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A PROJECT ON

“AN OVERALL VIEW OF CARGO OPERATIONS OF


ERST-WHILE INDIAN AIRLINES IN MUMBAI”

PINAKI MOHAN SUTRADHAR


Roll No-TL/2007-2009/28
RANSPORTATION AND LOGISTICS
DEPARTMENT

INDIAN INSTITUTE OF SOCIAL WELFARE AND


BUSINESS MANAGEMENT

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

6. Marketing activities 67-68

Q Different rates and charges 69-70

7. Agents 71-72

` 8. Claim Procedures 73-74

9. Quality System Assessment 75

10. Responsibility and Authority 76-77

11. Data Analysis and Interpretation 78-90

12. Advantages & Drawbacks 91

13. Recommendations 92-93

14. Conclusion 94

15. Bibliography 95

ABBREVIATIONS

1. A.O.G. :Aircraft on Ground


2. APD :Airport Delivery
3. AWB :Air waybill
4. BD : Blue Dart
5. BFL : Bulk Freight Loader
6. BORDEREAU :It is diplomatic Mail-
- Way Bill is prepared and submitted
- By Ministry of External Affairs for Category “A”
- Dip mail
7. C.C.A :DOM) Consignee Copy Attached
8. CD : Gati Freighter
9. COB : Courier on Board
10. C.O.D. :Cash on Delivery
11. CTM :Cargo Transfer Manifest
12. DACC :Delivery Against Consignee Copy
13. DGR :Dangerous Goods Regulations
14. DN : Deccan Airways
15. EBT :Excess Baggage Ticket
16. EDI : Electronic Data Interchange
17. FAK : Freight All Kind
18. FF : First Flight
19. FOC Cargo :Free of Charge
20. GEBA :Govt Excess Baggage Authority
21. G8 : Go Air
22. H.O.P. : By Hand of Pilot
23. IATA :International Air Transport Association
24. IC : Indian Airlines
25. IT : Kingfisher Airlines
26. M.L.T. :Mishandled Load Tracer
27. MWB (AV7) : Mail Way Bill
28. N.C.V. :No Commercial Value
29. N.V.D. :No Value Declared
30. S.L.I. :Shipper’s Letter of Instruction
31. SNS : Shippers Notification System
32. S2 : Jet Lite
33. T.S. :Stores Consignment Notes
34. ULD : Unit Load Device
35. 6E : Indigo Airlines
36. 9W : Jet Airways

IATA ICAO Call sign


IC IAC INDAIR
Founded 1953
Indira Gandhi International
Chhatrapati Shivaji International
Hubs Netaji Subhash Chandra Bose
International
Meenambakkam International
Bengaluru International
Focus cities Hyderabad International
Suvarnabhumi
Fleet size 79
Destinations 83
Brand Name Air India
Company slogan New Horizons. Enduring Values.
Headquarters Mumbai, India
Key people CMD: Mr. Raghu Menon
Website Indian

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.

On December 7, 2005, the company was rebranded as Indian or इं डियन for


advertising purposes as a part of a program to revamp the company image in preparation for
an initial public offering (IPO)..

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.

By 1990, Airbus A320s were introduced. The economic liberalisation process


initiated by the Government of India in the early 1990s ended Indian Airlines' dominance of
India's domestic air transport industry. Indian Airlines faced tough competition from Jet
Airways, Air Sahara (now Jet Lite), East-West Airlines and ModiLuft. As of 2005, Indian
Airlines was the second largest airline in India after Jet Airways while Air Sahara controlled
17% of the Indian aviation industry.

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.

It is wholly owned by the Government of India through a government holding


company and has 19,300 employees (at March 2007). Its annual turn-over, together with that
of its subsidiary Alliance Air, is well over Rs.4000 crores (around US$ 1 billion). Together
with its subsidiary, Alliance Air, Indian Airlines carries a total of over 7.5 million passengers
annually.

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-

As a complete cargo solutions provider, Indian Airlines extend several services to


their clients.

Door-to-door: Indian Airlines Cargo offers domestic door-to-door services to our


"service-sensitive" customers. These services are just a phone call away. It’s unique money
back IA/ Gati service even gives hard copy "Proof of Delivery" to customers.

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.

Courier on-board: Couriers can avail of special courier on-board schemes on


select domestic flights along with special market rates. Courier bags are delivered on
conveyer belt immediately on arrival.
Indian Airlines also has state-of-the-art maintenance facilities to service fleet so that
they are always in top flying form.

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.

Largest Network & Cargo Capacity-

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

ORGANISATION CHART FOR MUMBAI OFFICE

CARGO MANAGER

MANAGER CARGO
DEPUTY MANAGERS

DOMESTIC STATIONS

Name of the Airport Code


Agartala IXA
Agra AGR
Ahmedabad AMD
Aizawl AJL
Allahabad IXD
Amritsar ATQ
Aurangabad IXU
Bagdogra IXB
Bangalore BLR
Bhabnagar BHU
Bhopal BHO
Bhubaneshwar BBI
Bhuj BHJ
Chandigarh IXC
Chennai MAA
Coimbatore CJB
Delhi DEL
Dehradun DED
Dharmashala DHM
Dibrugarh DIB
Dimapur DMU
Gaya GAY
Goa GOI
Guwahati GAU
Gwalior GWL
Hyderabad HYD
Imphal IMF
Indore IDR
Jabalpur JLR
Jaipur JAI
Jaisalmir JSA
Jammu IXJ
Jamnagar JGA
Jodhpur JDH
Jorhat JRH
Kanpur KNU
Khajuraho HJR
Kulu KUU
Kochi COK
Kolkata CCU
Kozhikode CCJ
Leh IXL
Lilabari IXI
Lucknow LKO
Madurai IXM
Mangalore IXE
Mumbai BOM
Nagpur NAG
Patna PAT
Port Blair IXZ
Pune PNQ
Puttaparthy PUT
Raipur RPR
Rajkot RAJ
Ranchi IXR
Shillong SHL
Silchar IXS
Simla SLV
Srinagar SXR
Surat STV
Tezpur TEZ
Thiruvananthapuram TRV
Tiruchirapalli TRZ
Tirupati TIR
Udaipur UDR
Vadodara BDQ
Varanasi VNS
Visakhapatnam VTZ

Main cargo stations (Domestic)

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

Aims and Objectives-

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.

INDIAN AIRLINES-MUMBAI AIRPORT-SCHEDULE CHANGE EFF.-16/5/2008


FLT A/C STD SECTOR FREQ
IC 663 319 0520 GOA D
IC 161 320 0535 COK/TRV D
IC 133 319 0540 IDR/BHO/DEL D
IC 601 321 0600 DELHI D
IC 675 320 0610 KOLKATA D
IC 105 320 0615 BANGALORE D
IC 195 319 0630 LKO/VNS D
IC 129 319 0640 NAGPUR D
IC 806 321 0700 DELHI D
IC 972 320 0705 CHENNAI D
IC 809 321 0800 DELHI/IXR/PAT D
IC 615 320 0800 HYDERABAD D
IC 157 319 0855 CJB/CCJ D
IC 658 321 0900 DELHI D
IC 109 320 0910 BANGALORE D
IC 617 319 0930 HYDERABAD 2
IC 617 319 0930 HYD/VIZAG 134567
IC 671 320 0940 MAA/IXM D
IC 864 321 1000 DELHI/IXC D
IC 147 320 1010 JAMNAGAR D
IC 169 320 1025 RPR/BBI D
IC 179 319 1055 MANGALORE D
IC 865 321 1255 GOA D
IC 166 321 1300 DELHI D
IC 970 320 1315 CHENNAI D
IC 472 319 1405 UDR/LDH/DEL 367
IC 163 319 1500 GOA D
IC 611 320 1530 JAIPUR D
IC 887 319 1555 AURANGABAD D
IC 928 320 1600 HYDERABAD D
IC 603 320 1640 AHMEDABAD D
IC 168 321 1700 DELHI D
IC 107 319 1730 BANGALORE D
IC 572 320 1755 CHENNAI D
IC 866 321 1800 DELHI D
IC 274 319 1830 KOLKATA D
IC 629 319 1840 NAGPUR D
IC 888 319 1900 DELHI D
IC 619 320 1905 HYDERABAD D
IC 610 320 1930 AHMEDABAD D
IC 605 321 2000 DELHI D
IC 173 320 2030 CHENNAI D
IC 609 320 2035 BANGALORE D
INDIAN AIRLINES-MUMBAI AIRPORT-SCHEDULE CHANGE EFF.-16/5/2008
FLT A/C STA SECTOR FREQ
IC 657 321 0755 DELHI D
IC 664 319 0800 GOA D
IC 614 320 0810 AHMEDABAD D
IC 676 319 0830 KOLKATA D
IC 971 320 0845 CHENNAI D
IC 688 321 0855 DELHI D
IC 927 320 0905 HYDERABAD D
IC 612 320 0910 JAIPUR D
IC 130 319 0950 NAGPUR D
IC 165 321 1000 DELHI D
IC 106 320 1005 BANGALORE D
IC 167 321 1055 DELHI D
IC 969 320 1130 CHENNAI D
IC 616 320 1145 HYDERABAD D
IC 865 321 1155 DELHI D
IC 195 319 1245 LKO/VNS D
IC 110 320 1255 BANGALORE D
IC 148 320 1305 JAMNAGAR D
IC 180 319 1355 MANGALORE D
IC 887 319 1455 DELHI D
IC 866 321 1535 GOA D
IC 158 319 1555 CCJ/CJB D
IC 169 320 1615 RPR/BBI D
IC 672 320 1655 IXM/MAA D
IC 471 319 1655 DEL-JDH-UDR 367
IC 618 319 1730 HYDERABAD 2
IC 618 319 1730 HYD/VYZAG 134567
IC 164 319 1745 GOA D
IC 888 319 1810 AURANGABAD D
IC 610 320 1830 BANGALORE D
IC 863 321 1855 IXC/DELHI D
IC 174 320 1930 CHENNAI D
IC 810 321 1955 PAT/IXR/DEL D
IC 805 321 2055 DELHI D
IC 273 320 2105 KOLKATA D
IC 108 319 2130 BANGALORE D
IC 134 319 2220 DEL/BHO/IDR D
IC 602 321 2155 LKO/DEL D
IC 630 319 2200 NAGPUR D
IC 604 320 2210 AHMEDABAD D
IC 620 319 2215 HYDERABAD D
IC 571 320 2225 CHENNAI D
IC 162 320 2325 TRV/COK D
INDIAN AIRLINES FLIGHTS OPERATING FROM TERMINAL 2A INTERNATIONAL
TERMINAL
FLT A/C STD SECTOR FREQ
IC 681 32O 0005 SHARJAH D
IC 693 32O 0035 BANGKOK D
IC 686 32O 0530 AHMEDABAD D
IC 679 32O 0745 DUBAI D
IC 994 32O 0820 CCJ/MAA 37
IC 993 32O 1815 KUWAIT 26
IC 883 32O 2030 DUBAI D
IC 685 32O 2200 MUSCAT D
CI 684 320 0325 DUBAI D
IC 686 320 0420 MUSCAT D
IC 682 320 0625 SHARJAH D
IC 994 320 0720 KUWAIT 37
IC 694 320 1110 BANGKOK 16
IC 993 320 1715 CCJ/MAA 26
IC 694 320 1900 BANGKOK 23457
IC 685 320 2040 AHMEDABAD D
IC 680 320 2225 DUBAI D

What is Air Cargo?


Cargo is also known as goods means anything carried in aircraft except,
Q Mail or other property carried under the terms of an international postal convention.
Q Baggage carried under a passenger ticket and baggage check.

Air Cargo can be classified in different types. They are as follows-

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.

DEFINATIONS-COMMONLY USED TERMS

1. Add-on -A term equivalent to proportional rate used in


combination with other rate(s) to establish a
through rate.
2. Advance arrangement -Means the shipper (consigner) must contact the
carrier prior to tendering the consignment.
3. Agent -A person or organization authorized to act for
or on
behalf of another person or organization.
4. Air Waybill -Equivalent to the term air consignment note,
means
document entitled ‘Air Waybill/consignment note’
made out by or on behalf of the shipper which
evidences the contract between the shipper and
carrier(s) for carriage of goods over the routes of the
carrier(s).
5. Baggage (Unaccompanied) -Baggage when carried as cargo.
6. Break-even weight -The weight at which it is cheaper to charge the
lower rate for the next higher weight break
times and the
minimum weight indicated, than to charge
higher rate
for the actual weight of the shipment.
7. Cargo -Equivalent to the term “goods” means, anything
carried or to be carried in an aircraft, other than
mail
and baggage(including personal effects accompanying
passenger)or the property of the carrier, provided that
unaccompanied baggage moving under an air waybill
is cargo.
8. Cargo IMP -Cargo Information Message Procedures-
developed by the member Airlines of the International
Air Transport
Association.
9. Cargo Transfer -Cargo arriving at a point by one flight and
continuing
there from by another flight of the same or connecting
carrier.
10. Cargo Transit -Cargo arriving at a point by one flight and
departing there from by the same through flight.
11. Carriage -Equivalent to the term transportation, means carriage
of cargo by air, gratuitously or for hire.
12. Carriage Domestic -Carriage in which, according to the contract of
carriage, the place of departure and the place of
destination are situated within one country.
13. Carriage International -Carriage in which, according to the contract of
carriage of the place of departure and the place
of
destination are situated in more than one
country.
14. Carrier Connecting -A carrier with lines meeting those of another carrier,
so that traffic can be interchanged between the two
carriers at the connecting point.
15. Carrier Delivering -The carrier performing delivery in accordance
with
the air way bill.
16. Carrier participating -Means a carrier over whose routes one or more
sections of carriage under the air waybill is undertaken
or performed.
17. Carrier Issuing -The carrier whose air waybill is issued.
18. Carrier Transferring -Means a participate carrier that transfers the
consignment to another carrier at a transfer
point.
19. Charges Correction -Means the document used for the notification of
Advice (CCA) changes to transportation charges or other
charges.
20. Charges -An amount to be paid for carriage of cargo,
based on
` the applicable rate for such carriage, or an
amount to
be paid for special or incidental service in
connection
with such carriage.
21. Charges collect (To pay) -Which is equivalent to the term “freight
collect” or
“Charges forward”, means the charges entered on the
air waybill for collection from the consignee.
22. Charge, Combination -An amount which is obtained by combining
two or
more charges and which is not published as a single
amount.
23. Charter, contract -A special agreement (contract) whereby a carrier
places at a shipper’s disposition the entire capacity of
an aircraft for an agreed operation.
24. Charge, minimum -The lowest amount which will be charged for
the transportation of a consignment between
two points, irrespective of weight or volume,
exclusive of
special or incidental charges.
25. Charges prepaid Means the charges entered on the air waybill for
payment by the consignor.
26. Charterer -The person who has signed the charter
agreement (contract) with a carrier.
27. Charge, Published -A charge, the amount of which is specifically set forth
in the carrier’s rates/tariffs.
28. Charge, Through -The total charge from point of departure to
point of destination. It may be a joint charge or a
combination
of charges.
29. Classification -A listing of articles in classes for rating
purpose.
30. Cash on Delivery (C.O.D.) -Means an arrangement between the shipper and
the issuing carrier whereby the carrier, upon
delivery of
the consignment , is to collect from the
consignee the
amount indicated on the Air Waybill as payable
to the
shipper.
31. Condition of carriage -Means the general terms and conditions
established
by a carrier in respect of its carriage.
32. Conditions of contract -The terms of conditions printed on the back of
the
originals of the Air Waybill.
33. Consignee -The person/party whose name appears on the
Air
Waybill to whom the goods are to be delivered by the
carrier.
34. Consignment(Shipment) -Means one or pieces of goods accepted by the
carrier from the shipper at one time and at one address,
receipted for one lot and moving on one air waybill to
one consignee at one destination address.
35. Consigner (Shipper) -Means the person whose name appears on the air
waybill as the party contracting with the carrier(s) for
carriage of goods.
36. Dangerous Cargo -Means cargo which by its nature or proportion
may
involve risk to an aircraft, passengers, personnel or
property.
37. DACC (Domestic) -Delivery against consignee copy.
38. Declared value for carriage -The value of goods declared to the carrier by the
consignor for the purpose of fixing the limit of the
carrier’s liability for loss or damage to cargo. It is also
the basis of applicable valuation charges.
39. Delivery order -The authorization of the entitled party to deliver
the shipment to a party other than the consignee
shown in
the air waybill.

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.

OBJECTIVE OF THE PROJECT


The motto of the project is to observe the different activities carried out during air
cargo operations of both inbound and outbound cargo of Indian Airlines in Mumbai airport.
All the activities are to be studied minutely along with the different types of data (market
share, capacity of carriage etc.) available.

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.

Functionality Cargo Automation System:

 Cargo Reservation and Management:


Q Allow shippers, forwarders to directly book with Indian Airlines using
internet.
Q Flight Management, Priority bookings, highly yield Cargo booking control
with Indian Airlines.
Q Allotment to preferred customers.
Q Better Load Planning through centralised information visibility
 Web Operations:
Q Most of the bookings and Data input will come from Agents.
Q Customers can Trace and Track shipment on the Net, reducing calls to Indian
Airlines.
Q Similar Indian Airlines offices can use the system using internet.
Q Tool to reach to the End Customer.
Q Agents will use the site daily, leading to better interaction with agents.

 Cargo Pricing and Yield management:


Q Complete flexibility to suit the rates to the Market Demands and also to high
season considerations.
Q Easy management of Special Deals.
Q Operations Staff, Management can easily take decisions based Yield
Management.
Q Data feed into Revenue Accounting System (AMBER) leading to Invoice
integrity.
 ULD Management and ground Handling:
Q Improved Management of Acceptance and Groped Management of Cargo
through Bar Coding and Scanning.
Q Better control on Warehouse Inventory-Locations and Status of Cargo.
Q Much easier ULD Building, manifesting process using scanning, better
utilization of ULDs.

PROCESS OF CARGO AUTOMATION

PHASE-I

Q Cargo Reservation and capacity management


Q Management of cargo through Bar-code and scanning
Q Cargo Pricing
Q Track and Trace
Q T/S Handling
Q Irregularity, MCTs
Q ULD Management
Q Complete Delivery Process
Q Shipper Information
Q E-DGR,E-TACT
Q Complete operational flow
Q Interline Cargo Handling

PHASE –II

Q EDI(Customs)
Q Revenue Accounting(AMBER)
Q MIS
Q Mail
Q COB
Q Interline Operations

BENEFITS OF CARGO OPERATION-

 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

1. Consignments for carriage are accepted:


a. From shipper directly
b. Through agents, consignment ready for carriage.
c. From Interline partners
2. Shipper’s letter of Instructions:
Shipper’s instructions for carriage shall be obtained in writing on “shipper’s
letter of Instructions for despatch of goods”, for issuance of Air Waybill. Here all the
details regarding:
I. Shipper
II. Consignee
III. Airport of Departure
IV. Airport of Destination
V. Required routing/ requested booking
VI. Number of packages
VII. Description of goods
VIII. Marks & numbers on the packages
IX. Gross weight of the consignment
X. Dimensions of the packages
XI. Freight Status
XII. Value Declared for Carriage/Customs & Amount of Insurance
XIII. Handling Information/Remarks
3. Ready for Carriage:
The goods offered for transportation must meet the Ready for Carriage
requirements. The goods are to be-
Q Properly Packed-
Where in packaging should ensure no damage to-
 The goods
 Other goods loaded along
 Equipment in which they are transported
 The personal who handle them

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:

a. APD :Airport Delivery


b. City Delivery : Consignment meant for delivery at the city
office.
c. Pre-Paid : Where the freight charges have been collected
in advance from the consignor/booked against credit code numbers
(Invoice Cargo).
d. To Pay/Charges Collect: Where the charges are to collect from the
consignee before delivery of the consignment.
e. CCA : Where the consignee copy accompanies the
consignment.
f. DACC : Where the delivery of the consignment has to
be made only after the consignee produces the consignee copy of the
Air Waybill.
3. Keeping in view the nature of the consignment, the relevant
boxes should be suitable crossed(x). For example, if a consignment is booked on
airport delivery basis is prepared and is on DACC basis, then the three boxes, i.e.
APD,DACC and Prepaid should be clearly crossed (x), to give indication of the status
of the consignment to the station of destination. Other boxes to be left blank.
4. This cargo label must (R) be used for all consignments booked
by station/ agents and properly filled in to enable easy handling and delivery of
consignments by the destination station specially in cases where the relevant copy of
the consignment note is not available.
 International-
1) A cargo identification label shall be used and attached to each package,
adjacent to the consignee’s name and address where space permits. The cargo label
may be:
a. Airline preprinted label consisting of either the airline name
and AWB number or the airline name only;
b. Neutral label, either preprinted without airline name and AWB
number, or blank.
c.
4. Acceptance of Special Loads:
a. Live Animals:
Live animals when accepted for domestic/interline transportation, check
health and condition of animals, all animals in a consignment must not show any sign
of illness, they must be well fed and watered. The carriage of animals in an advanced
stage of pregnancy is prohibited.
Packing: Packing must be clean and leak proof. A special ‘Live Animal
Label’ shall be affixed.
Confirmation: Confirmation of space on entire route of the consignment
must be obtained. For International carriage, health documents are generally required.
b. Dangerous Goods:
For carriage of arms and ammunition, explosives, including fire-works on
Indian Airlines flights, permission must be obtained by the shipper from DGCA,
Govt. Of India, New Delhi, before such articles are accepted.

Regulations for Indian Airlines (IC) for carrying dangerous goods as


directed in Dangerous Goods Regulations book-

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-03-Class 3, Flammable liquids in packing group 1 are not accepted for


carriage.

IC-04-Division 4.3.Substances which on contact with water, emit flammable


gases are not accepted for carriage.

IC-05-Not used.

IC-06-Division 6.1, Toxic substances in Packing Group 1 are not accepted for
carriage.

IC-07-Class 8, Corrosive in Packing Group 1 are not accepted for carriage.


The following articles, even in Packing Groups II and III are not accepted for
carriage.

UN Number-Description

UN 1787 -Hydriodoc acid

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 09-All hazard labels must include text indicating nature of risk.

IC 10-Not more than one hazard class of dangerous goods may be listed on the
Shipper’s Declaration.

IC 11-A 24 hour Emergency Telephone number of the consignee must be shown in


the “Handling Information” box of the Shipper’s Declaration and Air waybill.

IC 12 -dangerous Goods in Consolidation will not be accepted for carriage.

 IC 13-Fissile material will not be accepted for carriage. (New Addition)

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.

7. Cargo Acceptance Procedure from Agents:


While accepting Cargo from the agents the staff should follow the
Guidelines given below:
a. Cargo will be accepted against agent cargo challan.
b. Agent will submit all copies of Air waybill (6) copies alongwith
parcels.
c. The staff will check the weight (physical and volumetric), physical
condition and labelling/ marking on the parcels. All relevant information reflected on
the Air waybill and agent cargo challan must tally.
d. If any discrepancy is observed, immediate corrective action will be
taken by the Agent and all copies of Air waybill be amended accordingly with proper
authentication.
e. The staff receiving the cargo will verify the audit copy with the other
copies of Air Waybill and certify the similarity of all the columns before putting his
signatures, name and employee number on each copy of Air waybill.
f. Agent will handover minimum 4 copies of Air waybill(3 original+1
photocopy) alongwith original copy of cargo challan.
g. The Agent will get the cargo cleared from security either through X-
ray machine or by Physical Examination by IA Security Staff. The shipments which are
not cleared by security should be kept for 24 hrs. cooling.
h. The staff should ensure that the Cargo tendered by Agent is in “Ready
for Carriage” condition before putting his signatures on cargo Challan.

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-

W.E.F. 15th March 2008-Demurage charges as follows-

1st 4 days from date of arrival-Free

5th day to 8th day-Rs 1.50/day/kg

9th day onwards-Rs. 3.00/day/kg

Service tax 12.36% will be applicable.

Minimum DC will be Rs 100+ S.Tax

For simplification of custom procedure in air cargo subsequent deliberations in the


Govt, it has benn decided to reduce the dwell time for air cargo. It came into effect from 1st
Oct, 2007 with the approval of Minister of State for Civil Aviation(IC), These are,

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.

DIFFERENT CARGO OPERATIONS


In cargo operations, there are mainly two sections. They are Arrival and Departure.
Again these two can be divided into two sub groups, domestic and international. Here with
the help of flow diagram the different steps and responsibilities are shown. First the Arrival
is shown and then departure. It is in the following sequence-

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.

2.. Transport to Unload Cargo on


Cargo Area trollies/ULD’s &
documents
3. Check the type Arrived Cargo on Not
of the cargo trollies/ULD’s & OK
documents(manifest
A
AWB) OK
4. Check the type
of Cargo --------do-------- B

5. Storage of Cargo Arrived Cargo

6. Delivery of Cargo Cargo delivery for


delivery, Document,
Letter of authority
individual identity
document where
required.

S. Activity Detail Input Passenger Cargo Mgr/ Duty officer Staff


No. Staff Stn Mgr. Cargo

7. Godown check Cargo in godown,


(Monthly) Documents

8. Initiate Not
Corrective OK
Actions

9. Disposal of
Unclaimed Cargo

10. Action the


mishandled
Cargo

d.

e.PROCESS FLOW FOR IMPORT CARGO-


S. Activity Detail Input Responsibility Out
No. AAI/ GSD/Pax Cargo Staff
Customer Staff
1. Unloading of Flight arrival
Cargo information 1

2. Document receipt Cargo arrival 2 -AWB


information -Manifest d
-IGM numb
customs

3. Cargo to AAI -Unloaded Cargo -Offloading


3 3
warehouse -Complete permission
documents -5 sets of d
received -Cargo han
AAI staff

4. Segregation -Cargo received 3 copies of


report preparation at warehouse 4 Cargo staff
-Related
documents

5. Checking Segregation OK 5
condition of report
Cargo
Not

S. Activity Detail Input AAI/ GSD/ Pax Cargo Staff Output


No. Customer Staff

6. Handling of Segregation
damaged short report 6
landed Cargo

7. Excess handling Segregation 7


report report

8. Sorting of 8 To originat
discrepancy transit stati
A
9. Check the type of 9 Segregation
Cargo Cargo

10. Handling of 10 Related me


special cargo and report

11. Cargo delivery 11 -Written in


of receipt to
consignee/
-Delivery o
-Preparatio
relevant do
like CTM,
required
f.
g.PROCESS FLOW CHART FOR EXPORT
CARGO
Activity Input Responsibility Output Control Point
S. Detail AAI/Custom Carg Dut
No er Agent o y
. Mgr Sta
ff
1. Acceptanc -Load/space Carting
e of cargo availability 1order
-Load in
hand
-Details of
Cargo
2. weight &
Customer volume 2 -Approved
Clearance Shipping
-Parcel(S) bill
-AWB -Export
3. 3 location Verify the
slip correctness of
Verify & input
acceptanc -Rule information(Locati
e of Cargo Books/ on no., date of
document Tariff handover to AAI&
4. s booklet 0 payment of
4 demurrage
charge, if any)

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

Activity 7 Proper care while


Detail transfer
7.
Input
Movemen

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.

DIFFERENT TYPES OF FORMS USED IN CARGO


OPERATIONS-
The different types of forms which are used in different cargo operations are as
follows-
1. Airway Bill-
An Airway Bill, which constitutes the very basis of air cargo transportation, is
a legal document of the contract, between the carrier and the shipper or their
approved agents, for carriage rules and regulations laid down by the
International Air Transport Association (IATA), The Warsaw convention as
amended by the Hague protocol and the carrier’s own rules and regulations
printed on the reverse of the originals of the Airway Bill.

2. Instructions for despatch of goods-


It is used at the booking counter of departure. In this form shipper gives all the
details of the consignment along with the address of both shipper and
consignee. It also contains signature of the shipper.

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.

5. Air Cargo Transfer Manifest-


It is also a cargo manifest but used for transfer cargo. It is true for both
domestic and international cargo.

6. Cargo Break-up Performa-


This form is used by international arrival section. It is also for transit cargo. It
is done after receiving transit cargo from other airlines.

7. Special Load Notification to Captain-


If there are some special cargo like dangerous goods, valuable cargo, live
animals, human remains it is informed to the captain of the flight through his
notification.

8. Container/ Pallet form-


This form is attached to the trollies which transport the cargo from Departure
section to the flight. Here all the information are given both of flight and the
cargo.

9. Company’s Stores Consignment Note-


It is also known as Aircraft on Ground (AOG) note. This is the document by
which documents or parts of aircrafts are sent to the destination for various
reasons. Here no Airway Bill is prepared for that. It has to by the first
available flight. There are 4 copies. First copy remains with the booking dept.
Second one is returned to the bearer after signing. The last two are sent with
the consignment.

10. Mishandled Load Tracer Form-


This form is used to manifest the short landed or excess received parcels or
concertina. Then it is notified to the concerned station for further process.

11. Special Check Sheet-


This check sheet is one kind of notification to the pilot or air hostess for
special type of cargo. They are mainly Diplomatic Mail/ Precious Cargo/ Fire
Arms/ Camera or Transit Check Sheet.

DIFFERENT TYPES OF TAGS USED IN CARGO


OPERATIONS-
There are different types of “TAGS” which are attached to the cargo for having an
immediate idea about the nature of the cargo. It helps in taking precautions to avoid any
damage. The different types of tags are-

1. General Cargo Tag-


Generally it is a computer printed tag. But sometimes it is attached to the
cargo for showing the relevant information of type, origin, destination etc.
2. Human Remains-
This tag is attached to the coffin containing human remain. It is also marked
with must go caption, which means it has the priority over others cargo.
3. Live Animals-
This tag is used for generally birds, puppy, newborn chicks, fishes, turtles,
crabs, white rats, guineapigs etc. Whichever is the content should be written in
the specified space.
4. Perishable items-
Meat, flowers, fresh fruits and vegetables, sea food, hatching eggs, vaccines
and medical supplies etc. comes under this category.
5. Fragile items-
Glasses, porcelain and ceramic utensils etc remains under this category.
6. ICAO/IATA Hazard and handling labels-
These labels are used in carrying of different ICAO/IATA defined hazardous
goods. All the information are given in the “Dangerous Goods Regulation”
book.
LOADING PRIORITIES
Loading priorities to be followed as has been instructed in the past as given below:-

1. Human Remains/Dipmail Cargo/AOG (MUST GO).


2. Surcharge Class Cargo (200% of Normal Rates).
3. Normal Rate.
4. GATI GOLD-on assured sectors.
5. Newspapers-on assured sectors
6. Mail- on assured sectors.
7. X-rate
8. Courier (except Indore/Kolkata where Courier takes precedence over ‘X’ rate as
Courier rate is higher than ‘X’ rate).
9. Interline cargo.
10. Rebated class cargo.
11. Quantity / Commodity Discounted Cargo(Q Cargo)

Despatch of offloaded cargo on subsequent flights would be determined as per


priority given above.

GATI, Mail and Newspapers for Assured sectors are as per enclosure.

Clear priorities as per P1, P2 have to be given on each trolley.

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.

Priority of various categories of general cargo as per Yield Management is given


below:

i. Surcharged class cargo


ii. ‘N’ Rated Cargo
iii. ‘X’ Rated Consolidated Cargo
iv. Courier on Board
v. Committed Cargo(IAL/GATI)
vi. Interline Cargo
vii. Rebated Class Cargo
viii. Quantity/ Commodity Discounted Cargo
ix. ‘K’ Rated Consolidated Cargo

DETAILS OF MARKETING ACTIVITIES


The elements of cargo marketing include:

 Preparation of Marketing Plan


 Cargo products/ services/ product development
 Market Research/ Data Analysis
 Pricing
 Distribution
 Advertising/ Promotion
 Sales
 Customer Services

1. Preparation of marketing Plan:


At Head Quarters, every year Marketing Plan is prepared keeping in view the
Corporate Plan for Indian Airlines. Business Targets are set for the network and the regions.
Regions in turn set targets for their respective stations. The implementation strategies are
drawn and the status of the extent of achievement is reviewed regularly.

2. Cargo Products & Services:


Indian Airlines Cargo product is the Cargo Space in the belly hold of Aircraft
after the acceptance of passengers and baggage. The type of Cargo includes newspapers,
regular Cargo, excess baggage and courier & mail. A wide range of Cargo Services on its
Domestic & International sectors is offered to the customers. The features of those services
are worded out at the head Quarters level keeping various Commercial considerations in
view.

The improvement in services is considered at both Head Quarters as well as at


Regional general manager’s level.

3. Market Research and Data Analysis:


Market Research is done on the basis of interactions at both Regional and head
Quarter level with the Cargo Agents as a part of quarterly Regional review meetings
conducted by the cargo Managers along with the Regional General Managers. The data
analysis is also done on a quarterly basis as a part of QAM 080 of the Quality Assurance
Manual.

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:

a) Available underloads on a particular flight

b) On the basis of potential increases in the cargo business

c) On the basis of other competitor’s information.

d) Other commercial considerations.

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.

The pricing decisions are communicated to all stations – domestic &


international – by means of circulars / updated tarrif booklets.

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.

CARGO RATES AND CHARGES

The following rates are in existence and are applicable for carriage of cargo by
INDIAN AIRLINES:

1. Basic-Normal Cargo Rate


2. Bulk Cargo Rate or Quantity Rate
3. Specific Commodity Rate
4. Class Cargo Rate-Surcharged or Rebated
5. Minimum Charge

A. Basic Cargo Rate-


Generally expressed as the normal under 45 Kgs. Rate.
B. Bulk Cargo/Quantity Rate-
It means cargo carried at a rate lower than basic cargo rate over specified
route/s, on specified direction, and is generally offered for weight breaks of 45
kgs and above.
The reason for the above discounts is to develop air cargo market and to
generate cargo traffic on IC network.
C. Specific Commodity Rate-
A rate applicable for carriage of specifically designated commodity from/to
specifically designated points to promote the growth of specified commodities.
It is purely directional. In some case, 40% to 60% discount over the basic
cargo rate has been given on certain commodities.
D. Class Cargo Rate-
A rate applicable for carriage of specifically designated class of goods. This
rate is generally expressed as a percentage of the normal rate and TAKES
PRECENDENCE OVER ALL OTHER RATE(s). The following commodities
shall be treated as class cargo on INDIAN AIRLINES domestic services:
a. Newspapers, Magazines, Books and Periodicals
b. Human Remains
c. Valuable Cargo(Definitions changes from time to time)
d. Live Stock
E. Minimum Charge-
Minimum charge for any consignment shall be the charge for one kilogram at
less than 45 kgs. Rate or the minimum amount fixed whichever is higher.

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-

1. Productivity Linked Incentive-


This incentive is given to the agents depending upon the business given by the agent.
There are different slabs of monthly productivity on which the commission is fixed. The
range of the monthly productivity is Rs. 2 lacs to 1 crore. And depending upon the different
slabs there are also schemes for providing air tickets. These may be fully free or a certain
percentage is free. On incremental sales there is also provision of additional incentives. The
schemes are different for domestic and international carriage. Moreover the incentive scheme
is one of the best in the market.
2. Revenue Based Discount Scheme-

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.

Eligibility criteria for Awards-

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.

4. GATI Gold Scheme-

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.

d. Damage to the goods/packing, noticed at the time of customs examination as


having occurred during or before unloading from the aircraft and before customs out
of charge.

e. Shortages in the contents-


Q Where packing is intact, or
Q Where packing is not intact & with or without room to hold the
missing content.

In all such cases the following general procedures to be adopted-

I. Prepare and issue an untracebility circular or memo in the form of probational


claim containing all the relevant particular of the goods.
II. The untracebility circular must be sent to-
a. Custodian i.e. Airport Authority
b. Career/agent
c. Insurance underwriters
d. Customs import department
e. Consignee/agent

III. Issue a shortlanding certificate or non-delivery certificate to the consignee.

IV.

a. In case of claim on account of damage shortages applied for and obtain


landing remarks certificate from airlines.
b. Organise join survey by carrier, custodians and customs.
c. Obtain copy of the survey report to substantiate the claim.

V. Claim on carriers-

Lodge formal claim on the carrier and substantiate the claim by producing
“Short Landing Certificate”/”Non Delivery Certificate”.

Check sheet of supporting documents – settlement of cargo claim-

1. Claim letter from claim party.


2. Short Delivery Certificate, in original.
3. A copy of TP/CRT messages or a copy of the letter initiated immediately upon
finding the discrepancy.
4. Copies of reply from all stations in response to tracer.
5. Copy of Air waybill(Consignee)
6. Copy of Invoice/Bill/Challan/Value and item details.
7. No objection certificate from all the related parties for final settlement to
claiming parties for final settlement to claiming party.
8. Whether the lost parcel was insured? If yes, relevant details.
9. The letter of subrogation and special power of Attorney, in original, issued in
favour of the underwriter in case the right to claim the damage/compensation is transferred to
the underwriter by the concerned party.
10. A copy of report in case the parcel received or found in damaged condition
by authorised surveyors.
11. The brief investigation report from the concerned Station/Section covering
discrepancy/pilferage/shortage/damage etc. Of the parcel.

12. Security Report (if the matter is taken up with/intimated to Local Police
authorities/IAL security).

QUALITY SYSTEM ASSESMENT CHECKLIST


1. Acceptance of Cargo as per defined regulations for Cargo received from:
a. Direct shippers.
b. Agents
c. Interline
2. Acceptance for shipping of
a. Special loads
b. Dangerous goods
3. Cargo preparation for carriage
4. Cargo handling and storage especially of
a. Special loads
b. Dangerous goods
5. Warehouse Management to prevent damage/loss.
6. Calibration of scales
7. Manuals and other document’s availability.
8. Filing procedure.
9. Management Control System:
a. Quarterly reviews.
b. Resource identification.
c. Understanding of quality policy.
d. Role clarity.
10. Training process.
11. Agents Management and control.
12. Customer complaints handling, notification and analysis.
13. Corrective and Preventive Actions.
14. Review of Previous Audit Reports.
15. Other elements : 1. __________________________
2. __________________________
3. __________________________

Note:-

 Consider the checklist as an advisory document. Depending upon the


scope of the audit, select relevant elements of audit from this list and
decide your own audit strategy.
 Must refer to Quality Assurance Manual and Cargo Manual for
audits.

RESPONSIBILITIES AND AUTHORITIES


1. Executive Director (Cargo)-
 To define Quality Policy and Objectives.
 To monitor achievement of policy.
 To review the effectiveness of implemented system.
 To define policies for promoting/marketing Cargo business.
 To co-ordinate with support departments.
 To provide resources, where required.

2. General Manager/Dy. General Manager, (Cargo Marketing)-


 To review & analyse data as a part of market research activity.
 To monitor system implementation.
 To manage Management Reviews.
 To advise Regions and Stations specific matters relating to Cargo handling in
case of any non-standard Customer’s requirement.
 To consider improvements in Cargo Services.
 To provide advertising support
 To undertake sales function.
 To follow on corrective action for customer complaints.
 To provide guidance on preventive measures for avoiding recurrence of
customer complaints.
 To undertake promotional pricing.

3. General Manager (Commercial)-


 To conduct regional reviews.
 To co-ordinate with training cell for imparting training as per identified needs.
 To ensure system implementation as per documents.
 To co-ordinate for Customer Service related activities.
 To consider improvement in Cargo Services.
 To undertake promotional pricing.
 To review corrective actions for Cargo customer complaints & initiate
preventive actions.

4. Deputy General Manager (Marketing)-


 To define and implement processes as per guidelines received from Head
Quarters from time to time.
 To manage agents’ selection and monitoring processes.
 To liaison with Stations on behalf of General Manager.
 To conduct data analysis as a part of market research.
 To ensure proper distribution vis-a-vis appointing Cargo Agents and ensuring
their performance monitoring.
 To undertake cargo sales function.

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.

6. Cargo Manager/Area Marketing Manager-


 To ensure safe handling, shortage and delivery of Cargo.
 To ensure system implementation as per documents.
 To co-ordinate with support departments on day-to-day basis for routine
matters.
 To undertake sales function.
 To co-ordinate with agencies ensuring system compliance.
 To decide areas of improvements and take actions accordingly.
 To ensure station/region specific objectives are achieved.

 STATIONWISE DATA OF NO. OF


FLIGHTS, AIRCRAFT TYPE AND DAILY
CAPACITY-

Stati A IX BL BH CCJ IX M C CJ DEL GOI ID JA


ons M U R O C AA O B R I
D K
No. 2 1 4 1 2 1 5 1 1 10 3 1 1
of
Flig
hts
Airc A A3 A3 A3 A320 A3 A3 A3 A3 A A A3 A3
raft 32 19 20 19 20 20 20 20 319/ 319/ 19 20
0 320/ 320
321
Dail 7. 1. 14 1. 1.7 3. 17 3. 1. 33.0 8.5 1. 3.5
y 0 5 .0 5 5 .5 5 8 5
Cap
acity
Stati JD CC LK IX NAG PA IX RP TR UD HYD VN To
ons H U O E T R R V R S tal
No. 1 2 1 1 2 1 1 1 1 1 4 1 50
of
Flig
hts
Airc A3 A A3 A3 A319 A3 A3 A3 A3 A32 A319 A3
raft 20 31 20 20 /320 20 20 20 21 0 /320 20
9/
32
0
Dail 3. 5. 3. 3. 5.0 3. 3. 3. 9. 3.5 10.0 3. 15
y 5 0 5 5 5 5 5 0 5 5
Cap
acity

 Table no. 1
 *All the figures of Daily Capacity are in tons.

STATIONWISE DATA OF TOTAL NO. OF


FLIGHTS AND TOTAL DAILY CAPACITY
CONSIDERING ALL THE AIRLINES-
Stations No. of Flights Daily Capacity
AMD 13 44.3
IXU 4 5.4
BLR 32 113.4
BHO 3 2.8
CCJ 3 2.9
IXC 2 4.7
MAA 25 85.5
COK 10 24.1
CJB 5 13.6
DEL 52 203.5
GOI 17 55.2
IDR 6 12.5
JAI 9 26.2
JDH 2 3.6
CCU 16 53.5
LKO 1 3.5
IXE 6 14.4
NAG 6 17.3
PAT 2 3.5
IXR 2 3.5
RPR 3 8.2
TRV 3 14.5
UDR 3 4.8
VNS 3 8
HYD 19 61.9
Total 247 790.8
Table no. 2

 All the figures of Daily Capacity are in tons.

STATIONWISE CAPACITY (PERCENTAGE) OF


INDIAN AIRLINES AND JET AIRWAYS (DAILY)-
Station Indian Airlines Jet Airways Rest
AMD 15.80 51.47 32.73
IXU 72.22 27.78 0.00
BLR 12.35 24.60 63.05
BHO 46.43 53.57 0.00
CCJ 58.62 41.38 0.00
IXC 74.47 25.53 0.00
MAA 20.47 28.07 51.46
COK 14.52 23.24 62.24
CJB 13.24 27.94 58.82
DEL 16.22 17.94 65.84
GOI 15.40 27.54 57.06
IDR 12.00 32.00 56.00
JAI 13.36 23.66 62.68
JDH 97.22 2.78 0.00
CCU 9.35 22.43 68.22
LKO 100 0.00 0.00
IXE 24.31 16.67 59.02
NAG 28.9 33.53 37.57
PAT 100 0.00 0.00
IXR 100 0.00 0.00
RPR 42.68 14.63 42.69
TRV 62.07 13.79 24.13
UDR 72.92 27.08 0.00
VNS 43.75 0.00 56.25
HYD 16.16 26.49 67.35
Table no. 3

Carriage of cargo (tons) by different airlines and their market share in


terms of percentage for financial year(‘07-’08)-

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

MARKET SHARE OF DIFFERENT AIRLINES IN


THE FIRST SIX MONTH FOR THE FINANCIAL YEAR
OF APRIL’07 TO MARCH’08
FF; 0.17 CD; 1.43 G8; 0.17

IC; 23.26
BD; 20.67

S2; 1.62

IT; 12.24

9W; 40.44

Fig-2

MARKET SHARE OF DIFFERENT AIRLINES IN


THE LAST SIX MONTH FOR THE FINANCIAL YEAR
OF APRIL’07 TO MARCH’08
CARGO/ COURIER /MAIL DETAILS (EX-MUMBAI) FOR THE MONTHE OF
MAY’08-

DOM INTL Total All figures are


FLT No. FREQ STD STN Total Total DOM/I Mail Courier Total Total
NT U/L
IC 663 D 0520 GOI 56172 0 56172 8394 22625 87191 71312
IC 161 D 0535 COK 22073 3585 25658 5849 0 31507 51344
D TRV 17148 9988 27136 7263 0 34399 0
IC 133 D 0540 IDR 37751 1799 39550 3148 20877 63575 176789
D BHO 8798 0 8798 12578 0 21376 0
IC 601 D 0600 DEL 41526 4 41530 17758 0 59288 331068 1
IC 615 D 0610 CCU 48207 0 48207 9009 0 57216 30929
IC 105 D 0615 BLR 24110 8 24118 4831 0 28949 136928
IC 195 D 0630 LKO 19184 27 19211 21517 0 40728 129981
VNS 4028 0 4028 4951 0 8979 0
IC 129 D 0640 NAG 58596 110 58706 10303 26003 95012 82114
IC 806 D 0700 DEL 21243 0 21243 6136 0 27379 236904
D HJR 0 0 0 0 0 0 0
IC 972 D 0705 MAA 50009 317 50326 7013 33382 90721 58893
IC 809 D 0800 DEL 2708 0 2708 5781 0 8489 168295
IXR 7328 0 7328 5936 0 0 -
PAT 7033 0 7033 8197 0 15230 0
IC 615 D 0800 HYD 17097 288 17385 6250 0 23635 195015
IC 157 D 0855 CJB 36687 3932 40619 4730 1800 47149 99337
0900 CCJ 2053 17 2070 5012 0 7082 0
IC 658 D 0930 DEL 43969 0 43969 1596 0 45565 280565
IC 109 D BLR 33926 1096 35022 1988 0 37010 266566
IC 617 D 0940 HYD 15593 1228 16821 3607 0 20428 113795
VTZ 20158 2134 22292 4801 0 27093 0
IC 671 D 1000 MAA 34202 809 35011 4553 0 39564 91613
IXM 9887 798 10685 2335 0 13020 1345

DO IN Total All figures are in kg.


FL FR ST ST M TL. DOM Ma Cou Tot Tot Av N A %
T EQ D N Tot Tot /INT il rier al al g. o. vg co
No. al al U/L U/ of . nt.
L da
ys
IC D 10 DE 193 49 19432 171 0 366 222 717 31 11 2.
864 00 L 83 85 17 296 1 81 0
IX 298 0 29808 115 0 413 0 0 31 13 2.
C 08 01 09 33 3
IC D 10 IX 658 147 6736 146 0 819 725 242 30 27 0.
179 10 E 9 0 6 85 0 3 5
IC1 D 10 RP 177 0 17727 491 0 226 265 886 30 75 1.
69 25 R 27 4 41 911 4 5 3
BB 643 0 643 273 0 337 0 0 30 11 0.
I 2 5 3 2
IC D 10 JG 676 1 6768 146 0 691 107 347 31 22 0.
147 55 A 7 4 675 3 3 4
IC D 12 G 193 228 42150 336 0 455 287 926 31 14 2.
865 55 OI 12 38 8 18 256 6 68 5
IC D 13 DE 171 207 17320 148 0 321 285 101 28 11 1.
166 00 L 13 12 32 532 98 48 8
IC D 13 M 131 167 29895 671 0 366 123 494 25 14 2.
970 15 A 35 60 7 12 645 6 64 0
A
IC D 14 U 991 0 991 68 0 105 744 572 13 81 0.
472 05 DR 9 78 9 1
JD 117 0 1170 655 0 182 0 0 13 14 0.
H 0 5 0 1
IC D 15 G 621 152 21455 163 0 216 261 871 30 72 1.
163 00 OI 9 36 18 366 2 1 2
IC D 15 JA 716 492 12083 905 0 211 233 754 31 68 1.
611 30 I 2 1 9 42 865 4 2 2
IC D 15 IX 272 0 2722 132 0 405 251 809 31 13 0.
887 55 U 2 9 1 034 8 1 2
IC D 16 H 795 179 9748 158 0 256 262 846 31 82 1.
928 00 Y 3 5 82 30 520 8 7 4
D
IC D 16 A 623 702 13261 129 0 262 280 905 31 84 1.
603 40 M 5 6 79 40 575 1 6 5
D
IC D 17 DE 193 112 20480 112 0 317 244 788 31 10 1.
866 00 L 55 5 84 64 435 5 25 8
IC D 17 BL 115 428 15846 139 0 298 237 879 27 11 1.
107 30 R 61 5 88 34 377 2 05 7
IC D 17 M 153 274 42846 916 0 520 890 356 25 20 2.
572 55 A 72 74 6 12 26 1 80 9
A
IC D 18 DE 342 708 41339 127 0 540 241 779 31 17 3.
168 00 L 58 1 97 46 550 2 43 0
IC D 18 CC 212 713 28423 199 0 484 831 268 31 15 2.
274 30 U 84 9 90 13 56 2 62 7
IC D 18 N 263 440 30779 880 0 395 155 500 31 12 2.
629 40 A 79 0 0 79 094 3 77 2
G
IC D 19 DE 121 512 12636 705 0 196 115 383 30 65 1.
888 00 L 24 1 87 017 4 6 1
IC D 19 H 988 132 11211 339 0 146 287 957 30 48 0.
619 05 Y 3 8 0 01 239 5 7 8
D
IC D 19 A 678 166 8446 256 0 110 202 101 20 55 0.
610 30 M 0 6 1 07 104 05 0 6
D
DO IN Total All figures are in kg.
M TL DO
Tota Tot M/IN
l al T
FLT FR S ST Mai Co Tota Tot A N A %
No. EQ T N l urie l al V o. vg C
D r U/L G. of . on
U/ D t
L ay
s
IC D 20 D 159 449 1637 152 0 179 321 10 31 57 1.
605 00 EL 27 6 5 01 091 35 7 0
8
IC D 20 M 151 240 3928 568 0 449 172 57 30 14 2.
173 30 A 87 98 5 8 73 515 51 99 5
A
IC D 20 B 972 730 1045 390 0 143 248 85 29 49 0.
609 35 L 9 9 9 68 499 69 5 8
R
IC D 05 A 224 0 2245 165 251 641 199 64 31 20 3.
686 30 M 54 4 33 49 36 860 47 89 6
D
IC 3,7 08 C 0 0 0 0 0 0 328 41 8 0 0.
994 20 CJ 51 06 0
IC D 00 S 0 147 1478 - - 147 132 42 31 47 0.
681 05 HJ 86 6 86 285 67 7 8
IC D 07 D 0 491 4910 - - 491 248 80 31 15 0.
693 45 X 0 0 226 07 8 3
B
IC 3,5 16 G 0 0 0 - - 0 - 0 - 0 0.
597 ,7 40 OI 0
- - - C 0 0 0 - - 0 - 0 - 0 0.
CJ 0
- - - S 0 0 0 - - 0 - 0 - 0 0.
HJ 0
IC 12 15 C 0 768 7683 - - 768 353 23 15 51 0.
595 46 45 CJ 3 3 577 57 2 4
2
- - - C 0 326 3267 - - 326 - 0 - 0 0.
O 7 7 2
K
- - - S 0 102 1026 - - 102 - 0 - 0 0.
HJ 60 0 60 6
IC 2,6 18 K 0 775 7759 - - 775 247 27 9 86 0.
993 15 W 9 9 02 45 2 4
I
IC D 20 D 0 178 1780 0 0 178 190 61 31 57 1.
683 30 X 05 5 05 822 56 4 0
B
IC D 22 M 0 473 4739 0 0 473 207 66 31 15 0.
685 00 C 9 9 337 88 3 3
T
TOT - - - 102 246 1269 393 129 179 - - - - -
AL 270 739 447 098 836 238
8 1
Avg. - - - 329 795 4095 126 418 578 - - - - -
/Day 91 9 0 81 8 19
Table no. 10

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.

ADVANTAGE INDIAN AIRLINES-


There are some specific advantages which make Indian Airlines a air cargo carrier
with a slight edge. They are mainly as follows-
Q Indian Airlines has a wide network and connectivity which connects almost every part
of India. So the shipper can choose their destination according to their need.
Q The basic infrastructure for carrying large volume of cargo is an added advantage.
The cargo premises, equipments for handling cargo are adequate enough for handling cargo
are adequate enough to handle vast quantity of cargo simultaneously.
Q In 2006, the whole cargo operations were automated. It promoted the option of online
track and trace facility via internet. It also simplified the whole operation.
Q There is a pool of trained and experienced staffs that carry out the whole process in a
professional manner. There are also time to time training classes to acquaint the staffs with
the upgrades.
Q As a national carrier, the main aim is to serve the people of the nation, not the revenue
earning. In any natural calamity like drought, flood, earthquake in any part of the country
Indian Airlines sends relief materials like foods, clothing, medicines etc absolutely free of
cost. So, social obligation is another key feature of Indian Airlines.
Q Indian Airlines is a carrier with a humanitarian touch. It carries dehydrated corneas
(human eyes) absolutely free. It also carries radioactive isotopes for the treatment of cancer
patients. It also carries the dead body of Indian soldiers who lay their lives for the sake of the
country free of charge. If any poor worker from Middle-East countries of Indian origin dies in
any mishap, Indian Airlines carry his body to India free of cost. So, these types carriage on
humanitarian grounds makes Indian Airlines unique.
Q Indian Airlines is the only carrier in India which carries dangerous goods. To handle
these types of cargo, special DGR Certification is needed from IATA.

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

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