The director of cargo at Cathay Pacific, Tom Owen, believes that the cargo business in India is a long-term bet with significant growth potential. In the June quarter, Cathay Pacific ranked fourth among cargo carriers in India, after Emirates, Qatar Airways, and Aerologic. Owen emphasizes the need for a long-term plan and investment in fleet, size, scope, network, and infrastructure for sustainable success in the cargo business.
India will require the support of foreign cargo airlines, like Cathay Pacific, to achieve its export aspirations. Owen highlights the importance of a combination of India’s own strength in cargo transportation and allowing freight to be carriedoverseas cargo airlines. This balance is critical for the government to work out and establish.
Cathay Pacific is currently in a rebuilding phase, having recovered to 85% of its pre-COVID-19 cargo operations. The airline had faced significant challenges due to strict COVID-19-related rules that restricted travel to Hong Kong for three years. During this period, cargo became a crucial part of the airline’s cash flow and helped reduce its need for borrowing and selling assets.
Cathay Pacific operates 18-20 cargo flights per week to Delhi, Mumbai, and Chennai, in addition to utilizing the belly space of its 23 passenger flights to India for cargo transportation. India is the airline’s third-largest cargo market, and Cathay Pacific plans to expand its operations to Kolkata, Hyderabad, and Bengaluru. The growth potential in e-commerce, pharmaceuticals, and fresh produce industries is driving this expansion.
Owen is particularly optimistic about the pharmaceutical sector, the investment in information technology and electronics, and collaboration with e-commerce players and the Indian Post Office. However, he believes that access to more locations beyond the three major metros needs to be improved.
With the Indian government’s plan to increase the cargo handling capacity of domestic carriers to 10 million tonnes2030, Cathay Pacific sees ample opportunities for growth in the Indian market.
