IAG Cargo seeks collaborations with Indian carriers and logistics partners

Expressing optimism about the growth prospects in India, a top official from IAG Cargo mentioned that the European entity is open to forming partnerships with Indian carriers and logistics players whenever an opportunity arises. Around 10 percent of IAG Cargo's global export revenues are derived from India, representing the cargo business of five airlines, including British Airways, Iberia Cargo, Vueling, LEVEL, and Aer Lingus Cargo. Chief Executive Officer David Shepherd highlighted that the Indian market contributes significantly to their business, with high load factors, especially in industries such as pharmaceuticals and e-commerce. Responding to a question about potential partnerships with Indian carriers and logistics players, Shepherd stated, Certainly, if an opportunity comes up, we will work with a carrier or a logistic provider on the ground. IAG Cargo is also exploring options to increase its cargo capacity. Shepherd elaborated on the strong performance of the Indian market, citing factors like fast growth, a diverse export mix, a burgeoning middle-class economy, and a robust local customer base. Discussing the current air services agreement between India and the UK, Shepherd expressed hope for increased service frequencies. Currently operating 112 weekly flights between India and the UK, he emphasised that IAG Cargo doesn't own cargo aircraft but collaborates closely with British Airways, considering a transition to larger aircraft like A350 for additional capacity. When questioned about plans to purchase freighters, Shepherd clarified that there is currently no intention to acquire freighters. In the financial year 2022-23, India witnessed an air cargo volume, including exports and imports, totalling 3.15 million tonnes. Shepherd cautiously expressed optimism about the air cargo segment for the year 2024.