SPICEJET TO LAUNCH CARGO SERVICE
Ajay Singh-owned SpiceJet is diversifying into air cargo business, the first among Indian carriers to start a dedicated freighter plane service. The airline, which will be using Boeing 737-800 BCF for freighter operations, will get its first plane in July.
“We plan to start operations by July between metro cities. Gradually, we will spread the business to other cities, including international destinations,” a senior SpiceJet executive said.
Sources said retrofitting work in the aircraft is underway at Boeing’s facilities in Shanghai and at Israel Aerospace Industries. “Two planes have already undergone conversion and will join our fleet by the third week of July,” the executive said. The airline plans to have 20 freighter planes by 2022.
Through its freighter conversion programme, US aeronautical aircraft Boeing transitions passenger airplanes into freighters.
“The seats of the plane are removed creating space for cargo. Modifications also include installing a large main-deck cargo door, a cargohandling system and accommodations for up to four nonflying crew members or passengers. The 737-800BCF carries load of upto up to 23 tonnes and has a range of 2,000 nautical miles (3,750 km) which, according to SpiceJet, will help them venture into international markets. “The international destinations are in planning stage but we certainly will expand gradually,” the official said.
The 737-800BCF freighter also offers operators newer technology, lower fuel consumption and better reliability than other standard-body freighters.
A boost in e-commerce sales has increased the prospect of air cargo business in India. But while a logistics pureplay cargo player like Blue Dart operates six dedicated freighter planes, most of India’s air cargo capacity is limited to belly space in commercial airlines, all of which are seeing a surge in cargo income.
However, analysts warned that SpiceJet’s diversion may be a costly affair at a time when airlines are tackling the dual problem of high fuel price and a weaker currency.
“Freighter business is a very tough sector, extremely seasonal, and companies like FedEx and Blue Dart that have expertise in such business also make life tougher. Getting into captive model with major ecommerce players like Amazon and Flipkart will help,” said an airline executive.