Air India Cargo, a wholly-owned subsidiary of National Aviation Company India (NACIL), plans to be aggressive in leasing freighter aircraft and increase its revenue by 10 percent to around US$226 million by 2008-09.

NACIL was created after the merger of Air India and Indian. The company is currently in the process of converting six B737-200 passenger aircraft into freighters. The converted cargo planes would be leased to India Post and the logistic firm Gati. Air India Cargo along with India Post has already started freighter service to the northeast. It has also started operations on the Bombay-Delhi-Bangalore route.

The new cargo airline is in the process of acquiring freighter aircraft by way of conversion of B-737 and A-310 passenger aircraft. The first A-310 freighter aircraft has already started operations to the Gulf and Europe. The airline is planning to have a freighter fleet of at least 10 aircraft by the end of this fiscal year.

The erstwhile Air India has converted two of its A310 passenger aircraft into dedicated freighter aircraft. The two cargo planes are deployed on the India-Europe route.