Mumbai: Aryan Cargo Express Pvt. Ltd, a subsidiary of Aryan Cargo Express and Logistics Pvt. Ltd, is planning to launch international air cargo operations by April, chairman and managing director Mukut Pathak said.
The launch will make Aryan Cargo the second private Indian firm to start international freighter operations, after G.R. Gopinath’s Deccan Cargo and Express Logistics Pvt. Ltd, which operates the Deccan 360 service.
Pathak and two other promoters—Rishi Raj Singh Dungarpur and Vishnu Singh Rawal—will invest Rs100 crore, of which Rs25 crore is equity and the rest debt from State Bank of India. The service will use three Airbus A310 cargo planes leased from National Aviation Co. of India Ltd.
Sector analysts are sceptical of the firm’s prospects. One expert said several international carriers are enhancing capacity to India. “It will be tough for a cargo airline company like Aryan Cargo to find cargo at this point of time,” said the expert, who did not want to be identified as he is an adviser to other commercial carriers.
Pathak is undeterred. “Our business model is simple. We are not an integrated player like Deccan 360. Ours is (a) non-integrated model and we outsource to other parties.” This, he explained, would help the firm start operations at low start-up capital without straining cash flow.