Challenges before aviation logistic sector in India

Indian aviation sector has seen rapid growth in the last two decades after liberalization of the economy in 1991. The air cargo segment of the aviation market also has seen corresponding growth in last 20 years. The strong and efficient air cargo sector is essential for the growth of the export sector of the economy. But there are some issues, which air freight is facing in the country.

The first is that air cargo is very expensive.  This may be due to the fact that there are not many cargo airlines in India and attempt by some to start the cargo airlines has not met with success. The share of Indian aviation cargo in the world aviation cargo is only 3 percent.

Challengers of air cargo

Lack of adequate infrastructure is one of the main bottlenecks in the air cargo growth in India. The most of the   air cargo is concentrated in few metro airports. The second and third tier cities have negligible or hardly any air cargo facility. The airports which have some cargo for airlift do not have facilities to handle the movement of cargo.

  

The constrictions in the interstate movements of good also creates problem in the free movements of cargo to the airports in time. The lack of timely delivery impedes the air cargo services between inner city airports to the gateway airports.

Lack of modernization of cargo International Parcel Service in Kandivali  handling facilities delay the movements of cargo from airports to the airplanes. This lowers the cost efficiencies.  The delay in shipment increases the chances of rejection of export order and also low export reorders in future.

Companies engaged in air cargo services do not get the required trained manpower. 

The onsite training facility is not yet developed and companies cannot afford to spend money on training facilities of workers. The result is that there is lack of professionals to handle the air freight cargo. The untrained manpower cannot handle the operations efficiently.

The government has to create condition by regulations to encourage the growth of air cargo companies. Currently, the passenger airliners are doing the air cargo airlines jobs. The growth of air cargo companies will create competition and completion always reduces the rates.

Fortunately, the government of India is aware of these challenges. The government has taken number of step to promote the air cargo sector. The construction of air cargo hub in Nagpur in the Maharashtra will encourage International Parcel Service in Borivali  the private players to use air cargo services of airlines. 

The relaxation in regulation on the new airlines will add air cargo capacity in India. The price of air cargo is expected to come down in future, which will open up many opportunities in the second tier cities for growth of air cargo.