Many airlines have seen great potential in the Indian cargo market in recent years, and Dublin-based ASL Aviation Group is no exception. This week, ASL said it will increase its shares in Bangalore-based Quikjet Cargo Airlines from 50.9 percent to 72.6 percent, through ASL subsidiary Farnair Switzerland, AG.
The Foreign Investment Promotion Board, which is the relevant agency of the government of India for all direct foreign investments, approved Farnair’s application to increase its shareholding, clearing the way for Quikjet to roll out its planned start of scheduled 737 domestic cargo services. Initial cities expected to be served by Quikjet’s new frequencies include Bangalore, Chennai, Delhi and Mumbai.
The approved increase to a nearly three-quarters stake in Quikjet will take place in multiple stages, involving a minimum total foreign direct investment of approximately US$2.25 million. ASL’s Farnair first made its 50.9 percent investment in Quikjet back in 2012.
ASL Aviation Group now comprises seven air operator certificates in Europe, Asia, Africa and now India. The group’s airlines are Air Contractors, Ireland; Europe Airpost, France; Farnair Switzerland; Farnair Hungary; K-Mile, Thailand (JV); Quikjet, India; and associate airline Safair, South Africa. The group has a fleet of approximately 100 aircraft operating on five continents.
An analysis by Frost and Sullivan earlier this year found that the total market for air cargo services in India were 2.26 million tonnes in fiscal year 2014, a figure that is expected to rise to an estimated 2.8 million tonnes by fiscal year 2018 at a compound annual growth rate of 5.5 percent, which includes domestic and international cargo.
In 2014 ASL recorded revenue of US$361 million and a net profit of $18.6 million, with total assets exceeding half a billion U.S. dollars.