AAI Cargo Logistics & Allied Services eyes Rs 380 cr turnover in 2 years

Oct 27, 2016: With a vision to become the foremost integrated logistics network operator in India with primary focus on air cargo handling, Airport Authority of India (AAI) has launched a subsidiary company, AAI Cargo Logistics & Allied Services Company Limited (AAICLAS). Union Minister of Civil Aviation P Ashok Gajapathi Raju unveiled the logo and website (www.airports-ecom.gov.in) during the launch event held in New Delhi recently. R N Choubey, Civil Aviation Secretary launched the mobile application of AAICLAS. Neera Rawat has been appointed as MD whereas BK Mehrotra will be the CEO of AAICLAS.

Applauding the efforts of AAI, Raju said that cargo has not reached its potential in India and formation of AAICLAS is a step in the right direction to realise the potential of air cargo. Choubey said that AAICLAS expects to have an annual turnover of Rs 380 crore in two years.

Addressing the august gathering, Dr Guruprasad Mohapatra, Chairman, AAI, said, “AAI’s cargo business is hitherto administered through a departmental structure within the overall AAI administration. Given several important priorities of providing air navigation services and airport management services, cargo has been accorded a lower priority than it deserves. The analysis of AAI’s business model shows that there was limited focus on cargo business, lack of appropriate business strategy and marketing strength. It is a strategic fact that the dynamics of air cargo business and management are different, since speed of decision making and quicker response to evolving dynamic situation are key success mantra.”

The new subsidiary will be allowed to develop its own distinct culture, organisation structure and business model while at the same time draw upon the strength of its large parent origination, AAI. All the activities currently being carried out by the cargo department of AAI will be merged into the new company and the department will no longer be functioning with AAI. The company will be shortly initiating comprehensive discussion with all the stakeholders to ensure smooth transition of all cargo activities to the new company. AAICLAS will focus on three verticals (a) air cargo handling and allied services, (b) warehousing and contract logistics and (c) air cargo road feeder and air freight stations. Creating AAICLAS would bring multiple advantages as there is lot of activities on the cargo front.

Giving the vote of thanks, Rawat said, “The AAI cargo subsidiary is a dream come true. There are two sides of the air transportation coin and we cannot do without either. Air passengers undoubtedly deserve undivided attention, because the air transportation is an effect of their existence. Equally important though is air cargo as underlined by all the dignitaries on the dais. A fine balance will now be achieved, through this laudable initiative of the launching of this separate vehicle for air cargo.”