India will allow foreign airlines to operate non-scheduled cargo flights from all airports in the country for three years, lifting 2020 curbs that had restricted them to six--Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai. This followed lobbying by exporters against the restrictions.
While India had an open sky policy in air cargo that allowed unhindered movement by foreign airlines, the government amended it in 2020 to give Indian carriers a boost. With minimum earnings from passenger flights due to the pandemic at the time, they depended on cargo to make money.
However, exporters have been protesting that goods capacity had shrunk as Indian carriers failed to deploy enough aircraft to meet demand.
“The open sky policy for foreign cargo carriers has been reviewed by the government,” the Directorate General of Civil Aviation (DGCA) said in a circular issued on 2 February . “The operations of foreign and non-scheduled freighter charter service shall be allowed at all international airports for a period of three years to facilitate air cargo movements and to give sufficient time to Indian carriers to develop their capacity.”
Exporters had repeatedly asked for the policy to be reversed as the cost of ferrying perishables such as marine products shot up. They told the commerce ministry that the move was having a detrimental impact on India’s exports, hitting foreign exchange earnings, said people familiar with the matter.
“We mostly deal in perishables like marine products, which have a huge market in Europe and use the capacity of foreign airlines--Emirates, Qatar Airways--to increase our reach,” said an exporter from Kerala. “Indian airlines neither had the capacity nor the network to ferry such products. So the products had to be carried to Chennai by truck, which itself took more than 12 hours. This was not feasible for time-bound products like ours.”
SpiceJet and IndiGo were among local carriers that converted passenger aircraft into cargo planes and sought to induct freighters in order to take advantage of the boom in air cargo. At the time, Covid-19 had grounded passenger planes, which carry cargo in the belly, hitting supply chains.
While SpiceJet formed a separate company for air cargo, IndiGo decided to induct four freighter aircraft. IndiGo has over 60% share of India’s passenger market.
However, with planes returning to the air, cargo rates dropped significantly as there was excess capacity. IndiGo has slowed its freighter plans, having inducted three of them till date. SpiceJet has also cut down its cargo operations.
“This decision of DGCA is a pivotal step that will elevate air cargo activity in India,” said Mahesh Fogla, executive director, Patel Integrated Logistics Ltd. “This move will open doors for all cargo operations to all international airports. Additionally, it will lead to economic growth and growth in trade activities across non-metro cities as well as giving a boost to air-freight capabilities.”
Following the change in policy, foreign airlines are now looking to restart cargo operations in India. Emirates SkyCargo is planning to add three new cities to its network by June. India is among the top five cargo markets for Emirates.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Subscribe to The Economic Times Prime and read the ET ePaper online.
Prime Exclusives Investment IdeasStock Report PlusePaperWealth EditionIndian Railway Finance Corporation Share Price | 169.85 |
04:03 PM | 6 Sep 2024 | -3.63(-2.1%) |
One97 Communications Share Price | 603.8 |
04:03 PM | 6 Sep 2024 | -22.75(-3.64%) |
YES Bank Share Price | 23.14 |
04:03 PM | 6 Sep 2024 | -0.25(-1.07%) |
ITC Share Price | 501.7 |
04:03 PM | 6 Sep 2024 | -9.5(-1.86%) |
HDFC Bank Share Price | 1636.95 |
04:03 PM | 6 Sep 2024 | -8.5(-0.52%) |
Tata Motors Share Price | 1049.35 |
03:59 PM | 6 Sep 2024 | -19.81(-1.86%) |
Zomato Share Price | 259.95 |
03:59 PM | 6 Sep 2024 | 5.1(2.01%) |
Adani Enterprises Share Price | 2975.45 |
04:03 PM | 6 Sep 2024 | -39.91(-1.33%) |
Infosys Share Price | 1901.85 |
04:03 PM | 6 Sep 2024 | -31.31(-1.62%) |
Reliance Industries Share Price | 2929.65 |
04:03 PM | 6 Sep 2024 | -56.3(-1.89%) |
Adani Power Share Price | 634.7 |
04:03 PM | 6 Sep 2024 | -9.15(-1.43%) |
Vedanta Share Price | 459.8 |
04:03 PM | 6 Sep 2024 | -6.9(-1.48%) |
Indian Renewable Energy Development Agency Share Price | 227.4 |
04:03 PM | 6 Sep 2024 | -7.94(-3.37%) |
NHPC Share Price | 96.09 |
03:59 PM | 6 Sep 2024 | -2.12(-2.16%) |
State Bank of India Share Price | 782.5 |
03:59 PM | 6 Sep 2024 | -36.25(-4.43%) |
Rail Vikas Nigam Share Price | 569.55 |
04:03 PM | 6 Sep 2024 | -12.31(-2.12%) |
Life Insurance Corporation of India Share Price | 1038.9 |
04:03 PM | 6 Sep 2024 | -30.4(-2.85%) |
Tata Steel Share Price | 151.22 |
04:03 PM | 6 Sep 2024 | -0.5(-0.33%) |
Tata Consultancy Services Share Price | 4456.75 |
04:03 PM | 6 Sep 2024 | -19.2(-0.43%) |
Tata Power Company Share Price | 417.0 |
04:03 PM | 6 Sep 2024 | -3.9(-0.93%) |
Wipro Share Price | 520.6 |
04:03 PM | 6 Sep 2024 | -4.25(-0.81%) |
Adani Green Energy Share Price | 1863.3 |
04:03 PM | 6 Sep 2024 | -27.0(-1.43%) |
Indian Railway Catering & Tourism Corporation Share Price | 936.5 |
03:59 PM | 6 Sep 2024 | -8.75(-0.93%) |
Suzlon Energy Share Price | 74.72 |
03:59 PM | 6 Sep 2024 | -1.29(-1.69%) |
Punjab National Bank Share Price | 110.0 |
04:03 PM | 6 Sep 2024 | -3.41(-3.0%) |
Hindustan Aeronautics Share Price | 4703.45 |
04:03 PM | 6 Sep 2024 | -89.0(-1.86%) |
Jio Financial Services Share Price | 336.85 |
04:03 PM | 6 Sep 2024 | -8.5(-2.47%) |
NBCC (India) Share Price | 178.71 |
04:03 PM | 6 Sep 2024 | -3.69(-2.03%) |
Bharat Heavy Electricals Share Price | 263.8 |
04:03 PM | 6 Sep 2024 | -9.75(-3.57%) |
Polycab India Share Price | 6620.7 |
04:03 PM | 6 Sep 2024 | -28.11(-0.43%) |
SJVN Share Price | 130.51 |
04:03 PM | 6 Sep 2024 | -2.29(-1.72%) |
IDFC First Bank Share Price | 73.66 |
03:59 PM | 6 Sep 2024 | -1.39(-1.84%) |
ICICI Bank Share Price | 1208.15 |
04:03 PM | 6 Sep 2024 | -27.8(-2.25%) |
Tata Technologies Share Price | 1112.65 |
04:03 PM | 6 Sep 2024 | 37.75(3.52%) |
Central Depository Services (India) Share Price | 1401.5 |
04:03 PM | 6 Sep 2024 | -15.55(-1.1%) |
Ircon International Share Price | 246.15 |
04:03 PM | 6 Sep 2024 | -6.35(-2.52%) |
Jaiprakash Power Ventures Share Price | 17.47 |
04:03 PM | 6 Sep 2024 | -0.47(-2.57%) |
MRF Share Price | 134260.75 |
03:54 PM | 6 Sep 2024 | -1756.36(-1.3%) |
Power Finance Corporation Share Price | 545.3 |
03:59 PM | 6 Sep 2024 | -12.96(-2.32%) |
Delta Corp Share Price | 133.71 |
04:03 PM | 6 Sep 2024 | 2.25(1.71%) |
Steel Authority of India (SAIL) Share Price | 129.38 |
03:59 PM | 6 Sep 2024 | -1.85(-1.41%) |
Indian Oil Corporation Share Price | 176.64 |
04:03 PM | 6 Sep 2024 | -4.71(-2.6%) |
Affle (India) Share Price | 1621.2 |
04:03 PM | 6 Sep 2024 | -7.3(-0.45%) |
Bajaj Finance Share Price | 7317.15 |
04:03 PM | 6 Sep 2024 | 72.25(1.0%) |
Asian Paints Share Price | 3273.7 |
04:03 PM | 6 Sep 2024 | 35.45(1.1%) |
Avenue Supermarts Share Price | 5303.45 |
03:59 PM | 6 Sep 2024 | -4.7(-0.09%) |
Indian Energy Exchange Share Price | 207.96 |
04:03 PM | 6 Sep 2024 | -1.38(-0.66%) |
REC Share Price | 607.45 |
03:59 PM | 6 Sep 2024 | -23.15(-3.68%) |
HDFC Asset Management Company Share Price | 4418.0 |
03:59 PM | 6 Sep 2024 | -96.36(-2.14%) |
Vodafone Idea Share Price | 13.35 |
04:03 PM | 6 Sep 2024 | -1.75(-11.54%) |
Housing and Urban Development Corporation Share Price | 254.1 |
04:03 PM | 6 Sep 2024 | -7.91(-3.02%) |
Reliance Power Share Price | 30.22 |
04:03 PM | 6 Sep 2024 | -0.64(-2.05%) |
Adani Total Gas Share Price | 826.75 |
03:59 PM | 6 Sep 2024 | -17.25(-2.05%) |
Bank of Baroda Share Price | 235.85 |
04:03 PM | 6 Sep 2024 | -8.0(-3.29%) |
Birlasoft Share Price | 653.6 |
04:03 PM | 6 Sep 2024 | -6.0(-0.91%) |
Load more.. |
Copyright © 2024 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
Continue reading with one of these options: Limited Access Login to get access to some exclusive storiesLogin using your ET Prime credentials to enjoy all member benefits Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Sign in & Access ET PrimeTo read full story, subscribe to ET Prime Get Unlimited Access to The Economic Times ₹34 per week Billed annually at ₹2499 ₹1749 Continue
Stories you might be interested in