Professional Documents
Culture Documents
Contents
Topic Page No.
1. Organisational Profile 1-15
2. Introduction to Air Cargo
Q Definition and types of cargo 16
Q Commonly used terms 17-22
3. Objective of the project 23
4. Automations in Air Cargo 24-26
5. Cargo operations
Q Acceptance of cargo 27-35
Q Diff Cargo Operations 36
Q Flow diagram for Departure
Export cargo 47-38
Outbound cargo(DOM) 39-40
Q Flow diagram for Arrival
Cargo arrival(DOM) 41-42
Import cargo(ARRIVA) 43
Q Different FORMS used in Cargo Operations 44-58
Q Different TAGS used in Cargo Operations 59-64
Q Loading Priorities 65-66
7. Agents 71-72
14. Conclusion 94
15. Bibliography 95
ABBREVIATIONS
Indian Airlines Limited or Indian (Hindi: इं डियन एयरलाइं स or इं डियन) was India's
state owned national domestic airline, under the Government of India's Ministry of Civil
Aviation and based in New Delhi. Its main bases were the international airports, Indira
Gandhi International (New Delhi), Chennai International (Chennai), Chhatrapati Shivaji
International (Mumbai) and Netaji Subhash Chandra Bose International (Kolkata).It has been
merged with Air India, state owned International airlines. The name of the amalgamated
company is National Aviation Company of India Ltd. (NACIL) with Registered Office at
New Delhi and Headquarter in Mumbai. However each is maintaining their separate identity
as far as IATA is concerned.
History-
The airline was set up under Air Corporations Act, 1953 with an initial capital of
Rs.32 million and started operations on 1 August 1953. It was established after legislation
came into force to nationalise the entire airline industry in India. Two new national airlines
were to be formed along the same lines as happened in the United Kingdom with British
Overseas Airways Corporation (BOAC) and British European Airways (BEA). Air India took
over international routes and Indian Airlines Corporation (IAC) took over the domestic and
regional routes.
Seven former independent domestic airlines, Deccan Airways, Airways India, Bharat
Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of
India, were merged to form the new domestic national carrier. Indian Airlines Corporation
inherited a fleet of 99 aircraft including 74 Douglas DC-3 Dakotas, 12 Vickers Vikings, 3
Douglas DC-4s and various smaller types from the seven airlines that made it up.
Vickers Viscounts were introduced in 1957 with Fokker F27 Friendships being
delivered from 1961. The 1960s also saw Hawker Siddeley HS 748s, manufactured in India
by Hindustan Aeronautics Limited, join the fleet.
The jet age began for IAC with the introduction of the pure-jet Sud Aviation
Caravelle airliner in 1964, followed by Boeing 737-200s in the early 1970s. April 1976 saw
the first three Airbus A300 wide-body jets being introduced. The regional airline, Vayudoot,
which had been established in 1981, was later reintegrated.
East-West Airlines and ModiLuft discontinued flight operations but the entry of
several low-cost airlines in India like Deccan, SpiceJet and others like Kingfisher Airlines
continue to give competition in its market, forcing Indian to cut down air-fares. However, as
of 2006, Indian Airlines was still a profit making airline.
Indian Airlines has also been granted permission from the Government of India to
merge with Air India, under the name Air India. The two airlines formally became one on 15
July 2007 upon receiving the new Boeing 777-200LR with the new livery of the merged
airline. The new airline's headquarters will remain in New Delhi, and will have a fleet of
130+.
Future Aspects-
After the merger, the two airlines have applied for membership of Star Alliance with
Lufthansa backing the application. Alliance Air and Air-India Express are also to merge as
the new airline's low-cost arm. After successful completion of the Air India - Indian Airlines
merger, the airline been accepted as a member of the Star Alliance, the largest airline
alliance. After the merger the merged airline had a huge domestic network and fleet which
quickly led to acceptance of the application to Star Alliance with Lufthansa's support. The
airline will be joining the Star Alliance in 2009.
Fleet Size-
As of 30th June 2008, the Indian fleet comprised the following aircraft:
Q A319 -11
Q A320 -48
Q A321 -09
Q A330 -02
Q Boeing737-03(freighter)
Q Dornier -02
Q ATR -04
As of 2006, the average Indian fleet age was 15.8 years.
The above existing fleet was merged with the Air India, after which the A300's were
phased out on March 31, 2008.
Services-
Airport-to-airport: For the "time sensitive" shippers, Express Cargo facility with
guaranteed delivery within 24 hours is also available. For freight forwarders, this domestic
service gives the flexibility of building up their unique customised services.
Warehousing-
Indian Airlines ensures that your cargo experiences class hospitality wherever it goes.
To store perishables such as vaccines, fruits, medicines etc we have special cargo cold
storage facilities, where such commodities can be stored. The computerisation process has
already been flagged off for smooth handling of cargo.
The Indian Airline Cargo covers 69 destinations in India and 14 destinations abroad.
If the cargo flies Indian Airlines, it can reach the remotest places in India and select
destinations in the Middle East and Southeast Asia. Indian Airlines has the largest cargo
capacity amongst the domestic carriers. And a network capacity of 1,000 tonnes per day to
take care of big and bulky cargo.
With its mixed fleet, IA has a distinct edge over other competitors in the Indian
domestic market. A 321 aircraft is a cargo-friendly aircraft and is capable of carrying big and
odd size cargo in unitized mode with pallets and containers besides carrying cars. In general,
Indian Airlines airlifts wide variety of commodities, which include perishables (such as
vaccines, fruits, vegetables, flowers etc.) livestock, valuable cargo and general cargo
commodities meant for exports like readymade garments, machine parts and mail etc.
The range of products and services include movement of domestic cargo with flexi
pricing policy, express cargo, door-to-door services and on-board courier services besides
carriage of international cargo within the country as well as to other destinations such as the
Gulf countries, Bangkok, Singapore and Kuala Lumpur.
Indian Airlines Cargo's strength lies in the large network, available infrastructure
(warehousing and X-ray facilities), experienced manpower and a commitment for better
service over other competitors. Further, new strategic alliances with European Cargo, Emery
worldwide and GATI Cargo Management Services have been drawn up based on committed
tonnage / revenues in the domestic and international markets.
Network of Indian Airlines
CARGO MANAGER
MANAGER CARGO
DEPUTY MANAGERS
DOMESTIC STATIONS
1. Ahmedabad
2. Bangalore
3. Chennai
4. Delhi
5. Guwahati
6. Hyderabad
7. Kolkata
8. Mumbai
9. Thiruvananthapuram
International stations
Name of the Airport Code
Bangkok BKK
Bahrin BAH
Colombo CMB
Doha DOH
Dubai DXB
Guangzhou CAN
Kathmandu KTM
Kualam Lumpur KUL
Kuwait KWI
Male MLE
Muscat MCT
Sharjah SHJ
Singapore SIN
Taipei TPE
Indian Airlines formed its corporate objectives consistent with the drawing
mainly from the objectives spelt out in the Air Corporation Act, under 1953 under which it
was formed. They are following
Q To meet the demand for reliable, economic and efficient air transport services
through high standards to service to customers and passengers.
Q To maintain essential and strategic communication within India in terms of
national emergencies and to be a reliable second line of defence.
Q To maximise passenger satisfaction by improving passenger amenities.
Q To enhance contribution to the national economy during the five year plan
period by securing inter alia a reasonable return of capital consistent with social objectives.
Q To faster international tourism in India and to improve the national balance of
payments.
Q To stimulate domestic tourism and internal trade by air in order to develop air
minuteness and broaden the Indian air market.
Q To share the promotion of the social, cultural and emotional integration of
India and to participate in the process redressing regional economic imbalances.
Q To promote socialistic pattern of society.
Q To participate the development of national aircraft and ancillary industry.
Q To promote the good image of the public.
The main view of Indian Airlines is to provide safe, adequate, economical and
properly co-ordinated air transport service.
1. Dangerous goods-
It means cargo by which its nature or properties may involve risk to an
aircraft, passengers, personnel or property.
2. General cargo-
Any consignment other than a consignment containing any cargo as defined
here in charged for transportation at general cargo rates
3. IC cargo-
It means IC stores / equipment etc. It is carried at no charges under transfer of
stores consignment in IC service only.
4. Perishable cargo-
Any cargo which may lose its value due to physical or economic rapid
condition such as food stuffs, vegetable fruits, vaccines and newspaper.
5. Valuable cargo-
It means a consignment which contains one or more of the articles as
described in the regulations.
6. Wet Cargo-
A shipment which contains liquids or which by nature may produce liquids or
give of large amount of moisture.
7. Vulnerable Cargo-
Goods for which no value is declared but which obviously require security
handling or shipments which are particularly vulnerable to theft or pilferage.
Note: The term delivery order is also commonly used to advise customs authorities that all
charges, if any due to airlines have been collected and the consignment may be delivered to
consignee after meeting customs requirements.
40. Embargo -Means refusal by a carrier, for a limited period, to
accept for transportation over any routes or segment
thereof, and to, any commodity, and type of class of
cargo duly tendered.
41. F.O.C. Cargo -Means cargo carried free of charges on behalf of an
organization or a person other person other than carrier.
42. General Cargo Rate (GCR) -The rate established for cargo in general.
43. IC Cargo -Means IC Stores/equipment etc. Carried at no charge
under T/S (Transfer of Stores)Consignment of IC
Service only.
44. Interline Carrier -A carrier with whom Indian Airlines has an Interline
agreement.
45. Invoice Cargo -Means cargo booked on credit basis on credit basis
for which bills are to be raised on onsignor/consignee.
46. Live animal -Means all domesticated/undomesticated animals
including mammals, birds, reptiles, fish shellfish and
insects.
47. Mail Diplomatic -Means Government and Diplomatic correspondence
being carried to an from Government Departments &
Consulates.
48. Offline Station service -The surface carriage of consignments from/to offline
stations.
49. Perishable Cargo -Any cargo which may lose its value due to physical
or Economic rapid deterioration in condition, such as
food stuffs, vegetables, fruits, vaccines, serums and
newspaper.
50. Proratation Rate -Division of Joint rate or charge between the carriers
concerned on an agreed basis.
51. Rate -The amount charged by the carrier for carriage of a
unit of weight (or volume) or value of goods.
52. Rate, Class -A rate applicable to a specifically designated class of
goods. This is generally expressed as percentage of the
normal (45 Kgs. Rate) and takes precedence over all
other rates.
53. Rate, Domestic -Rate applicable within a country.
54. Rate, Normal -The full under 45 Kgs. General cargo rate.
55. Rate, Published -A rate, the amount of which is specifically set forth in
carriers’ rate tarrif.
56. Rate, Specific Commodities - A rate, applicable to carriage of specifically
designated commodities to/from specifically named
points.
57. Rate, Through -The total rate from point of departure to point of
destination. It may be a combination of rates.
58. Redelivery -Return of shipment to the party who originally
delivered it to the carrier.
59. Shipper’s letter -The document containing written instructions by a
of instruction (Instructions shipperor shipper’s agent for preparing documents and
for despatch of goods) forwarding.
60. Tarrif -The published rates, charge and/or related conditions
of carriage of carrier.
61. Through Air Waybill -An Air Waybill covering the entire transportation
from departure to destination of shipment.
62. Trace -To locate a mishandled shipment.
63. Transfer Manifest -Means the document executed by the transferring
(CTM) Airline upon transfer of interline cargo and
endorsed
by the receiving airline as a receipt for the
consignment transfer.
64. Transhipment -Transfer of cargo from one aircraft to another.
65. Valuation charges -A charge for carriage of goods based on the value
declared for the carriage of such goods.
66. Volume Charge -A charge for carriage of goods based on their volume.
67. Surcharge Value -A surcharge for the carriage of cargo having a value
in excess of a specified amount per kilogram.
68. Weight Charge -The charge for carriage of goods based on their
weight.
The report will try to portray a clear picture of different types of air cargo & their
rates and also discuss some commonly used terms and abbreviations.
It will also enlighten the brighter prospects of air cargo operations after the launch of
cargo automation in 2006 to simplify the whole operations.
In cargo operations there are different stages for both arrival and departure and there
are also different tags and forms which are used in these stages. The report will also include
those documents in details.
The report will also highlight the responsibilities & authority of various designated
posts of different sections, like cargo, cargo marketing, commercial etc.
And after combining all these inputs the main objective is to find out the different
advantages and drawbacks of cargo operations and suggest measures to overcome those
drawbacks. And thus to improve the efficiency and overall cargo carriage of Indian Airlines.
CARGO AUTOMATION
Some facts about Cargo Automation of Indian Airlines:
Q Indian Airlines have entered into the Cargo Automation age w.e.f 24th June, 2006. It is
the first of its kind in the domestic cargo scenario. This user friendly system has been
implemented in a phased manner w.e.f 24th June 2006 and now includes all the major
& mini metros already cutover on the automated mode. By the beginning of January
the entire network was functional on CSP.
Q The main features of the system are Space booking, AWB execution and track and
trace online. It also E-TACT and E-DGR thereby being fully updated. It supports
yield management, ULD management, accessibility for business partners i.e. agents
through the net, it also supports functionality where interlining of is concerned.
Q M/S Kale Consultants, who are strategic partners of IATA, are the vendors for this
system.
PHASE-I
PHASE –II
Q EDI(Customs)
Q Revenue Accounting(AMBER)
Q MIS
Q Mail
Q COB
Q Interline Operations
For Shippers/Agents-
Q Shipper can avail of track and trace facility via internet.
Q Shipper/Agent will be able to make capacity booking on Indian Airlines
network-flight wise basis.
For Indian Airlines-
Q Enable offer improved customer service.
Q Address market requirement-track and trace of HAWB (House Airway Bills)
on the internet.
Q Effective tackle competition.
Q Increase revenue- mere 3.1% growth achieved in cargo carriage in a year
would offset the costs involved in the project.
Q Applicability of the best practice and procedures.
Q Elimination of duplication of manual data entries.
Q Minimizing errors, reduced cases of underweighment.
Q Improvement staff morale/ deployment thereby increase productivity.
Enable tap opportunities
Q As per 2002 Global Market forecast (Airbus), freight ton kilometres will triple
by the year 2020.
ACCEPTANCE OF CARGO
Q Properly Marked-
All relevant details such as-
Full name and address of the shipper/consignee
Air waybill number
Origin/destination details
Marks & numbers to uniquely identify the packages
Q Properly Labelled-
Domestic-
Labels must be visible and all old labels and marking must be
deleted/removed. A fresh cargo label/sticker should be used for all shipments,
sample of the sticker and the instructions on how to fill the relevant
information in the various boxes is given here under:
1. i) AWB Number:
In this box, the complete Air Waybill Number (air consignment
note) has to be clearly indicated.
ii) Origin:
In this box, the three letter alpha code of the station has to be
indicated, e.g. BOM.
iii) Destination:
In this box, the complete name of the destination has to be
indicated in full, e.g. KOLKATA and not(R) not three letter alpha code
(CCU).
iv) Total Number of pieces:
In this box, the total numbers of pieces are to be indicated both in
figures as well as in words e.g. 10(ten)
v)Weight :
In this box, the total actual gross weight of the consignment ha to
be indicated irrespective of the fact that the chargeable weight on volume basis
may be different.
2. Given hereunder are the extended versions of the codes used in the
last six boxes of the label for clarification:
IC-01-Class 1 Explosives are not permitted and will not be accepted for
carriage except covered under UN 0012.
IC-02-Not used
IC-05-Not used.
IC-06-Division 6.1, Toxic substances in Packing Group 1 are not accepted for
carriage.
UN Number-Description
UN 2803 -Gallium
Exception:
When used in chemical kit, which is used for medical and diagnostic purposes.
IC 08-Class 09-Miscellaneous dangerous goods. The following goods are not
accepted for carriage-
Yeast active
Carbon dioxide, solid (Dry ice) over 200 kg per aircraft. Dry ice used as part of food
beverage service is exempted from this limit.
Polymeric beads or granules
IC 10-Not more than one hazard class of dangerous goods may be listed on the
Shipper’s Declaration.
c. Human Remains:
Carriage of Dead bodies shall be only under special arrangements and is
subject to furnishing medical certificates/ death certificate, police clearance, as may
be necessary, the party shall also make necessary arrangement for carriage of dead
body in a coffin. Dead body shall under no circumstances be carried in passenger
cabin except in the case of charter flight. Dead bodies can be carried as freight on our
services (in the aircraft baggage holds) in accordance with conditions laid down
DGCA.
d. Perishables:
Articles of perishable nature and or having the properties of rapid deterioration
may be accepted with prior arrangements and packages should be boldly marked
“Perishable”. Such consignments should be accepted on Airport to Airport basis.
e. Valuable Cargo:
Valuable Cargo means cargo which is valuable by nature or by declared
value. Valuable cargo may be accepted provided they are packed in such a manner
that the contents cannot be tampered with or removed without visible evidence, with
prior arrangements. Ensure name(s) and address(s) of consignor and consignee are
correct and complete.
f. Restrictions due to weight and dimensions:
Ordinarily goods of various sizes and weights can be accommodated,
depending on type of aircraft operated. Maximum packages sizes are shown in the
loading charts provided in the manual.
g. Embargo:
Ensure that there is no embargo placed on any sector domestic or international
either by Indian Airlines or by any interline partner, before acceptance.
5. Shipper’s Right of disposition:
I. The shipper has the right to dispose off goods as follows:
a. He may withdraw the goods at the airport departure or destination.
b. He may stop them in course of the journey at any schedule landing
point.
c. He may call for them to deliver at the place of destination o in the
course of journey to a person other than the consignee named on the face of the Air
waybill (Consignment Note).
d. He may require them to be returned to the airport of departure.
e. He must not exercise this right of disposition in such a way as to
prejudice a carrier or other consignors.
f. He must repay any expenses occasioned by the exercise of this right.
II. Staff receiving such requests must be guided by the following:
a. Only the shipper can instruct the carrier.
b. The shipper must give instructions in writing and must produce the
consignor copy and the consignee copy in case not sent with the shipment of the
relative Air waybill (Consignment Note) to be endorsed with his amended
instructions.
c. The whole consignment must be involved, and not a part of it.
d. The shipper must deposit in advance all costs involved including
carriage, or any other charges.
e. If it is not possible to carry out the orders of the consignor , the carrier
must so inform him forthwith.
f. The shipper’s right of disposition ceases when the shipment has arrived
at the destination and the consignee has requested the delivery of goods.
6. Weighing Machines:
Cargo managers shall coordinate with the stores department to
calibrate the weighing machines and maintain the records of the same.
Delivery of consignment-
Notice of arrival of the shipment will, in the absence of other instructions be
sent to the consignee or any other person whom the carrier has agreed to notify as detailed in
the air waybill.
Demurrage charges-
1. For import cargo, free period is reduced from 5 working days to 3 working days.
2. For export cargo, free period of airlines is reduced from 4 working days to 2 working
days where as free period for exporters is retained at 1 working day. Thus, the total
free period available would be 03 working days.
Undelivered consignments:
If the consignment is not taken delivery by the consignee at the destination, the
delivery carrier shall notify the issuing carrier about non-delivery and request for fresh
instructions. Such a notification is called as “IRP”- Irregularity Report.
If no instructions are received within 30 days (normally) - the delivery carrier may
arrange to sell the goods in single or multiple lots.
The undelivered goods are to be returned to origin. The shipper is required to pay all
charges within 15 days. If the shipper does not do so, the carrier may arrange to sell the goods
in private or public after giving 10 days notice to the shipper.
However, in case of undelivered perishable shipments, the delivery carrier for other
reasons is threatened with deterioration , may immediately take such steps as it sees fit for the
protection of itself/ other parties in interest, including but not restricted to destruction or
abandonment of goods.
1. Arrival -
a. Cargo Arrival (Domestic)
b. Import Cargo Arrival
2. Departure-
a. Export Cargo
b. Outbound Cargo(Domestic)
c. CARGO ARRIVAL(DOMESTIC)
S. Activity Detail Inputs Passenger Cargo Duty Officer Staff
No. Staff Mgr/Stn. Cargo
Mgr
1 Off loading the Flight information
Cargo from the
aircraft.
8. Initiate Not
Corrective OK
Actions
9. Disposal of
Unclaimed Cargo
d.
5. Checking Segregation OK 5
condition of report
Cargo
Not
6. Handling of Segregation
damaged short report 6
landed Cargo
8. Sorting of 8 To originat
discrepancy transit stati
A
9. Check the type of 9 Segregation
Cargo Cargo
5.
5
Loading -Total cargo
planning in hand
-Total load -Manifest
availability -Made up -Proper handling
in the flight Cargo -Check the make-
Make-up -Info to up of Cargo
S. of Cargo -Custom AAI/Custom Carg Dut GSD
No permission er agent o y -Gate pass
. - Mgr. Sta
ULD’s/Trolli ff
es 6 Control Point
6. Output
9
t of Cargo -Cargo Proper handling
to Aircraft -Ready loaded at and loading
Cargo defined
8. carriage space.
Loading of -Manifest -HOP slip
Cargo -Carriage duty
document signed by
9. crew
-Doc
10. handed
Submissio over to
n of customs
Document
s/ Manifest,
informatio shipping bill
n
Any -Necessary
offloaded permissio
cargo? ns from
customs
-Off loaded -Cargo of
Handling Cargo AAI
of off- -Related -Amend
loaded documents document
Cargo &
resubmit
-
Informatio
n to
destinatio
n/ Transit
station
h.
i. OUTBOUND CARGO (DOMESTIC)
S. Activity Inputs Passe Cargo Dut Car Output Control Rec
No nger Mgr./ y go Point ord
Staff Stn. Offi Sta
Mgr cer ff
1. Booking of Cargo, AWB (6 Check
cargo SLI copies)EBT,l weight,
where abelled & labelling,co
require packed mplete, &
d, cargo house correct
Tarrif AWB where AWB
2. Check booklet required charges,
booking , latest attention to
process(w circular Check special load
3. eekly) s, (Secur report circulars
Special ity Adherence
Security cargo staff) to F____
clearance instruc Security defined
4. tions labelled procedure
Not parcels,
Sent back OK Security
5. to clearance
consignor stamp on
Parcels AWB
Cargo for
make up clearan
& ce, Parcels and
despatch Securit Made-up documents
6. y Cargo, at right
stickers Manifest(Sta location,
tion- proper
Wise),Recor storage
7. d in ULD conditions,
Transport Register safe
to A/C Parcels handling,
Bays & training of
docum manpower
ents,
Loading in ULD’s
Aircraft &
Ground
Suppor
t
Equipm
ent
Made-
up
Cargo,
Manife
st ULD
Registe
r
j.
3. RF-7-
This is the receipt issued to the consigner for collection of demurrage charges,
short receiving, agency application fee and collection of two pay system.
4. Cargo Manifest-
This form is used by both the section (arrival and departure) to tally the cargo,
flight wise.
GATI, Mail and Newspapers for Assured sectors are as per enclosure.
The following list is to be used as a guide line to meet the load trim sheet
requirement, for off loading:
1. Company Stores
2. Free passengers
3. Passengers paying rebated fare
4. ‘K’ rated and ‘Q’ Rated Cargo
5. Diplomatic Cargo
6. Short-shipped Cargo
7. Newspaper
8. Perishable Cargo
9. IAL-GATI Cargo
10. Courier on Board
11. X-Rated Cargo
12. N-Rated Cargo
13. Valuable Cargo
14. Post Office Mail
15. Excess Baggage
16. Staff on Duty
17. AOG Company Stores
18. Paying Passengers and their Baggage
19. Diplomatic Mail Cat ‘A”
Yield Management
The cargo must be planned for despatch on a particular flight in such a way that
maximum yield is achieved.
4. Pricing:
Pricing is a major factor affecting the carriage of cargo. Cargo markets being
extremely dynamic and competitive in nature, these decisions are taken for both domestic and
international cargo carriage on domestic sectors. The pricing decisions are taken for both
domestic and international cargo carriage on domestic sectors. The pricing decisions are
taken on the basis of:
Regional General Managers and Head Quarters have been authorised to give
discounts on the normal rates considering the above criteria in concurrence with the finance
department. These delegations have been reflected in the Instrument of Delegation of
Financial Powers.
e) Distribution-
The distribution function includes the appointment of cargo agents at various
locations so that the IC services are readily available to the perspective shippers. The
procedure for agency appointments has been listed vide Chapter No. 13 of the Cargo Manual.
Further, the agencies are reviewed for their performance both for tonnage as well as the
qualitative aspect of handling cargo. The procedure for the same has been detailed in Quality
Assurance Manual(QAM 130). The productive agents are given incentive commission
scheme based on Productivity Linked Bonus and the top agents are recognised for their
efforts by giving awards in the Annual Cargo Agents Association Conference.
f) Advertising/ Promotion-
This is centralised function and is undertaken at the Head Quarters level based
on the need for promotion of a particular type of services during the financial year and
availability of advertising budgets. The advertising and promotion is normally undertaken by
participating in exhibitions – domestic/international, preparation of brochures, media
advertising, preparation of exclusive cargo calendars, by display of the cargo posters etc.
g) Sales –
The sales function is currently being performed at the manager level by the
cargo Manager and the regional Dy. GMs along with Executive Director (cargo) and GM
(Cargo Mktg.) at Head Quarters level.
i) Customer Services-
The cargo customer complaints claims are handled by the Commercial
Department (treated as Cargo’s sub-contractor). Based on the quarterly feedback received
from Commercial department, these complaints are analysed for root cause identification and
corrective actions are taken in order to avoid reoccurrence.QAM 210 section of Quality
Assurance Manual in this regard refers. These are reviewed on a quarterly basis at the
Regional Reviews as well as at the Head Quarters level.
The following rates are in existence and are applicable for carriage of cargo by
INDIAN AIRLINES:
AGENTS
Criteria for getting authorization of Agents-
Agents play a vital role in acquiring cargo from different sources and also help in
revenue earning. The cargo contribution to total revenue of agents is 80%. The rest are of
direct booking (13.5%) and other airlines (6.5%). They are given license by the “Marketing
and Sales” division. Indian Airlines seeks bank guarantee of Rs. 2.40 lacs (min) for Mumbai
agents and 60,000-1, 00,000 for outstations. But it differs with situation and this is decided by
the Finance Dept. It was also decided that the fortnightly invoices for the cargo agents will be
sent by e-mail only, and the cargo agents will have to deposit the amount as per e-mail
voices.
For domestic carriage, IATA approval is not mandatory for agents, but for handling
International cargo, agents must be IATA authorized.
Promotional schemes-
Indian Airlines has some promotional schemes for attracting agents. These are in the
form of incentives, air tickets etc. The different schemes are-
Here agents who give business of 20 lacs or more per month get special rates. If they
are not able to acquire that much amount still they are bound to pay minimum of 20 lacs. The
calculation is directly maintained with the Delhi Head-quarter. There are four such
companies in Western Region. They are-
i. Index Logistics
ii. Monopoly Carriers
iii. GATI
iv. RAK Logistics
3. Incentive Scheme-
The scheme is to award the top productive agencies of erstwhile IC and AI, from the
eight regions of NACIL network. The eight regions comprises - apart from the four regions of
India; the Far East, South East & Asia Pacific; Gulf, Middle East & Africa; UK & Europe;
America & Canada. The awards will consist of the following:
1. Top-producing agent from the eight regions, one each from erstwhile IC and AI will
be awarded an all-inclusive Incentive Trip on Star Cruise for two people.
2. The 1st Runner Up, one each from erstwhile IC and AI will be awarded an all-
inclusive Incentive Trip on Star Cruise for one person.
3. There will be Ten Wild Card Entries of agents who have outperformed in the period
16th January 2008 - 29th February 2008. The award will be an all-inclusive Incentive
Trip on Star Cruise for two people.
4. There will be fourteen appreciation awards based on productivity for the remaining
agents. These will be gifts along with a certificate of appreciation.
Besides above there will be several planned events including Agency Award Dinner
during the trip at Singapore with the award winners to create awareness of AI CARGO
-UNIT and promote Air India as a whole.
Q For Top producing agent & 1st Runner up Productivity between Apr 07 - 29th Feb
08.
Q For Ten Wild Card Entries Current productivity i.e. for the period 16th Jan 08 -
29th Feb 08.
In some specific routes there is a pact between GATI and IA on carriage of freight.
Under this agreement a fixed amount has been set that will be paid by GATI to the IA on a
fixed amount of cargo. If GATI fails to provide the fixed amount of cargo they are bound to
pay the full money. It is a per day commitment. The destinations are (Ex-Mumbai)
Bhubaneswar, Hyderabad, Coimbatore, Cochin, Lucknow, Patna, Nagpur, Raipur, Goa,
Bhopal and Kolkata.
CLAIMS PROCEDURES
Insurance-
Insurance underwriters accept liability for insured value subject to efficient
handling and other loses like war-risk and also appropriate documentation. In airlines the
underwriters however pay only the amount which is found after deducting the carrier amount
from the insured amount.
Procedures-
A claim surfaces in the case of-
a. Short landing
b. Landed but missing
I. Missing from airlines custody
II. Missing from customs custody
c. Damage to the goods/packing, noticed at the time of customs examination as
having occurred during or before unloading from the aircraft.
IV.
V. Claim on carriers-
Lodge formal claim on the carrier and substantiate the claim by producing
“Short Landing Certificate”/”Non Delivery Certificate”.
12. Security Report (if the matter is taken up with/intimated to Local Police
authorities/IAL security).
Note:-
5. Airport Manager-
To ensure safe loading of Cargo into the Aircraft.
To ensure safe off-loading of Cargo from the Aircraft.
To ensure safe handling of Cargo while transit from Aircraft to Cargo Area.
Table-4
APR’07 % MAY’07 %
of of
Mar Mar
ket ket
Sha Sha
re re
CAR CAR M COU TOT CAR M COU TOT
RIER GO AI RIER AL GO AI RIER AL
(tons) (tons L (tons) (tons (tons L (tons) (tons
) (to ) ) (to )
ns) ns)
IC 1379 332 97 1808 27 1383 327 124 1834 25
IT 646 - 136 782 12 660 - - 660 9
9W 2669 81 - 2750 41 2824 86 - 2910 40
S2 174 - 31 205 3 180 - 67 247 3
BD 390 90 519 999 15 997 99 505 1601 22
FF - - 84 84 1 - - 103 103 1
TOT 5258 503 867 6628 100 6044 512 799 7355 100
AL
JUNE’07 % JULY’07 %
of of
Mar Mar
ket ket
Sha Sha
re re
CAR CAR M COU TOT CAR M COU TOT
RIER GO AI RIER AL GO AI RIER AL
(tons) (tons L (tons) (tons (tons L (tons) (tons
) (to ) ) (to )
ns) ns)
IC 1298 262 114 1674 26 1549 389 125 2063 30
IT 609 - - 609 9 47 - 15 62 1
9W 2511 73 - 2584 40 2820 77 - 2897 43
S2 164 - 16 180 3 78 - - 78 1
BD 771 107 522 1400 22 855 116 635 1606 24
FF - - 64 64 1 - - 62 62 1
TOT 5353 442 716 6511 100 5349 582 837 6768 100
AL
Table-5
AUG’07 % SEP’07 %
Mar of
ket Mar
shar ket
e Sha
re
CAR CAR M COU TOT CAR M COU TOT
RIER GO AI RIER AL GO AI RIER AL
(tons) (tons L (tons) (tons (tons L (tons) (tons
) (to ) ) (to )
ns) ns)
IC 1716 410 76 2202 29 1657 398 92 2147 29
IT 647 - 34 681 9 905 - 12 917 12
9W 2703 15 - 2718 36 2718 - - 2718 37
S2 95 113 - 208 3 113 - - 113 2
BD 987 - 569 1556 21 910 95 514 1519 20
FF - - 100 100 1 - - 16 16 0
TOT 6148 538 779 7465 100 6303 493 634 7430 100
AL
Table-6
OCT’07 % NOV’07 %
Mar of
ket Mar
shar ket
e Sha
re
CAR CAR M COU TOT CAR M COU TOT
RIER GO AI RIER AL GO AI RIER AL
(tons) (tons L (tons) (tons (tons L (tons) (tons
) (to ) ) (to )
ns) ns)
IC 1739 345 98 2182 24 1427 425 111 1963 25
IT 1149 1 73 1223 13 935 - 69 1004 13
9W 3272 70 - 3342 37 3053 94 - 3174 39
S2 148 - - 148 2 82 - - 82 1
BD 1109 98 626 1833 20 982 105 592 1679 21
FF - - - - - - - - - -
CD 258 - - 258 3 117 - - 117 1
G8 - - 105 105 1 - - - - -
TOT 7675 514 902 9091 100 6596 624 772 7992 100
AL
Table-7
DEC’07 % JAN’08 %
Mar of
ket Mar
shar ket
e Sha
re
CAR CAR M COU TOT CAR M COU TOT
RIER GO AI RIER AL GO AI RIER AL
(tons) (tons L (tons) (tons (tons L (tons) (tons
) (to ) ) (to )
ns) ns)
IC 1368 417 125 1910 23 1189 425 137 1751 21.6
8
IT 1010 - 80 1090 13 1004 3 78 1086 13.4
4
9W 3350 85 - 3435 41 3180 88 - 3268 40.4
6
S2 119 - 2 121 1 127 - - 127 1.58
BD 1003 94 - 1097 13 975 95 655 1726 21.3
7
FF - - 606 606 7 - - - - -
CD 92 - - 92 1 119 - - 119 1.47
G8 - - - - - - - - - -
TOT 6942 596 813 8351 100 6595 611 870 8076 100
AL
Table-8
FEB’08 % MAR
Market
share
CARRIE CARGO MAIL COURIE TOTAL CARGO MAIL
R (tons) (tons) R (tons) (tons) (tons)
(tons) (tons)
IC 1198 434 120 1752 23 1077 398
IT 563 - 65 628 8 873 -
9W 3063 84 - 3147 42 2898 84
S2 170 - - 170 2 121 -
BD 1025 110 627 1761 23 1072 117
FF - - - - - - -
CD 110 - - 110 1 83 -
G8 - - - - - - -
TOTAL 6128 627 812 7567 100 6124 600
Table-9
FF
1%
BD
21% IC
28%
S2
3%
IT
9%
9W
40%
Fig-1
IC; 23.26
BD; 20.67
S2; 1.62
IT; 12.24
9W; 40.44
Fig-2
DATA ANALYSIS
To have an overall idea about the mathematical part of the air cargo operations, some data
was collected from Marketing and Sales department. All the data was basically of last
financial year i.e. from April’07 to March’08. It included daily capacity against number of
flights, market share of different airline and details of cargo, courier and mail (ex-Mumbai)
for the month of May’08.
In carriage of cargo Indian Airlines comes second after Jet Airways. So, most of the
comparison was done against Jet Airways.
In Table no.1 the daily capacity of Indian Airlines flights (ex-Mumbai) are shown. It is done
according to stationwise (here the daily total no. of flights are also given with aircraft type).
Only those stations were considered to which Indian Airlines carries cargo. So, from the table
we can see that in total of 25 stations Indian Airlines has 50 flights of 155 tons of daily
capacity. But the actual carriage is only about 56-58 tons per day. So, if this gap can be
minimized then the revenue earning will also boost up.
The Table No.2 shows the total no. of flights (ex-Mumbai) stationwise and also the total
capacity of cargo carriage of all the airlines together. From the table we can see that the
maximum no. of flight are to Delhi, which is 52 and also the highest tons of cargo carries
(203.5 tons). Next comes Bangalore and then Chennai.
The minimum no. of flights are to Jodhpur, Lucknow, Patna & Ranchi, where there are only 2
flights daily. And the lowest cargo carriage is at Lucknow, Patna and Ranchi, which is 3.5
tons daily. Overall there are 247 flights daily (ex-Mumbai) and the total capacity is 790.8
tons.
The 3rd Table gives a proportional comparison of daily capacity between Indian Airlines and
Jet Airways. It is worthy to mention that here only those stations were considered where
Indian Airlines’ flight is operational. In Lucknow, Patna and Ranchi there are no Jet Airways
Flight. It is clear from the table that in all the major cities like Delhi, Kolkata, Chennai,
Bangalore and Hyderabad the Jet Airways has a slight edge over Indian Airlines.
Table no.4 to Table no.9 shows the carriage of cargo (in tons) by different airlines and their
market share in terms of percentage for financial year of April’ 07 to March’ 08. In the first
six months the financial year the data of Go Air and GATI freighter was not available. So for
the first six months the percentage of market share is calculated considering Indian Airline,
Kingfisher Airlines, Jet Airways, Jet Lite, Blue Dart and First Flight. The highest single
market share for a single month was achieved by Jet Airways in July’07(43%). Interestingly
Indian Airlines’ highest market share (30%) was also achieved in July and the lowest (21%)
was measured in March’08. If we concentrate on carriage of cargo by Indian Airlines, the
highest (1739 tons) was achieved in the month of Oct’07 and the lowest was in
March’08(1077 tons). The same for Mail was in Feb’08 (434 tons) and June’08 (262 tons)
respectively. And in Courier the highest carriage by Indian Airlines was in Jan’08(137 tons)
and the lowest was in Aug’07 (76 tons). And if we consider in total i.e. combining Cargo,
Mail and Courier the highest Carriage was achieved in the month of Aug’08 (2202 tons) and
the lowest was in March (1585 tons).
From the tables we can see that the market is mainly controlled by three airlines- Indian
Airlines, Jet Airways and Blue Dart.
The market share of different airlines in the first six months and the last six months for the
financial year of April’07 to March’08 are shown by two pie charts. From the fig 1 we found
that for the first six month (April’07 to Sept’07) the Market leaders were Jet Airways with
39%. Then comes Indian Airlines with 28%. Blue Dart comes third with 21%. In the 2nd half
(Oct’07 to Mar’08) the market share of Jet Airways increased to 40.44 but Indian Airlines’
and Blue Dart’s share decreased to 23.26% and 20.67%.
Table no. 10 gives the details of Cargo, Courier and Mail for the month of May’08. From the
table we can get a vivid picture of cargo carriage of both Domestic and International for the
month of May’08. The total domestic carriage of cargo was 1022708 kgs. and the figure for
International carriage is 246739 kgs. And the total carriage was 1269447 kgs. The total
carriage of mail and courier was 393098 kgs and 129836 kgs respectively. The total figure for
the month of May’08 was 1792381 kgs and the average daily figure is 57819 kgs.
DRAWBACKS-
The main drawback of Indian Airlines is that there is no facility for on the spot rate
reduction. If the cargo is in large volume such type of facility helps to attract the cargo. There
are rules and regulations which bar to take such type of instant decision.
Another major drawback is that, the current IC flights don’t have the capacity to carry
cars. Now the market of the cars, especially small cars is spreading fast and to grab the
market it may a advantage to have the facility to carry car.
RECOMMENDATIONS
To improve the efficiency of Indian Airlines some steps may be taken-
Q The market of air cargo is spreading fast. There are also many players in this
field to make it tougher. So, Indian Airlines has to reach people to inform them about
the advantages of sending cargo by air. By this the company will also be advertising
for themselves. This will help in attracting new customers with the present one. It can
be done through different modes of advertising, like electronic media, print media etc.
Q Notification may be sent to inform the consignees about the arrival of
consignment in the form of e-mail or mobile message, with full description of the
cargo. These information can be acquired from the input system at the time of
booking and programme it in such a manner that, with confirmation of arrival in the
system at destination a self generated massage, then personal notification may be sent.
Q Now in these days where the competition is tough, only direct services are not
enough. There is an indeed need of some extra attention after delivering the service
and also to have a personal touch with the customers. It is generally known as after
sales service. This gives an emotional advantage to the airlines.
The current software for automation may be used to generate information
about the clients, including e-mail addresses. Greetings may be sent to the agents and
direct customers in different occasions through phone, letter or e-mail. This will make
the person or the concern feel happy and a sense of bond with Indian Airlines.
Q Data generated from booking can be utilised for the purpose of market survey.
It will help the company to revise and review its marketing strategy to attract more
consignments.
Q The pool of data about the shippers may be used for strengthening the service
by inviting feedback from them. They can state their inconvenience with the current
system and also suggest improvement measures. This will not only help to make the
service friendlier but also generate a feeling if being getting attention within the
shippers.
Q Indulge in partnership with other airlines for faster delivery of goods and to
avoid unloading. This will help to fulfil the commitment to the shipper, which will
also help in improving the image of the company.
Q Buy more cargo-friendly aircrafts and run them in the routes where the
demand of cargo carriage is high.
Q Provision for using credit cards for booking may be a convenient option for
the shippers. But the use of it should be restricted when booking is done of perishable
goods, human remains etc.
Q To control manpower and to improve the efficiency mechanization may be
implemented, which may also be cost effective.
Q Now the incentive schemes for the agents are mainly monetary based. It can
be also be done by cargo tonnage credit policy. In which free carriage of certain
tonnage of cargo may be offered to the shipper after achieving a definite tonnage of
cargo carriage is by the shipper.
Q When an agency applies for approval or renewal of authorization they have
to deposit a bank guarantee. Instead of that floating insurance may be done with that
deposit.
Q Direct booking may be upgraded by making it a single window affair, in
which all the formalities, like submitting forms, depositing money and receiving of
Airway Bill could be done in the same window.
Q Measures can be taken to prevent damage and pilferage of cargo in the
whole process.
Q Provide information about the latest updates of air cargo including changes in
rates and charges, new schemes etc to the agents as well as direct business partners.
Q CONCLUSION
Q Indian Airlines-the name itself is a brand of independence, dignity,
national face in the international aviation and faster movement. Though it has been
merged with Air India, but still it is carrying out its operations independently.
Q It was founded in 1953, mainly to meet the domestic demands. And
after 55 years of establishment, the glorious history highlights the success of
achievements. Achievement in serving the nation in most difficult times, meeting the
different needs of the people, modernise itself with time to be tagged as “World
Class”. Amongst many other competitor airlines Indian Airlines still held its brand to
fly high.
Q 1991 is the land mark year in the Indian Financial and Economic
history for globalisation, modernisation and liberalisation. This opened the door for
foreign players to lock their horns and also brought some domestic concerns in
different sectors of business, where the word monopoly lost the significance of its
meaning. It is true for the airlines sector also. So, everybody has to be on their toes to
perform better and make sure that no stone is left unturned in any aspect.
Q Sending cargo by air is getting higher and higher in the recent past and
this trend is going to continue in the future also. As the concept of JIT (Just in Time)
is gaining popularity throughout the world, different concerns are sending cargo by
air. It is mainly due to the advantage of faster movement as well as for safety &
security of cargo.
Q It is high time to tap the market. The scenario has changed. Now the
concerned airlines should reach the customers before they reach other airlines. For
this, efficiency, effectivity, dedication, determination is needed with clear view of the
goals and objectives in the mind.
Q And it is very much expected and believed that Indian Airlines will
touch new heights as it had done earlier and continue to be fore-runner in carrying
cargo and also maintain the ever smiling faces of its customers-the biggest
achievement that can be reached.
BIBLIOGRAPHY
Following are the websites, books which were referred to during the project tenure-
Q www.indian-airlines.com
Q www.airindia.in
Q www.google.com
Q www.wikipedia.org
Q Indian Airlines Air Cargo Manual
Q Integration Newsletter-Air India
Q Magic Carpet-Air India
Q Study materials from Marketing Training College, Hyderabad