Air Cargo India

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Air Cargo - IndiaJuly 2009



2AIR CARGO – INDIA . PPT

S A M P L E

Executive Summary

Market

Drivers &

Challenges

Government

Initiatives

Competition

Changing FDI policy to attract investors

Introduction of the Open Sky policy

Various bi-lateral agreements

Large scale investment to develop infrastructural capabilities

Many domestic and international players have entered the market in order to capitalize on the

growing opportunities

XXWWVVUUInternational Players

DDCCBBAADomestic Players

Market valued at INR X bn in 2007-08; Expected to grow at x% p.a.

Cargo transported is dominated by pharma, textiles fashion goods, telecom, IT hardware, gems

and machinery parts

x % of all cargo is transported as belly cargo in domestic airlines

International operations expected to grow at x% p.a. while domestic operations expected to

grow at x% p.a. by 2011-12

Drivers

– Strong macroeconomic fundamentals

– Growth in retail

– Development of transportation system – Growth in clearing and forwarding agents

Challenges

– Rising air traffic fuel (ATF) prices

– Growing congestion at airports

– Delays in cargo handling & clearance




•Introduction

•Market Overview

•Drivers & Challenges

•Government Initiatives

•Competition

•Key Developments




S A M P L E

Air cargo traffic in India has been growing due to strong

domestic demand and rising international trade

•Air cargo market is estimated to grow at x%p.a. and reach INR X bn by 2011-12

•Largely dominated by pharmaceuticals, textilesfashion goods, telecom (like mobiles), IThardware, gems and machinery parts which aretime critical

•x % of all cargo is transported as belly cargo indomestic airlines

Overview Market Size and Growth

Cargo Traffic

Source:

0

50

100

150

V

2007-08

W

08-09e

X

09-10e

Y

10-11e

Z

11-12e

x%

INR bn

Growth Rate of Modes of Transportation

x%Air – Import Cargo

y%Ports (cargo)

z%Railway (freight)

v%Air – Export Cargo

Air cargo observed

the highest growth

in the cargo

transportation

sector (2007-08) 0

500

1,000

1,500

2,000

A

2001-02

B

02-03

C

06-0705-0603-04

E

04-05

D

FG

07-08

Domestic

International

‘000 tonnes




S A

M P L E

Cargo Terminals: International

Overview

x sq. m.Total Area

X sq. m. each, 0o-4

oCCold Chambers

Examination: x sq. m., 12o-18

oC

Work Station: x sq. m.,7 ton capacity

Receiving Area: x sq. m., 15o-18

oC

Other Sections

Perishable Cargo Facility

x sq. m.Covered Area

Import Wing

x wide bodied aircrafts with ULD

parking area, hydrant refueling set-upCargo Apron Capacity

X sq. m.Covered Area

x manualBuild up Stations

Export Wing

Established Feb 1, 19--

Area x sq. m.

Source:

Cargo Traffic

Infrastructure and Developments

0

100

200

300

A

2001-02

B

02-03

C

03-04

D

04-05

E

05-06

F

06-07

G

07-08

H

08-09

Export

Import‘000 MT

+13%

• x airport terminals with one dedicated to cargo

flights; equipped with modern cargo handlers such as

forklifts and power hydraulic pallet trucks.

• A new Integrated Cargo Terminal

This is being planned and is expected to span over x sq. m.

and Phase 1 has been commissioned

• Expansion of the airport is expected and is going to

be constructed in Sriperumbudur taluk at aninvestment of INR X bn

Location: Chennai


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Drivers and challenges

Development of Transportation

System

Drivers

Strong Macroeconomic Fundamentals

Growth in Retail

Growth in Clearing and Forwarding

Agents

Growing Congestion at Airports

Rising Air Traffic Fuel (ATF) Prices

Challenges

Delays in Cargo Handling & Clearance



Government has taken various measures towards developing

this segment by introducing major changes in the FDI policy

FDI Policy

Source:

• FDI up to x % is permitted through automatic approvals and upto y% with special permission from FIPB

Existing Airports

• x% FDI is allowed in domestic airlines under the automatic route(but not by foreign airline companies)

• y% equity ownership by Non-Resident Indians (NRIs) ispermissible

Domestic Airlines

• x% FDI in maintenance, repair and overhaul (MRO)organizations, flying training institutes (FTIs) and helicopterservices

• y% tax exemption for airport projects for a period of X years in

order to attract investors

Others

• FDI up to x % is permitted through automatic approvalsGreenfield Airports

• Hiked to x% FDI from the initial permissible rate of y%Cargo and Non-scheduled Airlines

PolicySector

SAMPLE



S A

M P L E

Domestic Players (1/10)

• It expanded its operations by introducing new daily

flights between Delhi-Srinagar via Jammu and

Mumbai-Srinagar• Plans on introducing flights between Dubai-Nagpur as

Nagpur is expected to become a major logistic hub in

India

• Cargo carried ranges from carriage of various

perishables, household pets, life saving drugs,valuables and general goods

Corporate Information Financial Performance

Business Highlights

Source:

Headquarters New Delhi

Founded 19--

Fleet Size X

Parent ABC

Subsidiaries N.A.

Key People •Mr.-- (Founder)

•Mr. -- (Owner, Jet Airways)

•Mr. -- (CEO)

Company Snapshot: ABC Ltd

0

10,000

20,000

30,000

-6,000

-4,000

-2,000

0

X

2005-06

Y

06-07

Z

07-08

Revenue

Profit / Loss

0

Revenue

INR mn

Profit

INR mn

Operational Performance

0

10

20

30

40

50

6070

0

20

40

60

80

A

2001-02

B

02-03

C

03-04

D

04-05

E

05-06

F

06-07

G

07-08

Average Weight Load Factor

Cargo CarriedTonnes/day %

Financial Performance

Air Cargo India

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