Cathay Pacific launches Indian cargo service

BY A CORRESPONDENT
May 3, 2006

Hong Kong-based Cathay Pacific has launched a new cargo freighter service in a bid to tap into India's growing cargo markets. The airline will now be operating freighter flights twice a week connecting the Hong Kong-Mumbai-Chennai-Hong Kong sector with a Boeing 747-200 aircraft, from June 2 onwards. This will be Cathay's first direct flight to exclusively connect India.

According to Bahrain-based General Manager, West Asia, India and Africa, Mr Tom Wright, "India is a key focus area for the airline. Where cargo is concerned, India accounts for 35 per cent of the airline's revenue and it is growing. As the number of aircraft in the fleet grows, we would consider launching more cargo flights here." He added, "India has strong potential as a cargo market. As the country turns into a manufacturing hub, we expect the air cargo market to expand steadily."

Currently, existing Cathay freighters reach Mumbai and Delhi thrice a week, only to fly onwards to other destinations, connecting Mumbai to Dubai and Paris, and connecting Delhi to London and Milan.

In addition, the airline is also interested in expanding operations in North India, which represents an important market for the airline. To that end, Cathay has opened a new General Sales Agent office in Jalandhar to address increasing passenger demand, especially in Punjab. Added Wright, "In north India, Punjab is an important market and accounts for 30 per cent of all sales in the region." Currently the airline operates passenger flights four times a week, to Mumbai and Delhi.

Keen to operate flights in other Indian cities as well, the airline will be discussing the possibility with the Indian government in a new round of bilateral civil aviation negotiations. Key destinations include Bangalore, Chennai, and Hyderabad. According to the airline's Manager, Delhi and Northern India, Mr Richard McCallum, "No date has been fixed for opening an office in Jaipur. But if we were to consider opening another office it would probably be in Jaipur."

The airline has also requested Hong Kong authorities to levy an additional fuel surcharge, to keep apace with rising oil prices. Its current surcharge on longer flights (including India) is $43.30.

In addition, Cathay has also expressed its willingness to open access to Indian carriers in Hong Kong in terms of landing rights, in exchange for reciprocal benefits.