Study and overview on International Air freight in/out India

1. International Air Freight From and To India
International Logistics

2. Table of Content
1. International Air Freight : Introduction
2. Volume : Trends and Growth
3. Forecast
4. Key Players and Distribution
5. International Hubs across India
6. Challenges
7. Government Plans and Actions
8. Conclusion
9. Recommendations
10. References
Intl Logistics : Air Freight India 2

3. International Air freight : What, When , How ?
• The service of transporting of goods across borders through aircrafts is
called International Air Freight.
• Air Freight came into business in 1910 and was introduced in India only
after 1954 by Air India.
• Pictorial Presentation:
3
Warehouse
International Logistics : Air Freight India21 June 2013

4. Volume : Trends and Growth
• The Indian Logistics sector is valued at US$120 billion about 2.5% of global
market (US$ 4.0 trillion globally).
• India’s international Air Trade to GDP ratio has doubled from 4% to 8% in
the last twenty years.
4
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000
1995-96
1997-98
1999-2K
2001-02
2003-04
2005-06
2007-08
2009-10
2011-12
Yearly traffic trends & growth
Int’l Total
International Logistics : Air Freight India21 June 2013

5. Volumes : Forecast
• Studies have highlighted an annual growth rate of 6%-7% in long term basis.
• As per industry estimates the growing cargo market in India 90 freighter
aircrafts in the international market would be required by 2025 to meet the
growing demand : Air India
International Logistics : Air Freight India 5
0
2000
4000
6000
8000
10000
12000
14000
Airbus MoCA AAI
Tonnesin1000's
Agencies
Forecast volume growth for International Air frieght growth
in India for 2010-2031
2010-2031
Forecasted
Growth Rate
Air bus : 4 times
MoCA : 7.5 times
AAI : 6.1 times
21 June 2013

6. Key Players and Distribution
6
18%
16%
12%
11%
9%
9%
8%
6%
6%
5%
Major Player and Percentage Share
Singapore Airlines
Lufthansa
Emirates
Air india
British Airways
Cathay Pacific Airways
Jet Airways
Ethihad Airways
Thai Int'l Airways
Korean Airways
Volume (Tonnes)
30577
27934
20037
18851
15816
14721
12690
10572
9685
9281
Accelerating factors for freight
growth
• International tie ups of
companies
• Reduced custom
requirements to WTO and
GATT agreements
• Liberalized FDI in retail sector
• Encouragements in value
added agriculture
• Floriculture, Flower exports
• Fresh Vegetable and frozen
food exports
International Logistics : Air Freight India21 June 2013

7. International Hubs across India
International
operational airports :
• Chennai
• HAL Bangalore
• Calcutta
• Old Hyderabad
• Ahmedabad
• Goa
• Trivanathapuram
• Calicut
• Jaipur
• Srinagar
• Nagpur
• Amritsar
• Mumbai
• Delhi
• Kochi
The five major airports Mumbai, Delhi, Calcutta, Chennai and Bangalore
accounts for around 88% of the total cargo in India.

8. Challenges
8
EDI process through
which the airports get
the details of the cargo
consignments from the
airport of origin much
before the aircraft
lands.
Reduce the time taken
for clearance of cargo
10-12 hrs for export
and 24 hrs to import.
• Infrastructure Bottleneck : capacity constraint in
parking bays, warehousing, handling equipment.
• High Cost : navigation and airport cost, aviation
turbine fuel is more than other developed
countries
• Interrupted electric power supply, road and rail
connectivity, port, cargo hubs and cold storage
facilities
• Lack of EDI
• Lack of stable logistic policy
International Logistics : Air Freight India21 June 2013

9. Government Plans and Actions
9
• Ministry has also raised the FDI from 49% to 74% in the cargo sector.
• Setting up of permissible integrated multi modal cargo hub.
• Cargo village is being set up in Karnataka.
• Better traffic rights
• Improve the maintenance and repair operations
• Efficient facilities for cargo handling
• Modernisation of Air Traffic Control with better control system and
automation
• E-Payments for custodian charge
• Automated storage and retrieval system
International Logistics : Air Freight India21 June 2013

10. Conclusion
10
The growth in Freight movement from 2011 to 2013 has been 19% due to
the open sky policy and raise in customer demand as against 10.12%
growth in sea freight and 9.19% in rail freight.
International Logistics : Air Freight India21 June 2013
0
2
4
6
8
10
12
14
16
18
20
Air frieght Sea frieght Rail frieght
Growth rate from 2011- 2013

11. Recommendations
11
• Need of hour is to realize the best practices for raising freight &
logistics value chain to increase the capacity of the airports and freight
handling systems.
• Invest in better fuel efficient freight aircraft to reduce operating cost of
Indian players and raise their performance in international air freight
business.
• Form a conference with civil aviation ministry to stabilize the tariff and
reduce dynamic market risk on air freight business.
• Develop resource development program and educational program to
support the emerging change with best practices (PL3 development).
• Focus on realizing the failure and risk. Transfer them to experts to
handle
International Logistics : Air Freight India21 June 2013

12. Reference
• “Air Cargo Logistics in India - MOCA WORKING GROUP ON AIR LOGISTICS
REPORT.pdf.” Accessed April 17, 2013.
• “Challenges in Indian Logistics Sector – Aviation Logistics.” Accessed April 17, 2013.
• Ministry of civil aviation. “Moca_000783.pdf” (n.d.): 54. Accessed
february15, 2013.
• Tungatkar, Sandhya. “Indian Logistics Industry,” November 2011.
http://www.iseindia.com/ResearchPDF/Logistics_Update1.pdf.
• Project report on cargo growth in India undertaken by Hindavia Aeronautical
Services Private Limited
12International Logistics : Air Freight India21 June 2013

13. Queries
Thank you