The air cargo segment has sought the restoration of the double-dip facility for foreign carriers from the Centre, stating that India’s next growth phase is expected to come from Tier-2 and Tier-3 cities, industry insiders told businessline.
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.
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.
Other industry bodies as well as stakeholders have also written to the Centre seeking the reintroduction of such an arrangement.
businessLine has reviewed these communications.
Global peers
As per stakeholders, India currently has only 18 freighters in operation, placing it far behind global peers in dedicated cargo aircraft availability.
Meanwhile, double-dip operations allow a foreign freighter to serve two Indian airports on a single international trip without carrying domestic cargo.
This arrangement, according to stakeholders, makes routes viable for regional airports that are unable to fill an entire aircraft independently.
Backing the proposal, Rajesh Menon, Regional Head of Cargo – South Asia, Middle East & Africa at Cathay Cargo, said: “The Cathay Group supports the reinstatement of the double-dip facility as a pragmatic measure aligned with India’s broader economic and trade growth ambitions.”
Apart from operational aspects, the communications state that export access linked to air cargo connectivity affects farm incomes and related sectors.
Export markets
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.
This translates into hundreds of dollars more per farmer annually, and into thousands of dollars for growers of high-value produce.
Emphasising the broader economic impact, Silveri Anil Kumar, Vice Chairman of the Federation of Freight Forwarders’ Associations in India (FFFAI), said: “Reinstating the double-dip facility for foreign freighters is the key to India’s 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.”
“With robust DGCA oversight and upgraded infrastructure, regional hubs like Hyderabad will seamlessly integrate into international supply chains — driving balanced growth, competitiveness, and prosperity across India.”
Cargo connectivity
Notably, expanded cargo connectivity also creates employment in logistics, cold-chain infrastructure and airport-linked micro, small and medium enterprises.
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.
This operational model enables multiple smaller cargo streams to be aggregated without requiring each airport to independently support a full freighter load.
In addition, ACFI has stated in its communications that the proposal constitutes calibrated reform rather than deregulation, with regulatory oversight remaining in place.
Published on February 20, 2026
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