Capt G R Gopinath, who sold the low-cost carrier Air Deccan in 2007 to Kingfisher Airlines, has incubated a new project: Deccan Cargo & Express Logistics. Despite losing the Lok Sabha election, where he hoped to represent Bangalore in the lower house of Parliament, he is upbeat about his recently launched air cargo business. In a freewheeling interview with ET, Deccan Cargo & Express Logistics CMD Capt Gopinath explains why his cargo business will revolutionise the sector and what the new government could do to alter the aviation scenario.
Archive for the ‘Air Cargo’ Category
Gopinath ready to offload 10% stake in Kingfisher
Sunday, May 17th, 2009With no private equity deal expected soon to finance his cargo business, Captain Gopinath, pioneer of low-cost flying in India, is open to the idea of selling his 10% stake in Vijay Mallaya’s Kingfisher Airlines.
“A couple of PE investors have approached us to invest in the cargo business, but I have postponed the process now. We will revisit it a few months later, if the valuation improves,” said Gopinath, chairman and managing director of wholly-owned Deccan Express Logistics (DEL).
The $625-million domestic express cargo market is expected to grow at 20% a year over the next five years. On his willingness to dilute his stake in Kingfisher Airlines, Gopinath said: “It depends on the valuation I get.” At today’s market price, his 10% stake is valued at Rs 51 crore.
Gopinath has already pumped in Rs 125 crore in Deccan Express Logistics and needs to raise an additional Rs 150 crore. The company, branded as Deccan 360, is expected to launch the first dedicated cargo service in India on May 27. It has already inducted an Airbus A-310 and will add two more next month.
Ram Charan boards Gopinath’s cargo start-up as an advisor
Friday, December 26th, 2008Iconic business strategist Ram Charan is boarding Capt GR Gopinath’s start-up logistics company Deccan Express as an advisor. The new
venture is expected to kick off in May next year with a fleet of six cargo aircraft connecting 14 locations and supported by a trucking service that will reach out to 68 places across the country.
“Ram Charan will be on the company’s advisory panel, guiding the CEO and operational team every quarter. We are gearing up to launch services in May-June, with a fleet of three Airbus 310s and three ATRs having 14 air touchpoints. We will be the largest and double the size of existing industry players on day one,” Capt Gopinath, chairman & managing director, Deccan Express Logistics, said. Three more ATRs will be added to the fleet subsequently.
Global, domestic logistics majors queue for Delhi cargo airport
Friday, December 26th, 2008Several Indian and international aviation and logistics companies such as Air India, Singapore Airport Terminal Services (SATS), Menzies, Bobba, Swissport, Bird Group and Worldwide Flight Services (WFS) have responded, individually or through tie-ups with each other, to two requests for proposals (RFPs) to set up a new cargo facility at Delhi airport and upgrade the existing one.
The RFPs were sent by Delhi International Airport Limited (DIAL), the GMR-led consortium that is modernising and operating Delhi airport. The last date to submit the bids is February 16.
Delhi accounts for around 25 per cent of total air cargo transported in the country.
An executive close to the development said Air India has tied up with SATS, Bird Group has tied up with WFS and Menzies with Bobba to bid for the cargo project.
Air India scraps cargo plans even as others press ahead
Wednesday, October 22nd, 2008In a surprise move ensured to delay its air cargo plans for quite a while, Indian flag carrier Air India has decided to exit the cargo space and lease out its freighters. This, even though, cargo is a big revenue earner.
According to reports, Air India is seeking to lease two of its Airbus 310s, which were converted to freighters. The carrier is also converting six Boeing 737-200s into freighters, each with a payload capacity of 12 to 15 tonnes, which will bring its freighter fleet strength to eight.
RGIA poised to emerge as cargo hub in India: GHIAL official
Monday, September 15th, 2008World-class cargo facilities at the Rajiv Gandhi International Airport (RGIA) here has opened up exciting opportunities for large-bodied freighter planes with the first two air charters-Boeing 747-200 freighter and -Boeing 747-400 F-landing at the airport.
“These flights mark the first step in GMR Hyderabad International Airpot Limited’s (GHIAL) endeavour to make RGIA a world-class cargo hub in this part of the country,” GHIAL Chief Commercial Officer Viswanath Attaluri said in a release.
Foreign players in air freight
Monday, September 15th, 2008India accounts for a meagre three per cent of an estimated 27-million-tonne global air freight market. This, however, does not deter foreign air freight operators from expanding their services to and from the country. As Malaysia Airlines Cargo (MASkargo) acquires on lease a new A300-600 freighter, it plans to expand its services to various destinations, including Chennai. MASkargo already runs services to and from Chennai.
Deccan Express to raise funds worth $200 m
Tuesday, August 19th, 2008Deccan Express Logistics, an air and ground distribution network company formed by Capt. G.R. Gopinath, plans to raise $200 million to fund the project, which is expected to become operational by the first quarter of the next financial year.
The company has appointed Edelweiss, an investment banking and financial services company, to arrange for funding from private equity and help it with a business model to run its fully integrated logistics service.
Capt Gopinath told Business Line that he hopes to raise $70 million in the next four months, while the remaining funds were expected to be arranged within three years with the help of Edelweiss.
GMR to set up centre for perishable cargo at Hyd international airport
Tuesday, August 19th, 2008GMR Hyderabad International Airport Limited (GHIAL) has decided to set up a world-class centre for perishable cargo (CPC) at the Rajiv Gandhi International Airport (RGIA) here.
The CPC will be designed to handle 13,000 tonne per annum of perishable cargo under phase-I (up to 2011) and the capacity will be raised to 25,000 tonne per year under phase-II (2013-14).
“It will give a boost to the movement of perishables and will aid horticulture sector in the state to be more competitive,” GHIAL chief commercial officer Viswanath Attaluri stated in a press release.
The projected investment for the phase-I of the project is Rs 40 crore with a subsidy component of Rs 20 crore from the Agricultural and Processed Food Products Export Development Authority (Apeda).
N S C Bose Airport to get new cargo facility soon
Saturday, July 26th, 2008A modern storage system is being installed at the N S C Bose Airport to maximise the utility of perishable import and export goods.
The Airports Authority of India (AAI) is setting up a Centre for Perishable Cargo with the help of Malaysian technology for preserving 80 tonne of perishable goods daily.
“This is a Rs 10 crore project funded by the Agricultural Product Export Development Authority which will have an extensive system where goods will not only be loaded and unloaded from planes, but it will also be checked, weighed and stored,” Senior Manager (cargo), K J Raju said.
Topworth Group to foray into air cargo, invest $100 mn
Thursday, June 26th, 2008Mumbai-based Topworth Group of Companies is set to foray into air cargo business in association with an US firm by early next year with an investment of $100 million.
After getting the NOC from the aviation ministry, Topworth Group of Companies along with Avicore LLC has formed a joint venture, Avicore Aviation, for this business and expects to record a revenue of Rs 500 crore in the first full-year of operation from the venture.
Air India to launch cargo services from Nagpur on July 1
Wednesday, June 11th, 2008The Air India will launch its much-awaited cargo services within the country from July 1 and will connect six major important destinations, a top official said.
The Air India has completed converting its four-737 boeing aircraft which will be pressed into service from July 1 from Delhi, Kolkata, Chennai, Mumbai, Bangalore and Hyderabad, Air India Airport Director I J K Dhas said.
IBS to deploy iCargo in Tokyo airport
Saturday, May 31st, 2008The Thiruvananthapuram-based IBS Group has inked a deal with Tokyo International Air Cargo Terminal Ltd (TIACT) for deploying its cargo terminal operations (CTO) module of iCargo, a new-generation cargo management system.
The airport, which is currently being expanded in terms of both capacity and technology, will see the iCargo CTO module to be up and running when it is fully functional by October, 2010.
According to V K Mathews, chairman and CEO, IBS Group, "the software will manage the new cargo terminal at Tokyo International Airport, also known as Haneda Airport. Haneda is ranked among the world’s busiest passenger airports and will be the first neutral ground handler to use iCargo’s CTO module."
Gopinath’s cargo to fly pan-India
Saturday, May 24th, 2008The cargo airline proposed by Capt G R Gopinath would work with SEZ developers and retailers such as Reliance and Bharti to provide end-to-end and integrated logistics solutions. The new airline will have pan-India connectivity and operation in remote areas with rich resources. The proposed airline will initially serve on both metro and non-metro routes with 10 medium and small-size aircraft.
“We have formed a team of about 50 people who are exploring markets. Though our service would be in line with other air cargo majors such as DHL and FedEx, our reach would be quite larger. We plan to operate to still unconnected areas, coastal and mountain areas,” said Mr Gopinath.
The new venture is understood to have mandated Edelweiss, a financial services firm, to bring in equity in the new venture. The proposed cargo airline which obtained no-objection certificate (NOC) from the civil aviation ministry a week back is expected to take wings in the next few months. Unlike Air Deccan, the cargo airline would be a full-service carrier with focus on profitability.
SpiceJet launches cargo arm
Friday, May 16th, 2008Indian low cost carrier, SpiceJet, has announced the launch of domestic cargo operations, which it said will cover eight major cities initially. It said, eventually, it intends to network 18 destinations for freighter operations.
Cargo facilities to be must at new airports
Friday, May 9th, 2008Airport developers, such as GMR, GVK and CIAL, would now have to provide comprehensive cargo facilities at all new greenfield airports. The government is planning to make this condition mandatory in the proposed air cargo policy which is to be finalised within three months.
For business reasons, many developers are already building cargo facilities, however, they are not bound to do so. The proposed policy will also stipulate dedicated cargo area at all existing airports, including those being developed by private operators.
A consultant may be brought on board for advising on making cargo facilities mandatory in the new policy. Airport developers would also shoulder the responsibility of suggesting measures for reducing dwell time at airports. A separate system to speed and spruce up ground handling facilities would also be suggested by the consulting firm.
Cargo operators seek exclusive air cargo zones around international airports
Friday, May 9th, 2008The air cargo industry has asked the government to provide for a designated area around major international airports, for exclusive use as air cargo terminals. The industry has asked the government to provide land near the international airports in Mumbai, Kolkata, Delhi and Bangalore to set up air freight stations.
The industry has also asked the government to allow cargo terminals to be set up only in consultation with cargo agents. It is expected that such terminals will enable exporters and importers to cut transaction costs and save time spent on freight movement.
With Indian freight traffic expected to record growth of more than 20% per annum, industry sources said, the need for agent-bonded terminals is growing significantly.
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Air cargo players demand exclusive freight stations
Monday, May 5th, 2008The air cargo industry has demanded that the government build air freight stations, or agent bonded terminals, on the lines of the container freight stations at seven major ports in India. The industry wants the government to provide for a designated area around major international airports which will be used exclusively for cargo operations.
The move could enable industry, especially exporters and importers, to cut transaction cost and save time spent on freight movement. The air cargo industry has sought land near the international airports at Mumbai, Kolkata, Delhi and Bangalore to set up air freight stations. The industry is of the view that cargo terminals should be provided for and made at the new privately-run airports of Mumbai and Delhi in consultation with cargo agents.
Quikjet plans to enter into domestic air cargo space
Saturday, March 15th, 2008Ramesh Natesan of Quikjet wants to play GOD. Not literally. He just means Guaranteed Overnite Delivery. “Exactly the kind of God that customers want,” quips Mr Natesan, the 57-year-old CEO of Quikjet, a new domestic air cargo venture expected to initiate operations next month. Plans for the launch have been firmed up.
Quikjet intends to initiate operations with the first of its fleet of five B737-300F aircraft on the Chennai-Mumbai-Delhi-Mumbai-Chennai route close to mid-April. Almost a month from now, Quikjet intends to introduce the second aircraft to add Bangalore to the network. The company expects the third aircraft no later than in three months after the arrival of the second, when it shall add some more touch points to the network. “Our plan is to get all aircraft into service in the next 14 months,” says Mr Natesan.
Advice to air-cargo sector
Monday, March 10th, 2008The International Air Transport Association (IATA) has urged the air cargo industry to try to improve customer service and competitiveness. This is because the industry is projected to grow at four per cent this year when the world trade grew by 7.5 per cent last year. This means other modes of transport, particularly by sea, are gaining in market share. The shipping sector, it might be noted, has not only introduced modern faster vessels but also succeeded in lowering costs through various innovative solutions.
