1. Freighter Conversion – Air India’s experience
Anita Khurana
Director Cargo
Air India

2. World Freighter Fleet Freighter fleets available worldwide
North America accounts for the largest fleet of freighters with more than 1000 freighters in operations
Europe & CIS countries come next with close to 300 freighters in operation
Asia Pacific countries have about 250 freighters currently under operation
Latin America & Africa have close to 80 & 60 freighters respectively.
Middle eastern countries have about 30 freighters
India has only about 20 freighters currently
Source: Airbus

3. Freighters
50% of active fleet today are controlled by just four integrators
Currently there are close to 2000 freighters operating around the globe
World freighter fleet projected to grow to about 4250 units by 2026
70% of it would be converted passenger aircrafts
As per industry estimates in the next 20 years 63% of the cargo capacity will be offered through dedicated freighters

4. Freighters - India
For India it is estimated for the growing cargo market, India will requires
126 freighter aircrafts in the domestic market
90 freighter aircrafts in the international market by 2025 to meet the growing demand

5. Enablers in the new cargo scenario in India
Open Skies Policy
Liberalisation of Indian Economy
Rapid Increase of Manufacturing
Emergence of Sunrise Industries
Emergence of New Modern Airports in the hinterland
Emergence of time definite products

6. Indian Trade scenario (tonnage)
Intermediate & consumer goods constitute almost 40% & 25% by volume of exports respectively
On the import front capital & high tech goods constitute about 25% & 20% respectively, however intermediate goods still constitute the major chunk of imports (35%)

7. Indian Trade scenario (million $)
Jewellery constitutes the single largest export by value at almost 55%
On the import front Jewellery & high tech goods constitute about 35% & 30% respectively.
Capital & intermediate goods constitute about 20% & 15% respectively

8. AI Cargo - USP
With Merger AI offers a large network & seamless connectivity from interior points within India to abroad
More than 1500 tons of capacity available per day
Back up with the reliability of passenger flights unlike freighters
However cargo market needs different parameters vis-à-vis passenger market
Immense potential for air cargo growth in the country

9. Freighter conversion - Background
As per Govt directive, options to convert passenger aircraft to freighters to be explored before phase-out.
Dept of Post was looking at an option to connect the North-Eastern States faster
Erstwhile Indian Airlines was in the process of phasing out its B737 passenger fleet.
Opportunity was right to convert them to freighters and offer to Dept of Post

10. Freighter conversion - Background
Wanted to bring in a new era in developing cargo market within the country
Wanted to replicate set practices in India
Eg. Fedex or integrator models are most efficient
DHL tie-up with Deutsche Post
Satisfy the need to the market
Late pick-up and first delivery

11. Freighter conversion - Background
First B737 converted to freighter in 2007 and offered to Dept of Post.
Option to cover rest of India explored to tap the immense potential available in the country
Eventually Nagpur hub concept developed to connect with the 6 metros.
As a result, another 5 B737 passenger aircraft also sent for conversion to freighters

12. Freighter conversion - Background
Extend existing tie-up with Dept of Post to carry their mail on the freighters with Nagpur as hub.
With more than 150,000 post offices in India and an extensive surface network, what better reach can one expect
The air mode was a logical extension to expand distribution chain along with existing rail / road network of India Post
Operations commenced with effect from 27 July 2009.

13. Freighter Operations – Current Routing
Delhi
Guwahati
Imphal
Nagpur
Agartala
Kolkata
Mumbai
Bangalore
Chennai

14. Win-Win situation
With the North-east freighter operation, Dept of Post has tremendously reduced the time taken to delivery their mail to the remote corners from weeks to a couple of days.
There has been a major increase in business and volumes have gone up.
With Nagpur hub operations in the night, Dept of Post is able to provide overnight delivery to their customers.
Air India is able to completely utilise their freighters and only needs to look at operational matters

15. Challenges we faced Crew shortages for B737 freighters
Airport constraints – Parking Issues
North East – tough terrains
A310 operations – Cultural differences between AI & IC

16. Constraints for freighters operations
What are the restrictions for freighters operations
Shortage of Crew (not as attractive as passenger operations)
Slot availability
Availability of pallets
Cargo loads are mostly directional (one-way)
Seasonality problems
Route profitability a major deciding factor 16

17. Future Opportunities
Freighter to provide domestic feed after DOP operations & connect to international flights
Offer freighters for charter operations
Connect Nagpur to the world
Expand to other markets with potential
Establish Cool Chains
Operationalising Cargo SBU to be a profit centre

18. Way Forward - Role of the Airline
Airlines in the country are primarily passenger airlines and Cargo is a by-product
Provide Intercity connectivity
Provide belly space capacity
Ensure proper transit time for connecting flights
Reduce Dwell time during transit
Offer cargo booking facility for the agents over the ‘Net’
Offer least time for ‘”Accepting & Delivering” (within regulations)
Offer Trace & Trace facility for the customers on the Internet
“Service with a SMILE”
Position trained / smart staff

19. Way forward – Airlines can induct freighters
This can effectively contribute by scheduling operations as per
Cargo market needs
As per market timings
On desired Routes
Offer palletized cargo
Can offer competitive rates
Offer better control over operations & maintain schedule reliability

20. Future Plans for Freighter Operations (2010 – 2016)
Seattle
Delhi
Hong Kong
Mumbai
Guangzhou
Chennai
Tokyo
Kolkata
Seoul
Bangalore
Bangkok
Hyderabad
Singapore
Ahmedabad
Dacca
Nagpur
Amritsar
Melbourne
Indore
Dubai
Srinagar
Doha
Cochin
Frankfurt
Coimbatore
Paris
Liege
Trivandrum
New York

21. Thank You