IndiGo, India’s largest private airline, views cargo as a key driver of growth as the market expands and government reforms to reduce logistics costs gain traction.
Mark Sutch, Chief Commercial Officer of IndiGo’s cargo arm CarGo International, sees the air cargo industry in India as a thriving and competitive market with promising investment opportunities. The demand for cargo movement in India has increased significantly during the pandemic and is expected to continue in the future.
IndiGo recently added a third freighter to its fleet, believing that reducing logistics costs, which currently account for around 13% to 14% of India’s GDP, will enhance export trade. The growth of e-commerce has also impacted the air freight shipping industry, with a rising demand for fast and reliable delivery services.
According to Sutch, Indian air cargo stakeholders are prepared to address logistics challenges and capitalize on opportunities, with projections indicating a dramatic expansion of the country’s freighter fleet size by 2041. IndiGo is focusing on increasing flight frequencies and destinations, aiming to double freighter fleet utilization to nine hours a day by 2024.
The airline is also planning to expand its air cargo network in tier 1 and tier 2 locations in India, while exploring opportunities for additional connectivity to China and South-east Asia. IndiGo is also leveraging technology advancements and industry collaborations to enhance its market share.
The airline’s growth strategy is reflected in its latest earnings report, with net profits for Q3 of fiscal year 2023-24 increasing by 111% year on year. IndiGo is set to receive a fourth freighter this year and has a significant order for additional aircraft from Airbus, demonstrating its commitment to expanding its operations and market presence.
