects are

concerned. Surat airport will

be second after Ahmedabad

international airport to cater

to category D aircraft - wide-

bodied twin engine planes like

Boeing 767 and Airbus A310

- with the extension of runway

from the existing 2,250 metre to

2,905 metre from January 2017.At present, Surat is connected

with Delhi and Mumbai via Air India (AI) flights. While two flights operate between Delhi and Surat on a daily basis, the Mumbai-Surat flight operates three days a week. There are a total of 32 scheduled move-ments of flights per week.

"At present, Ahmedabad is a lone airport in the state to be designated under 4D category, which means that it can cater to bigger aircraft. Surat is 4C airport at present catering to aircraft like Airbus 320. After extension of the runway in January 2016, we will try to upgrade the airport from 4C to 4D category,” Pramod Thakre, airport director, said.

While the construction of a 10.5 kilometre perimeter wall is nearly over and work on 8.2 kilometre long perimeter road completed. Around 350 poles have also been installed for perimeter lights and eight watch towers built. The perimeter work is likely to be completed by March 2016.


Japan to set up plant in India for US-2 amphibious aircraft

JAPAN's sHINMAywA INdus-

TrIes, the manufacturer of US-2

amphibious aircraft is betting big

on the 'Make in India' initiative and

has offered to set up a plant in the

country to cater to international

demands.

The move comes as the

Navy plans to procure six such

aircraft, under a government to

government deal, between 2017

and 2022. Six are proposed to be

bought in the next phase.

"The deal when inked

will have a 30 percent offset

clause. Under this offset clause,

ShinMaywa wants to set up a

plant in India to cater to the

global market since the demand

for the aircraft is high," defence

sources said.

The project has been in

the works since 2011 but got a

renewed push following Prime

Minister Narendra Modi's visit to

Japan in 2014 and a return trip

by Japanese PM Shinzo Abe last

December.

India to be third largest aviation market by 2026

NEWS

AirAsia X resumes Kuala Lumpur-New Delhi flight servicesAIrAsIA X, the long haul-arm of the Malay-

sian budget carrier AirAsia Berhad resumed

its flight services to Kuala Lumpur, four years

after it discontinued the route along with

Mumbai, citing high airport charges.

The first flight from Kuala Lumpur landed

at around 10.15 pm at the Indira Gandhi

International Airport here, marking AirAsia X's

re-entry in India, which is one of the fastest

growing aviation markets in the world.

"The first flight from Delhi for Kuala

Lumpur is expected to take off at 2315," an

official said.

In its second coming, AirAsia X will fly

four times a week between New Delhi and

Kuala Lumpur with an Airbus A330 aircraft

with a two class configuration; premium

and economy class with 12 and 365 seats

respectively.

According to the flight schedule

submitted by the Malaysian carrier to the

aviation regulator DGCA, the services on

the Delhi-Kuala Lumpur-Delhi route will be

operated on Monday, Wednesday, Friday,

Sunday of the week.

AirAsia X is the fifth Malaysian airlines

now operating in India. While AirAsia Berhad

operates services to Kuala Lumpur from select

destinations in southern India, its joint venture

with Tata Group and Telestra TradePlace,

AirAsia India has presence across 10

domestic airports including Delhi, Bengaluru,

Hyderabad and Chennai.

Another Malaysian carrier Malindo Air

flies from seven airports here such as Delhi,

Mumbai, Amritsar and Kochi.

Besides, Malaysian Airlines, the flag carrier,

also has flight operations to Kula Lumpur

and beyond from Delhi, Mumbai, Chenani,

Bengaluru and Hyderabad

The carrier, which had opted out of Delhi

and Mumbai routes in early 2012 citing high

airport costs, had said last month that it could

look at launching flights to the Malaysian

capital from other airports like Ahmedabad

and Amritsar as well.

"The airports are supportive.The only

issue we may have is the bilateral (flying

rights) constraints in adding frequencies.We

want our government to talk with the Indian

Government to open more bilaterals," said

Ben Ismail, chief executive officer, AirAsia X

Berhad.. AirAsia X has at present landing rights

for Delhi and Mumbai Airports.

INdIA is likely to become the

third largest aviation market in

the world, displacing the UK,

by 2026, according to a fore-

cast by global airlines group-

ing International Air Transport

Association (IATA). Besides, the

IATA expects India’s air pas-

senger traffic to grow to 378

million by 2034.

Globally, the IATA projects

that passenger numbers are

expected to reach seven

billion by 2034 with a 3.8

percent average annual

growth in demand, which

is more than double the 3.3

billion corresponding figure

for 2014 and exactly twice as

many as the 3.5 billion flyers

expected this year, the global

air transport body said in its

forecast.

India has bounced back

from a subdued 2014, and

is seeing a strong increase

in domestic frequencies, the

forecast said.

China is expected to

overtake the US as the world’s

largest passenger market by

2029 as it will account for

some 1.19 billion passengers,

at that time, it said. IATA

added that India will displace

the UK as the third-largest

market by 2026, with

Indonesia rising to number

five in the world.


NEWSNEWS

Proposal to let airlines carry out ground handling meets opposition

SpiceJet introduces door-to-door delivery service

IndiGo increases fleet size to 100 Airbus A320 aircraft

THe AIrPorTs AuTHorITy of INdIA

(AAI) has raised objections to the aviation

ministry's proposal to allow airlines to

carry out ground handling on their own,

a plan that people in the know said was

approved as part of the draft civil aviation

policy despite the state-owned airport

operator's opposition.

"We had said that allowing airlines to

do ground handling themselves would

go against the reasons for bringing in

the Ground Handling Policy which has

been cleared by the government in the

past," said a senior AAI official in a news

report, who did not want to be named. He

said the policy's main aim was ensuring

adequate security at the airports.

"The ministry is looking at it from the

cost angle and not the safety angle," the

official added, referring to the new draft

aviation policy that is expected to be

cleared by the Cabinet by month-end.

"It (ministry) believes that allowing

airlines to do ground handling would lead

to cost savings for them."

In 2007, the then government an-

nounced a Ground Handling Policy, which

required airlines to outsource the job

in New Delhi, Mumbai, Kolkata, Chen-

nai, Hyderabad and Bengaluru to any of

these three: airport operator along with a

partner, an arm of national carrier Air India

or a company selected by the operator.

Elsewhere, they could manage ground

handling on their own or hire agents.

The 2007 move was stayed after air-

lines went to court, saying it would make

operations more expensive and take away

their unique selling proposition of provid-

ing extra services to passengers.

The court has yet to give a final verdict

on the matter. The aviation ministry's

proposal to allow airlines do ground han-

dling had earlier been red-flagged by the

home ministry, which too raised security

concerns.

An aviation ministry official, however,

said, "The concern over security was ad-

dressed by bringing in a rule to mandate

airlines to hire people only on long-term

contract (minimum one year) for ground

handling. They have also been asked to

hire employees on their rolls and not on

contract from outside agencies."

sPICeJeT is set to introduce a door-to-door

delivery service for its corporate customers

from March in order to enhance the reach of

its cargo business.

With steadily declining fares, the airline

is looking at various avenues to improve its

topline and cargo business. Providing his

views, Ajay Singh, managing director, Spice-

jet, says, “Cargo and logistics is a growing

business for us. Earlier, we used to outsource

the business but, now we are handling it

ourselves. We have tied up with courier firms

and hiring extra staff for door-to-door cargo

delivery. Initially, the service will be only for

corporate clients but later we might extend

it for retail customers as well.”

The airline is also in discussions with

aircraft manufacturers and is looking to

add 100-150 narrow body and turboprop

aircraft. Singh expects to finalise the order

this year.

The airline currently has 43 aircraft which

includes a mix of Boeing 737, Airbus A-320

and Bombardier Q-400 aircraft.

INdIgo celebrates a significant milestone

taking its fleet size to a 100 Airbus A320

aircraft. IndiGo took delivery of the ‘VT IDR’

aircraft to join its ever growing fleet.

These new flights will allow travelers to

experience better on-time performance.

It would grant the airline an edge help it

further consolidate its position as being

among the fastest growing airlines in India.

Aditya Ghosh, president, IndiGo, said,

“10 years ago we had dreamt of one day

being a part of 100 aircraft airline. Our

sincere gratitude to over a hundred million

customers who have chosen IndiGo and

are the reason for us to have reached this

milestone! Today, it’s difficult to describe

all the emotions running through us but

as we look at our 100th aircraft it gives

us the quiet confidence and courage to

dream bigger dreams of establishing a

large world class air transportation network

in this country and the region enabling a

billion Indians to fly closer to a billion op-

portunities!”

Sharjah International handles 10 million passengers in 2015

New civil aviation policy will make Indian skies vibrant

Direct flight between Delhi and Mongolian capital by March

sHArJAH INTerNATIoNAl AIrPorT

has handled 10.039 million passengers in

2015, representing a 5.5 percent annual

increase compared to the previous year.

The airport, which is the headquarters of

the United Arab Emirates’ only listed airline,

Air Arabia, handled 9.5 million passengers

in 2014. The number of landings and take-

offs rose 1.23 percent to 71,426 compared

to 70,559 a year earlier. The airport also han-

dled 240 thousand tonnes of freight and 19

thousand tonnes of sea-air cargo.

In 2015, Air Arabia launched flights

to seven destinations from Sharjah

International, including to cities in China,

Saudi Arabia, Pakistan and Iran. Air

India Express launched flights to new

destinations in India and Pakistani carrier

Air Blue started flights to two new cities

in Pakistan. Sharjah International Airport

is connected to 70 destinations as of

December 31, 2015. The busiest month

was in August when 928,897 passengers

passed through the airport.

MIAT MoNgolIAN AIrlINes, the Mon-

golian national carrier, is all set to provide

direct air connectivity to India with a flight

service to Delhi from its capital city Ulan Bator

by March. The airline has appointed Delhi-

based cargo firm Zeal Global Services as its

General Sales Agent (GSA) to handle its sales,

marketing and distribution business prior to

spreading its wings to the Indian skies. MIAT

Mongolian Airlines is one of the two interna-

tional Mongolian carriers in the east-central

Asian country.

"We had signed the GSA agreement with

MIAT Mongolian Airlines in June last year.

However, our registration with the customs

was in process and it got completed re-

cently. Following this, we have now officially

become the offline GSA for the Mongolian

carrier," said Nipun Anand, managing direc-

tor, Zeal Global. Once the airline launches its

operations, which is expected by March, Zeal

Global will act as online GSA for the carrier,

he said.

The agreement was signed follow-

ing Prime Minister Narendra Modi's visit to

Mongolia in May last year, he said. "The airline

is expected to commence services to Delhi

from Ulan Bator by March. The airline is pres-

ently awaiting regulatory approvals from its

civil aviation authorities," he said. The airline

with its hub at Chinggis Khaan International

Airport at Ulan Bator, currently operates with

a fleet of five aircraft - three Boeing 737s and

two 767s.

Report on air cargo hub in Chennai soonCHeNNAI AIrPorT is sought for the

establishment of an international air cargo

hub and Detailed Project Report (DPR) is be-

ing prepared by RITES Limited, a government

of India enterprise, for this purpose. The Min-

istry of Civil Aviation had earlier nominated

RITES Limited to prepare the DPR for cargo

hubs in Delhi and Chennai.

According to the Draft National Civil

Aviation Policy, 2015, though air cargo had

a high employment potential, especially for

semi-skilled workers, currently its volumes in

India are extremely low as compared to other

leading countries due to high charges and

high turnaround time. To ensure growth in the

sector, the policy aims to accord ‘infrastructure’

status to air cargo, if co-located with an airport

and it would be eligible for Sec 80IA benefits.

Section 80-IA of the Income-Tax Act, 1961,

provides a 10-year tax holiday for infrastructure

projects. The recently-constituted Air Cargo

Logistics Promotion Board (ACLPB), which

aims at promoting growth in air cargo, is also

expected to submit a detailed action plan to

reduce dwell time of air cargo from ‘aircraft to

truck’ to below 24 hours by December 31, 2016

and to six hours by December 31, 2017.

The cargo terminal at Chennai Airport

established in February 1978 is spread over

19.5 acres with the annual handling capacity

of 11,02,373 MT. It had handled 2,20,401 MT

during 2013-14.

NEWS

THe New CIvIl AvIATIoN PolICy will

make the Indian skies more vibrant, P

Ashok Gajapathi Raju, union civil aviation

minister, said, adding, “We have released

the draft policy after extensive discus-

sions and invited public comments. We

have culled out certain issues from the

suggestions received. The policy will be

announced after inter-ministerial consulta-

tions and, if necessary, being put before

the Union Cabinet.” He indicated that one

of the features of the policy would be to

revive ‘inactive airports’ across the country.


NEWSNEWS

Madhurapudi airport will have more connectivity

MAdHurAPudI AIrPorT, that witnessed

tremendous support from passengers in the

last six months, is going get more connectiv-

ity shortly says M Murali Mohan, Member

of Parliament. He said that there were many

requests from passengers to run flights

from Rajamahendravaram to Tirupati, Shirdi,

Bengaluru and Chennai via Tirupati. He said

that he had already spoken to Minister for

Aviation and Airports Authority of India on

this issue and going to consult different

airlines which are operating their aircraft to

Madhurapudi Airport at present. “I hope that

we will get all the three routes shortly and

the number of passengers will also increase

to meet the demand,” the MP added. He

announced that Rs.171 crore proposals for Air

Cargo from the airport have been approved

by the government and works will be started

immediately.

Airport Director M. Raj Kishore said that

out of 870 acres earmarked for airport exten-

sion, they have taken 389 acres into posses-

sion. As far as passenger traffic, there is an 85

per cent growth in the last four months . He

assured that apron construction will be taken

up in next six months and proposals are

pending with the DGCA.

sPICeJeT is planning to take advantage of

the ecommerce boom, as the carrier looks for

new avenues of revenue.

The Gurgaon-based airline plans to buy

100 mini trucks and open as many as 40

warehouses across the country to provide

fast delivery options to the click-happy Indian

consumer who increasingly buys everything

from groceries to expensive gadgets from

ecommerce platforms.

SpiceJet shall utilise mini trucks, all Tata

407s, to provide connectivity between ware-

Bhaskar Bhat becomes Tata SIA Airlines Chairman

vIsTArA announced the appointment

of Bhaskar Bhat, as chairman of Tata SIA

Airlines Limited that operates an airline

under Vistara brand name. He succeeds

Prasad Menon who retired from the

airline on January 13. Bhat had joined

the company’s board with effect from

January 14. As the managing director of

Titan since 2002 and founding member

of Titan Industries, Bhat has led it to

become the largest watch manufacturer

in India and the fifth largest in the world.

Bhat said, “I am honoured

to succeed Menon, and deeply

appreciate how Vistara has established

its firm presence in India. Vistara

is founded on common values

of the Tata group and Singapore

International Airlines (SIA). My focus

will be on ensuring that Vistara

continues to deliver the legendary

service excellence and hospitality that

the Tata group and SIA are known for.”

SpiceJet sees cargo opportunity in e-commerce boom

houses and airports. The infrastructure will

provide the much-needed backbone to its air

cargo plans.

It is not just the belly of the aircraft that the

airline is trying to fill with cargo. It is also ex-

perimenting to carry cargo, especially related

to ecommerce companies, inside the cabin,

strapped to seats. "A pilot (study) was con-

ducted on the Bengaluru-Mumbai late-night

flight last month," said an executive aware of

the development.

There are various issues around carrying

the cargo by fixing it to the seat through

ropes, first one being the damage it causes to

the seat, the executive said.

With moves like these, the airline is also tar-

geting an increase in its ancillary revenue that

has increased to about 17percent to that of 6

percent a year ago. Analysts said the plan may

work if the focus is on distribution and not on

creating infrastructure for the operations.

Where the NewsComes First

Publications

EvEnts

C

M

Y

CM

MY

CY

CMY

K

THY IMAJ TA Cargo-ACCAI News-2016 Package-Approval 21x29.7 cm ING 2.pdf 1 12/11/15 3:32 PM

facilitating trade through air cargo - acaai...

Documents