Air France KLM group revamps its freighter operations in India

New Delhi: Air France KLM Martinair Cargo has revamped its full freighter operations in India by dropping Delhi as a destination and adding more capacity in Mumbai as it seeks profitability from its Indian operations. The European group's full freighter operations have been under pressure globally and registered a 202 million euro ($281 million) loss in 2013 giving rise to speculation that the group may completely shut down its full freighter operations globally.

"We are starting a new set up for our full freighter operations in the summer schedule 2014 as we seek to make the freighter operations in India profitable," said Christophe Boucher, vice president, Asia & Middle East, Air France KLM Martinair Cargo. "The first few flights are already quite full so now our focus will be to get the right rates and we will increase the rates as soon as possible."

Boucher did not give an estimate as to how much the rates could be increased by as the company is still chalking up the increase.

He also admitted that the group is struggling with its freighter operations globally but said that the idea behind the revamp of the Indian operations is to make it profitable in the Air France KLM Martinair cargo universe.

"We are competing internally," said Boucher. "We will asses the profitability after a few months and India needs to be near the top of our freighter network. We do believe that linking Chennai and Mumbai with Hong Kong is a good combination."

Overall, as a result of the change the group will be adding 40 tonnes per week additional capacity in Mumbai, while Chennai remains the same and Delhi drops out of its network.

Air France KLM Martinair Cargo had 26 freighters operational at one point of time but now flies only 10 freighters.

Full freighter operations globally have been under pressure as belly cargo space on passenger aircraft increases with new generation aircraft like the Boeing 787 and Airbus A350.

"It is true that the Gulf carriers and Chinese carriers are adding more and more of belly cargo capacity which is driving the prices down," said Boucher. "But for us, definitely there is a pressure to increase the rates."

Apart from the revamp in terms of operating points in India, Air France KLM Martinair Cargo will also focus on high value pharmaceutical products being exported from India. "We have a dedicated sales team working with customers in the pharmaceutical industry," said Boucher.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.