How the grounding of Jet Airways hit the air cargo industry.
India’s air cargo service Jet Airways was grounded last week hitting the air cargo market. All the leading logistics companies are worried about their cargo delivery and the price hike.
Jet Airways used to handle 10-15 per cent of total air cargo. It was a high amount of total cargo from India. Now all other air cargo providers may increase the price. However, there is no news about it so far. Secondly lost in the capacity of air cargo service resulting in late delivery and huge backlog at various Indian airports.
The sudden scarcity of air crafts has led to a huge space crunch in the air cargo industry denting the current market capacity of manufacturers and service providers. Jet had service to 37 destinations across India and 19 global destinations.
Logistics companies are forced to either use multiple flights to two cities or use the surface to transport the cargo which causes a delay in delivery. All the industry players are hoping to add lost capacity soon.
Jet Airways decide to stop all the operations due to it was unable to get the required amount of money to continue the operations. Lenders refused to give an immediate lifeline to the airlines who are owed over USD 1.15 billion
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