The Indian aviation sector is witnessing a transformative change, driven by the reinstatement of the Open Sky Policy for foreign cargo carriers. Before the pandemic struck, international cargo airlines grappled with stringent restrictions, limiting their operations to specific airports in India. Recognizing the escalating demand for air freight coupled with the congestion at domestic airports, the government discerned the imperative for a revitalized and competitive air cargo landscape.
Responding to this exigency, the Open Sky Policy underwent a significant overhaul in December 2020. The revamped policy streamlined non-scheduled freighter operations, concentrating them at six major Indian airports: Bengaluru, Chennai, Delhi, Kolkata, Hyderabad, and Mumbai. This strategic revision was designed to bolster the market share of Indian airlines in the cargo segment. Historically, they commanded a mere 19% share, with foreign airlines dominating at 81%. Encouragingly, the amended policy has catalyzed a surge in cargo traffic and revenue for Indian carriers.
The revitalized Open Sky Policy is not only fostering growth within the domestic aviation sector but also positioning India as a more attractive hub for international cargo operations. By fostering a more competitive and efficient air cargo environment, the government’s initiative is facilitating smoother trade flows, bolstering supply chain resilience, and supporting economic expansion. As the policy continues to bear fruit, stakeholders anticipate further enhancements in cargo infrastructure and operational efficiency, propelling India’s cargo aviation sector to new heights.
Source: Logistics Insider