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Stay Woke Air strive to have the best forecasting team to help us stay ahead of the competition. The Impact of Air Cargo OperationsAir cargo plays a huge role in the airline industry. Air cargo is the reason we can enjoy many of the conveniences we have today. Air freight generates about 90% revenue of air cargo industry: about 35% of world-trade value (Boeing, 2017). There are a few business models that depend on air cargo such as Amazon prime and live animal shipment. Air cargo can be categorized into multiple sub sections such as Heavy cargo (HEA), Human remains (HUM), LiveAnimals (AVI), and Dangerous Goods (DGR). Air cargo is an essential part of the airline industry as we know it today. There are a few main factors to consider when an airline is thinking of becoming an air cargo operator. Three such factors are scheduling, scheduling sensitivity, and traffic flow. Scheduling is important in any business. Depending on the airline, they may have multiple clients that they service. Of course, every client will want their packages delivered on time, so it is incredibly important that the airline keeps a consistent schedule. Scheduling sensitivity for the various jobs are based on priorities. Each job carries its priority code, and when several jobs are waiting, the highest priority one will be served first. Various manufacturing configurations, like generalized flow shops, assembly systems, and job shops are discussed to handle the clients and to best accommodate everyone. There are the different types of cargo with their own specific needs, like different types of packaging, requirements and storage. All this has an impact on airline scheduling. Traffic flow is our last main factor that needs to be considered. Each year that passes, our air space gets more congested due to our growing aviation dependency. When it
AIRLINE REVENUE MANAGEMENT PROJECT15comes to strictly cargo planes many airlines will fly their aircraft at night to try to mitigate the over-populated skies (Hu, X., Cui, N., Demeulemeester, & Bie, 2016). Not only does air cargo have an impact on the airline industry but it has an impact on the world. One of the major factors that influence air freight is nation’s economy. As air cargo remains one of the biggest contributors to national economy, national economy can affect demand and supply of air freight. In booming economies, demand for air freight services can exceed capacity, which leads to higher prices. Carriers may have to lower prices below market value in other to fill up empty spaces when the economy is bad. Household income, wages and salaries are few of factors that affect national economy (Boeing 2017).Air cargo transport enables nations, regardless of their geographic location, to efficiently connect to distant markets and global supply chains in a speedy and reliable manner. Aviation’s speed and reliability are also a key factor in the delivery of urgent assistance during emergencies caused by natural disasters, famines and wars. Air drops are among the first responses of aid agencies to stem humanitarian crises. Air cargo also plays a vital role in the rapid delivery of