SpiceJet to add domestic cargo service

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SEP 30, 2015: Spice Jet plans to add domestic cargo service to its portfolio to keep up with India’s growing demand for e-commerce. The carrier has yet to decide which aircraft it will use, but it currently operates a mix of 737s, Bombardier Q-400s and A319 passenger aircraft. The Gurgaon, India-based airline already carries cargo in the bellies of its current fleet.

However Spice jet said it would put one or two of its passenger Q400s into overnight all-cargo service. Normally the Q400s would just sit at night, but they can be utilized to carry cargo on the seats between Bangalore and Delhi. Spicejet's cargo revenue is 3 to 4 percent of passenger revenue, but if things go as planned those revenues could stand at 8 to 10 percent of passenger revenue by the end of the airline's fiscal year.

SpiceJet’s cargo uplift and yields have improved as a result of the growth in Indian e-commerce, with domestic airfreight volume growing 18 percent between fiscal 2014 and 2015. Airlines in India are reported to have carried 980,000 tonnes of cargo for the year ending March 2015.

Blue Dart is currently the only scheduled cargo airline in India, with five 757s, and it is considered a market leader in airfreight in India.

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