SpiceJet to expand into domestic cargo sector
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Route Changes & Development,
SpiceJet
Cargo traffic is demonstrating strong growth in India, following recent changes to FDI policy in the cargo sector. Various Indian carriers, including SpiceJet, have started exploring expanding cargo operations.
SpiceJet recently announced plans to “aggressively” expand into the domestic cargo sector, targeting cargo to account for 3% of total revenue next financial year (commencing 01-Apr-08).
The carrier has commenced developing the necessary infrastructure for the venture, including USD3.8 million to establish a hangar facility, possibly in Delhi.
SpiceJet was recently awarded a courier services contract by India Post.
Executive Chairman, Mr Siddhanta Sharma stated, "our aircraft can carry about two tonnes of cargo and we are operating about 120 flights per day, which means we can carry 240 tonnes every day. We are doing 60-70 tonne of courier every day, so we can carry about 180 tonnes more".
However, the carrier ruled out plans to operate dedicated freighter aircraft in the near future.
The Indian Government recently allowed foreign carriers to hold a 74% stake in Indian cargo carriers. A limit of 49% foreign direct investment was previously allowed in the cargo sector, excluding foreign airlines.
(c) Centre for Asia Pacific Aviation. Date posted: 04-Mar-08.
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SpiceJet to expand into domestic cargo sector 
