{"id":96002,"date":"2026-02-20T14:43:43","date_gmt":"2026-02-20T17:43:43","guid":{"rendered":"https:\/\/shipping.einnews.com\/article\/894119284"},"modified":"2026-02-20T14:43:43","modified_gmt":"2026-02-20T17:43:43","slug":"air-cargo-industry-seeks-restoration-of-double-dip-facility","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/20\/air-cargo-industry-seeks-restoration-of-double-dip-facility\/","title":{"rendered":"Air Cargo industry seeks restoration of double-dip facility"},"content":{"rendered":"
<\/div>\n

The air cargo segment has sought the restoration of the double-dip facility for foreign carriers from the Centre, stating that India\u2019s next growth phase is expected to come from Tier-2 and Tier-3 cities, industry insiders told businessline<\/i>.<\/p>\n

In aviation parlance, a double-dip facility means permitting a foreign freighter aircraft to operate to two Indian airports on a single international journey without undertaking domestic cargo carriage between them.<\/p>\n

According to letters written by the Air Cargo Forum India and other industry associations to the Ministry of Civil Aviation, the suspension of double-dip operations during the Covid-19 period led to a loss of over 10 per cent international freighter capacity. <\/p>\n

Other industry bodies as well as stakeholders have also written to the Centre seeking the reintroduction of such an arrangement. <\/p>\n

businessLine<\/i> has reviewed these communications.<\/p>\n

Global peers <\/h2>\n

As per stakeholders, India currently has only 18 freighters in operation, placing it far behind global peers in dedicated cargo aircraft availability. <\/p>\n

Meanwhile, double-dip operations allow a foreign freighter to serve two Indian airports on a single international trip without carrying domestic cargo. <\/p>\n

This arrangement, according to stakeholders, makes routes viable for regional airports that are unable to fill an entire aircraft independently.<\/p>\n

Backing the proposal, Rajesh Menon, Regional Head of Cargo \u2013 South Asia, Middle East & Africa at Cathay Cargo, said: \u201cThe Cathay Group supports the reinstatement of the double-dip facility as a pragmatic measure aligned with India\u2019s broader economic and trade growth ambitions.\u201d<\/p>\n

Apart from operational aspects, the communications state that export access linked to air cargo connectivity affects farm incomes and related sectors. <\/p>\n

Export markets <\/h2>\n

Industry estimates cited that access to export markets enables farmers to realise prices that are 1.5 to 3 times higher than those available domestically. <\/p>\n

This translates into hundreds of dollars more per farmer annually, and into thousands of dollars for growers of high-value produce.<\/p>\n

Emphasising the broader economic impact, Silveri Anil Kumar, Vice Chairman of the Federation of Freight Forwarders\u2019 Associations in India (FFFAI), said:  \u201cReinstating the double-dip facility for foreign freighters is the key to India\u2019s air cargo resurgence. By unlocking global connectivity for Tier-2 and Tier-3 cities, this reform will boost exports, raise farmer incomes by 1.5-3x, and generate jobs in logistics and warehousing.\u201d<\/p>\n

\u201cWith robust DGCA oversight and upgraded infrastructure, regional hubs like Hyderabad will seamlessly integrate into international supply chains \u2014 driving balanced growth, competitiveness, and prosperity across India.\u201d<\/p>\n

Cargo connectivity <\/h2>\n

Notably, expanded cargo connectivity also creates employment in logistics, cold-chain infrastructure and airport-linked micro, small and medium enterprises. <\/p>\n

Stakeholders indicated that a single double-dip route can connect between 80 and 100 Tier-2 cities to global markets. Such routes directly link regional production centres with Europe, North America and East Asia, integrating them with international supply chains. <\/p>\n

This operational model enables multiple smaller cargo streams to be aggregated without requiring each airport to independently support a full freighter load.<\/p>\n

In addition, ACFI has stated in its communications that the proposal constitutes calibrated reform rather than deregulation, with regulatory oversight remaining in place.<\/p>\n