Retail companies vie for air cargo space

The Economic Times reports that Indian retailers are lining up to purchase cargo aircraft to backward integrate their supply chain logistics. With this model, both retailers and airline companies would benefit as retailers would be able to transport perishable goods quickly and efficiently, and several low cost airlines, such as Air Deccan and Go Cargo are making plans to expand their cargo infrastructure.

While Reliance and Bharti are already in talks to set up long term alliances with international and domestic cargo companies, other retailers such as the Tata Group, Birla Group and RPG are considering their options. Air Deccan MD Capt. Gopinath, said,

“We have already taken steps in this direction and are in talks with some well known retail companies. We will soon come out with something really formidable.”