Tata Sons to Unify Air Cargo Operations Across Its Airlines

Tata Sons is set to streamline its air cargo operations by consolidating them under a single entity, according to an undisclosed official from Air India. This strategic move involves the integration of cargo services across Tata’s four airline subsidiaries—Air India, Vistara, Air India Express, and AIX Connect—into one unified operation.

The restructuring plan includes merging the two full-service carriers into one and combining the two low-cost carriers, ultimately reducing the number of airlines to a single full-service and a single budget airline. This consolidation aims to enhance efficiency and streamline operations across all divisions.

“Internally, we are overhauling our processes at multiple levels to centralize functions into one efficient system,” the source revealed to The Economic Times. Tata Sons is developing a sophisticated ‘mother software’ designed to handle all cargo bookings, revenue management, and other commercial activities in a cohesive manner. The initiative also extends to enhancing Tata’s global distribution network and engaging new clientele.

In terms of future growth, the possibility of establishing a separate cargo subsidiary is being considered to maximize Air India’s potential fully. This July, Air India announced its collaboration with IBS Software, a leading software-as-a-service provider, to overhaul its cargo system digitally.

Air India’s chief commercial and transformation officer, Nipun Aggarwal, emphasized the transformation journey of the airline. “Air cargo plays a crucial role in our strategic plan, not just reinforcing our position as a leading global airline but also setting the stage for future expansions,” he stated.

An Air India spokesperson highlighted the breadth of the airline’s global network, which includes approximately 500 stations worldwide, supported by trucking and interline partnerships. “Our network is continually growing, providing extensive distribution capabilities both domestically and internationally,” said the spokesperson.

Despite ambitions to triple its cargo capacity by 2028, Air India’s CEO Campbell Wilson last year indicated a preference for increasing cargo capacity on passenger flights rather than investing in dedicated freighters. This strategy remains in place, with no immediate plans to add cargo-only aircraft to the fleet, reinforcing Air India’s commitment to maximizing the use of its existing resources.

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com