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Start-up Aryan planning cargo airline by Aug

Start-up Aryan planning cargo airline by Aug
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First Published: Thu, Apr 03 2008. 01 23 AM IST
Updated: Thu, Apr 03 2008. 01 23 AM IST
Logistics start-up Aryan Cargo Express Pvt. Ltd plans to launch a cargo airline by August from New Delhi with an initial capital of $60 million (Rs240 crore) after the ministry of civil aviation granted it approvals this week.
Aryan Cargo will join two dedicated Indian cargo airliners, Blue Dart Aviation Ltd and National Aviation Co. of India Ltd’s Air India Cargo, to serve a cargo market estimated at 1.5 million tonnes a year. Avicore Aviation Pvt. Ltd, Aviation Consultants Pvt. Ltd’s QuikJet and Deccan Chronicle Holdings Ltd’s Flyington Freighters are others planning operations.
“Primarily, the airline will be based on exploiting the strategic location of Delhi,” said Aryan Cargo managing director Mukut Pathak. “We are equidistant from Europe and Far East... This will help us in moving cargo from Far East, China, South-East Asia and Saarc to Central Asia, Europe, Middle East, North Africa and East Africa.” Saarc is short for South Asian Association for Regional Cooperation. The firm will start services with three Airbus A310 freighers, and plans a hub in Dubai too, and to take fleet size to 12 by the second year of operations.
Dubai-based Kellett and Singleton Investments Ltd, a business group with interests in logistics, shipping and tourism, will have a 20% stake in Aryan Cargo besides Pathak and businessman Rishi Raj Singh Dungarpur.
Air India Cargo’s director Anita Khurana predicted the market would get tougher. “There is plenty of cargo in the market but how much is a high (revenue) yield cargo is the real question,” she said, adding operations costs such as airport charges and jet fuel prices are increasing.
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First Published: Thu, Apr 03 2008. 01 23 AM IST