Although the company has stopped operating as an airline it continues to manage the belly cargo hold capacity of Air India's passenger fleet.

In 2006 the airline relaunched freighter services following the merger of Indian Airlines and its domestic subsidiary Alliance Air with Air India; which led to the acquisition of a single Boeing 737-200C aircraft from Alliance's fleet, plus ten additional passenger versions of the aircraft, of which five were converted to freighters.

Air India is also developing a "mother software" to handle cargo data and revenue management.

The airline has initiated a programme to "onboard, engage and expand with regional, national and global customers".

Air India Cargo served the following cities with freighter aircraft until January 2012; it also had ground truck-transportation arrangements on select destinations.