Indian eyes bigger cargo pie

State-owned Indian (Indian Airlines) is planning to convert its five passenger aircraft into freighter aircraft and has short-listed three global majors for conversion of these aircraft.

Indian is to convert five Boeing B-737 aircraft, which are currently being operated by its subsidiary Alliance Air.

"We have short-listed three overseas companies for conversion of passenger aircraft into freighter ones. The mandate for this will be awarded soon," Indian Director (Commercial) Anita Khurana told Business Standard.

Khurana said the average cost of converting one aircraft into freighter is at Rs 8 crore, taking total investment on conversion to Rs 40 crore.

Sources said the airline will have to invest more in Nagpur airport, which will be the hub of Indian's operations.

Indian has firmed up plans to operate these freighter services with Nagpur as a hub and Delhi, Mumbai, Kolkata and Chennai (via Bangalore and Hyderabad)

as originating stations.

"With the operation of freighters, Indian will be able to expand its cargo business and also offer dedicated cargo service during the night time. Later, the cargo division will also connect smaller cities," sources said.

Khurana said the airline has created huge IT infrastructure to trace and track cargo with facilitating bar code for all cargo.

Sources said the airline is also exploring converting its subsidiary Alliance Air into an express division.

"The strategy for Alliance Air has not yet been finalised. We are exploring options of converting it into a dedicated cargo division or reinventing the airline into new avatar keeping proposed merger with Air-India into consideration," sources added.