The China Airlines’ B747-400F that debuted at Chennai on May 16 marked the beginning of the twice-weekly freighter service by Taiwan’s national carrier on the Taipei-Kuala Lumpur-Chennai-Luxembourg-Taipei route.
     The first Luxemburg-bound flight carried nearly 50 tons of cargo, comprising electronic items, automotive parts and consumer goods, while the return flight also had electronics in addition to machinery and components.
     Like many carriers, China Airlines is eager to cash in on the India-China trade. In the year 2010, the volume of trade between China and India grew to $61.8 billion.
     On hand to welcome the first China Airlines freighter were a host of senior staff from China Airlines including Brian Chou, (left) Senior Vice President; K.K. Wu, Vice President, Sales and Marketing; Paul Hseuh, General Manager, Cargo Marketing and Planning; and HoJo Chang, Country General Manager, India.
     It was amply clear that the carrier’s management was keen to ensure the success of the Chennai connection.
     Among others who were at the launch of the China Airlines services were distinguished visitors from the expatriate community, among them David Hsu, Economic Counselor and Director, Taipei Economic and Cultural Centre; George Lin, Director, Taipei World Trade Centre; and Keng Lee, Director, Institute of Information Industry. Hsu was quick to point out that Taiwan had built up a significant level of investment in India despite very few Taiwanese actually residing here.
     Just a few months ago—in March of this year—China Airlines withdrew its Delhi services. With a freighter fleet of 21 aircraft, the $3.5 billion airline had to stop its freighter services to the Indian capital due to poor volumes, although it continued to carry belly cargo in its regular passenger flights coming from Taipei.
Commented Brian Chou:
     “In the past, Delhi was the hub for us. However, today it is Chennai, which has emerged as a strong hub due to the presence of large manufacturing units, including mobile phones. The new route via Chennai is very valuable for us. If the volume increases, the airline might consider having three services in a week to Chennai,” he added.
     For Chennai Airport Director E. P. Hareendranath, the China Airlines services were an indication that the recently revamped metro airport operated by the Airports Authority of India was being noticed.      Hareendranath pointed out that “this freighter service to Chennai from Taipei is mainly to cater to the growing air shipment in electronic items to the city from Taiwan and mainland China.”
     Early indicators point out that the Chennai touchdowns augur well for China Airlines. Said Chou, “The allocation from Chennai was 40 metric tonnes on each flight. The export’s focus would be primarily on electronics, mobiles, pharmaceuticals, leather, textiles, etc. The imports into Chennai would mainly consist of electronics goods.” He went on to add: “This service will provide shippers more choices for cargo in/out of India and decrease cargo transit time between East Asia to India, as well as India to Europe.”
     In India’s burgeoning cargo market, Chennai occupies the third position, trailing behind Delhi and Mumbai in annual shipment volumes. However, in terms of shipment growth, Chennai International Airport is the country’s fastest-growing airport for exports and imports, predominantly comprising electronics, automotive parts, textile products and ready-made clothes, and leather products.
     Chennai Airport handled 19,843 tonnes of cargo in the month of February this year. Of the 8,321 tonnes of import cargo, 3,131 tonnes comprised electronics/electrical items. Exports were to the tune of 11,523 tonnes. A substantial portion of electronic components come from Taiwan and mainland China to serve the needs of companies located in areas such as the electronic manufacturing hub of Sriperumbudur.
     The initiative highlights the importance that is being attached to the South Indian city as a cargo hub. The airport has been receiving 36 freighters in a month and China Airlines is not the only carrier that was keen to land in the city. In the middle of March this year, a B747-400 cargo aircraft of Air China Cargo Company landed in Chennai from Shanghai’s Pu Dong International Airport. That was the first cargo aircraft route to South Asia and Southeast Asia launched by Air China Cargo.
     The operation of the freighters has enhanced the transport capacity of Air China Cargo into the Asia Pacific market while linking the two important industrial cities of Chennai and Chongqing with North America, Europe, Japan, and Asia Pacific destinations using the Shanghai hub.
     The entry of China Airlines and Air China Cargo comes at a very crucial juncture. A number of carriers have been interested in enhancing flights to the country’s southern cities. Cathay Pacific cargo, for example, has recently started services to nearby Hyderabad after starting freighter flights from Bengaluru last year.
     ACC started the services to Chennai as a part of its plan to fill some of its new main-deck capacity. It obtained approval for the Shanghai-Chennai sector and aimed to fly the route three days a week. Titus Diu, Air China Cargo’s COO, was quoted saying that ACC had planned to send the Chennai flight to Chongqing. Indeed, the return leg of the flight from India to Shanghai does touch Chonqing.
     “We can carry cargo from India, plus we can feed traffic from Chongqing to our intercontinental departures out of Shanghai,” Diu said. Elsewhere in Asia, ACC has been ooking at Dhaka, Singapore, and Ho Chi Minh City.