Commercial Drivers for Growth in Air Cargo Globalization trends Longer distances between producers and consumers Emerging markets, e.g. China, South America, Africa · Lean manufacturing Faster response to market demand e.g.JIT Focus on "flow to eliminate waste Air freight operators looking for new markets Most transoceanic freight shipped by surface Gap in capability-"middle market Ship is inexpensive but takes 18-30 days Air is expensive but takes only a few day Operating economics drive Increased capacity per air freighter Reduced crew and fuel costsCommercial Drivers for Growth in Air Cargo • Globalization trends – Longer distances between producers and consumers – Emerging markets, e.g. China, South America, Africa • Lean manufacturing – Focus on “flow” to eliminate waste, e.g. JIT – Faster response to market demands • Air freight operators looking for new markets – Most transoceanic freight shipped by surface – Gap in capability- “middle market” • Ship is inexpensive but takes 18-30 days • Air is expensive but takes only a few days • Operating economics drive – Increased capacity per air freighter – Reduced crew and fuel costs