title name air cargo opportunities in india preston murray chief executive officer national air...
TRANSCRIPT
TITLE NAME
Air Cargo Opportunities in India
Preston Murray
Chief Executive Officer
National Air Cargo
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National Air Cargo
Freight Forwarder and Cargo Airline
Core Competencies
Four Rings of Market Focus
India Market Aspirations emerging opportunities bolstered by growing U.S.-India strategic partnership
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India Air Cargo Growth
India market rebounding with double digit growth in October 2009
Domestic cargo growing faster than international since January 2009
Indian Air Cargo Growth
Source: Airports Authority of India, Monthly Traffic News
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International Air Cargo Volume
Current recovery since January 2009 has brought volumes back to within 2% of historical peak
Source: Airports Authority of India, Monthly Traffic News
YE 9/2006 YE 9/2007 YE 9/2008
1,097,447 1,186,797 1,148,328
(Nov-Oct)
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DomesticAir Cargo Volume
Domestic cargo at historically highest volume
Domestic volumes approaching 60% of international volumes
Source: Airports Authority of India, Monthly Traffic News
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557,600 568,846 598,014(Nov-Oct)
YE 9/2006 YE 9/2007 YE 9/2008
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India International Trade Profile
Source: CIA Country Factbook & Comtrade UN
Diamond, precious metals and jewelry are top candidates for air cargo
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India the Next China?
Source: CIA Country Factbook & Comtrade UN
China International Trade Profile
China’s top imports/exports are high value items benefiting from air cargo
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Average GDP growth over 7% past decadeNet exports grew over 24% in 2008Net imports grew over 36% in 2008
India Market Strengths
International growth at 6.8% per year through 2013Domestic growth at 9.9% per year through 2013
Strong economic growth
Strong growth forecasts for air cargo
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Lack of proper infrastructure is a roadblock to efficient cargo handlingCargo warehousingMulti-modal links for local distribution
Regulatory and foreign ownership issues Foreign ownership capped at 74% in cargo air carriers Foreign airlines may have no ownership in airlines
India Market Weaknesses
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India Market Opportunities
Lagging infrastructure creates many
partnership & investment opportunities
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Slow global economic recovery
Uneven economic recoveryGlobal recovery led by India, China and Asian economies
Fuel price volatility
Terrorism
Protectionism in developed countries
India Market Threats
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Key strategic partner with common interests to U.S. Nuclear non-proliferation Counter-terrorism Military cooperation and joint exercises Central Asia stability and Afghanistan reconstruction
Military sales and support Modernization Life-cycle support Long-term industrial partnership
Substantial air cargo implications Integrating India into global supply-chain
U.S. – India Strategic Partnership
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Emerging OpportunitiesMilitary sales and supportNuclear and electric power generation equipmentOil exploration rigs and drillsEarth moving and construction equipmentAfghanistan reconstruction and other humanitarian efforts
Foreign ownership limit in Indian carriers implies need for Indian JV partner to participate in Domestic market growth
National in India
TITLE NAME
Thank You
Preston Murray
Chief Executive Officer
National Air Cargo