The Indian cargo aviation sector is experiencing a positive upturn thanks to the reinstatement of the Open Sky Policy for foreign cargo carriers. Before the pandemic, foreign airlines faced limitations on which airports they could operate from in India. However, recognizing the growing demand for air cargo and congestion at domestic airports, the government implemented a change.
In December 2020, the Open Sky Policy was revised. Previously, foreign airlines dominated the cargo market, holding a significant 81% share compared to Indian airlines’ 19%. To address this imbalance, the revised policy restricted non-scheduled freighter operations to just six major Indian airports. This strategic move has paid off, leading to an increase in Indian airlines’ cargo traffic and revenue.
The article suggests that these clear skies are likely to remain, benefitting the Indian cargo aviation industry. This growth is attributed to the increased competition and efficiency brought about by the revised Open Sky Policy.
Source: Logistics Insider