An express logistics venture--Deccan 360--launched today at Delhi International Airport.
Founded by Capt. Gopinath, who launched India's first budget carrier, Air Deccan "is the first to create a hub-and-spoke distribution model in the express industry in India."
Starting May 18, Deccan 360 will launch its express long-haul and freight service operations across multiple industry verticals such as automotive spare parts, textiles, pharmaceuticals, machinery and heavy equipment, banking and organized retail with an Airbus A310 freighter on the Delhi-Mumbai-Chennai-Hong Kong-Dubai route offering domestic as well as international express cargo services to freight forwarders.
Deccan 360 has appointed Jude Fonseka, formerly with FedEx, as CEO of the new cargo venture. It has ordered two more A310 freighters along with six small feeder ATR-42s for use on its hub-and-spoke model.
Given the tight economic climate, the venture will need further investments. Gopinath said he had invested $25 million and would divest an equity stake in the next three to four months to bring in an additional $30 million.
An initial contender, SIA Cargo says it has had discussions in the past with Deccan Cargo Express Logistics on possible investment in DCEL. "However, given the current severe downturn in the air cargo industry, the top priority for SIA Cargo is to manage the immediate business challenges. Therefore, SIA Cargo has decided not to participate in investment in DCEL," said spokesman Nicholas Ionides.
India's economic development will require the support of dedicated cargo cities with state-of-the-art cargo terminals, cold storage facilities and electronic data interchange systems. Work has already begun on constructing a facility on 100 acres at the multi-modal cargo hub in Nagpur, which will handle a majority of the shipments moving on the Deccan 360 network.
AviationWeek recognized Gopinath in 2007 for his achievements in the commercial air transport category for starting India's first budget airline.
While India's international and domestic cargo market grew by 10% in 2006, accounting for 1.5 million tons of cargo, commercial passenger airplanes added to inventories also have added more cargo carrying capacity on its belly space. A Boeing 777 version, for instance, can carry up to 20 tons of cargo.
Photo credit: Deccan 360
Source: Aviation Week