India’s newest carrier Deccan 360 takes flight

GR Gopinath, who revolutionised India’s aviation industry with the country’s first low-fare carrier Air Deccan, will begin operation of his new express delivery and logistics service this week, pitting him against global heavyweights DHL, TNT and FedEx.

Gopinath’s new cargo and express logistics company, Deccan Express Logistics, will operate under the brand Deccan 360 and aims to offer end-toend express logistics services within India, and between India and some international markets, starting with Hong Kong and Dubai.

The company is developing a huband- spoke network based out of Nagpur and has signed a memorandum of understanding with the GMR Group for setting up express cargo operations at Delhi and Hyderabad airports.

The company will begin operating modestly with only a single Airbus A310 freighter, capable of carrying 35 tonnes, with two more to be added in the coming months. By September, Deccan 360 expects to also operate six ATR-42s as feeder aircraft to smaller Indian cities and to have its ground operations in place.

And once again proving himself the innovator, Gopinath – who sold Air Deccan to rival Kingfi sher Airlines – is aiming to tap the franchise model by calling for franchisees for the “first mile” and “last mile” of its ground operations.

The franchisees will have to invest in their own trucks and other ground handling infrastructure for their designated service areas, while operating with the Deccan 360 technology platform.

India’s domestic express logistics market is valued at about US$700 million a year, compared with about US$4 billion for China, but demand is expected to accelerate with economic growth.

The country’s domestic express market is dominated by Blue Dart, a homegrown brand that is 81 per cent-owned by DHL. The other key global market leaders TNT and FedEx also have a presence in the domestic market through wholly owned subsidiaries Speedage and Prakash Air Freight, respectively, which they purchased in 2006.