Gopinath’s cargo to fly pan-India
(News article in Economic Times dated 23-05-2008)
The cargo airline proposed by Capt G R Gopinath would work with SEZ developers and retailers such as Reliance and Bharti to provide end-to-end and integrated logistics solutions. The new airline will have pan-India connectivity and operation in remote areas with rich resources. The proposed airline will initially serve on both metro and non-metro routes with 10 medium and small-size aircraft. “We have formed a team of about 50 people who are exploring markets. Though our service would be in line with other air cargo majors such as DHL and FedEx, our reach would be quite larger. We plan to operate to still unconnected areas, coastal and mountain areas,” said Mr Gopinath. The new venture is understood to have mandated Edelweiss, a financial services firm, to bring in equity in the new venture. The proposed cargo airline which obtained no-objection certificate (NOC) from the civil aviation ministry a week back is expected to take wings in the next few months. Unlike Air Deccan, the cargo airline would be a full-service carrier with focus on profitability. “My dream is to connect all those places which are not connected by air so far. But this would not happen at the cost of profitability. People can’t always put up industries in Delhi and Mumbai. They would go to remote areas and they are in fact going there,” he added. With domestic air cargo industry expected to grow at fast pace, entrepreneurs such as Mr Gopinath are bullish. Total cargo traffic at Indian airports has increased from 15.6% during 2005-06 to 21.5% in 2006-07 recording a compounded annual growth rate of 9.5% for the last six years. Asked if operating on non-metro routes would be commercially-viable, Mr Gopinath said, “Somebody has to trigger the shift. Our idea is to create the boom and then ride the boom. In fact, today we are losing more money on Mumbai-Delhi route than on Mumbai-Kolhapur.
The cargo airline proposed by Capt G R Gopinath would work with SEZ developers and retailers such as Reliance and Bharti to provide end-to-end and integrated logistics solutions. The new airline will have pan-India connectivity and operation in remote areas with rich resources. The proposed airline will initially serve on both metro and non-metro routes with 10 medium and small-size aircraft. “We have formed a team of about 50 people who are exploring markets. Though our service would be in line with other air cargo majors such as DHL and FedEx, our reach would be quite larger. We plan to operate to still unconnected areas, coastal and mountain areas,” said Mr Gopinath. The new venture is understood to have mandated Edelweiss, a financial services firm, to bring in equity in the new venture. The proposed cargo airline which obtained no-objection certificate (NOC) from the civil aviation ministry a week back is expected to take wings in the next few months. Unlike Air Deccan, the cargo airline would be a full-service carrier with focus on profitability. “My dream is to connect all those places which are not connected by air so far. But this would not happen at the cost of profitability. People can’t always put up industries in Delhi and Mumbai. They would go to remote areas and they are in fact going there,” he added. With domestic air cargo industry expected to grow at fast pace, entrepreneurs such as Mr Gopinath are bullish. Total cargo traffic at Indian airports has increased from 15.6% during 2005-06 to 21.5% in 2006-07 recording a compounded annual growth rate of 9.5% for the last six years. Asked if operating on non-metro routes would be commercially-viable, Mr Gopinath said, “Somebody has to trigger the shift. Our idea is to create the boom and then ride the boom. In fact, today we are losing more money on Mumbai-Delhi route than on Mumbai-Kolhapur.
Sum's take on this - I feel Gopinath is blessed with one of the best aviation brains in the country. He is not only passionate about his own success but I applaud his business acumen and translation wishfull thinking and imaginative dreams into practicall and profitable business opportunities. Who would have thought of flying in India at less than a Rupee. He transformed Indian Aviation scene forever and his success story has been better and bigger than many other success stories in Aviatiopn Indistry worldwide. He made the common man in India to fly. RK Lakxman's "common man" was just the right mascot for his airline.
Cargo and Gopinath in India make a deadly combination. He has a strange ability to go pass difficult hurdles like Indian beaurocracy and Red Tapisy. I am waiting and very optimistic about moving my cargo good from Chandigarh to rest of India and maybe the world at less than a Rupee. What say Gopinath ? Me and all the business community are keeping our fingers crossed and waiting for you to ring a bell with your new cargo venture.
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