06cargo_econmics

06cargo_econmics - MIT MIT ICAT Air Cargo Economics Prof....

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MIT ICAT MIT ICAT Air Cargo Economics Prof. John-Paul Clarke 16.886 Air Transportation Systems Architecting February 24, 2004
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MIT ICAT MIT ICAT Lecture Outline Air Cargo Industry Types of air cargo and air cargo carriers Largest air cargo carriers Demand for Air Cargo Services Drivers of air cargo growth Constraints on growth Recent Trends in Air Cargo Traffic and tariffs Industry structure Impacts of recent recession and 9/11 Breakdown of Cargo Revenue and Cost
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MIT ICAT MIT ICAT Air Cargo Industry Air Cargo Categories Express/time definite: small packages (less than 100 lb.) Heavyweight freight shipments (greater than 100 lb.) Mail transport Participants: All-Cargo Airlines Integrated Express Carriers (express/small packages; door to door service) Non-integrated Freight Carriers (heavyweight freight shipments; work with freight forwarders, etc.) Passenger (Combination) Airlines Can carry air freight, express packages and mail in passenger aircraft belly or on “combi” aircraft Also can have dedicated freight aircraft
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MIT ICAT MIT ICAT Top Air Cargo Airlines Worldwide in 2000 Total Freight and Mail (Int’l + Domestic) Carrier Ton-miles (millions) 1. Federal Express 7,466 2. Lufthansa German Airlines 4,995 3. Singapore Airlines 4,188 4. Korean Air 3,873 5. Air France 3,553 6. Japan Air Lines 3,226 7. United Airlines 3,153 8. KLM Royal Dutch Airlines 2,969 Source: Aviation and Aerospace Almanac 2002
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MIT ICAT MIT ICAT Top U.S. Air Cargo Airlines in 2001 Total Freight and Mail (Int’l + Domestic) Carrier Ton-miles (millions) 1. Federal Express 7,565 2. UPS Airlines 4,081 3. United Airlines 1,919 4. Northwest Airlines 1,918 5. American Airlines 1,813 6. Delta Airlines 1,269 7. Atlas Air 1,072 8. Polar Air Cargo 892 Source: ATA Annual Report 2002
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MIT ICAT MIT ICAT Selected Cargo Carriers 2001 (Source: ATA) Carrier Number of Aircraft Air Cargo Ton-miles (millions) Cargo Revenue ($ million) % of Operating Revenue FedEx 320 7,609 $ 6,948 45.8 % UPS Air 258 4,094 $ 2,624 96.6 % United 543 2,390 $ 704 4.3 % Northwest 440 2,161 $ 715 7.5 % KLM 132 2,512 $ 882 15.5 %
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MIT ICAT MIT ICAT Demand for Air Cargo Services Like demand for passenger air travel, demand for air cargo shipment is a “derived” demand. Primary drivers of air cargo demand include:
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This note was uploaded on 11/08/2011 for the course AERO 16.851 taught by Professor Ldavidmiller during the Fall '03 term at MIT.

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06cargo_econmics - MIT MIT ICAT Air Cargo Economics Prof....

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