Air India Group is all set to streamline its businesses. The Tata-owned airline is reportedly consolidating its cargo operations and might establish a separate entity for freighter services. This restructuring will enable the aviation firm to concentrate more on increasing its air cargo market.
"We have been consolidating and streamlining the entire network from all four airlines, to bring it to one function," a senior Air India official told the Economic Times.
Meanwhile, the merger between Air India Group and Vistara is all set to finish by the end of this year, as per the report. Last month, NCLT's Chandigarh bench gave its nod for the merger.
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The merger plan is part of the Tata group's larger strategy to streamline its airline operations following its acquisition of the former state-owned airline giant, Air India in the year 2022.
It is worth pointing out that multiple aviation companies have already taken a similar roadway of separating their cargo segments from core business.
Air India's step comes after Spicejet, the domestic budget carrier, has separated its cargo operations.
Even the country's leading airline, Indigo, is following a similar trail. The aviation company is placing significant focus on its cargo segment.
All this comes at a time when there has been a noticeable increase in trading activity, thanks to the growing economy. Air traffic, on the other hand, has also witnessed a significant surge which is prompting aviation companies to employ this step.
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"Internally, efforts are being streamlined at multiple levels," the official stated in the report. "We are developing a mother software, which will focus on collating all cargo requests, revenue management and commercial aspects of it. Externally, we are streamlining and expanding our global distribution network. We are also onboarding new customers," he further added.
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