Air India SATS Airport Services (AISATS) is sharpening its focus on cargo and logistics as a long-term growth engine, alongside its core ground-handling business. The company plans phased investments of up to Rs 5,000 crore to develop integrated cargo infrastructure at Noida International Airport. AISATS CEO Ramanathan Rajamani spoke to Yaruqhullah Khan about the strategy, policy gaps, and how the company is positioning itself for the next phase of air cargo growth. Excerpts:
Q. AISATS has been eyeing a deeper play in cargo infrastructure and warehousing services. How much of future growth do you expect to come from integrated cargo solutions versus traditional ground handling, and what new revenue models are emerging?
A. Cargo and logistics are becoming an increasingly important pillar of our long-term growth strategy as air cargo market shifts from a largely metro-centric model to a more distributed, network-led ecosystem. Over the medium term, integrated cargo solutions will account for a growing share of incremental growth, while ground handling remains a stable core business. We are building end-to-end cargo ecosystems that connect major gateways with emerging hubs and secondary airports. This is being driven by manufacturing growth, e-commerce, pharmaceuticals, perishables, and regional exports. Revenue streams are also evolving. Beyond per-tonne handling charges, we are seeing greater contribution from long-term infrastructure concessions, warehouse and logistics rentals, and airline-agnostic cargo platforms.
Q. AISATS is undertaking debt-funded investments under a build-operate-transfer model for an integrated cargo terminal and warehousing zone at Noida International Airport. How large is this investment?
A. The integrated cargo terminal and the integrated warehousing and logistics zone are being developed in phases, aligned with airport commissioning timelines and cargo volume growth. For Phase 1, the planned investment is estimated at around Rs 700 crore. As the airport scales up, our cumulative investment across phases could go up to about Rs 5,000 crore by the final phase.
Q. The government has not finalised a national ground-handling policy despite a draft being introduced in 2015. How does this affect the industry?
A. The absence of a final national framework creates operational uncertainty rather than direct regulatory risk. For service providers, this can complicate long-term planning around capital investment, manpower deployment, and technology adoption, especially at airports where concession terms or scope are periodically reviewed. A clear national policy would provide predictability, uniform safety benchmarks, and clarity on competition and market structure.
Q. What is the strategic and financial rationale for expanding into cargo hubs and secondary airports?
A. There are both strategic and financial drivers. From a financial perspective, secondary airports typically offer lower operating costs, longer concession tenures, and greater flexibility in infrastructure design. This allows for more sustainable returns over the asset lifecycle. Strategically, it helps diversify our network and brings capabilities closer to emerging production and consumption centres.
Q. With India targeting a $2 trillion export economy by 2030, how is AISATS aligning its investments to support higher export-linked air freight?
A. Our focus is on capacity creation, process efficiency, and reliability across the cargo value chain. Cold-chain and specialised cargo infrastructure is a priority, particularly for pharmaceuticals, perishables, and high-value manufacturing exports, where temperature control and handling precision are critical. We are also investing in automation and digital systems to improve throughput, reduce dwell times, and provide better end-to-end visibility for airlines and logistics partners.
Q. What steps is AISATS taking to strengthen training, safety, and workforce retention?
A. Workforce development is a strategic priority for us. We have strengthened structured training and recurrent certification programmes, combining classroom learning, on-the-job mentoring, and simulator-based modules. We operate dedicated training centres in Delhi, Bengaluru, Hyderabad, and Trivandrum. On safety, we rely on standardised operating procedures, regular audits, and data-led monitoring. To address attrition, the focus is on better job design and workforce well-being, including improved shift planning, ergonomic interventions, clear career progression pathways, and performance-linked incentives.