Blue Dart confident of its network and strategy

Fresh from picking up the Regional Express Provider of the Year award at the annual Payload Asia Awards 2013, Blue Dart Express, India’s leading domestic integrated express company says it’s confident its unique air network and outsourced ground delivery service is well placed to ride out the current economic malaise and continue its growth track as the economy recovers. By Donald Urquhart.


Blue Dart confident of its network and strategy


Overall in the year-to-date, the company has seen its revenue grow by nine per cent compared to the first half of 2012, to INR 9.24bn ($149 million), but the second quarter’s result has taken net profit for the first half down by nearly three per cent to INR 707 million (US$11.43 million).

With a fleet comprised of seven B757 freighters and one B737 freighter and a total capacity of nearly 400 tonnes per night, Blue Dart is flying 85 per cent capacity utilisation overall, according to Khanna. “And if we knock off the so-called weak sectors like Chennai-Bangalore for instance which is only about five hours by road, so we get hardly any load on that sector, the utilisation hits about 92- 93 per cent.

Key to this, according to Yogesh Dhingra, Blue Dart’s finance director & COO, is the carrier’s unique network configuration. “We don’t fly a hub and spoke system – we have seven stations and five types of route, so that we serve all stations and increase productivity on the entire network. India, he says, “cannot really support hub and spoke – it would require more aircraft and that would lead to high fuel costs. The model which we have put in is very efficient and with this network we are able to offer overnight delivery across the country.”