The international logistics company Challenge Group, based in Malta, has temporarily suspended all cargo air flights to the Mumbai region. The company stated that the current 'operational structure' of Navi Mumbai Airport does not provide the reliability and certainty required for its cargo services.
In August, Mumbai International Airport Ltd (MIAL) mandated airlines to relocate approximately one-third of their international passenger and cargo operations from the main Mumbai airport to Navi Mumbai Airport starting October 1st. This is due to the planned demolition and reconstruction of Terminal 1 at the old airport in January. Similarly, specialized cargo flights were also transferred to the new airport for this reason.
Both MIAL and Navi Mumbai International Limited (NMIAL) are under the control of the Adani Group. In a statement on LinkedIn, Challenge Group announced the decision to temporarily suspend operations in Mumbai until further notice.
The company specified that after the mandatory transition from Mumbai Airport to Navi Mumbai Airport and an assessment of the current operating conditions in Navi Mumbai, it was determined that the existing operational structure currently does not allow it to provide cargo services with the necessary level of reliability and certainty. The firm emphasized that the circumstances leading to this situation are beyond its control, but the decision to suspend is 'deliberate.'
"Protecting our clients, their cargo, and the reliability of their supply chains remains our priority. Our teams are actively exploring alternative options to maintain a strong link between India and our international network, and we expect to inform the market about the details of the new service soon," the company noted. Notably, this suspension occurred just a few months after Challenge Group expanded its operations in Mumbai, when on July 2nd, the company upgraded its Mumbai-Liji service to Boeing 777-300ERSF cargo aircraft, replacing the previously used Boeing 767.
Challenge Group stated on LinkedIn its commitment to operating in Mumbai and expressed hope to resume operations as soon as the necessary conditions for reliable and efficient cargo transport services are established. Over the past two years, the company has strengthened its presence in India by conducting specialized cargo flights from Mumbai, Delhi, and Bangalore. Globally, the company utilizes Boeing 747, 767, and 777 cargo aircraft and employs over a thousand staff, handling more than 500,000 tons of cargo annually worldwide.
On Wednesday, Air France-KLM reported that it does not plan to split its passenger flights in Mumbai between Mumbai Airport and Navi Mumbai International Airport (NMI), as this would reduce operational efficiency, lead to the division of teams and ground services, and complicate the management of its long-haul network.
Previously, on September 9th, the International Air Transport Association (IATA) appealed to the Ministry of Civil Aviation (MoCA) to intervene in MIAL's proposal to forcibly transfer approximately one-third of all international passenger and cargo operations of each airline from Mumbai Airport to the newly opened Navi Mumbai International Airport starting October 1st, noting that this plan was not developed through consultation with airlines.