Move over electric scooters and four-wheelers, SpiceJet’s air cargo arm, SpiceXpress, and an aviation start-up division of Pifore are exploring launch of zero carbon-emitting electric cargo planes. The project is in its preliminary stage but a memorandum of understanding (MoU) has been signed between the two companies.

According to sources, SpiceJet and Pifore have decided to work together on a “pilot project” to promote carbon emission-free electric aircraft. A copy of the MoU was reviewed by BusinessLine .

Sources at Pifore said that as a part of this agreement, SpiceJet would lease five electric cargo aircraft which would arrive by 2024 and another five by 2026.

“The total investment for this pilot will cost anywhere between ₹30 crore and ₹50 crore.”

Sources said that Pifore has signed an MoU with US-based aircraft manufacturer Bye Aerospace to deliver the aircraft.

Along with this, both companies have also agreed “to start a closed airfield as zero carbon airport with the support of electric planes and other zero emission products in regional and rural areas in India, promote the carbon-free airports concept, and establish India’s first zero carbon cargo terminal whose operations shall be fully run by future-ready electric cargo planes.”

SpiceXpress is the cargo division of commercial airlines company SpiceJet. Pifore provides engineering, construction and technical services for security systems planning and design to government agencies and private sector companies. It operates in oil and gas, infrastructure, power and industrial projects, and has a project for the aviation industry too.

Earlier this year, SpiceJet had transferred its logistics business to its subsidiary SpiceXpress and Logistics. It was done on a slump sale basis along with all related assets and liabilities including know-how, trademark, licences, franchises, customer contracts, distribution network etc.

A source close to the company said that the air cargo business of SpiceJet had come to the rescue when the company’s passenger airlines business faced issues. In the first quarter of financial year 2022, SpiceXpress reported a net profit of ₹30 crore, which was significant since passenger airlines were nearly grounded during Covid lockdown.

Hence, their focus is more on growing air cargo orders by banking on e-commerce and new technology for it when passenger business was facing cut throat competition and marred by rising fuel costs.

Pifore seems to have acquired some technology know-how on electric planes and SpiceXpress was ready to explore the opportunity, the sources said.

SpiceXpress and Pifore did not comment on an email query regarding electric planes.

 

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