Tremendous growth potential for domestic air cargo, says aviation minister Raju

THERE IS tremendous potential for domestic air cargo growth but “somehow the jigsaw puzzle” was never pieced together, Union minister Ashok Gajapathi Raju said as he rued that currently cargo is only a minuscule part of Indian aviation sector.

Currently, Blue Dart and Quikjet are the only two domestic players operating cargo carriers.

Naresh Goyal-owned Jet Airways had announced its plans to set up a cargo airline in 2015 and had even got the government’s inprinciple approval for leasing of a freighter from its strategic investment partner Etihad. However, the airline later shelved the plans, citing market conditions.

The civil aviation minister said there is a need to motivate entities for air cargo operations. “In India, God has blessed with all types of climates, name the climate, name the produce the potential is tremendous. We are in the infancy (with regard to air cargo),” Raju told PTI in an interview.

Even as the domestic passenger growth has been over 20 per cent for many months, cargo segment is lagging behind.

The national civil aviation policy has also given thrust to boosting air cargo business, especially against the backdrop of rising ecommerce activities and exports. Among others, the government has set up the Air Cargo Logistics Promotion Board to chart out ways to reduce costs, improve efficiency and ensure inter-ministerial coordination. According to the minister, the world’s largest airline is Fedex, which is completely cargo, and even Indian aviation started with cargo.

“Somehow the jigsaw puzzle never got put together. At least there is an attempt to put it together. Let’s see where it will take us,” Raju said.