The Airports Authority of India (AAI) is planning to set up a company to handle cargo. AAI is betting on air cargo movement to grow exponentially, as India embarks on improving regional connectivity using smaller planes. It has engaged RITES, a state-run infrastructure consultant, to help with a business model for the new entity.

RITES will submit the project proposal by end November 2015 and we will decide upon the business model. India’s draft civil aviation policy envisages regional connectivity, with smaller planes connecting various towns across the country. It also estimates passenger traffic to double to 380 million in seven years.

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