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today's featured article

What is an “intelligent cargo airline?”


“An intelligent cargo airline is one that operates independently from the passenger business; develops its dedicated book of rules and procedures, and its own domain of knowledge, catering to its special set of needs and to its unique customer base.”

With the air cargo business now touching US$60 billion globally, and more freight moving on to “main deck” freighter aircraft, the “intelligent cargo airline” is here to provide a bespoke offering to serve this trade.


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Air Cargo is Big Business
   
Air cargo is a $60 billion plus industry. During the next 20 years, cargo traffic is expected to more than triple, out-pacing passenger traffic and offering airlines even more opportunities to generate revenue.
   
While air cargo currently accounts for 13% of total air transport revenues ($560 billion in 2010 according to IATA), some passenger airlines are earning more than 30% of their revenue from air cargo.
   
As air cargo grows, more and more freight will move on to the main decks of dedicated freighter aircraft. The current 50/50 split between the “dedicated freighter offering” and the “passenger belly offering” is expected to change dramatically over the next few years, with more cargo moving on to freighter main decks.
   
All of this will mean that air cargo transportation will rapidly evolve into a “dedicated business”, requiring a whole new science and a different set of rules to be built around it. Traditional suppliers to the air cargo business will need to re-define their business offerings and create new performance standards for this “stand alone” business.
   
   


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bullet 9th Southern Asia Ports, Logistics and Shipping 2014 ITC Grand Chola Chennai, India Thurs 27 and Fri 28 Nov 2014
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