MASkargo sees higher revenue from Indian ops

MUMBAI: Malaysia Airlines Cargo Sdn Bhd (MASkargo), the air cargo unit of Malaysia Airlines (MAS)(3786), expects better volume for its Indian operations on improved flight frequency and a global economic recovery.

Amiroel Shazrie Yussof, regional manager for Americas, Africa and India, said he expects average volume to touch 900 tonnes a month in 2010.

Revenue should also improve by six per cent this year.

"India is an important market for MASkargo. We are looking at strengthening our foothold in the Indian cargo market," Amiroel said.
India is in Maskargo's top 10 list of destinations that generate the most revenue. It accounts for three per cent of the company's revenue.

"We are looking at being more competitive through charter flights and possibly adding frequency. We do not have freighter services into India for the moment, but only belly capacity," Amiroel told reporters at the Air Cargo India 2010.

The international exhibition cum forum is being held in Mumbai until tomorrow.

Currently, MASkargo has 29 weekly flights to India. It flies daily into Chennai, New Delhi and Mumbai and four times a week into Bangalore and Hyderabad.

Amiroel said MAS may increase frequencies to India. However, the additional number of flights, type of aircraft and the timing has not been confirmed.

Early last year, MAS cut its flight frequency to India due to the global recession, leading to a load factor of between 65-70 per cent last year for MASkargo.

According to the Planning Commission, India's air cargo movements is expected to grow over a CAGR (compounded annual growth rate) of 11.5 per cent in the 2011 to 2012 period.

It was reported that MASkargo expects revenue to grow by 10 per cent to 15 per cent this year. Air cargo now contributes about 17 per cent to 20 per cent to MAS group's revenue.