Jet Airways, FedEx in talks to launch cargo arm
India - India's largest airline Jet Airways is reportedly in talks with multinational logistic firm FedEx to launch a cargo airline, according to Top News India.
Industry sources say the new airline would be set up in alliance or as a joint venture with FedEx, and that the Indian carrier is all set to this proposed cargo airline with FedEx.
"When you look at the cargo segment, there are tremendous opportunities that airlines can tap into. While the belly space of the aircraft still adds to its ancillary revenues, segmenting it as a separate unit can help airlines achieve higher revenues," said Rajeev Batra, executive director of KPMG.
The cargo business of airlines has become a talk of the town with Kingfisher Airlines launching their cargo service and reports of the Jet Airways and FedEx venture, reported DNA India.
"We are projecting cargo to grow 7% in 2010, and an average annual growth rate of 5.8% from 2009 to 2013," said an International Air Transport Association (IATA) spokesperson.
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