SpiceJet to launch cargo ops, target 900-tonne daily capacity by year end

SpiceJet to launch cargo ops, target 900-tonne daily capacity by year end
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New Delhi, Sep 10: SpiceJet is set to launch freight operations with an eye on delivering 27,000 tonnes of cargo per month by the end of the year, Chairman and Managing Director (CMD) Ajay Singh announced on September 10. The company will operate four cargo planes under a separate division and not a subsidiary, he said.
Singh added that the low-cost airline aims to deliver 40,000 tonnes of cargo per month in 2019 and take to 1,00,000 tonnes within a few years.
The CMD stated that the carrier was eyeing the e-commerce industry to generate revenue. Carriage of electronic goods, items which are time and temperature sensitive, like pharmaceuticals and transport of organs are some of the sources SpiceJet is looking to tap.
The company’s freighter fleet will comprise Boeing 737 planes and will be operated on an incremental direct operating cost model. The airline will use a common pool of resources like pilots, engineers, ground staff and airport infrastructure from its passenger operations to run the cargo operations.
“The freighter aircraft will be acquired on pure operating leases and haven’t incurred any major capex, while the ground operations will be either self-handled by the existing SpiceJet ground infrastructure or shall be outsourced till we develop a certain scale of operations,” Singh said in a statement.