Project

A PROJECT ON

“AN OVERALL VIEW OF CARGO OPERATIONS OF ERST-WHILE INDIAN

AIRLINES IN MUMBAI”

PINAKI MOHAN SUTRADHAR

Roll No-TL/2007-2009/28 RANSPORTATION AND LOGISTICS

DEPARTMENT

INDIAN INSTITUTE OF SOCIAL WELFARE AND BUSINESS MANAGEMENT

Contents

Topic Page No.

1. Organisational Profile 1-15

2. Introduction to Air CargoQ Definition and types of cargo 16

Q Commonly used terms 17-223. Objective of the project 234. Automations in Air Cargo 24-265. Cargo operations

Q Acceptance of cargo 27-35Q Diff Cargo Operations 36Q Flow diagram for Departure

Export cargo 47-38 Outbound cargo(DOM) 39-40

Q Flow diagram for Arrival Cargo arrival(DOM) 41-42 Import cargo(ARRIVA) 43

Q Different FORMS used in Cargo Operations 44-58Q Different TAGS used in Cargo Operations 59-64Q Loading Priorities 65-66

6. Marketing activities 67-68

Q Different rates and charges 69-70

7. Agents 71-72

` 8. Claim Procedures 73-74

9. Quality System Assessment 75

10. Responsibility and Authority 76-77

11. Data Analysis and Interpretation 78-90

12. Advantages & Drawbacks 91

13. Recommendations 92-93

14. Conclusion 94

15. Bibliography 95

ABBREVIATIONS

1. A.O.G. :Aircraft on Ground

2. APD :Airport Delivery

3. AWB :Air waybill

4. BD : Blue Dart

5. BFL : Bulk Freight Loader

6. BORDEREAU :It is diplomatic Mail-

- Way Bill is prepared and submitted

- By Ministry of External Affairs for Category “A”

- Dip mail

7. C.C.A :DOM) Consignee Copy Attached

8. CD : Gati Freighter

9. COB : Courier on Board

10. C.O.D. :Cash on Delivery

11. CTM :Cargo Transfer Manifest

12. DACC :Delivery Against Consignee Copy

13. DGR :Dangerous Goods Regulations

14. DN : Deccan Airways

15. EBT :Excess Baggage Ticket

16. EDI : Electronic Data Interchange

17. FAK : Freight All Kind

18. FF : First Flight

19. FOC Cargo :Free of Charge

20. GEBA :Govt Excess Baggage Authority

21. G8 : Go Air

22. H.O.P. : By Hand of Pilot

23. IATA :International Air Transport Association

24. IC : Indian Airlines

25. IT : Kingfisher Airlines

26. M.L.T. :Mishandled Load Tracer

27. MWB (AV7) : Mail Way Bill

28. N.C.V. :No Commercial Value

29. N.V.D. :No Value Declared

30. S.L.I. :Shipper’s Letter of Instruction

31. SNS : Shippers Notification System

32. S2 : Jet Lite

33. T.S. :Stores Consignment Notes

34. ULD : Unit Load Device

35. 6E : Indigo Airlines

36. 9W : Jet Airways

IATA

IC

ICAO

IAC

Call sign

INDAIR

Founded 1953

Hubs

Indira Gandhi International

Chhatrapati Shivaji International

Netaji Subhash Chandra Bose

International

Meenambakkam International

Focus cities

Bengaluru International

Hyderabad International

Suvarnabhumi

Fleet size 79

Destinations 83

Brand Name Air India

Company slogan New Horizons. Enduring Values.

Headquarters Mumbai, India

Key people CMD: Mr. Raghu Menon

Website Indian

Indian Airlines Limited or Indian (Hindi: इं�डि�यन एयरलाइं�स or इं�डि�यन) was

India's state owned national domestic airline, under the Government of India's Ministry

of Civil Aviation and based in New Delhi. Its main bases were the international airports,

Indira Gandhi International (New Delhi), Chennai International (Chennai), Chhatrapati

Shivaji International (Mumbai) and Netaji Subhash Chandra Bose International

(Kolkata).It has been merged with Air India, state owned International airlines. The

name of the amalgamated company is National Aviation Company of India Ltd.

(NACIL) with Registered Office at New Delhi and Headquarter in Mumbai. However

each is maintaining their separate identity as far as IATA is concerned.

On December 7, 2005, the company was rebranded as Indian or इं�डि�यन for

advertising purposes as a part of a program to revamp the company image in preparation

for an initial public offering (IPO)..

History-

The airline was set up under Air Corporations Act, 1953 with an initial capital of

Rs.32 million and started operations on 1 August 1953. It was established after

legislation came into force to nationalise the entire airline industry in India. Two new

national airlines were to be formed along the same lines as happened in the United

Kingdom with British Overseas Airways Corporation (BOAC) and British European

Airways (BEA). Air India took over international routes and Indian Airlines Corporation

(IAC) took over the domestic and regional routes.

Seven former independent domestic airlines, Deccan Airways, Airways India,

Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and

Air Services of India, were merged to form the new domestic national carrier. Indian

Airlines Corporation inherited a fleet of 99 aircraft including 74 Douglas DC-3 Dakotas,

12 Vickers Vikings, 3 Douglas DC-4s and various smaller types from the seven airlines

that made it up.

Vickers Viscounts were introduced in 1957 with Fokker F27 Friendships being

delivered from 1961. The 1960s also saw Hawker Siddeley HS 748s, manufactured in

India by Hindustan Aeronautics Limited, join the fleet.

The jet age began for IAC with the introduction of the pure-jet Sud Aviation

Caravelle airliner in 1964, followed by Boeing 737-200s in the early 1970s. April 1976

saw the first three Airbus A300 wide-body jets being introduced. The regional airline,

Vayudoot, which had been established in 1981, was later reintegrated.

By 1990, Airbus A320s were introduced. The economic liberalisation process

initiated by the Government of India in the early 1990s ended Indian Airlines'

dominance of India's domestic air transport industry. Indian Airlines faced tough

competition from Jet Airways, Air Sahara (now Jet Lite), East-West Airlines and

ModiLuft. As of 2005, Indian Airlines was the second largest airline in India after Jet

Airways while Air Sahara controlled 17% of the Indian aviation industry.

East-West Airlines and ModiLuft discontinued flight operations but the entry of

several low-cost airlines in India like Deccan, SpiceJet and others like Kingfisher

Airlines continue to give competition in its market, forcing Indian to cut down air-fares.

However, as of 2006, Indian Airlines was still a profit making airline.

It is wholly owned by the Government of India through a government holding

company and has 19,300 employees (at March 2007). Its annual turn-over, together with

that of its subsidiary Alliance Air, is well over Rs.4000 crores (around US$ 1 billion).

Together with its subsidiary, Alliance Air, Indian Airlines carries a total of over 7.5

million passengers annually.

Indian Airlines has also been granted permission from the Government of India

to merge with Air India, under the name Air India. The two airlines formally became one

on 15 July 2007 upon receiving the new Boeing 777-200LR with the new livery of the

merged airline. The new airline's headquarters will remain in New Delhi, and will have a

fleet of 130+.

Future Aspects-

After the merger, the two airlines have applied for membership of Star Alliance

with Lufthansa backing the application. Alliance Air and Air-India Express are also to

merge as the new airline's low-cost arm. After successful completion of the Air India -

Indian Airlines merger, the airline been accepted as a member of the Star Alliance, the

largest airline alliance. After the merger the merged airline had a huge domestic network

and fleet which quickly led to acceptance of the application to Star Alliance with

Lufthansa's support. The airline will be joining the Star Alliance in 2009.

Fleet Size-

As of 30th June 2008, the Indian fleet comprised the following aircraft:

Q A319 -11

Q A320 -48

Q A321 -09

Q A330 -02

Q Boeing737-03(freighter)

Q Dornier -02

Q ATR -04

As of 2006, the average Indian fleet age was 15.8 years.

The above existing fleet was merged with the Air India, after which the A300's

were phased out on March 31, 2008.

Services-

As a complete cargo solutions provider, Indian Airlines extend several services to

their clients.

Door-to-door: Indian Airlines Cargo offers domestic door-to-door

services to our "service-sensitive" customers. These services are just a phone call away.

It’s unique money back IA/ Gati service even gives hard copy "Proof of Delivery" to

customers.

Airport-to-airport: For the "time sensitive" shippers, Express Cargo

facility with guaranteed delivery within 24 hours is also available. For freight

forwarders, this domestic service gives the flexibility of building up their unique

customised services.

Courier on-board: Couriers can avail of special courier on-board

schemes on select domestic flights along with special market rates. Courier bags are

delivered on conveyer belt immediately on arrival.

Indian Airlines also has state-of-the-art maintenance facilities to service fleet so

that they are always in top flying form.

Warehousing-

Indian Airlines ensures that your cargo experiences class hospitality wherever it

goes. To store perishables such as vaccines, fruits, medicines etc we have special cargo

cold storage facilities, where such commodities can be stored. The computerisation

process has already been flagged off for smooth handling of cargo.

Largest Network & Cargo Capacity-

The Indian Airline Cargo covers 69 destinations in India and 14 destinations

abroad. If the cargo flies Indian Airlines, it can reach the remotest places in India and

select destinations in the Middle East and Southeast Asia. Indian Airlines has the largest

cargo capacity amongst the domestic carriers. And a network capacity of 1,000 tonnes

per day to take care of big and bulky cargo.

With its mixed fleet, IA has a distinct edge over other competitors in the Indian

domestic market. A 321 aircraft is a cargo-friendly aircraft and is capable of carrying big

and odd size cargo in unitized mode with pallets and containers besides carrying cars. In

general, Indian Airlines airlifts wide variety of commodities, which include perishables

(such as vaccines, fruits, vegetables, flowers etc.) livestock, valuable cargo and general

cargo commodities meant for exports like readymade garments, machine parts and mail

etc.

The range of products and services include movement of domestic cargo with

flexi pricing policy, express cargo, door-to-door services and on-board courier services

besides carriage of international cargo within the country as well as to other destinations

such as the Gulf countries, Bangkok, Singapore and Kuala Lumpur.

Indian Airlines Cargo's strength lies in the large network, available infrastructure

(warehousing and X-ray facilities), experienced manpower and a commitment for better

service over other competitors. Further, new strategic alliances with European Cargo,

Emery worldwide and GATI Cargo Management Services have been drawn up based on

committed tonnage / revenues in the domestic and international markets.

Network of Indian Airlines

ORGANISATION CHART FOR MUMBAI

OFFICE

CARGO MANAGER

DOMESTIC STATIONS

Name of the Airport Code

Agartala IXA

Agra AGR

DEPUTY MANAGERS

Ahmedabad AMD

Aizawl AJL

Allahabad IXD

Amritsar ATQ

Aurangabad IXU

Bagdogra IXB

Bangalore BLR

Bhabnagar BHU

Bhopal BHO

Bhubaneshwar BBI

Bhuj BHJ

Chandigarh IXC

Chennai MAA

Coimbatore CJB

Delhi DEL

Dehradun DED

Dharmashala DHM

Dibrugarh DIB

Dimapur DMU

Gaya GAY

Goa GOI

Guwahati GAU

Gwalior GWL

Hyderabad HYD

Imphal IMF

Indore IDR

Jabalpur JLR

Jaipur JAI

Jaisalmir JSA

Jammu IXJ

Jamnagar JGA

Jodhpur JDH

Jorhat JRH

Kanpur KNU

Khajuraho HJR

Kulu KUU

Kochi COK

Kolkata CCU

Kozhikode CCJ

Leh IXL

Lilabari IXI

Lucknow LKO

Madurai IXM

Mangalore IXE

Mumbai BOM

Nagpur NAG

Patna PAT

Port Blair IXZ

Pune PNQ

Puttaparthy PUT

Raipur RPR

Rajkot RAJ

Ranchi IXR

Shillong SHL

Silchar IXS

Simla SLV

Srinagar SXR

Surat STV

Tezpur TEZ

Thiruvananthapuram TRV

Tiruchirapalli TRZ

Tirupati TIR

Udaipur UDR

Vadodara BDQ

Varanasi VNS

Visakhapatnam VTZ

Main cargo stations (Domestic)

1. Ahmedabad

2. Bangalore

3. Chennai

4. Delhi

5. Guwahati

6. Hyderabad

7. Kolkata

8. Mumbai

9. Thiruvananthapuram

International stations

Name of the Airport Code

Bangkok BKK

Bahrin BAH

Colombo CMB

Doha DOH

Dubai DXB

Guangzhou CAN

Kathmandu KTM

Kualam Lumpur KUL

Kuwait KWI

Male MLE

Muscat MCT

Sharjah SHJ

Singapore SIN

Taipei TPE

Aims and Objectives-

Indian Airlines formed its corporate objectives consistent with the

drawing mainly from the objectives spelt out in the Air Corporation Act, under 1953

under which it was formed. They are following

Q To meet the demand for reliable, economic and efficient air transport

services through high standards to service to customers and passengers.

Q To maintain essential and strategic communication within India in terms

of national emergencies and to be a reliable second line of defence.

Q To maximise passenger satisfaction by improving passenger amenities.

Q To enhance contribution to the national economy during the five year

plan period by securing inter alia a reasonable return of capital consistent with social

objectives.

Q To faster international tourism in India and to improve the national

balance of payments.

Q To stimulate domestic tourism and internal trade by air in order to

develop air minuteness and broaden the Indian air market.

Q To share the promotion of the social, cultural and emotional integration of

India and to participate in the process redressing regional economic imbalances.

Q To promote socialistic pattern of society.

Q To participate the development of national aircraft and ancillary industry.

Q To promote the good image of the public.

The main view of Indian Airlines is to provide safe, adequate, economical and

properly co-ordinated air transport service.

INDIAN AIRLINES-MUMBAI AIRPORT-SCHEDULE CHANGE EFF.-16/5/2008FLT A/C STD SECTOR FREQ

IC 663 319 0520 GOA DIC 161 320 0535 COK/TRV DIC 133 319 0540 IDR/BHO/DEL DIC 601 321 0600 DELHI DIC 675 320 0610 KOLKATA DIC 105 320 0615 BANGALORE DIC 195 319 0630 LKO/VNS DIC 129 319 0640 NAGPUR DIC 806 321 0700 DELHI DIC 972 320 0705 CHENNAI DIC 809 321 0800 DELHI/IXR/PAT DIC 615 320 0800 HYDERABAD DIC 157 319 0855 CJB/CCJ DIC 658 321 0900 DELHI DIC 109 320 0910 BANGALORE DIC 617 319 0930 HYDERABAD 2

IC 617 319 0930 HYD/VIZAG 134567IC 671 320 0940 MAA/IXM DIC 864 321 1000 DELHI/IXC DIC 147 320 1010 JAMNAGAR DIC 169 320 1025 RPR/BBI DIC 179 319 1055 MANGALORE DIC 865 321 1255 GOA DIC 166 321 1300 DELHI DIC 970 320 1315 CHENNAI DIC 472 319 1405 UDR/LDH/DEL 367IC 163 319 1500 GOA DIC 611 320 1530 JAIPUR DIC 887 319 1555 AURANGABAD DIC 928 320 1600 HYDERABAD DIC 603 320 1640 AHMEDABAD DIC 168 321 1700 DELHI DIC 107 319 1730 BANGALORE DIC 572 320 1755 CHENNAI DIC 866 321 1800 DELHI DIC 274 319 1830 KOLKATA DIC 629 319 1840 NAGPUR DIC 888 319 1900 DELHI DIC 619 320 1905 HYDERABAD DIC 610 320 1930 AHMEDABAD DIC 605 321 2000 DELHI DIC 173 320 2030 CHENNAI DIC 609 320 2035 BANGALORE DINDIAN AIRLINES-MUMBAI AIRPORT-SCHEDULE CHANGE EFF.-16/5/2008

FLT A/C STA SECTOR FREQIC 657 321 0755 DELHI DIC 664 319 0800 GOA DIC 614 320 0810 AHMEDABAD DIC 676 319 0830 KOLKATA DIC 971 320 0845 CHENNAI DIC 688 321 0855 DELHI DIC 927 320 0905 HYDERABAD DIC 612 320 0910 JAIPUR DIC 130 319 0950 NAGPUR DIC 165 321 1000 DELHI DIC 106 320 1005 BANGALORE DIC 167 321 1055 DELHI DIC 969 320 1130 CHENNAI DIC 616 320 1145 HYDERABAD D

IC 865 321 1155 DELHI DIC 195 319 1245 LKO/VNS DIC 110 320 1255 BANGALORE DIC 148 320 1305 JAMNAGAR DIC 180 319 1355 MANGALORE DIC 887 319 1455 DELHI DIC 866 321 1535 GOA DIC 158 319 1555 CCJ/CJB DIC 169 320 1615 RPR/BBI DIC 672 320 1655 IXM/MAA DIC 471 319 1655 DEL-JDH-UDR 367IC 618 319 1730 HYDERABAD 2IC 618 319 1730 HYD/VYZAG 134567IC 164 319 1745 GOA DIC 888 319 1810 AURANGABAD DIC 610 320 1830 BANGALORE DIC 863 321 1855 IXC/DELHI DIC 174 320 1930 CHENNAI DIC 810 321 1955 PAT/IXR/DEL DIC 805 321 2055 DELHI DIC 273 320 2105 KOLKATA DIC 108 319 2130 BANGALORE DIC 134 319 2220 DEL/BHO/IDR DIC 602 321 2155 LKO/DEL DIC 630 319 2200 NAGPUR DIC 604 320 2210 AHMEDABAD DIC 620 319 2215 HYDERABAD DIC 571 320 2225 CHENNAI DIC 162 320 2325 TRV/COK D

INDIAN AIRLINES FLIGHTS OPERATING FROM TERMINAL 2A INTERNATIONAL TERMINAL

FLT A/C STD SECTOR FREQIC 681 32O 0005 SHARJAH DIC 693 32O 0035 BANGKOK DIC 686 32O 0530 AHMEDABAD DIC 679 32O 0745 DUBAI DIC 994 32O 0820 CCJ/MAA 37IC 993 32O 1815 KUWAIT 26IC 883 32O 2030 DUBAI DIC 685 32O 2200 MUSCAT DCI 684 320 0325 DUBAI DIC 686 320 0420 MUSCAT DIC 682 320 0625 SHARJAH D

IC 994 320 0720 KUWAIT 37IC 694 320 1110 BANGKOK 16IC 993 320 1715 CCJ/MAA 26IC 694 320 1900 BANGKOK 23457IC 685 320 2040 AHMEDABAD DIC 680 320 2225 DUBAI D

What is Air Cargo?Cargo is also known as goods means anything carried in aircraft except,

Q Mail or other property carried under the terms of an international postal convention.

Q Baggage carried under a passenger ticket and baggage check.

Air Cargo can be classified in different types. They are as follows-

1. Dangerous goods-It means cargo by which its nature or properties may involve risk to an aircraft, passengers, personnel or property.

2. General cargo-Any consignment other than a consignment containing any cargo as defined here in charged for transportation at general cargo rates

3. IC cargo-It means IC stores / equipment etc. It is carried at no charges under transfer of stores consignment in IC service only.

4. Perishable cargo-Any cargo which may lose its value due to physical or economic rapid condition such as food stuffs, vegetable fruits, vaccines and newspaper.

5. Valuable cargo-It means a consignment which contains one or more of the articles as described in the regulations.

6. Wet Cargo-A shipment which contains liquids or which by nature may produce liquids or give of large amount of moisture.

7. Vulnerable Cargo-Goods for which no value is declared but which obviously require security handling or shipments which are particularly vulnerable to theft or pilferage.

DEFINATIONS-COMMONLY USED TERMS

1. Add-on -A term equivalent to proportional rate used in

combination with other rate(s) to establish

a through rate.

2. Advance arrangement -Means the shipper (consigner) must contact the

carrier prior to tendering the consignment.

3. Agent -A person or organization authorized to act

for or on

behalf of another person or organization.

4. Air Waybill -Equivalent to the term air consignment

note, means

document entitled ‘Air Waybill/consignment note’

made out by or on behalf of the shipper which

evidences the contract between the shipper and

carrier(s) for carriage of goods over the routes of

the carrier(s).

5. Baggage (Unaccompanied) -Baggage when carried as cargo.

6. Break-even weight -The weight at which it is cheaper to charge

the lower rate for the next higher weight

break times and the

minimum weight indicated, than to charge

higher rate

for the actual weight of the shipment.

7. Cargo -Equivalent to the term “goods” means,

anything

carried or to be carried in an aircraft, other

than mail

and baggage(including personal effects

accompanying

passenger)or the property of the carrier, provided

that

unaccompanied baggage moving under an air

waybill

is cargo.

8. Cargo IMP -Cargo Information Message Procedures-

developed by the member Airlines of the

International Air Transport

Association.

9. Cargo Transfer -Cargo arriving at a point by one flight and

continuing

there from by another flight of the same or

connecting carrier.

10. Cargo Transit -Cargo arriving at a point by one flight and

departing there from by the same through

flight.

11. Carriage -Equivalent to the term transportation, means

carriage

of cargo by air, gratuitously or for hire.

12. Carriage Domestic -Carriage in which, according to the

contract of

carriage, the place of departure and the

place of

destination are situated within one country.

13. Carriage International -Carriage in which, according to the

contract of

carriage of the place of departure and the

place of

destination are situated in more than one

country.

14. Carrier Connecting -A carrier with lines meeting those of another

carrier,

so that traffic can be interchanged between the two

carriers at the connecting point.

15. Carrier Delivering -The carrier performing delivery in

accordance with

the air way bill.

16. Carrier participating -Means a carrier over whose routes one or

more

sections of carriage under the air waybill is

undertaken or performed.

17. Carrier Issuing -The carrier whose air waybill is issued.

18. Carrier Transferring -Means a participate carrier that transfers

the

consignment to another carrier at a transfer

point.

19. Charges Correction -Means the document used for the

notification of

Advice (CCA) changes to transportation charges or other

charges.

20. Charges -An amount to be paid for carriage of cargo,

based on

` the applicable rate for such carriage, or an

amount to

be paid for special or incidental service in

connection

with such carriage.

21. Charges collect (To pay) -Which is equivalent to the term “freight

collect” or

“Charges forward”, means the charges entered on

the air waybill for collection from the consignee.

22. Charge, Combination -An amount which is obtained by

combining two or

more charges and which is not published as a

single amount.

23. Charter, contract -A special agreement (contract) whereby a carrier

places at a shipper’s disposition the entire capacity

of an aircraft for an agreed operation.

24. Charge, minimum -The lowest amount which will be charged

for the transportation of a consignment

between two points, irrespective of weight

or volume, exclusive of

special or incidental charges.

25. Charges prepaid Means the charges entered on the air waybill for

payment by the consignor.

26. Charterer -The person who has signed the charter

agreement (contract) with a carrier.

27. Charge, Published -A charge, the amount of which is specifically set

forth

in the carrier’s rates/tariffs.

28. Charge, Through -The total charge from point of departure to

point of destination. It may be a joint charge

or a combination

of charges.

29. Classification -A listing of articles in classes for rating

purpose.

30. Cash on Delivery (C.O.D.) -Means an arrangement between the shipper

and the issuing carrier whereby the carrier,

upon delivery of

the consignment , is to collect from the

consignee the

amount indicated on the Air Waybill as

payable to the

shipper.

31. Condition of carriage -Means the general terms and conditions

established

by a carrier in respect of its carriage.

32. Conditions of contract -The terms of conditions printed on the

back of the

originals of the Air Waybill.

33. Consignee -The person/party whose name appears on

the Air

Waybill to whom the goods are to be delivered by

the carrier.

34. Consignment(Shipment) -Means one or pieces of goods accepted by

the carrier from the shipper at one time and at

one address,

receipted for one lot and moving on one air waybill

to one consignee at one destination address.

35. Consigner (Shipper) -Means the person whose name appears on the air

waybill as the party contracting with the carrier(s)

for carriage of goods.

36. Dangerous Cargo -Means cargo which by its nature or

proportion may

involve risk to an aircraft, passengers, personnel or

property.

37. DACC (Domestic) -Delivery against consignee copy.

38. Declared value for carriage -The value of goods declared to the carrier by the

consignor for the purpose of fixing the limit of the

carrier’s liability for loss or damage to cargo. It is

also the basis of applicable valuation charges.

39. Delivery order -The authorization of the entitled party to

deliver the shipment to a party other than the

consignee shown in

the air waybill.

Note: The term delivery order is also commonly used to advise customs authorities that

all charges, if any due to airlines have been collected and the consignment may be

delivered to consignee after meeting customs requirements.

40. Embargo -Means refusal by a carrier, for a limited period, to

accept for transportation over any routes or

segment thereof, and to, any commodity, and type

of class of cargo duly tendered.

41. F.O.C. Cargo -Means cargo carried free of charges on behalf of

an

organization or a person other person other than

carrier.

42. General Cargo Rate (GCR) -The rate established for cargo in general.

43. IC Cargo -Means IC Stores/equipment etc. Carried at no

charge

under T/S (Transfer of Stores)Consignment of IC

Service only.

44. Interline Carrier -A carrier with whom Indian Airlines has an

Interline agreement.

45. Invoice Cargo -Means cargo booked on credit basis on credit basis

for which bills are to be raised on

onsignor/consignee.

46. Live animal -Means all domesticated/undomesticated animals

including mammals, birds, reptiles, fish shellfish

and insects.

47. Mail Diplomatic -Means Government and Diplomatic

correspondence

being carried to an from Government Departments

& Consulates.

48. Offline Station service -The surface carriage of consignments from/to

offline stations.

49. Perishable Cargo -Any cargo which may lose its value due to

physical or Economic rapid deterioration in

condition, such as

food stuffs, vegetables, fruits, vaccines, serums and

newspaper.

50. Proratation Rate -Division of Joint rate or charge between the

carriers concerned on an agreed basis.

51. Rate -The amount charged by the carrier for carriage of

a

unit of weight (or volume) or value of goods.

52. Rate, Class -A rate applicable to a specifically designated class

of goods. This is generally expressed as percentage of

the

normal (45 Kgs. Rate) and takes precedence over

all other rates.

53. Rate, Domestic -Rate applicable within a country.

54. Rate, Normal -The full under 45 Kgs. General cargo rate.

55. Rate, Published -A rate, the amount of which is specifically set

forth in carriers’ rate tarrif.

56. Rate, Specific Commodities - A rate, applicable to carriage of specifically

designated commodities to/from

specifically named

points.

57. Rate, Through -The total rate from point of departure to point of

destination. It may be a combination of

rates.

58. Redelivery -Return of shipment to the party who originally

delivered it to the carrier.

59. Shipper’s letter -The document containing written instructions by a

of instruction (Instructions shipperor shipper’s agent for preparing documents

and

for despatch of goods) forwarding.

60. Tarrif -The published rates, charge and/or related

conditions

of carriage of carrier.

61. Through Air Waybill -An Air Waybill covering the entire transportation

from departure to destination of shipment.

62. Trace -To locate a mishandled shipment.

63. Transfer Manifest -Means the document executed by the transferring

(CTM) Airline upon transfer of interline cargo and

endorsed

by the receiving airline as a receipt for the

consignment transfer.

64. Transhipment -Transfer of cargo from one aircraft to another.

65. Valuation charges -A charge for carriage of goods based on the value

declared for the carriage of such goods.

66. Volume Charge -A charge for carriage of goods based on their

volume.

67. Surcharge Value -A surcharge for the carriage of cargo having a

value

in excess of a specified amount per kilogram.

68. Weight Charge -The charge for carriage of goods based on their

weight.

OBJECTIVE OF THE PROJECT

The motto of the project is to observe the different activities carried out during air cargo operations of both inbound and outbound cargo of Indian Airlines in Mumbai airport. All the activities are to be studied minutely along with the different types of data (market share, capacity of carriage etc.) available.

The report will try to portray a clear picture of different types of air cargo & their rates and also discuss some commonly used terms and abbreviations.

It will also enlighten the brighter prospects of air cargo operations after the launch of cargo automation in 2006 to simplify the whole operations.

In cargo operations there are different stages for both arrival and departure and there are also different tags and forms which are used in these stages. The report will also include those documents in details.

The report will also highlight the responsibilities & authority of various designated posts of different sections, like cargo, cargo marketing, commercial etc.

And after combining all these inputs the main objective is to find out the different advantages and drawbacks of cargo operations and suggest measures to overcome those drawbacks. And thus to improve the efficiency and overall cargo carriage of Indian Airlines.

CARGO AUTOMATION

Some facts about Cargo Automation of Indian

Airlines:

Q Indian Airlines have entered into the Cargo Automation age w.e.f 24th June,

2006. It is the first of its kind in the domestic cargo scenario. This user friendly

system has been implemented in a phased manner w.e.f 24th June 2006 and now

includes all the major & mini metros already cutover on the automated mode. By

the beginning of January the entire network was functional on CSP.

Q The main features of the system are Space booking, AWB execution and track

and trace online. It also E-TACT and E-DGR thereby being fully updated. It

supports yield management, ULD management, accessibility for business

partners i.e. agents through the net, it also supports functionality where

interlining of is concerned.

Q M/S Kale Consultants, who are strategic partners of IATA, are the vendors for

this system.

Functionality Cargo Automation System:

Cargo Reservation and Management:

Q Allow shippers, forwarders to directly book with Indian Airlines using

internet.

Q Flight Management, Priority bookings, highly yield Cargo booking

control with Indian Airlines.

Q Allotment to preferred customers.

Q Better Load Planning through centralised information visibility

Web Operations:

Q Most of the bookings and Data input will come from Agents.

Q Customers can Trace and Track shipment on the Net, reducing calls to

Indian Airlines.

Q Similar Indian Airlines offices can use the system using internet.

Q Tool to reach to the End Customer.

Q Agents will use the site daily, leading to better interaction with agents.

Cargo Pricing and Yield management:

Q Complete flexibility to suit the rates to the Market Demands and also to

high season considerations.

Q Easy management of Special Deals.

Q Operations Staff, Management can easily take decisions based Yield

Management.

Q Data feed into Revenue Accounting System (AMBER) leading to Invoice

integrity.

ULD Management and ground Handling:

Q Improved Management of Acceptance and Groped Management of Cargo

through Bar Coding and Scanning.

Q Better control on Warehouse Inventory-Locations and Status of Cargo.

Q Much easier ULD Building, manifesting process using scanning, better

utilization of ULDs.

PROCESS OF CARGO AUTOMATION

PHASE-I

Q Cargo Reservation and capacity management

Q Management of cargo through Bar-code and scanning

Q Cargo Pricing

Q Track and Trace

Q T/S Handling

Q Irregularity, MCTs

Q ULD Management

Q Complete Delivery Process

Q Shipper Information

Q E-DGR,E-TACT

Q Complete operational flow

Q Interline Cargo Handling

PHASE –II

Q EDI(Customs)

Q Revenue Accounting(AMBER)

Q MIS

Q Mail

Q COB

Q Interline Operations

BENEFITS OF CARGO OPERATION-

For Shippers/Agents-

Q Shipper can avail of track and trace facility via internet.

Q Shipper/Agent will be able to make capacity booking on Indian Airlines

network-flight wise basis.

For Indian Airlines-

Q Enable offer improved customer service.

Q Address market requirement-track and trace of HAWB (House Airway

Bills) on the internet.

Q Effective tackle competition.

Q Increase revenue- mere 3.1% growth achieved in cargo carriage in a year

would offset the costs involved in the project.

Q Applicability of the best practice and procedures.

Q Elimination of duplication of manual data entries.

Q Minimizing errors, reduced cases of underweighment.

Q Improvement staff morale/ deployment thereby increase productivity.

Enable tap opportunities

Q As per 2002 Global Market forecast (Airbus), freight ton kilometres will

triple by the year 2020.

ACCEPTANCE OF CARGO

1. Consignments for carriage are accepted:

a. From shipper directly

b. Through agents, consignment ready for carriage.

c. From Interline partners

2. Shipper’s letter of Instructions:

Shipper’s instructions for carriage shall be obtained in writing on

“shipper’s letter of Instructions for despatch of goods”, for issuance of Air

Waybill. Here all the details regarding:

I. Shipper

II. Consignee

III. Airport of Departure

IV. Airport of Destination

V. Required routing/ requested booking

VI. Number of packages

VII. Description of goods

VIII. Marks & numbers on the packages

IX. Gross weight of the consignment

X. Dimensions of the packages

XI. Freight Status

XII. Value Declared for Carriage/Customs & Amount of Insurance

XIII. Handling Information/Remarks

3. Ready for Carriage:

The goods offered for transportation must meet the Ready for Carriage

requirements. The goods are to be-

Q Properly Packed-

Where in packaging should ensure no damage to-

The goods

Other goods loaded along

Equipment in which they are transported

The personal who handle them

Q Properly Marked-

All relevant details such as-

Full name and address of the shipper/consignee

Air waybill number

Origin/destination details

Marks & numbers to uniquely identify the packages

Q Properly Labelled-

Domestic-

Labels must be visible and all old labels and marking must be

deleted/removed. A fresh cargo label/sticker should be used for all

shipments, sample of the sticker and the instructions on how to fill the

relevant information in the various boxes is given here under:

1. i) AWB Number:

In this box, the complete Air Waybill Number (air

consignment note) has to be clearly indicated.

ii) Origin:

In this box, the three letter alpha code of the station has to be

indicated, e.g. BOM.

iii) Destination:

In this box, the complete name of the destination has to be

indicated in full, e.g. KOLKATA and not(R) not three letter alpha code

(CCU).

iv) Total Number of pieces:

In this box, the total numbers of pieces are to be indicated both

in figures as well as in words e.g. 10(ten)

v)Weight :

In this box, the total actual gross weight of the consignment ha

to be indicated irrespective of the fact that the chargeable weight on

volume basis may be different.

2. Given hereunder are the extended versions of the codes used in

the last six boxes of the label for clarification:

a. APD :Airport Delivery

b. City Delivery : Consignment meant for delivery at the city

office.

c. Pre-Paid : Where the freight charges have been

collected in advance from the consignor/booked against credit

code numbers (Invoice Cargo).

d. To Pay/Charges Collect: Where the charges are to collect from the

consignee before delivery of the consignment.

e. CCA : Where the consignee copy accompanies

the consignment.

f. DACC : Where the delivery of the consignment has

to be made only after the consignee produces the consignee copy

of the Air Waybill.

3. Keeping in view the nature of the consignment, the

relevant boxes should be suitable crossed(x). For example, if a consignment is

booked on airport delivery basis is prepared and is on DACC basis, then the

three boxes, i.e. APD,DACC and Prepaid should be clearly crossed (x), to give

indication of the status of the consignment to the station of destination. Other

boxes to be left blank.

4. This cargo label must (R) be used for all consignments

booked by station/ agents and properly filled in to enable easy handling and

delivery of consignments by the destination station specially in cases where the

relevant copy of the consignment note is not available.

International-

1) A cargo identification label shall be used and attached to each

package, adjacent to the consignee’s name and address where space permits. The

cargo label may be:

a. Airline preprinted label consisting of either the airline

name and AWB number or the airline name only;

b. Neutral label, either preprinted without airline name and

AWB number, or blank.

c.

4. Acceptance of Special Loads:

a. Live Animals:

Live animals when accepted for domestic/interline transportation, check

health and condition of animals, all animals in a consignment must not show any

sign of illness, they must be well fed and watered. The carriage of animals in an

advanced stage of pregnancy is prohibited.

Packing: Packing must be clean and leak proof. A special ‘Live Animal

Label’ shall be affixed.

Confirmation: Confirmation of space on entire route of the consignment

must be obtained. For International carriage, health documents are generally

required.

b. Dangerous Goods:

For carriage of arms and ammunition, explosives, including fire-works

on Indian Airlines flights, permission must be obtained by the shipper from

DGCA, Govt. Of India, New Delhi, before such articles are accepted.

Regulations for Indian Airlines (IC) for carrying dangerous goods as

directed in Dangerous Goods Regulations book-

IC-01-Class 1 Explosives are not permitted and will not be accepted for

carriage except covered under UN 0012.

IC-02-Not used

IC-03-Class 3, Flammable liquids in packing group 1 are not accepted for

carriage.

IC-04-Division 4.3.Substances which on contact with water, emit

flammable gases are not accepted for carriage.

IC-05-Not used.

IC-06-Division 6.1, Toxic substances in Packing Group 1 are not

accepted for carriage.

IC-07-Class 8, Corrosive in Packing Group 1 are not accepted for

carriage. The following articles, even in Packing Groups II and III are not

accepted for carriage.

UN Number-Description

UN 1787 -Hydriodoc acid

UN 2803 -Gallium

Exception:

When used in chemical kit, which is used for medical and diagnostic

purposes.

IC 08-Class 09-Miscellaneous dangerous goods. The following goods are

not accepted for carriage-

Yeast active

Carbon dioxide, solid (Dry ice) over 200 kg per aircraft. Dry ice used as part of

food beverage service is exempted from this limit.

Polymeric beads or granules

IC 09-All hazard labels must include text indicating nature of risk.

IC 10-Not more than one hazard class of dangerous goods may be listed on the

Shipper’s Declaration.

IC 11-A 24 hour Emergency Telephone number of the consignee must be shown

in the “Handling Information” box of the Shipper’s Declaration and Air waybill.

IC 12 -dangerous Goods in Consolidation will not be accepted for carriage.

Q IC 13-Fissile material will not be accepted for carriage. (New Addition)

c. Human Remains:

Carriage of Dead bodies shall be only under special arrangements and is

subject to furnishing medical certificates/ death certificate, police clearance, as

may be necessary, the party shall also make necessary arrangement for carriage

of dead body in a coffin. Dead body shall under no circumstances be carried in

passenger cabin except in the case of charter flight. Dead bodies can be carried as

freight on our services (in the aircraft baggage holds) in accordance with

conditions laid down DGCA.

d. Perishables:

Articles of perishable nature and or having the properties of rapid

deterioration may be accepted with prior arrangements and packages should be

boldly marked “Perishable”. Such consignments should be accepted on Airport to

Airport basis.

e. Valuable Cargo:

Valuable Cargo means cargo which is valuable by nature or by declared

value. Valuable cargo may be accepted provided they are packed in such a

manner that the contents cannot be tampered with or removed without visible

evidence, with prior arrangements. Ensure name(s) and address(s) of consignor

and consignee are correct and complete.

f. Restrictions due to weight and dimensions:

Ordinarily goods of various sizes and weights can be accommodated,

depending on type of aircraft operated. Maximum packages sizes are shown in

the loading charts provided in the manual.

g. Embargo:

Ensure that there is no embargo placed on any sector domestic or

international either by Indian Airlines or by any interline partner, before

acceptance.

5. Shipper’s Right of disposition:

I. The shipper has the right to dispose off goods as follows:

a. He may withdraw the goods at the airport departure or destination.

b. He may stop them in course of the journey at any schedule landing

point.

c. He may call for them to deliver at the place of destination o in the

course of journey to a person other than the consignee named on the face of the

Air waybill (Consignment Note).

d. He may require them to be returned to the airport of departure.

e. He must not exercise this right of disposition in such a way as to

prejudice a carrier or other consignors.

f. He must repay any expenses occasioned by the exercise of this

right.

II. Staff receiving such requests must be guided by the following:

a. Only the shipper can instruct the carrier.

b. The shipper must give instructions in writing and must produce

the consignor copy and the consignee copy in case not sent with the shipment of

the relative Air waybill (Consignment Note) to be endorsed with his amended

instructions.

c. The whole consignment must be involved, and not a part of it.

d. The shipper must deposit in advance all costs involved including

carriage, or any other charges.

e. If it is not possible to carry out the orders of the consignor , the

carrier must so inform him forthwith.

f. The shipper’s right of disposition ceases when the shipment has

arrived at the destination and the consignee has requested the delivery of goods.

6. Weighing Machines:

Cargo managers shall coordinate with the stores department to

calibrate the weighing machines and maintain the records of the same.

7. Cargo Acceptance Procedure from Agents:

While accepting Cargo from the agents the staff should follow the

Guidelines given below:

a. Cargo will be accepted against agent cargo challan.

b. Agent will submit all copies of Air waybill (6) copies alongwith

parcels.

c. The staff will check the weight (physical and volumetric),

physical condition and labelling/ marking on the parcels. All relevant information

reflected on the Air waybill and agent cargo challan must tally.

d. If any discrepancy is observed, immediate corrective action will

be taken by the Agent and all copies of Air waybill be amended accordingly with

proper authentication.

e. The staff receiving the cargo will verify the audit copy with the

other copies of Air Waybill and certify the similarity of all the columns before

putting his signatures, name and employee number on each copy of Air waybill.

f. Agent will handover minimum 4 copies of Air waybill(3

original+1 photocopy) alongwith original copy of cargo challan.

g. The Agent will get the cargo cleared from security either through

X-ray machine or by Physical Examination by IA Security Staff. The shipments

which are not cleared by security should be kept for 24 hrs. cooling.

h. The staff should ensure that the Cargo tendered by Agent is in

“Ready for Carriage” condition before putting his signatures on cargo Challan.

Delivery of consignment-

Notice of arrival of the shipment will, in the absence of other instructions

be sent to the consignee or any other person whom the carrier has agreed to notify as

detailed in the air waybill.

Demurrage charges-

W.E.F. 15th March 2008-Demurage charges as follows-

1st 4 days from date of arrival-Free

5th day to 8th day-Rs 1.50/day/kg

9th day onwards-Rs. 3.00/day/kg

Service tax 12.36% will be applicable.

Minimum DC will be Rs 100+ S.Tax

For simplification of custom procedure in air cargo subsequent deliberations in

the Govt, it has benn decided to reduce the dwell time for air cargo. It came into effect

from 1st Oct, 2007 with the approval of Minister of State for Civil Aviation(IC), These

are,

1. For import cargo, free period is reduced from 5 working days to 3 working days.

2. For export cargo, free period of airlines is reduced from 4 working days to 2

working days where as free period for exporters is retained at 1 working day.

Thus, the total free period available would be 03 working days.

Undelivered consignments:

If the consignment is not taken delivery by the consignee at the destination, the

delivery carrier shall notify the issuing carrier about non-delivery and request for fresh

instructions. Such a notification is called as “IRP”- Irregularity Report.

If no instructions are received within 30 days (normally) - the delivery carrier

may arrange to sell the goods in single or multiple lots.

The undelivered goods are to be returned to origin. The shipper is required to pay

all charges within 15 days. If the shipper does not do so, the carrier may arrange to sell

the goods in private or public after giving 10 days notice to the shipper.

However, in case of undelivered perishable shipments, the delivery carrier for

other reasons is threatened with deterioration , may immediately take such steps as it

sees fit for the protection of itself/ other parties in interest, including but not restricted to

destruction or abandonment of goods.

DIFFERENT CARGO OPERATIONS

In cargo operations, there are mainly two sections. They are Arrival and Departure. Again these two can be divided into two sub groups, domestic and international. Here with the help of flow diagram the different steps and responsibilities are shown. First the Arrival is shown and then departure. It is in the following sequence-

1. Arrival -a. Cargo Arrival (Domestic)b. Import Cargo Arrival

2. Departure-a. Export Cargob. Outbound Cargo(Domestic)

c. CARGO ARRIVAL(DOMESTIC)

S. No.

Activity Detail Inputs Passenger Staff

Cargo Mgr/Stn.

Mgr

Duty Officer Staff Cargo

1

2..

3.

4.

5.

6.

S. No.

7.

8.

9.

10.

Off loading the Cargo from the aircraft.

Transport to Cargo Area

Check the type of the cargo

Check the type of Cargo

Storage of Cargo

Delivery of Cargo

Activity Detail

Godown check(Monthly)

Initiate Corrective Actions

Disposal of Unclaimed Cargo

Action the mishandled Cargo

Flight information

Unload Cargo on trollies/ULD’s & documents

Arrived Cargo on trollies/ULD’s & documents(manifest AWB)

--------do--------

Arrived Cargo

Cargo delivery for delivery, Document, Letter of authority individual identity document where required.

Input

Cargo in godown, Documents

Passenger Staff

Cargo Mgr/ Stn Mgr.

Not OK

Not OK

OK

Duty officer

Staff Cargo

d.

e. PROCESS FLOW FOR IMPORT CARGO-

S. No.

Activity Detail Input ResponsibilityAAI/

CustomerGSD/Pax

StaffCargo Staff

1.

2.

3.

4.

5.

S. No.

6.

7.

8.

9.

Unloading of Cargo

Document receipt

Cargo to AAI warehouse

Segregation report preparation

Checking condition of Cargo

Activity Detail

Handling of damaged short landed Cargo

Excess handling report

Sorting of discrepancy

Check the type of

Flight arrival information

Cargo arrival information

-Unloaded Cargo-Complete documents received

-Cargo received at warehouse-Related documents

Segregation report

Input

Segregation report

Segregation report

AAI/ Customer

OK

GSD/ Pax Staff

Not

Cargo Staff

-AWB-Manifest document-IGM number from customs

-Offloading permission from IFO-5 sets of documents-Cargo handed over AAI staff

3 copies of report to Cargo staff

Output

To originating/ transit station

Segregation of

1

2

3 3

4

6

7

8

1011

10.

11.

Cargo

Handling of special cargo

Cargo delivery

Cargo

Related messages and report

-Written information of receipt to consignee/ agent-Delivery order-Preparation of relevant document like CTM, if required

f.g. PROCESS FLOW CHART FOR

EXPORT CARGO

S. No.

Activity Detail

Input Responsibility Output Control PointAAI/

Customer Agent

Cargo

Mgr

Duty

Staff

1.

2.

3.

4.

5.

Acceptance of cargo

Customer Clearance

Verify & acceptance of Cargo documents

Loading planning

-Load/space availability-Load in hand-Details of Cargo weight & volume

-Parcel(S)-AWB

-Rule Books/ Tariff booklet

-Total cargo in hand-Total load availability in the flight

Carting order

-Approved Shipping bill-Export location slip

-Manifest-Made up Cargo

Verify the correctness of input information(Location no., date of handover to AAI& 0 payment of demurrage charge, if any)

-Proper handling-Check the make-

1

2

4

5

S. No.

6.

7.

8.

9.

10.

Make-up of Cargo

Activity Detail

Movement of Cargo to Aircraft

Loading of Cargo

Submission of Documents/ information

Any offloaded cargo?

Handling of off-loaded Cargo

-Custom permission-ULD’s/Trollies

Input

-Ready Cargo carriage-Manifest-Carriage document

Manifest, shipping bill

-Off loaded Cargo-Related documents

AAI/Customer agent

Cargo Mgr.

Duty Staff

-Info to GSD-Gate pass

Output

-Cargo loaded at defined space.-HOP slip duty signed by crew

-Doc handed over to customs

-Necessary permissions from customs-Cargo of AAI-Amend document & resubmit-Information to destination/ Transit station

up of Cargo

Control Point

Proper care while transfer

Proper handling and loading

h.

6

7

8

10

i. OUTBOUND CARGO (DOMESTIC)

S.No

Activity Inputs Passenger Staff

Cargo Mgr./Stn. Mgr

Duty

Officer

Cargo Staff

Output Control Point

Record

1.

2.

3.

4.

5.

6.

7.

Booking of cargo

Check booking process(weekly)

Security clearance

Sent back to consignor

Cargo make up & despatch

Transport to A/C Bays

Loading in Aircraft

Cargo, SLI where required, Tarrif booklet, latest circulars, Special cargo instructions

Parcels for clearance, Security stickers

Parcels & documents, ULD’s & Ground Support Equipment

(Security staff)

Not OK

AWB (6 copies)EBT,labelled & packed cargo house AWB where required

Check report

Security labelled parcels, Security clearance stamp on AWB

Made-up Cargo, Manifest(Station-Wise),Record in ULD Register

Check weight, labelling,complete, & correct AWB charges, attention to special load circularsAdherence to F____ defined procedure

Parcels and documents at right location, proper storage conditions, safe handling, training of manpower

Made-up Cargo, Manifest ULD Register

j.

DIFFERENT TYPES OF FORMS USED IN CARGO OPERATIONS-

The different types of forms which are used in different cargo operations are as follows-

1. Airway Bill-An Airway Bill, which constitutes the very basis of air cargo transportation, is a legal document of the contract, between the carrier and the shipper or their approved agents, for carriage rules and regulations laid down by the International Air Transport Association (IATA), The Warsaw convention as amended by the Hague protocol and the carrier’s own rules and regulations printed on the reverse of the originals of the Airway Bill.

2. Instructions for despatch of goods-It is used at the booking counter of departure. In this form shipper gives all the details of the consignment along with the address of both shipper and consignee. It also contains signature of the shipper.

3. RF-7-This is the receipt issued to the consigner for collection of demurrage charges, short receiving, agency application fee and collection of two pay system.

4. Cargo Manifest-This form is used by both the section (arrival and departure) to tally the cargo, flight wise.

5. Air Cargo Transfer Manifest-It is also a cargo manifest but used for transfer cargo. It is true for both domestic and international cargo.

6. Cargo Break-up Performa-

This form is used by international arrival section. It is also for transit cargo. It is done after receiving transit cargo from other airlines.

7. Special Load Notification to Captain-If there are some special cargo like dangerous goods, valuable cargo, live animals, human remains it is informed to the captain of the flight through his notification.

8. Container/ Pallet form-

This form is attached to the trollies which transport the cargo from Departure section to the flight. Here all the information are given both of flight and the cargo.

9. Company’s Stores Consignment Note-It is also known as Aircraft on Ground (AOG) note. This is the document by which documents or parts of aircrafts are sent to the destination for various reasons. Here no Airway Bill is prepared for that. It has to by the first available flight. There are 4 copies. First copy remains with the booking dept. Second one is returned to the bearer after signing. The last two are sent with the consignment.

10. Mishandled Load Tracer Form-This form is used to manifest the short landed or excess received parcels or concertina. Then it is notified to the concerned station for further process.

11. Special Check Sheet-This check sheet is one kind of notification to the pilot or air hostess for special type of cargo. They are mainly Diplomatic Mail/ Precious Cargo/ Fire Arms/ Camera or Transit Check Sheet.

DIFFERENT TYPES OF TAGS USED IN CARGO OPERATIONS-

There are different types of “TAGS” which are attached to the cargo for having an immediate idea about the nature of the cargo. It helps in taking precautions to avoid any damage. The different types of tags are-

1. General Cargo Tag-Generally it is a computer printed tag. But sometimes it is attached to the cargo for showing the relevant information of type, origin, destination etc.

2. Human Remains-This tag is attached to the coffin containing human remain. It is also marked with must go caption, which means it has the priority over others cargo.

3. Live Animals-This tag is used for generally birds, puppy, newborn chicks, fishes, turtles, crabs, white rats, guineapigs etc. Whichever is the content should be written in the specified space.

4. Perishable items-Meat, flowers, fresh fruits and vegetables, sea food, hatching eggs, vaccines and medical supplies etc. comes under this category.

5. Fragile items-Glasses, porcelain and ceramic utensils etc remains under this category.

6. ICAO/IATA Hazard and handling labels-These labels are used in carrying of different ICAO/IATA defined hazardous goods. All the information are given in the “Dangerous Goods Regulation” book.

LOADING PRIORITIES

Loading priorities to be followed as has been instructed in the past as given below:-

1. Human Remains/Dipmail Cargo/AOG (MUST GO).2. Surcharge Class Cargo (200% of Normal Rates).3. Normal Rate.4. GATI GOLD-on assured sectors.5. Newspapers-on assured sectors6. Mail- on assured sectors.7. X-rate8. Courier (except Indore/Kolkata where Courier takes precedence over ‘X’ rate as

Courier rate is higher than ‘X’ rate).9. Interline cargo.10. Rebated class cargo.11. Quantity / Commodity Discounted Cargo(Q Cargo)

Despatch of offloaded cargo on subsequent flights would be determined as per priority given above.

GATI, Mail and Newspapers for Assured sectors are as per enclosure.

Clear priorities as per P1, P2 have to be given on each trolley.

The following list is to be used as a guide line to meet the load trim sheet requirement, for off loading:

1. Company Stores2. Free passengers3. Passengers paying rebated fare4. ‘K’ rated and ‘Q’ Rated Cargo5. Diplomatic Cargo6. Short-shipped Cargo7. Newspaper8. Perishable Cargo9. IAL-GATI Cargo10. Courier on Board11. X-Rated Cargo12. N-Rated Cargo13. Valuable Cargo14. Post Office Mail15. Excess Baggage16. Staff on Duty17. AOG Company Stores18. Paying Passengers and their Baggage19. Diplomatic Mail Cat ‘A”

Yield Management

The cargo must be planned for despatch on a particular flight in such a way that maximum yield is achieved.

Priority of various categories of general cargo as per Yield Management is given below:

i. Surcharged class cargoii. ‘N’ Rated Cargo

iii. ‘X’ Rated Consolidated Cargoiv. Courier on Boardv. Committed Cargo(IAL/GATI)

vi. Interline Cargovii. Rebated Class Cargo

viii. Quantity/ Commodity Discounted Cargoix. ‘K’ Rated Consolidated Cargo

DETAILS OF MARKETING ACTIVITIES

The elements of cargo marketing include:

Preparation of Marketing Plan

Cargo products/ services/ product development Market Research/ Data Analysis Pricing Distribution Advertising/ Promotion Sales Customer Services

1. Preparation of marketing Plan:

At Head Quarters, every year Marketing Plan is prepared keeping in view the Corporate Plan for Indian Airlines. Business Targets are set for the network and the regions. Regions in turn set targets for their respective stations. The implementation strategies are drawn and the status of the extent of achievement is reviewed regularly.

2. Cargo Products & Services:

Indian Airlines Cargo product is the Cargo Space in the belly hold of Aircraft after the acceptance of passengers and baggage. The type of Cargo includes newspapers, regular Cargo, excess baggage and courier & mail. A wide range of Cargo Services on its Domestic & International sectors is offered to the customers. The features of those services are worded out at the head Quarters level keeping various Commercial considerations in view.

The improvement in services is considered at both Head Quarters as well as at Regional general manager’s level.

3. Market Research and Data Analysis:

Market Research is done on the basis of interactions at both Regional and head Quarter level with the Cargo Agents as a part of quarterly Regional review meetings conducted by the cargo Managers along with the Regional General Managers. The data analysis is also done on a quarterly basis as a part of QAM 080 of the Quality Assurance Manual.

4. Pricing:

Pricing is a major factor affecting the carriage of cargo. Cargo markets being extremely dynamic and competitive in nature, these decisions are taken for both domestic and international cargo carriage on domestic sectors. The pricing decisions are taken for both domestic and international cargo carriage on domestic sectors. The pricing decisions are taken on the basis of:

a) Available underloads on a particular flight

b) On the basis of potential increases in the cargo business

c) On the basis of other competitor’s information.

d) Other commercial considerations.

Regional General Managers and Head Quarters have been authorised to give discounts on the normal rates considering the above criteria in concurrence with the finance department. These delegations have been reflected in the Instrument of Delegation of Financial Powers.

The pricing decisions are communicated to all stations – domestic & international – by means of circulars / updated tarrif booklets.

e) Distribution-

The distribution function includes the appointment of cargo agents at various locations so that the IC services are readily available to the perspective shippers. The procedure for agency appointments has been listed vide Chapter No. 13 of the Cargo Manual. Further, the agencies are reviewed for their performance both for tonnage as well as the qualitative aspect of handling cargo. The procedure for the same has been detailed in Quality Assurance Manual(QAM 130). The productive agents are given incentive commission scheme based on Productivity Linked Bonus and the top agents are recognised for their efforts by giving awards in the Annual Cargo Agents Association Conference.

f) Advertising/ Promotion-

This is centralised function and is undertaken at the Head Quarters level based on the need for promotion of a particular type of services during the financial year and availability of advertising budgets. The advertising and promotion is normally undertaken by participating in exhibitions – domestic/international, preparation of brochures, media advertising, preparation of exclusive cargo calendars, by display of the cargo posters etc.

g) Sales –

The sales function is currently being performed at the manager level by the cargo Manager and the regional Dy. GMs along with Executive Director (cargo) and GM (Cargo Mktg.) at Head Quarters level.

i) Customer Services-

The cargo customer complaints claims are handled by the Commercial Department (treated as Cargo’s sub-contractor). Based on the quarterly feedback received from Commercial department, these complaints are analysed for root cause identification and corrective actions are taken in order to avoid reoccurrence.QAM 210 section of Quality Assurance Manual in this regard refers. These are reviewed on a quarterly basis at the Regional Reviews as well as at the Head Quarters level.

CARGO RATES AND CHARGES

The following rates are in existence and are applicable for carriage of cargo by

INDIAN AIRLINES:

1. Basic-Normal Cargo Rate

2. Bulk Cargo Rate or Quantity Rate

3. Specific Commodity Rate

4. Class Cargo Rate-Surcharged or Rebated

5. Minimum Charge

A.Basic Cargo Rate-

Generally expressed as the normal under 45 Kgs. Rate.

B.Bulk Cargo/Quantity Rate-

It means cargo carried at a rate lower than basic cargo rate over specified

route/s, on specified direction, and is generally offered for weight breaks

of 45 kgs and above.

The reason for the above discounts is to develop air cargo market and to

generate cargo traffic on IC network.

C.Specific Commodity Rate-

A rate applicable for carriage of specifically designated commodity

from/to specifically designated points to promote the growth of specified

commodities. It is purely directional. In some case, 40% to 60% discount

over the basic cargo rate has been given on certain commodities.

D.Class Cargo Rate-

A rate applicable for carriage of specifically designated class of goods.

This rate is generally expressed as a percentage of the normal rate and

TAKES PRECENDENCE OVER ALL OTHER RATE(s). The following

commodities shall be treated as class cargo on INDIAN AIRLINES

domestic services:

a. Newspapers, Magazines, Books and Periodicals

b. Human Remains

c. Valuable Cargo(Definitions changes from time to time)

d. Live Stock

E. Minimum Charge-

Minimum charge for any consignment shall be the charge for one

kilogram at less than 45 kgs. Rate or the minimum amount fixed

whichever is higher.

AGENTS

Criteria for getting authorization of Agents-

Agents play a vital role in acquiring cargo from different sources and also help in revenue earning. The cargo contribution to total revenue of agents is 80%. The rest are of direct booking (13.5%) and other airlines (6.5%). They are given license by the “Marketing and Sales” division. Indian Airlines seeks bank guarantee of Rs. 2.40 lacs (min) for Mumbai agents and 60,000-1, 00,000 for outstations. But it differs with situation and this is decided by the Finance Dept. It was also decided that the fortnightly invoices for the cargo agents will be sent by e-mail only, and the cargo agents will have to deposit the amount as per e-mail voices.

For domestic carriage, IATA approval is not mandatory for agents, but for handling International cargo, agents must be IATA authorized.

Promotional schemes-

Indian Airlines has some promotional schemes for attracting agents. These are in the form of incentives, air tickets etc. The different schemes are-

1. Productivity Linked Incentive-This incentive is given to the agents depending upon the business given by the

agent. There are different slabs of monthly productivity on which the commission is fixed. The range of the monthly productivity is Rs. 2 lacs to 1 crore. And depending upon the different slabs there are also schemes for providing air tickets. These may be fully free or a certain percentage is free. On incremental sales there is also provision of additional incentives. The schemes are different for domestic and international carriage. Moreover the incentive scheme is one of the best in the market.

2. Revenue Based Discount Scheme-

Here agents who give business of 20 lacs or more per month get special rates. If they are not able to acquire that much amount still they are bound to pay minimum of 20 lacs. The calculation is directly maintained with the Delhi Head-quarter. There are four such companies in Western Region. They are-

i. Index Logisticsii. Monopoly Carriers

iii. GATIiv. RAK Logistics

3. Incentive Scheme-

The scheme is to award the top productive agencies of erstwhile IC and AI, from the eight regions of NACIL network. The eight regions comprises - apart from the four regions of India; the Far East, South East & Asia Pacific; Gulf, Middle East & Africa; UK & Europe; America & Canada. The awards will consist of the following:

1. Top-producing agent from the eight regions, one each from erstwhile IC and AI will be awarded an all-inclusive Incentive Trip on Star Cruise for two people.

2. The 1st Runner Up, one each from erstwhile IC and AI will be awarded an all-inclusive Incentive Trip on Star Cruise for one person.

3. There will be Ten Wild Card Entries of agents who have outperformed in the period 16th January 2008 - 29th February 2008. The award will be an all-inclusive Incentive Trip on Star Cruise for two people.

4. There will be fourteen appreciation awards based on productivity for the remaining agents. These will be gifts along with a certificate of appreciation.

Besides above there will be several planned events including Agency Award Dinner during the trip at Singapore with the award winners to create awareness of AI CARGO -UNIT and promote Air India as a whole.

Eligibility criteria for Awards-

Q For Top producing agent & 1st Runner up Productivity between Apr 07 - 29th

Feb 08.Q For Ten Wild Card Entries Current productivity i.e. for the period 16 th Jan 08

- 29th Feb 08.

4. GATI Gold Scheme-

In some specific routes there is a pact between GATI and IA on carriage of freight. Under this agreement a fixed amount has been set that will be paid by GATI to the IA on a fixed amount of cargo. If GATI fails to provide the fixed amount of cargo they are bound to pay the full money. It is a per day commitment. The destinations are (Ex-Mumbai) Bhubaneswar, Hyderabad, Coimbatore, Cochin, Lucknow, Patna, Nagpur, Raipur, Goa, Bhopal and Kolkata.

CLAIMS PROCEDURES

Insurance-

Insurance underwriters accept liability for insured value subject to

efficient handling and other loses like war-risk and also appropriate documentation. In

airlines the underwriters however pay only the amount which is found after deducting

the carrier amount from the insured amount.

Procedures-

A claim surfaces in the case of-

a. Short landing

b. Landed but missing

I. Missing from airlines custody

II. Missing from customs custody

c. Damage to the goods/packing, noticed at the time of customs examination

as having occurred during or before unloading from the aircraft.

d. Damage to the goods/packing, noticed at the time of customs examination

as having occurred during or before unloading from the aircraft and before

customs out of charge.

e. Shortages in the contents-

Q Where packing is intact, or

Q Where packing is not intact & with or without room to hold the

missing content.

In all such cases the following general procedures to be adopted-

I. Prepare and issue an untracebility circular or memo in the form of

probational claim containing all the relevant particular of the goods.

II. The untracebility circular must be sent to-

a. Custodian i.e. Airport Authority

b. Career/agent

c. Insurance underwriters

d. Customs import department

e. Consignee/agent

III. Issue a shortlanding certificate or non-delivery certificate to the

consignee.

IV.

a. In case of claim on account of damage shortages applied for and obtain

landing remarks certificate from airlines.

b. Organise join survey by carrier, custodians and customs.

c. Obtain copy of the survey report to substantiate the claim.

V. Claim on carriers-

Lodge formal claim on the carrier and substantiate the claim by producing

“Short Landing Certificate”/”Non Delivery Certificate”.

Check sheet of supporting documents –

settlement of cargo claim-

1. Claim letter from claim party.

2. Short Delivery Certificate, in original.

3. A copy of TP/CRT messages or a copy of the letter initiated immediately

upon finding the discrepancy.

4. Copies of reply from all stations in response to tracer.

5. Copy of Air waybill(Consignee)

6. Copy of Invoice/Bill/Challan/Value and item details.

7. No objection certificate from all the related parties for final settlement to

claiming parties for final settlement to claiming party.

8. Whether the lost parcel was insured? If yes, relevant details.

9. The letter of subrogation and special power of Attorney, in original,

issued in favour of the underwriter in case the right to claim the damage/compensation is

transferred to the underwriter by the concerned party.

10. A copy of report in case the parcel received or found in damaged

condition by authorised surveyors.

11. The brief investigation report from the concerned Station/Section

covering discrepancy/pilferage/shortage/damage etc. Of the parcel.

12. Security Report (if the matter is taken up with/intimated to Local Police

authorities/IAL security).

QUALITY SYSTEM ASSESMENT CHECKLIST

1. Acceptance of Cargo as per defined regulations for Cargo received from:a. Direct shippers.b. Agentsc. Interline

2. Acceptance for shipping of

a. Special loadsb. Dangerous goods

3. Cargo preparation for carriage4. Cargo handling and storage especially of

a. Special loadsb. Dangerous goods

5. Warehouse Management to prevent damage/loss.6. Calibration of scales7. Manuals and other document’s availability.8. Filing procedure.9. Management Control System:

a. Quarterly reviews.b. Resource identification.c. Understanding of quality policy.d. Role clarity.

10. Training process.11. Agents Management and control.12. Customer complaints handling, notification and analysis.13. Corrective and Preventive Actions.14. Review of Previous Audit Reports.15. Other elements : 1. __________________________

2. __________________________ 3. __________________________

Note:-

Consider the checklist as an advisory document. Depending upon the scope of the audit, select relevant elements of audit from this list and decide your own audit strategy.

Must refer to Quality Assurance Manual and Cargo Manual for audits.

RESPONSIBILITIES AND AUTHORITIES

1. Executive Director (Cargo)-

To define Quality Policy and Objectives. To monitor achievement of policy. To review the effectiveness of implemented system.

To define policies for promoting/marketing Cargo business. To co-ordinate with support departments. To provide resources, where required.

2. General Manager/Dy. General Manager, (Cargo Marketing)-

To review & analyse data as a part of market research activity. To monitor system implementation. To manage Management Reviews. To advise Regions and Stations specific matters relating to Cargo

handling in case of any non-standard Customer’s requirement. To consider improvements in Cargo Services. To provide advertising support To undertake sales function. To follow on corrective action for customer complaints. To provide guidance on preventive measures for avoiding recurrence of

customer complaints. To undertake promotional pricing.

3. General Manager (Commercial)-

To conduct regional reviews. To co-ordinate with training cell for imparting training as per identified

needs. To ensure system implementation as per documents. To co-ordinate for Customer Service related activities. To consider improvement in Cargo Services. To undertake promotional pricing. To review corrective actions for Cargo customer complaints & initiate

preventive actions.

4. Deputy General Manager (Marketing)-

To define and implement processes as per guidelines received from Head Quarters from time to time.

To manage agents’ selection and monitoring processes. To liaison with Stations on behalf of General Manager. To conduct data analysis as a part of market research. To ensure proper distribution vis-a-vis appointing Cargo Agents and

ensuring their performance monitoring. To undertake cargo sales function.

5. Airport Manager-

To ensure safe loading of Cargo into the Aircraft.

To ensure safe off-loading of Cargo from the Aircraft. To ensure safe handling of Cargo while transit from Aircraft to Cargo

Area.

6. Cargo Manager/Area Marketing Manager-

To ensure safe handling, shortage and delivery of Cargo. To ensure system implementation as per documents. To co-ordinate with support departments on day-to-day basis for routine

matters. To undertake sales function. To co-ordinate with agencies ensuring system compliance. To decide areas of improvements and take actions accordingly. To ensure station/region specific objectives are achieved.

STATIONWISE DATA OF NO. OF FLIGHTS, AIRCRAFT TYPE AND DAILY CAPACITY-

Stations

AMD

IXU

BLR

BHO

CCJ IXC

MAA

COK

CJB

DEL GOI IDR

JAI

No. of Flights

2 1 4 1 2 1 5 1 1 10 3 1 1

Aircraft

A 320

A319

A320

A319

A320 A320

A320

A320

A320

A 319/ 320/321

A 319/ 320

A319

A320

Daily Capacity

7.0

1.5

14.0

1.5

1.7 3.5

17.5

3.5

1.8

33.0 8.5 1.5

3.5

Stations

JDH

CCU

LKO

IXE

NAG PAT

IXR

RPR

TRV

UDR

HYD VNS

Total

No. of Flights

1 2 1 1 2 1 1 1 1 1 4 1 50

Aircraft

A320

A 319/ 320

A320

A320

A319/320

A320

A320

A320

A321

A320

A319/320

A320

Daily Capacity

3.5

5.0

3.5

3.5

5.0 3.5

3.5

3.5

9.0

3.5 10.0 3.5

155

Table no. 1

*All the figures of Daily Capacity are in tons.

STATIONWISE DATA OF TOTAL NO. OF FLIGHTS AND TOTAL DAILY CAPACITY CONSIDERING ALL THE AIRLINES-

Stations No. of Flights Daily CapacityAMD 13 44.3IXU 4 5.4BLR 32 113.4BHO 3 2.8CCJ 3 2.9IXC 2 4.7

MAA 25 85.5COK 10 24.1CJB 5 13.6DEL 52 203.5GOI 17 55.2IDR 6 12.5JAI 9 26.2JDH 2 3.6CCU 16 53.5LKO 1 3.5IXE 6 14.4NAG 6 17.3PAT 2 3.5IXR 2 3.5RPR 3 8.2TRV 3 14.5UDR 3 4.8VNS 3 8HYD 19 61.9Total 247 790.8

Table no. 2

All the figures of Daily Capacity are in tons.

STATIONWISE CAPACITY (PERCENTAGE) OF INDIAN AIRLINES AND JET AIRWAYS (DAILY)-

Station Indian Airlines Jet Airways RestAMD 15.80 51.47 32.73IXU 72.22 27.78 0.00BLR 12.35 24.60 63.05BHO 46.43 53.57 0.00CCJ 58.62 41.38 0.00IXC 74.47 25.53 0.00

MAA 20.47 28.07 51.46COK 14.52 23.24 62.24CJB 13.24 27.94 58.82DEL 16.22 17.94 65.84GOI 15.40 27.54 57.06IDR 12.00 32.00 56.00JAI 13.36 23.66 62.68JDH 97.22 2.78 0.00CCU 9.35 22.43 68.22LKO 100 0.00 0.00IXE 24.31 16.67 59.02NAG 28.9 33.53 37.57PAT 100 0.00 0.00IXR 100 0.00 0.00RPR 42.68 14.63 42.69TRV 62.07 13.79 24.13UDR 72.92 27.08 0.00VNS 43.75 0.00 56.25HYD 16.16 26.49 67.35

Table no. 3

Carriage of cargo (tons) by different airlines and their market share in terms of percentage for financial year(‘07-’08)-

Table-4

APR’07 % of

Market Share

MAY’07 % of

Market Share

CARRIER(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

IC 1379 332 97 1808 27 1383 327 124 1834 25IT 646 - 136 782 12 660 - - 660 99W 2669 81 - 2750 41 2824 86 - 2910 40S2 174 - 31 205 3 180 - 67 247 3BD 390 90 519 999 15 997 99 505 1601 22FF - - 84 84 1 - - 103 103 1

TOTAL

5258 503 867 6628 100 6044 512 799 7355 100

JUNE’07 % of

Market Share

JULY’07 % of

Market Share

CARRIER(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

IC 1298 262 114 1674 26 1549 389 125 2063 30IT 609 - - 609 9 47 - 15 62 19W 2511 73 - 2584 40 2820 77 - 2897 43S2 164 - 16 180 3 78 - - 78 1BD 771 107 522 1400 22 855 116 635 1606 24FF - - 64 64 1 - - 62 62 1

TOTAL

5353 442 716 6511 100 5349 582 837 6768 100

Table-5

AUG’07 % Market shar

e

SEP’07 % of

Market Share

CARRIER(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

IC 1716 410 76 2202 29 1657 398 92 2147 29IT 647 - 34 681 9 905 - 12 917 12

9W 2703 15 - 2718 36 2718 - - 2718 37S2 95 113 - 208 3 113 - - 113 2BD 987 - 569 1556 21 910 95 514 1519 20FF - - 100 100 1 - - 16 16 0

TOTAL

6148 538 779 7465 100 6303 493 634 7430 100

Table-6

OCT’07 % Market shar

e

NOV’07 % of

Market Share

CARRIER(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

IC 1739 345 98 2182 24 1427 425 111 1963 25IT 1149 1 73 1223 13 935 - 69 1004 139W 3272 70 - 3342 37 3053 94 - 3174 39S2 148 - - 148 2 82 - - 82 1BD 1109 98 626 1833 20 982 105 592 1679 21FF - - - - - - - - - -CD 258 - - 258 3 117 - - 117 1G8 - - 105 105 1 - - - - -

TOTAL

7675 514 902 9091 100 6596 624 772 7992 100

Table-7

DEC’07 % Market shar

e

JAN’08 % of

Market Share

CARRIER(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

CARGO

(tons)

MAIL(tons)

COURIER(tons)

TOTAL

(tons)

IC 1368 417 125 1910 23 1189 425 137 1751 21.68

IT 1010 - 80 1090 13 1004 3 78 1086 13.44

9W 3350 85 - 3435 41 3180 88 - 3268 40.46

S2 119 - 2 121 1 127 - - 127 1.58BD 1003 94 - 1097 13 975 95 655 1726 21.3

7FF - - 606 606 7 - - - - -CD 92 - - 92 1 119 - - 119 1.47G8 - - - - - - - - - -

TOTAL

6942 596 813 8351 100 6595 611 870 8076 100

Table-8

FEB’08 % Market share

MAR’08CARRIER

(tons)CARGO

(tons)MAIL(tons)

COURIER(tons)

TOTAL(tons)

CARGO(tons)

MAIL(tons)

IC 1198 434 120 1752 23 1077 398IT 563 - 65 628 8 873 -9W 3063 84 - 3147 42 2898 84S2 170 - - 170 2 121 -BD 1025 110 627 1761 23 1072 117FF - - - - - - -CD 110 - - 110 1 83 -G8 - - - - - - -

TOTAL 6128 627 812 7567 100 6124 600Table-9

IC28%

IT9%9W

40%

S23%

BD21%

FF1%

Fig-1

MARKET SHARE OF DIFFERENT AIRLINES IN THE FIRST SIX MONTH FOR THE FINANCIAL YEAR OF APRIL’07 TO MARCH’08

IC-23.26

IT-12.24

9W-40.44

S2- 1.62

BD-20.67

FF-0.17 CD-1.43 G8- 0.17

Fig-2

MARKET SHARE OF DIFFERENT AIRLINES IN THE LAST SIX MONTH FOR THE FINANCIAL YEAR OF APRIL’07 TO MARCH’08

CARGO/ COURIER /MAIL DETAILS (EX-MUMBAI) FOR THE MONTHE OF MAY’08-

DOMTotal

INTLTotal

TotalDOM/INT

All figures are in kg.FLT No. FREQ STD STN Mail Courier Total Total

U/LIC 663 D 0520 GOI 56172 0 56172 8394 22625 87191 71312IC 161 D 0535 COK 22073 3585 25658 5849 0 31507 51344

D TRV 17148 9988 27136 7263 0 34399 0IC 133 D 0540 IDR 37751 1799 39550 3148 20877 63575 176789

D BHO 8798 0 8798 12578 0 21376 0IC 601 D 0600 DEL 41526 4 41530 17758 0 59288 331068IC 615 D 0610 CCU 48207 0 48207 9009 0 57216 30929IC 105 D 0615 BLR 24110 8 24118 4831 0 28949 136928IC 195 D 0630 LKO 19184 27 19211 21517 0 40728 129981

VNS 4028 0 4028 4951 0 8979 0IC 129 D 0640 NAG 58596 110 58706 10303 26003 95012 82114IC 806 D 0700 DEL 21243 0 21243 6136 0 27379 236904

D HJR 0 0 0 0 0 0 0IC 972 D 0705 MAA 50009 317 50326 7013 33382 90721 58893IC 809 D 0800 DEL 2708 0 2708 5781 0 8489 168295

IXR 7328 0 7328 5936 0 0 -PAT 7033 0 7033 8197 0 15230 0

IC 615 D 0800 HYD 17097 288 17385 6250 0 23635 195015IC 157 D 0855 CJB 36687 3932 40619 4730 1800 47149 99337

0900 CCJ 2053 17 2070 5012 0 7082 0IC 658 D 0930 DEL 43969 0 43969 1596 0 45565 280565IC 109 D BLR 33926 1096 35022 1988 0 37010 266566IC 617 D 0940 HYD 15593 1228 16821 3607 0 20428 113795

VTZ 20158 2134 22292 4801 0 27093 0IC 671 D 1000 MAA 34202 809 35011 4553 0 39564 91613

IXM 9887 798 10685 2335 0 13020 1345

DOM Total

INTL. Total

Total DOM/INT

All figures are in kg.FLT

No.

FREQ

STD

STN

Mail

Courier

Total

Total

U/L

Avg. U/L

No. of days

Avg.

% cont.

IC 864

D 1000

DEL

19383

49 19432 17185

0 36617

222296

7171

31 1181

2.0

IXC

29808

0 29808 11501

0 41309

0 0 31 1333

2.3

IC 179

D 1010

IXE

6589

147 6736 1460

0 8196

72585

2420

30 273

0.5

IC169

D 1025

RPR

17727

0 17727 4914

0 22641

265911

8864

30 755

1.3

BBI

643 0 643 2732

0 3375

0 0 30 113

0.2

IC 147

D 1055

JGA

6767

1 6768 146 0 6914

107675

3473

31 223

0.4

IC 865

D 1255

GOI

19312

22838

42150 3368

0 45518

287256

9266

31 1468

2.5

IC 166

D 1300

DEL

17113

207 17320 14812

0 32132

285532

10198

28 1148

1.8

IC 970

D 1315

MAA

13135

16760

29895 6717

0 36612

123645

4946

25 1464

2.0

IC 472

D 1405

UDR

991 0 991 68 0 1059

74478

5729

13 81 0.1

JDH

1170

0 1170 655 0 1825

0 0 13 140

0.1

IC 163

D 1500

GOI

6219

15236

21455 163 0 21618

261366

8712

30 721

1.2

IC 611

D 1530

JAI

7162

4921

12083 9059

0 21142

233865

7544

31 682

1.2

IC 887

D 1555

IXU

2722

0 2722 1329

0 4051

251034

8098

31 131

0.2

IC 928

D 1600

HYD

7953

1795

9748 15882

0 25630

262520

8468

31 827

1.4

IC 603

D 1640

AMD

6235

7026

13261 12979

0 26240

280575

9051

31 846

1.5

IC 866

D 1700

DEL

19355

1125

20480 11284

0 31764

244435

7885

31 1025

1.8

IC 107

D 1730

BLR

11561

4285

15846 13988

0 29834

237377

8792

27 1105

1.7

IC 572

D 1755

MAA

15372

27474

42846 9166

0 52012

89026

3561

25 2080

2.9

IC 168

D 1800

DEL

34258

7081

41339 12797

0 54046

241550

7792

31 1743

3.0

IC 274

D 1830

CCU

21284

7139

28423 19990

0 48413

83156

2682

31 1562

2.7

IC 629

D 1840

NAG

26379

4400

30779 8800

0 39579

155094

5003

31 1277

2.2

IC 888

D 1900

DEL

12124

512 12636 7051

0 19687

115017

3834

30 656

1.1

IC 619

D 1905

HYD

9883

1328

11211 3390

0 14601

287239

9575

30 487

0.8

IC 610

D 1930

AMD

6780

1666

8446 2561

0 11007

202104

10105

20 550

0.6

DOM

Total

INTL Total

Total DO

M/INT

All figures are in kg.FLT No.

FREQ

STD

STN

Mail

Courie

r

Total

Total

U/L

AVG. U/L

No. of Days

Avg.

% Cont

IC 605

D 2000

DEL

15927

449 16376

1525

0 17901

321091

10358

31 577

1.0

IC 173

D 2030

MAA

15187

24098

39285

5688

0 44973

172515

5751

30 1499

2.5

IC 609

D 2035

BLR

9729

730 10459

3909

0 14368

248499

8569

29 495

0.8

IC 686

D 0530

AMD

22454

0 22454

16533

25149

64136

199860

6447

31 2089

3.6

IC 994

3,7 0820

CCJ

0 0 0 0 0 0 32851

4106

8 0 0.0

IC 681

D 0005

SHJ

0 14786

14786

- - 14786

132285

4267

31 477

0.8

IC 693

D 0745

DXB

0 4910

4910 - - 4910

248226

8007

31 158

0.3

IC 597

3,5,7

1640

GOI

0 0 0 - - 0 - 0 - 0 0.0

- - - CCJ

0 0 0 - - 0 - 0 - 0 0.0

- - - SHJ

0 0 0 - - 0 - 0 - 0 0.0

IC 595

1246

1545

CCJ

0 7683

7683 - - 7683

353577

23572

15 512

0.4

- - - COK

0 3267

3267 - - 3267

- 0 - 0 0.2

- - - SHJ

0 10260

10260

- - 10260

- 0 - 0 0.6

IC 993

2,6 1815

KWI

0 7759

7759 - - 7759

24702

2745

9 862

0.4

IC 683

D 2030

DXB

0 17805

17805

0 0 17805

190822

6156

31 574

1.0

IC 685

D 2200

MCT

0 4739

4739 0 0 4739

207337

6688

31 153

0.3

TOT - - - 102 246 1269 393 129 179 - - - - -

AL 2708

739 447 098 836 2381

Avg./Day

- - - 32991

7959

40950

12681

4188

57819

- - - - -

Table no. 10

DATA ANALYSIS

To have an overall idea about the mathematical part of the air cargo operations, some data was collected from Marketing and Sales department. All the data was basically of last financial year i.e. from April’07 to March’08. It included daily capacity against number of flights, market share of different airline and details of cargo, courier and mail (ex-Mumbai) for the month of May’08.

In carriage of cargo Indian Airlines comes second after Jet Airways. So, most of the comparison was done against Jet Airways.

In Table no.1 the daily capacity of Indian Airlines flights (ex-Mumbai) are shown. It is done according to stationwise (here the daily total no. of flights are also given with aircraft type). Only those stations were considered to which Indian Airlines carries cargo. So, from the table we can see that in total of 25 stations Indian Airlines has 50 flights of 155 tons of daily capacity. But the actual carriage is only about 56-58 tons per day. So, if this gap can be minimized then the revenue earning will also boost up.

The Table No.2 shows the total no. of flights (ex-Mumbai) stationwise and also the total capacity of cargo carriage of all the airlines together. From the table we can see that the maximum no. of flight are to Delhi, which is 52 and also the highest tons of cargo carries (203.5 tons). Next comes Bangalore and then Chennai.

The minimum no. of flights are to Jodhpur, Lucknow, Patna & Ranchi, where there are only 2 flights daily. And the lowest cargo carriage is at Lucknow, Patna and Ranchi, which is 3.5 tons daily. Overall there are 247 flights daily (ex-Mumbai) and the total capacity is 790.8 tons.

The 3rd Table gives a proportional comparison of daily capacity between Indian Airlines and Jet Airways. It is worthy to mention that here only those stations were considered where Indian Airlines’ flight is operational. In Lucknow, Patna and Ranchi there are no Jet Airways Flight. It is clear from the table that in all the major cities like Delhi, Kolkata, Chennai, Bangalore and Hyderabad the Jet Airways has a slight edge over Indian Airlines.

Table no.4 to Table no.9 shows the carriage of cargo (in tons) by different airlines and their market share in terms of percentage for financial year of April’ 07 to March’ 08. In the first six months the financial year the data of Go Air and GATI freighter was not available. So for the first six months the percentage of market share is calculated considering Indian Airline, Kingfisher Airlines, Jet Airways, Jet Lite, Blue Dart and First Flight. The highest single market share for a single month was achieved by Jet Airways

in July’07(43%). Interestingly Indian Airlines’ highest market share (30%) was also achieved in July and the lowest (21%) was measured in March’08. If we concentrate on carriage of cargo by Indian Airlines, the highest (1739 tons) was achieved in the month of Oct’07 and the lowest was in March’08(1077 tons). The same for Mail was in Feb’08 (434 tons) and June’08 (262 tons) respectively. And in Courier the highest carriage by Indian Airlines was in Jan’08(137 tons) and the lowest was in Aug’07 (76 tons). And if we consider in total i.e. combining Cargo, Mail and Courier the highest Carriage was achieved in the month of Aug’08 (2202 tons) and the lowest was in March (1585 tons).

From the tables we can see that the market is mainly controlled by three airlines- Indian Airlines, Jet Airways and Blue Dart.

The market share of different airlines in the first six months and the last six months for the financial year of April’07 to March’08 are shown by two pie charts. From the fig 1 we found that for the first six month (April’07 to Sept’07) the Market leaders were Jet Airways with 39%. Then comes Indian Airlines with 28%. Blue Dart comes third with 21%. In the 2nd half (Oct’07 to Mar’08) the market share of Jet Airways increased to 40.44 but Indian Airlines’ and Blue Dart’s share decreased to 23.26% and 20.67%.

Table no. 10 gives the details of Cargo, Courier and Mail for the month of May’08. From the table we can get a vivid picture of cargo carriage of both Domestic and International for the month of May’08. The total domestic carriage of cargo was 1022708 kgs. and the figure for International carriage is 246739 kgs. And the total carriage was 1269447 kgs. The total carriage of mail and courier was 393098 kgs and 129836 kgs respectively. The total figure for the month of May’08 was 1792381 kgs and the average daily figure is 57819 kgs.

ADVANTAGE INDIAN AIRLINES-

There are some specific advantages which make Indian Airlines a air cargo

carrier with a slight edge. They are mainly as follows-

Q Indian Airlines has a wide network and connectivity which connects almost

every part of India. So the shipper can choose their destination according to their need.

Q The basic infrastructure for carrying large volume of cargo is an added

advantage. The cargo premises, equipments for handling cargo are adequate enough for

handling cargo are adequate enough to handle vast quantity of cargo simultaneously.

Q In 2006, the whole cargo operations were automated. It promoted the option of

online track and trace facility via internet. It also simplified the whole operation.

Q There is a pool of trained and experienced staffs that carry out the whole process

in a professional manner. There are also time to time training classes to acquaint the

staffs with the upgrades.

Q As a national carrier, the main aim is to serve the people of the nation, not the

revenue earning. In any natural calamity like drought, flood, earthquake in any part of

the country Indian Airlines sends relief materials like foods, clothing, medicines etc

absolutely free of cost. So, social obligation is another key feature of Indian Airlines.

Q Indian Airlines is a carrier with a humanitarian touch. It carries dehydrated

corneas (human eyes) absolutely free. It also carries radioactive isotopes for the

treatment of cancer patients. It also carries the dead body of Indian soldiers who lay their

lives for the sake of the country free of charge. If any poor worker from Middle-East

countries of Indian origin dies in any mishap, Indian Airlines carry his body to India free

of cost. So, these types carriage on humanitarian grounds makes Indian Airlines unique.

Q Indian Airlines is the only carrier in India which carries dangerous goods. To

handle these types of cargo, special DGR Certification is needed from IATA.

DRAWBACKS-The main drawback of Indian Airlines is that there is no facility for on the spot

rate reduction. If the cargo is in large volume such type of facility helps to attract the

cargo. There are rules and regulations which bar to take such type of instant decision.

Another major drawback is that, the current IC flights don’t have the capacity to

carry cars. Now the market of the cars, especially small cars is spreading fast and to grab

the market it may a advantage to have the facility to carry car.

RECOMMENDATIONS

To improve the efficiency of Indian Airlines some steps may be taken-

Q The market of air cargo is spreading fast. There are also many players in

this field to make it tougher. So, Indian Airlines has to reach people to inform

them about the advantages of sending cargo by air. By this the company will also

be advertising for themselves. This will help in attracting new customers with the

present one. It can be done through different modes of advertising, like electronic

media, print media etc.

Q Notification may be sent to inform the consignees about the arrival of

consignment in the form of e-mail or mobile message, with full description of the

cargo. These information can be acquired from the input system at the time of

booking and programme it in such a manner that, with confirmation of arrival in

the system at destination a self generated massage, then personal notification may

be sent.

Q Now in these days where the competition is tough, only direct services

are not enough. There is an indeed need of some extra attention after delivering

the service and also to have a personal touch with the customers. It is generally

known as after sales service. This gives an emotional advantage to the airlines.

The current software for automation may be used to generate

information about the clients, including e-mail addresses. Greetings may be sent

to the agents and direct customers in different occasions through phone, letter or

e-mail. This will make the person or the concern feel happy and a sense of bond

with Indian Airlines.

Q Data generated from booking can be utilised for the purpose of market

survey. It will help the company to revise and review its marketing strategy to

attract more consignments.

Q The pool of data about the shippers may be used for strengthening the

service by inviting feedback from them. They can state their inconvenience with

the current system and also suggest improvement measures. This will not only

help to make the service friendlier but also generate a feeling if being getting

attention within the shippers.

Q Indulge in partnership with other airlines for faster delivery of goods and

to avoid unloading. This will help to fulfil the commitment to the shipper, which

will also help in improving the image of the company.

Q Buy more cargo-friendly aircrafts and run them in the routes where the

demand of cargo carriage is high.

Q Provision for using credit cards for booking may be a convenient option

for the shippers. But the use of it should be restricted when booking is done of

perishable goods, human remains etc.

Q To control manpower and to improve the efficiency mechanization may

be implemented, which may also be cost effective.

Q Now the incentive schemes for the agents are mainly monetary based. It

can be also be done by cargo tonnage credit policy. In which free carriage of

certain tonnage of cargo may be offered to the shipper after achieving a definite

tonnage of cargo carriage is by the shipper.

Q When an agency applies for approval or renewal of authorization they

have to deposit a bank guarantee. Instead of that floating insurance may be done

with that deposit.

Q Direct booking may be upgraded by making it a single window affair, in

which all the formalities, like submitting forms, depositing money and receiving

of Airway Bill could be done in the same window.

Q Measures can be taken to prevent damage and pilferage of cargo in

the whole process.

Q Provide information about the latest updates of air cargo including

changes in rates and charges, new schemes etc to the agents as well as direct

business partners.

Q CONCLUSION Q Indian Airlines-the name itself is a brand of independence,

dignity, national face in the international aviation and faster movement. Though

it has been merged with Air India, but still it is carrying out its operations

independently.

Q It was founded in 1953, mainly to meet the domestic demands.

And after 55 years of establishment, the glorious history highlights the success of

achievements. Achievement in serving the nation in most difficult times, meeting

the different needs of the people, modernise itself with time to be tagged as

“World Class”. Amongst many other competitor airlines Indian Airlines still held

its brand to fly high.

Q 1991 is the land mark year in the Indian Financial and Economic

history for globalisation, modernisation and liberalisation. This opened the door

for foreign players to lock their horns and also brought some domestic concerns

in different sectors of business, where the word monopoly lost the significance of

its meaning. It is true for the airlines sector also. So, everybody has to be on their

toes to perform better and make sure that no stone is left unturned in any aspect.

Q Sending cargo by air is getting higher and higher in the recent past

and this trend is going to continue in the future also. As the concept of JIT (Just

in Time) is gaining popularity throughout the world, different concerns are

sending cargo by air. It is mainly due to the advantage of faster movement as

well as for safety & security of cargo.

Q It is high time to tap the market. The scenario has changed. Now

the concerned airlines should reach the customers before they reach other

airlines. For this, efficiency, effectivity, dedication, determination is needed with

clear view of the goals and objectives in the mind.

Q And it is very much expected and believed that Indian Airlines

will touch new heights as it had done earlier and continue to be fore-runner in

carrying cargo and also maintain the ever smiling faces of its customers-the

biggest achievement that can be reached.

BIBLIOGRAPHY

Following are the websites, books which were referred to during the project tenure-

Q www.indian-airlines.comQ www.airindia.inQ www.google.comQ www.wikipedia.orgQ Indian Airlines Air Cargo ManualQ Integration Newsletter-Air IndiaQ Magic Carpet-Air IndiaQ Study materials from Marketing Training College, Hyderabad

Project

Documents

international airlines

air cargo definition

new national airlines

types of cargo

foc cargo

air services of india

indigo airlines

kingfisher airlines