[060117.EN.AIR] Asian Air Cargo to Double by 2035, Garuda Steps Up To Tap Opportunities

JAPAN Aircraft Development Corp, a consortium of Japanese commercial aircraft developers, forecasts that demand for air freight services in the Asia Pacific region will grow three per year and double by 2035.

By comparison, growth on both the Europe-North America routes and within North America is projected at one per cent.

Airlines such as Garuda Indonesia and budget airlines are rapidly expanding operations to capitalise on the increase of goods traded via e-commerce as well as electronic products and parts.

National carrier Garuda plans to establish an airborne logistics network connecting the core islands of the nation made up of more than 13,000 islands. As a first step, Garuda is eyeing a 40 per cent increase in the number of its domestic freight bases to 100 by the end of 2017, reported Nikkei Asian Review.

Domestic demand for air freight delivery is strong due to Indonesia's growing middle class, according to CEO of Garuda, Muhammad Arif Wibowo.

With the increase in e-commerce and rising demand for fresh food, land and maritime transport alone cannot handle the increase in freight volumes, said Mr Wibowo.

In the first nine months of 2016, Garuda's freight business chalked up US$155 million in sales, up 13 per cent from a year earlier. While this accounts for five per cent of Garuda's consolidated sales, the airline aims to increase the ratio to above 10 per cent as its initial target, he said.

Source : HKSG.