Ajay Singh-led airline SpiceJet has pushed Blue Dart behind to become the second largest air cargo company, according to the statistics in the month of August.
Just like in passenger segment, it is IndiGo which still enjoys the top position in the air cargo segment too, while Blue Dart goes to a dismal third position in August 2019.
According to the DGCA, IndiGo had got a phenomenal growth and reached at 34 percent in the domestic cargo market in August this year. It was a mere 23 percent in the same period last year. SpiceJet's air cargo market share has moved up to 16.9 percent in August, up from 11.2 percent, a year ago. The airline carried 11,256 tons of freight in August, compared to Blue Dart's 10,921 tons, and in the process becoming the second largest air cargo mover in the month.
When Ajay Singh decided to enter into air cargo in a year ago, SpiceJet was eyeing delivery services of Amazon, Flipkart. As e-commerce companies delivering high-value goods and equipments, there is a need for a freighter airline and that logic of Ajay Singh turned into fruition with the glaring success in the air cargo segment too.
Overall, for the eight months of the calendar year 2019, IndiGo's share stood at a little over 31 percent. SpiceJet's was at 14.5 percent. To be sure, overall for the eight months of the year, Blue Dart continues to have a slight edge over SpiceJet. But given SpiceJet's faster growth rate, it may end the year at a spot higher than Blue Dart.
SpiceJet, which runs the cargo business under unit SpiceXpress, had inducted its first freighter aircraft, a Boeing 737-700 last year. At present, it has two Boeing 737-700s. Earlier this year, in September, SpiceXpress had also taken a delivery of its first 737-800 Boeing converted freighter. Apart from these freighters, the airline also uses its fleet of 101 aircraft to deliver cargo.
IndiGo, on the other hand, carries cargo in the belly of its 247 aircraft, and doesn't have a dedicated freighter. Blue Dart has a fleet of six Boeing 757 freighters.
SpiceJet has grown by 46 percent from January, when it carried 7,705 tons, which increased to 11,256 tons in August. IndiGo, on the other hand, grew by 36 percent.