The Air India group is in the process of consolidating its cargo operations and may eventually create a separate entity with dedicated freighters, according to officials. This restructuring aims to enable the Tata-owned airline to better focus on the growing air cargo market, driven by a robust economy and increased trade activities.

“We have been consolidating and streamlining the entire network from all four airlines to bring it under one function,” said a senior Air India official told to a daily.

By the end of this year, Vistara is expected to be integrated into Air India, while AirAsia India will merge with Air India Express.

Air India is following the lead of SpiceJet, a domestic budget carrier that has already spun off its cargo operations. IndiGo, India’s largest airline, is also significantly investing in this sector, including the use of dedicated freighters.