Airlines

Air India eyes 300% growth in cargo capacity in next 5 years

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The largest airline in India and a Star Alliance member, Air India, is preparing to play a significant part in enhancing the freight and cargo ecosystem both domestically and internationally. Recent initiatives will help Air India play a bigger role as a major cargo airline, as well as strengthen the nation’s cargo ecosystem and help build an effective air cargo supply chain, which will speed up exports from India.

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With the arrival of new wide-body aircraft to its fleet this year and the majority of the aircraft on firm order scheduled to arrive starting in 2025, the Air India fleet’s belly capacity will increase significantly over the next few years, assisting India’s industrial and export boom. This will benefit the economy by increasing employment opportunities and promoting a number of economic sectors.

In the next five years, the firm orders for wide-body aircraft from 34 A350-1000, six A350-900, 20 Boeing 787 Dreamliner, and 10 Boeing 777X will increase Air India’s annual cargo capacity by an astounding 300% to 2 million tonnes with non-stop connections to major export markets around the world.

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The following significant all-round initiatives across various spectrum of the operational and
logistics matrix that will see Air India play a significant role in the air cargo arena.

Adoption of Technology: The most recent IT solutions are being included to strengthen the utilization of technology, including blockchain, AI, and drones to maximize efficiency. Short-term adjustments have been made to the current IT Cargo System to improve productivity in areas including electronic data exchange, seamless interaction with business partners, and real-time updates on flight and cargo status.

Investments in Infrastructure: In order to improve the airport and logistics infrastructure, Air India is committed to making significant capital investments in partnership with its joint venture partner SATS.

Integrated Cargo Market: Air India is set to launch three 24×7 control centres to integrate and improve customer interface, customer service and operations efficiency. As domestic e-commerce and other business expand in the Tier-2 and Tier-3 markets in India, Air India’s expanding domestic network will add momentum.

Capacity to carry diverse products: With increased capacity and technological adoption, Air India will be able to further improve the variety of goods and services it transports, strengthening its position on the world stage.

Airlines

German Carrier Lufthansa Plans for 20% Job Cuts in Administration

Lufthansa Airlines is reportedly planning significant job cuts in its administrative workforce. According to Manager Magazin, the German carrier intends to reduce administrative positions by 20% as part of its cost-cutting measures amidst an anticipated decline in earnings.

This reduction could impact approximately 400 jobs, the report revealed. While Lufthansa has not directly commented on the layoffs, the airline confirmed its goal of cutting administrative costs by 20% by 2028.

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The strategy involves leveraging digital technologies, including artificial intelligence and automation. “A hiring freeze is currently in place for administrative roles at Lufthansa Airlines,” said a company spokesperson.

The staff reduction is expected to occur through natural attrition and age-related turnover, rather than forced layoffs. The internal projection cited by the magazine warns that Lufthansa could face an operating loss of €800 million ($843.92 million) by 2026 if no corrective measures are taken.

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The report highlights the challenges companies face in aligning workforce requirements with current and future demands. Failure to adapt could necessitate drastic actions, such as restructuring and layoffs, which carry significant repercussions for both the organization and its employees.

As Lufthansa navigates these challenges, the airline appears committed to balancing cost efficiency with digital transformation to maintain its competitiveness in a rapidly evolving industry.