Emerging Air Cargo Scenario in India

January 2008

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Emerging Air Cargo Scenario in India

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Tracks & Traces of the Vibrant Dynamics in India

Source: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001)

% average annual growth

1901-1950 1.0

1951-1980 2.2

1981-1990 2.1

1991-2000 1.8

2001-2010 1.5

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Tracks & Traces of the Vibrant Dynamics in India

Source: Censes of India (2001)

%

1950 17

1990 52

2000 65

2010 (proj) 80

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Tracks & Traces of the Vibrant Dynamics in India

Source: 1900-1990: Angus Maddison (1995), Monitoring the World Economy, 1990-2000:Census of India (2001), 2000-2005 Finance Ministry

% average annual GDP growth

1900-1950 1.0

1950-1980 3.5

1980-2002 6.0

2002-2006 8.0

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Tracks & Traces of the Vibrant Dynamics in India

Source: CII

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

93 94 95 96 97 98 99 00 01 02 03 04 05

Composition of Indian GDP

Agriculture Industry Service

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Traits and Trends of the Air Cargo Scenario

Source: CII

480,283 tones, (45%)

592,172 tones,(55%)

2006-2007 (Tones)

Import

Export

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Traits and Trends of the Air Cargo Scenario

EuropeUK

USA

CanadaGulf Africa

Far East

Others*

EuropeUK

Canada/USA

Gulf

Far East

Others*

2006-07

PERISHABLEMARKET

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Traits and Trends of the Air Cargo Scenario

BOM, 49%

TRV, 19%

DEL, 14%

MAA, 7%COK, 6% BLR, 2%

HYD, 2% CCU, 1%

Gateway Distribution Apr’06 - Mar’07 (Tons)

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Traits and Trends of the Air Cargo Scenario

GULF, 66%UK, 12%

FAR EAST, 11%

EUROPE, 5%OTHERS, 3% CANADA, 3%

USA, 0%

Destination/Region Apr’06 - Mar’07 (Tons)

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Traits and Trends of the Air Cargo Scenario

BOM, 49%

TRV, 19%

DEL, 14%

MAA, 7%COK, 6% BLR, 2%

HYD, 2% CCU, 1%

Gateway Distribution Apr’06 - Mar’07 (Tons)

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Risk Factors & Road Blocks

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Risk Factors & Road Blocks

Source: RB Roy Choudhury Memorial lecture

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Risk Factors & Road Blocks

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Risk Factors & Road Blocks

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Risk Factors & Road Blocks

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Now It’s Time to Move

• Time is now for India Cargo to improve airports, roads and in short infrastructure at the major meteors in the country

• Airlines, shippers, agents and local authorities need to work side by side and single voice

• Customers service still need to be improved in term of service after sales for which infrastructure is not needed and we all need to do our part

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Infrastructure and facilities requirement.• Space . BOM,DEL,MAA,BLR,HYD,CCU.

• Time schedule. i. Truck turnaround.ii. Documentation & inspection.iii. Screening facilities.iv . Build and break.v. Acceptance and Delivery.

Equipment & IT.i. Warehouse and ramp handling.ii. Interface with carriers and forwarders systems.iii. Real time status update.

• Support areas.i. Facilities to handle multi modal freight .ii. Improved and increased road network.iii. Effective Road Feeder Service to and from inland points.iv. Attitude of authorities.

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Progress on infrastructure .

• Up gradation of Mumbai and New Delhi.

• Green field airports at Bangalore and Hyderabad.

• Development of a cargo “HUB” at Nagpur.

• All projects - Joint Ventures with AAI & a consortium of Indian and International companies ( GVK/GMR/FRAPORT/ Zurich Airport Authority etc.)

• Presence of International Ground Handling Agents – SATS/ Menzies.

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Areas of concern.

• Time frame.

• Involvement of users – forwarders and carriers in the planned scale of operations.

• Increasing costs.

• Service level guarantee.

• Accessibility to the airports .

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Future Strategic Objectives• Maintain leadership position in domestic market

– Consistently to enhance product and service delivery– Reduce costs by further streamlining operations and emphasis on

technological innovations– On-line sales to form 25% of total sales in the next 18 months– Improved connectivity of existing points and higher frequencies– Expand core business traveler/customer base

• Build leadership position in International markets– ‘Raise the bar’ with our product and service– Develop international network as the ‘second pillar’ of our

operations– Carry forward domestic structure, reliability and efficiency levels

to international operations– Comprehensive route specific bilateral partnerships– Seamless “feed/de-feed” between domestic and international

networks

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Fleet PlanN

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of

air

cra

ft

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International Fleet Plan• 10 B777-300ER between Apr 07 and Feb 08

– To be deployed on high-dense long haul routes – i.e. USA, and UK

– 3 Class product with 312 seats (8/30/274)

• 9 additional A330-200 between Jan 07 and Sep 08

– To be deployed mainly on medium-long haul routes – mainly Canada, South East Asia, Africa and Gulf routes

– 2 Class product with 220 seats (30/190)

• 2 additional B737-800s by Oct 07

– To be deployed on regional international routes to neighbouring countries and thin SE Asia and Gulf routes.

– 2 Class product with 150 seats (24/126)

• 10 B787 Dreamliner aircraft, deliveries by 2011

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9W Network Opportunities – Medium Term Target Market : Jet Airways

•Halfway between Europe and Australasia•Halfway between Africa and Asia

• Ideal Cross road between Major Markets• Supported by Huge Home Market

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USA / Canada / UK Network (by 2008)

Widebody Network

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Asia/Africa Network (by 2008)

Widebody Network

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Future International Route Network (by 2008)

Route Freq / wk A/C Type Route Freq / wk A/C Type

BOM-LHR 14 B777 ATQ-LHR 6 A330

DEL-LHR 7 B777 BLR-BRU-YYZ 7 A330

BOM-BRU-EWR 7 B777 BOM-HKG 7 A330

BOM-PVG-SFO 7 B777 DEL-HKG 7 A330

DEL-BRU-JFK 7 B777 BOM-NBO 7 A330

BOM-JNB 7 A330

BOM-DXB 14 A330

Additionally, regional international flights will also be operated with B737 aircraft

DEL-DXB 7 A330

COK-DXB 7 A330

TRV-DXB 7 A330

HYD-DXB 7 A330

MAA-DXB 7 A330

BOM-AUH 7 A330

BOM-SIN 7 A330

MAA-SIN 7 A330

MAA-KUL 7 A330

DEL-BKK 7 A330

BOM-BKK 7 A330

Thank You