Cathay Cargo Advocates for Coterminalisation to Strengthen Indian Operations

The company, which is eyeing growth under India’s open sky policy, believes coterminalisation will allow it to better serve multiple Indian markets with greater operational efficiency. Coterminalisation is a regulatory framework in aviation that permits airlines to operate flights with multiple stops at different airports within the same country. This approach enables more efficient routing and scheduling by allowing airlines to serve multiple destinations without needing separate permissions for each route. For instance, an airline could fly from one city to another within India before returning to its home country, effectively combining these routes into a single operational framework.

Cargo airlines like Cathay Cargo stand to gain substantially from coterminalisation through several key advantages: Increased Market Access: With the ability to make multiple stops, Cargo airline can broaden its reach within India, accessing more markets and customers without facing additional regulatory barriers. This can lead to increased freight volumes and higher revenue. Operational Efficiency: Coterminalisation allows for streamlined operations by reducing the number of separate flights required to cover multiple destinations. This not only lowers operational costs but also improves turnaround times for cargo handling, enhancing overall efficiency.

Tom Owen, Director Cargo at Cathay Cargo, emphasized the importance of coterminalisation within the framework of India’s open sky policy, which already allows foreign cargo carriers to operate from all international airports to expedite goods movement, particularly perishable exports. Owen noted that the airline is eager to leverage coterminalisation to meet the growing demands of India’s market. “We like to fly into Delhi and then fly to Kolkata, and then fly back to Hong Kong. So we can pick up on two places,” Owen explained, highlighting how coterminalisation could enable Cathay Cargo to tap into multiple Indian markets within a single journey, thus enhancing its service efficiency and market coverage.

Owen also pointed to India’s rapid infrastructure development and increasing capabilities in logistics as factors that bolster Cathay Cargo’s confidence in the country’s market potential. He cited the significant growth in exports of products that are typically moved by air, such as pharmaceuticals and fresh produce, as key areas of focus for the airline’s cargo operations. Cathay Cargo is also exploring partnerships with Indian carriers like IndiGo to utilize the belly space of passenger aircraft for additional cargo capacity, further strengthening its operational footprint in India.

In summary, coterminalisation presents a compelling opportunity for cargo airlines like Cathay Cargo to enhance their operational capabilities, improve service offerings, and drive growth in the dynamic Indian logistics market. By adopting this approach, Cathay Cargo aims to better serve the needs of its customers and capitalize on India’s expanding economic landscape.