c
c cc 

The history of civil aviation in India began in December 1912. This was with the opening
of the first domestic air route between Karachi and Delhi by the Indian state Air services
in collaboration with the imperial Airways, UK, though it was a mere extension of
London-Karachi flight of the latter airline. Three years later, the first Indian airline, Tata
Sons Ltd., started a regular airmail service between Karachi and Madras without any
patronage from the government.

At the time of independence, the number of air transport companies, which were
operating within and beyond the frontiers of the company, carrying both air cargo and
passengers, was nine. It was reduced to eight, with Orient Airways shifting to Pakistan.
These airlines were: Tata Airlines, Indian National Airways, Air service of India, Deccan
Airways, Ambica Airways, Bharat Airways and Mistry Airways.

In early 1948, a joint sector company, Air India International Ltd., was established by the
Government of India and Air India (earlier Tata Airline) with a capital of Rs 2 crore and
a fleet of three Lockheed constellation aircraft. Its first flight took off on June 8, 1948 on
the Mumbai (Bombay)-London air route. At the time of its nationalization in 1953, it was
operating four weekly services between Mumbai-London and two weekly services
between Mumbai and Nairobi. The joint venture was headed by J.R.D. Tata, a visionary
who had founded the first India airline in 1932 and had himself piloted its inaugural
flight.


 
 

The repeal of the Air Corporation Act from 1 March 1994 enabled private operators
to provide air transport services.

Six operators were given the status of scheduled operators on 1 February 1995.

Currently there are five international airports and 87 domestic airport in the country
with 28 civilian enclaves for defence purposes.

The Airport Authority of India plans to invest Rs 35,000 million for the construction
and up gradation of airports.

Budgetary support of Rs 485.50 million was allocated to AAI in 1996-97.

In august 1996, in a major policy decision, the government allowed the private sector
to set up air cargo complexes in a bid to ensure smooth movement of export cargo.
Domestic and foreign investors including NRIs have been invited to participate in the
development of infrastructure support at select airports.
With a market share of 43% Indian airlines is the biggest player in aviation.
Rs 24,710 million have been marked for development of the civil aviation sector in
the annual plan for 1997-98.

c  



The growth of air cargo in India has also been manifold though it might not have kept
pace with the progress made all over the world. Table 1 shows how both international
and domestic air cargo traffic has increased, reflecting an overall year on year
growth.

Table 1: Trends in cargo traffic at five international airports in India.

(Figures in '000 tonnes)


 c  
 




  c 
1972-73 47.4 33.6 81 -
1982-83 165.4 84.6 250 209%
1992-93 300.5 90.9 391.4 56.56%
1999-2000 494.2 183.0 677.2 73%

(Source - Transport India 2000)



c 

Future projections reflect that the air cargo industry both in the domestic sector and
the international sector will continue in its upward trend of growth. Fig.1 reflects that
the domestic air cargo will continue at a somewhat steady rate of growth whereas the
international air cargo movement as illustrated in Fig.2 shows a steeper rate of
growth indicating that international air cargo trade will flourish at a higher rate of
growth.
Fig. 1

Fig. 2

(Source - Transport India 2000)

Both Domestic cargo and International cargo are poised to grow according to the
projections. The major reasons, which can be attributed to this increase, are

Increase in overseas trade

Indian economic policies
Customer service orientation
Inventory concerns
E-commerce development