MIT ICAT Air Cargo Economics Prof, john-Paul clarke 16.886 Air Transportation Systems Architecting February 24, 2004
MIT ICAT MIT ICAT Air Cargo Economics Prof. John-Paul Clarke 16.886 Air Transportation Systems Architecting February 24, 2004
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
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
MIT ICAT Air Cargo Industry Air Cargo Categories Express/time definite: small packages (less than 100 Ib Heavyweight freight shipments(greater than 100 Ib Mail transport Participants: All-Cargo Airlines Integrated Express Carriers(expresssmall 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
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
MIT Top Air Cargo Airlines Worldwide in 2000 ICAT Total Freight and Mail(Int'I+ 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
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
MIT Top U.S. Air Cargo Airlines in 2001 ICAT Total Freight and Mail(Int'I+ Domestic) Carrier Ton-miles(millions 1. Federal Express 7,565 2. UPS Airlines 4.081 3. United airlines 1919 4. Northwest airlines 1918 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
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