air cargo
158386635
Does cargo matter? The impact of air cargo operations on departure on time performance for combination carriers
Airline business models are under constant development. Combination carriers generate revenues from passenger and cargo operations jointly. This study makes use of an econometric model to investigate how air cargo operations impact on the quality of service perceived by passengers. Building on empirical data from the U.S. it indicates that air cargo operations increase departure delays. Hence, passenger and cargo business are tied together in terms of revenue as well as operational complexity. To address this trade off, airline business models must be considered within the entire continuum of passenger and cargo operations.
Anne Lange
59604936
The air cargo load planning problem a consolidated problem definition and literature review on related problems
Abstract This work describes the operational load planning problems of air cargo carriers. In the literature the term air cargo loading is used ambiguously for different subproblems that appear during the load planning process for a flight. In its entirety the problem has not yet been the subject of published research. This work introduces the overall problem, the planning decisions, the objectives of the involved stakeholders, and the restrictions occurring in practice. It reviews and categorizes related literature dealing with similar problems or subproblems. The typical problem setting in practice is analyzed to get insights into the real world problem and a large benchmark dataset is presented. Finally, challenges of the current planning practice and research gaps are highlighted.
Eur. J. Oper. Res.
Felix Brandt Stefan Nickel
203085667
Optimal Pricing Decisions of Competing Air Cargo Carrier Systems Impacts of Risk Aversion, Demand, and Cost Uncertainties
Air cargo transportation has become increasingly important for global logistics systems nowadays. However, due to the intensive market competition and diverse uncertainties arising from demand and operating costs, the pricing decisions for air cargo carriers are extremely challenging but underexplored. Besides, many airlines are holding risk averse attitudes in decision making in order to survive in the highly volatile and competitive market. Therefore, in this paper, we apply the mean variance theory to characterize the risk averse behaviors of decision makers, and analytically derive the equilibrium prices for two competing risk averse air cargo carriers under demand and cost uncertainties. Then, we uncover how the crucial factors, like risk sensitivity coefficients, market competition, market share, demand uncertainty, and cost uncertainty, affect the carriers' optimal prices. In addition, important cost thresholds and relative risk averse attitude thresholds are identified. Our analytical results demonstrate the symmetry in the optimal prices and critical thresholds for the two carriers. Besides, we reveal the importance to consider both carrier's own and the competitor's risk attitudes and operating characteristics in decision making when market competition exists. Moreover, we reveal the direct and indirect impacts of risk attitudes on the optimal prices, thus highlighting the importance to integrate risk considerations into the optimal pricing decision framework. Finally, we show that market situations play a critical role in characterizing the effects of diverse parameters on the equilibrium prices, which should be carefully evaluated by decision makers in air cargo carriers.
IEEE Transactions on Systems, Man, and Cybernetics: Systems
Xin Wen Xiaoyan Xu Tsan-Ming Choi
159203583
Co opetition effect of promised delivery time sensitive demand on air cargo carriers' big data investment and demand signal sharing decisions
We study two competing air cargo carriers' incentives of cooperation with promised delivery time (PDT) sensitive demand, where Carrier 1 may invest in big data and share demand signal with Carrier 2. When the carriers focus on demand competition, Carrier 1's big data investment may benefit itself and the rival, while Carrier 1 never shares its updated demand signal. When the carriers focus on PDT competition, Carrier 2 does not prefer Carrier 1's big data investment when the PDT competition is fierce. Interestingly, Carrier 1 may be willing to share its updated demand signal and a "win win" situation occurs.
Transportation Research Part E: Logistics and Transportation Review
Baozhuang Niu Zhipeng Dai Xiaopo Zhuo
159343749
Economic costs of air cargo flight delays related to late package deliveries
Abstract We consider the cost of air cargo flight delay related to late package deliveries, which has received scant attention in previous research. We developed two models to estimate the costs of flight delay. First, we estimate a mixed logit model to investigate the factors that influence late deliveries, with specific emphasis on flight on time performance. Then we build a regression model to monetize the loss of late deliveries, using the hedonic approach to estimate the degradation in product value resulting from less reliable on time package delivery. Estimates of flight delay costs for four representative US airports range from $8000 to $38,000 per flight hour, with an average of about $20,000, which is roughly three times the direct operating cost per block hour for air cargo flights estimated by GRA (2007) and also much higher than the unit flight delay cost related to passenger delay.
Transportation Research Part E: Logistics and Transportation Review
Yulin Liu Mogeng Yin Mark Hansen
199684502
A data driven air cargo redistribution model based on multiple programming
Air cargo transportation is an essential mode of cargo transportation. How to distribute air cargo into flights better is an important operational problem. In this paper, air cargo data collected by CAAC (Civil Aviation Administration of China) during the first three months of 2018 are analyzed. We find that the available capacity for cargo transportation shows great variations, and the cargo compartment utilization rates of flights are heterogeneously distributed. Next, a data driven air cargo redistribution model is developed based on multiple programming (MP) The proposed model can effectively transport high priority goods and balance cargo compartment utilization rates of flights. In addition, the proposed model framework can provide a new solution to multi objective or multi stage optimization problems.
International Journal of Modern Physics B
Yang Peng Pu Wang Xiaolong Zhao Meilin Chen Jingmin Zhang Fan Zhang
158640442
Improving the Sustainable Competitiveness of Service Quality within Air Cargo Terminals
In Taiwan, the air cargo terminal business is a government franchise. Due to changing order and delivery modes, the volume of cargo exports has gradually decreased in recent years, generating increasing competitiveness within the air cargo terminal industry. Previous studies of air cargo terminals have largely focused on manpower supply planning and business performance. When a company pursues sustainable development and growth, it can improve the quality of the service provided, promote better customer satisfaction and enhance its competitiveness and customer loyalty in order to enjoy sustained development and higher profits. Having carried out a literature review, exploration and interviews with experts, this study develops a preliminary structure that is based on theory and practice and develops a framework for air cargo terminal service quality using the decision making trial and evaluation laboratory (DEMATEL) method combined with the analytic network process (ANP) Eight key criteria are examined, namely, 'New facilities or high tech equipment, 'Professional spirit, 'Security and safety, 'Sense of trust, 'Ability to handle unusual cargo, 'Professional, 'Standard operation processes, and 'Customer equity. The causality among each of these principles is also evaluated using the D ANP questionnaire that was completed by 25 business forwarders. With respect to the quality of service demanded by forwarders, different strategies were drafted separately and provide a frame of reference for air cargo terminal operators.
Yi-Chung Hu Ping-Chuan Lee Yuh-Shy Chuang Yu-Jing Chiu
55080556
Cooperating to Compete in the Global Air Cargo Industry: The Case of the DHL Express and Lufthansa Cargo A.G. Joint Venture Airline 'AeroLogic'
This paper presents a case study of the DHL Express and Lufthansa Cargo strategic joint venture cargo airline 'AeroLogic' the global air cargo industry's largest operative joint venture between an airline and a leading international express and logistics provider. The study used a qualitative research approach. The data gathered for the study was examined by document analysis. The strategic analysis of the AeroLogic joint venture was based on the use of Porter's Five Forces framework. The study found that the AeroLogic joint venture airline has provided synergistic benefits to both partners and has allowed the partners to access new markets and to participate in the evolution of the air cargo industry. The new venture has also enabled both joint venture partners to enhance their competitive position in the global air cargo industry through strengthened service offerings and has provided the partners with increased cargo capacities, a larger route network, and greater frequencies within their own route networks. The study also found that the AeroLogic business model is unique in the air cargo industry. A limitation of the study was that AeroLogic's annual revenue or freight traffic data was not available. It was, therefore, not possible to analyse the business performance of the joint venture.
Glenn Baxter Panarat Srisaeng
169791365
Analysis model to quantify potential factors in the growth of air cargo logistics in airports
Abstract This paper presents an analysis model that allows evaluating the growth opportunities of air cargo in an airport. For this, a model which identifies the elements that affect the capacity of an airport to attract cargo operations and air cargo airlines has been developed. The identification of the elements of the model has been performed through a sectoral review of air cargo, an analysis of the entire logistics chain including the physical flow, the documentary flow, and all the agents involved in it. The analysis of the logistics chain has been carried out from the operational, technological, socio economic and environmental standpoint, considering all the factors that influence the competitiveness of the logistics chain. Specifically, the operational characteristics that an air cargo transport requires both at the airport infrastructure and the logistics operators level, the technologies for the handling of freight and its control (on land and on board) have been examined. Other characteristics include the different types of products transported according to their characteristics, the associated supply chains considering locations and routes with their origins and destinations, and the existing markets with the main demands of each type of merchandise. The model has been developed by using the Analytic Hierarchy Process methodology with absolute measurements. This methodology considers the judgements of experts in terms of the weightings of the different factors and attributes that constitute the model. The Zaragoza airport has been used for the model assessment. Furthermore, minimum thresholds were established for the attributes. Thus, it is obtained a model that allows an analysis of the improvement capabilities of airports focused on air cargo activity.
Emilio Larrode Victoria Muerza Victor Villagrasa
4713493
Game theoretic Analysis of Air cargo Allotment Contract
Consider an air cargo carrier and a freight forwarder, which may establish an allotment contract at the start of the season. The allotment size needs to be determined, before their stochastic demands materialize. The forwarder hopes to receive a discount rate, lower than the spot rate. The carrier hopes to increase capacity utilization by handling not only its own direct ship demand but also the forwarder's demand. We formulate a Stackelberg game, in which the carrier is the leader and offers contract parameters such as the wholesale price and the refund rate for the unused allotment as well as the minimum allotment utilization. Given the carrier's offer, the forwarder decides how much to book as an allotment, in order to maximize its own expected profit. We analyze the game and identify conditions, in which an equilibrium contract coordinates the air cargo chain. We show that the minimum allotment utilization is needed to construct a coordinating contract. In our numerical examples, we illustrate how to apply our approach to the case study of one of the biggest forwarders in Thailand. The contract can improve both parties' profits, compared to the scenario without any contract, where the forwarder purchases all capacity from the spot market.
ICORES
Kannapha Amaruchkul