Separate Cargo Arm For Tata Air India Soon?

 He said that this integration involves multiple layers of coordination, both internally and externally, aimed at enhancing efficiency and expanding the carrier’s global footprint in the cargo sector.As part of this consolidation, Tata Sons is developing a comprehensive software platform to manage all aspects of its cargo business. This ‘mother software’ will collate cargo requests, manage revenue, and oversee various commercial aspects. Internally, efforts are being streamlined at multiple levels for the same. Externally, the company is focused on expanding its global distribution network, onboarding new customers, and enhancing partnerships with industry stakeholders.

In the direction of streamlining its aviation business, Tata Sons intends to consolidate cargo operations across its four airline subsidiaries under a single entity. This strategic decision comes as part of a broader effort to integrate and optimize the functions of its carriers, which include Air India, Vistara, Air India Express, and AIX Connect. The consolidation will eventually reduce the number of airlines to two, with plans to merge the full-service carriers and the low-cost carriers, respectively.

Air India’s cargo operations are set to benefit from an expanded global distribution network, which includes partnerships with trucking and interline partners. This network currently provides access to over 500 stations worldwide, a reach that is continuously growing. Tata Air India aims to develop and give an advantage of network-wide distribution capability to their customers globally.

The company’s digital transformation strategy is evident in its recent collaboration with IBS Software, a software-as-a-service company, to revamp its cargo systems. This move is part of Air India’s broader ambition to reclaim its status as a global leader in aviation, as highlighted by the airline’s Chief Commercial and Transformation Officer, Nipun Aggarwal. “Air India is on a transformation journey to not only reaffirm its position as a global leader in aviation but also establish foundations for future growth. Air cargo is one of the key drivers of our roadmap for future growth,” Aggarwal stated.

The domestic and regional international routes operated by Air India are also being leveraged to enhance the airline’s distribution capabilities, which are crucial to the success of its cargo operations. The spokesperson emphasized the unique advantages these routes offer in terms of distribution potential.

While the immediate focus is on consolidating operations, there are long-term plans that could see the establishment of a separate cargo subsidiary…The consolidation of cargo operations within Air India is part of a broader trend within the Indian aviation industry. Homegrown budget carrier SpiceJet has already separated its cargo operations into a distinct entity, while IndiGo, the country’s leading airline, has been actively expanding its focus on the cargo segment, including the deployment of dedicated freighters.

As Tata Air India continues to integrate its aviation assets, the merger of Vistara into Air India and AirAsia India into Air India Express is expected to be completed by the end of this year. These mergers are crucial to the group’s strategy of streamlining its airline business following the acquisition of Air India from the Indian government in 2022.