AIR TRANSPORTATION

Introduction

Now days, air transportation is one of the most important mode transportation selection.

The primary reason for growth in air cargo

1.    Deregulation and liberalization of the air cargo industry.

2.    Global interdependence helped by world trade agreement.

3.    International production and sales goods and service.

4.    New air-eligible commodities

5.    The vast development of high value and limited time-consumable commodities

Airplanes and aviation equipment

Belly space

The space in the belly of a passenger plane normally used for luggage.

Flex belly

Some planes are basically passenger planes, but the interior can be adjust to include more or less space for cargo or passenger.

Freighter

This is a planed used for cargo. Freighter planes build just for this purpose normally would not include windows, since there is no need for windows along the body of the plane.

Truck

Major airlines have been replacing their larger planes with smaller planes for shorter flight. This can reduce cargo space available, and thus means air cargo companies need to find quick alternative.

Air Cargo carriers

 

1.       Integrated carrier

-Delicate cargo service (focus fully cargo)

-Air cargo

2.       Schedule carrier

-National carrier, all country have own schedule carrier.

-Air line

3.       Charter carrier

-Use only in sentence time.

-Charter for sentence project.

-Integrated carriers also can use this charter carrier to deliver the goods.

Why company using air transportation?

1.    Unpredictable/emergency

In case of unexpected demand that need the goods emergency, by using air transportation can make the delivery fast as can. Usually, in emergency or unpredictable case will use air transportation to make short lead time.

2.    Seasonal

Seasonal is one of the causes company using air transportation, because when seasonal peak demand will increase and need to deliver to customer as fast as can. If select to using road transportation it will cause long time journey.

3.    Type of product

Type of product is the main factor of choosing air transportation such perishable product. These kinds of product usually need to deliver faster to make sure the quality still high level.

4.    Geographical  Factor

Geographic in all country is different.

Advantages of air transportation

·         The movement of the goods is very fast.

-Even it much expensive than other mode of transport but they still use it because the nature of demand and can deliver in short time.

·         Reduce warehousing cost.

-No need to keep longer time to storage at warehouse because using air mode transportation can minimize lead time.

·         Suitable for perishable goods.

-In order to control the quality of the perishable goods by using air transportation can give satisfaction to customer with the right time, right condition of the goods.

·         Low risk

-Using air mode transportation has a high level of security. Even the prices are more expensive but have a low risk of damage and to be stolen.

Aviation economics

ü  Volume of traffic

-The higher the traffic volume, the cheaper it is to provides service, and thus the service is cheaper.

ü  Direction of traffic

-While passengers normally travel round trip, cargo does not. Many trades lanes have more traffic going one way than the reverse.

ü  Characteristics of  the traffic

-This includes cargo density, size of piece, and average weight of the shipment. Note dimensional weight discussion above.

ü  Value of the service

-This is determined not just by the airline, but needs of the customer

ü  Competition

-Carriers cannot avoid influence of the other carriers in the determining their rates.

Types of rates

·         Specific commodity rates

-usually lower than standard rates, are available for certain commodities that moves in large volume.

·         Exception rates

-Usually higher than standard rates, are higher for cargo that requires special handling.

·         Priority reserved rates

-Higher than standard rates, allow company to reserve space on the specific flight so they will know the exactly when the cargo is arrive at its destination.

·         Speed package rates

-Designed for small packages moving airports to airport. This is also a higher priced premium service.

·         Container rates

-Apply to the container, which may or may not be adjusted depending on the commodity.