Gulf Air begins to undercut cargo market on India sector

Gulf Air has started to force down air cargo rates to India - by offering rates up to Dh1 less per kilogram compared to other carriers.

Gulf Air lowered its rates on Wednesday to the two Indian cities of Mumbai and Delhi, to attract more business on the routes, said Abdulla Al Shawoosh, regional cargo manager, Gulf Air.

According to a survey by Gulf News, the average market rate, for more than 45 kilogram of cargo on the Mumbai sector is about Dh2.45 per kilogram. In contrast, Gulf Air is offering shipment for Dh1.50 per kilogram.

For more than 100 kilogram on the same sector, the market standard is Dh1.62 per kilogram but Gulf Air's price is again lower at Dh1.3 per kilogram.

Additionally, the average market rate for more than 45 kilogram of cargo, on the Delhi sector is about Dh2.5 per kilogram. In comparison, Gulf Air charges Dh1.50 per kilogram.

To send more than 100 kilogram of cargo on Gulf Air to Delhi it costs Dh1.3 per kilogram which is 20 fils less than the market average of Dh1.5 per kilogram.

In the 45 kilogram category to Mumbai, Emirates airline charges Dh2.55 per kilogram, Air India and Cathay Pacific closely follow with Dh.2.5 per kilogram, and Oman Air charges Dh2.25 per kilogram.

In the 100 kilogram plus category to Mumbai, Cathay Pacific and Emirates are the most expensive at Dh1.80 per kilogram - which is 50 fils more than Gulf Air.

In the 45 kilogram category to Delhi, Gulf Air's price is Dh1 less than the market average. Air India charges Dh2.50 per kilogram while Emirates' price is Dh2.55 per kilogram.

The market average for the 100 kilogram category to Delhi is Dh1.5 per kilogram. Gulf Air charges Dh1.3 per kilogram which is closely followed by Air India at Dh1.45 per kilogram and Emirates airlines at Dh1.7 per kilogram.

Cathay Pacific and Oman Air do not operate from the UAE to Delhi.

Gulf Air has dropped its prices in line with less cargo making its way to Delhi and Mumbai. "Cargo levels destined for Mumbai and Delhi have dropped and so too has the price for shipment," said Al Shawoosh.

"By dropping the prices I am trying to increase the level of cargo back to Mumbai and Delhi. I do not have the statistics on how much it has dropped, but it has dropped."

Al Shawoosh believes that the amount of cargo destined for Delhi and Mumbai has dropped because Trivandrum and Madras have gained popularity. "Most of the cargo is bound for Kerala so these (Trivandrum and Madras) are closer - if it goes to Mumbai or Delhi then it still has a long way to go."

Ratan Bali, regional manager, Air India, agreed that Trivandrum and Madras are popular destinations for cargo. "Overall the demand for our cargo services is okay," said Bali.

"But maybe we will look at our rates to see what the competition is doing. We will look at all possibilities to increase our cargo."