Business Standard

<b>Letters:</b> Bad timing

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Business Standard New Delhi

Your interview with Captain GR Gopinath (‘This will revolutionise India’s logistics’, May 15) shows that his new venture, Deccan 360, is not in tune with India's realities. India's airline industry is expected to post a combined operating loss of $2 billion for the 12 months ending March 31, 2009. Cargo traffic is forecast to fall even more steeply, with a decline of 5 per cent following a 1.5 per cent drop in 2008. Comparisons with courier companies like Blue Dart and DHL are not valid as they generate high volumes and their network of courier services is unbeatable. With the development of highways, travel time has been reduced and most of the inter-city bus and transport operators provide very cost-effective cargo service. It will be a long time before the growth of air cargo becomes profitable.

 

MM Gurbaxani, Bangalore

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First Published: May 18 2009 | 12:23 AM IST

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