Air Transportation(1) - Global Supply Chain Management SCM...

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Global Supply Chain Management SCM 475 International Air Transportation
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Types of Service Types of Aircraft International Regulations Freight Tariffs Environmental Issues Security
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n Global Airline Industry - 2.8 billion passengers in 2011 - 35% of global merchandise trade by value - 48 million tonnes of freight - Supports 56.6 million jobs (8.4 million direct jobs) - 51% of international tourists travel by air - $1 invested in air transportation yields $1.5 - $3 in economic travel - 1,568 commercial airlines - 23,844 aircraft in commercial service (19,203 jets and 4,641 turboprops) - 3,846 airports - 26.7 million commercial aircraft movements  Source: 
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n Facts & Figures - Aviation occupancy rates of 78% (2011 industry load factor) - Modern aircraft achieve fuel efficiencies of 3.5 liters per 100 passenger kilometers  or 67 passenger miles per gallon -Air transport accounts for 2% of global manmade CO2 emissions -Greenhouse gases emissions is 3% -Net Profit % = 1% in 2012 and 1.3% in 2013 (7-8% needed to recover cost of  capital) Source: 
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Demand Capacity - Total passenger traffic market shares by region of  carriers in terms of RPK are: Europe 30.6%,  Asia-Pacific 28.4%, North America 25.3%,  Middle East 8.0%, Latin America 5.4%, Africa 2.4%.  -Total freight traffic market shares by region of carriers  in terms of FTK are: Asia-Pacific 39.7%,  North America 23.1%, Europe 21.6%, Middle East 11.5%,  Latin America 3.0%, Africa 1.1%.
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n Types of Service Cargo can travel by air under one of five different types of services: Air mail services Express air services The origin of air freight, air mail services still account for a small  percentage of all shipments. Express air services guarantee a pre-determined delivery date;  the service is called “time-defined delivery,” generally the next day  or overnight. Examples include FedEx, UPS, DHL. 
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n Types of Service Scheduled airfreight services
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Christopher Reinemann
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