Air India company is unifying its cargo operations and may eventually create a distinct organization with specialized freighters, according to authorities. The reorganization effort will allow the Tata-owned carrier to refine its emphasis on the booming air cargo sector, which is supported by a developing economy and increased commercial activity.

"We have been consolidating and streamlining the entire network from all four airlines to bring it to one function," said a senior Air India executive, who declined to be identified.

Vistara is anticipated to be acquired by Air India before the end of the year, while AirAsia India will combine with Air India Express.

Air India follows SpiceJet, a domestic budget carrier that has already demerged its cargo business. IndiGo, India's largest airline, is also actively focused on the industry, including specialized freighters.

Traffic is growing

"Internally, efforts are being streamlined at multiple levels," the person stated.

"We are designing a mother software that will focus on collecting all cargo orders, managing income, and handling commercial elements. Externally, we are simplifying and growing our worldwide distribution network. We're also onboarding new clients."

The merger strategy is part of the Tata Group's aim to consolidate its airline industry following the acquisition of the former state-run Air India in 2022.

Focused Approach

When asked about Air India's cargo strategy, the official stated that the company intends to add specialized freighters to meet expanding cargo demand. "Along with this, we may spin off the cargo segment into a subsidiary to maximize its potential," the individual added, without specifying a date. A spokeswoman for Air India declined to comment on the separation of the cargo unit and the addition of freighters.

The representative did, however, reveal that the corporation is building new technologies and improving its freight network. "Over last year, we developed a global KAM (key account management) program to onboard, engage and expand with regional, national and global customers," a representative told me. "We have also strengthened our distribution network globally with road feeder service and interline partnerships, solidifying our presence in key international markets."

A second corporate executive stated that Air India will work with more sales agents, freight forwarders, and last-mile delivery partners.