Afcom Holdings Limited (AFCOM) has announced a strategic partnership with Air India SATS Airport Services (AISATS) for freighter operations at the soon-to-be-launched Noida International Airport. This collaboration marks a significant step in enhancing North India's air cargo capabilities and supporting the country's ambitions in global trade.

Partnership Details

AISATS, through its wholly-owned special purpose vehicle AISATS Noida Cargo Terminal Private Limited (ANCTPL), aims to establish Noida International Airport as the premier cargo gateway in North India. This initiative is designed to complement existing major hubs such as Delhi and Mumbai, potentially reshaping the air cargo landscape in the region.

Strategic Importance

The partnership holds particular significance given Delhi's current status as the Indian airport handling the highest air cargo tonnage for both exports and imports. By joining forces with AISATS, Afcom Holdings is positioning itself to tap into India's largest air cargo market.

Synergies and Expectations

The collaboration leverages AISATS' infrastructure expertise alongside Afcom's expanding international freighter network. This synergy is expected to create a robust platform for efficient cargo operations at the new airport.

Implications for India's Trade Ambitions

This development aligns with India's broader ambition to become a global trade powerhouse. By enhancing air cargo capabilities in the strategically important North Indian region, the Afcom-AISATS partnership could play a crucial role in boosting the country's trade infrastructure.

Looking Ahead

As the Noida International Airport project progresses, industry observers will be keenly watching how this partnership unfolds and its potential impact on regional and national air cargo dynamics. The success of this venture could set a precedent for similar collaborations in other emerging airport projects across India.

Afcom Holdings Limited has issued a corrigendum to its Annual General Meeting (AGM) notice, revealing ambitious plans to expand its fleet with four Boeing 777 wide-body aircraft. The company aims to establish a unique trade lane belt from Japan to South and West Africa, positioning Chennai as its International Cargo Hub.

Fleet Expansion Details

The corrigendum outlines Afcom's strategy to induct four Boeing 777 wide-body aircraft into its fleet before the end of the first quarter of the financial year 2027-28. This expansion is in addition to the company's Phase I plan of acquiring five narrow-body Boeing 737-800 aircraft.

Funding Strategy

Afcom plans to finance this significant expansion through a combination of funding methods:

1. Preferential Equity Placement: To fund two Boeing 777 aircraft
2. Qualified Institutional Placement (QIP): To finance the remaining two aircraft

Capital Expenditure Breakdown

The total estimated capital expenditure for inducting two Boeing 777 aircraft is Rs. 17,592.00 lakhs, with an additional Rs. 3,127.45 lakhs allocated for general corporate purposes. This brings the total funding requirement to Rs. 20,719.45 lakhs.

The capital expenditure per aircraft includes:

Strategic Objectives

Afcom's expansion aims to:

1. Establish a seamless trade lane belt from Japan to South & West Africa
2. Capitalize on the growing e-commerce cargo volume from China's Yangtze and Pearl river delta regions
3. Position Chennai as a strategic International Cargo Hub
4. Transform Afcom into a significant global cargo airline

Boeing 777 Freighter Capabilities

The Boeing 777 Freighter (777F) is noted for its impressive specifications:

• Maximum payload capacity: 102 metric tons
• Range: 9,200 kilometers (4,970 nautical miles)
• Known for fuel efficiency and lower operating costs
• Suitable for transporting heavy, lengthy, and special-shaped items
• Ideal for long-haul, nonstop flights between major cargo hubs

Promoter Participation and Monitoring

The company disclosed that promoters Mr. Deepak Parasuraman, Ms. Manjula A, and Mr. Kannan Ramakrishnan will participate in the issue. Given that the issue size exceeds Rs. 100 crore, Afcom has appointed Brickwork Ratings India Private Limited as the monitoring agency to oversee the utilization of funds.

Timeline and Fund Utilization

The company expects to utilize the funds within 20 months from the date of allotment. The proceeds will cover lease rental deposits, Entry Into Service costs, insurance, customs duty, tools and equipment, and crew training.

Afcom Holdings' bold expansion plan underscores its ambition to become a major player in the global cargo airline industry, leveraging Chennai's strategic location to create a pivotal cargo hub connecting East Asia with Africa.