iCargo the next-generation airline cargo management systems

iCargo, the next-generation airline cargo management systems

The CGI influences and validates the processes and functionality of iCargo to address the current and future requirements of the industry

Genevieve Khongwir

Thursday, March 20, 2008

CIOL: Future of IT solutions for aviation industry in India? Pls explain with figures?
L.M: Considering that the Indian aviation industry is currently growing at a rate of 18 percent annually, India is expected to be the driving force behind the world’s civil aviation business that is globally expected to grow from US$ 5.1 billion to US$ 5.6 billion this year.

The number of air travelers in India increased by a record 38.5 percent in 2006-7, and the numbers are expected to double over the next decade. India's Civil Aviation Ministry expects that air passenger traffic will rise to 80 million by 2020.

Buoyed by the impressive growth in passenger traffic in India, foreign airlines are on an expansion spree in India. According to data compiled by the Airports Authority of India (AAI), 16.21 million people flew on international routes to and from India during April-October 2007-08.

This was a growth of 17.1 percent over the same period in the last fiscal. Also 25 percent of all companies’ sales are dependant on air transport.

To stay at par or ahead of competition especially from foreign players, airlines in India will have to provide world-class services and facilities. This will only be possible if they choose to use new-generation technology that offers them the flexibility to cope with dynamic market changes and the scalability to sustain growth.

IBS’ new-generation solutions have proved their effectiveness in managing the mission-critical operations of the world’s best airlines, and the busiest international airports etc. IBS adopts global standards - something the Indian aviation must look towards to sustain competition and the ever-changing markets.

CIOL: How difficult is the task to grow the IBS Cargo LoB to become the number one or two providers of cargo solutions to the airline industry?
L.M: IBS’ Cargo Management Systems offer complete end-to-end management of airlines’ cargo business from ULD management to accounting. There is a lot of interest among airlines to use our new- generation systems. Carriers want to be more competitive against the integrators and therefore need systems that can communicate with supply chain logistic systems of the manufacturers.

We have been in talks with many carriers and there have been quite a few Requests for Proposals (RFPs). We already have the top three cargo airlines as our customers…and by the end of this year we expect to add another two of them to our clientele.

Incidentally, iCargo recently won the “Emerging Cargo IT Systems Provider of the Year” award at Air Cargo India 2008 that concluded at Mumbai in Jan 08. We consider this a great recognition. At this rate we don’t think it’s difficult for us to be the top supplier of new-generation Cargo Management Systems. We foresee our solutions to top the chart in a couple of years.

CIOL: What has been your growth of the Indian company over the years? Also mention the projected growth figures?
L.M: IBS has seen a steady and sustained growth consistently posting a CAGR of 47.5 percent in the last ten years, resulting in a 700 fold increase on capital invested at inception in 1997, as against a 35 fold increase in staff strength over the same period. We posted a topline of INR 200 crs in the last fiscal.

IBS has been rated as one of the top 8 IT start-ups in India by Red Herring and one of the top 10 products companies by Business Today.We have set ourselves a target to grow into a Rupees 1000 Crores company by 2010, which means we are on the fast track of organizational development. We plan to foray into two new Lines of Business, which will make us a one-stop shop for Airline solutions. In the coming months we also expect to close a couple of acquisitions to consolidate domain expertise. We are looking at companies specializing at providing IT services for aircraft engineering and aircraft maintenance and overhaul.

CIOL: What is your expansion plans down South India?
L.M: We recently inaugurated a development/Business centre at Bangalore. We plan to open another centre in Chennai and will start work on our fully owned campuses at Kochi and Kozhikode.

©CIOL Bureau

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