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Express cargo business in India is bracing for a price hike. Here’s why

PW Bureau

Speaking about delays in certain sectors, Kumar said that there may be a few sectors which have witnessed delays in the last few days because of Jet’s exit from operations

New Delhi: Jet Airways’ downward spiral has not just held up air parcels in certain sectors but has also given rise to fears that other airliners could jack-up fares for the express logistics sector, the Express Industry Council of India (EICI) said on Monday. “Excess capacity with airlines has ensured that there is no impact from the capacity perspective. Rates have also held on till now, but we fear rates will go up,” the council’s chief operating officer Vijay Kumar said.

Jet used to handle 12% of overall freight

Kumar said that Jet Airways was in control of about 12 percent of the overall freight, which is almost at par with the market share that the battered airline had before it suspended operations last week.

Speaking about delays in certain sectors, Kumar said that there may be a few sectors which have witnessed delays in the last few days because of Jet’s exit from operations. In case a service provider backs out, logistic players can either route the cargo through multiple flights instead of a single flight connecting two cities or opt for surface transport to push a consignment — either of which results in delays, said Kumar.

“We are hoping that the capacity which has been lost will be added soon,” he wished.

The backdrop

Jet Airways shut down its operations last Thursday after it was unable to get the much-needed capital infusion to continue operations. Lenders, who had earlier promised to infuse Rs 1,500 crores into the airline, did not infuse any capital because Jet already owes them Rs 8,000 crore.