31 Jul 2024
Vistara could be merged with Air India and AirAsia India with Air India Express by the end of 2024.
Air India Group plans to combine its cargo operations and form a separate entity with dedicated freighters to serve the growing demand. SpiceJet executed a similar strategy by demerging its cargo operations from the passenger side, and IndiGo is planning a similar move.
Air India witnessed a 30% spike in air cargo revenue in the past two years. Its cargo tonnage is expected to cross 2.5 million tonnes by 2027. To facilitate this growth, Air India is partnering with more freight forwarders, sales agents, and last-mile delivery agents. It is also developing a new portal for optimising the cargo network.
Since last year, it developed a worldwide Key Account Management program to onboard and manage customers. It is investing $200 million in an IT upgrade and switched to Salesforce CRM for customer management.
Air India announced a five-year transformative plan, Vihaan.AI, in September 2022 and completed its first phase.