Factors Influencing Air Cargo Business: Business Plan and Strategy, Professional Human Resources, and Airlines’ Performance
DOI:
https://doi.org/10.38035/jafm.v4i2.220Keywords:
Air Cargo, Economic Growth, Business Plan and Strategy, Human Resources, Airlines’ PerformanceAbstract
The air cargo business has facilitated international trade and the global economy. It plays an important role due to its characteristics, such as long-distance capability, short transport times, low network density, and comparatively low transport capacities. This article then tried to explain and analyze some prominent factors that are influencing the air cargo business. During the research process, the author used a qualitative method by focusing on the literature review design. The result of this article showed that three prominent factors have a significant influence on the air cargo business. First, business plan and strategy by creating an integrated and consolidated plan to achieve competitive advantage. Second, professional human resources or actors who have a crucial role in air cargo operations, such as the shipper, freight forwarder of integrator, customs agent, and ground handling agent. Third, airlines’ performance can be found in product and service quality improvement. Furthermore, other factors also have an influence, namely airport management, economic factors, government policies, the air cargo market, technology advancement, and environmental issues.
References
Amaruchkul, K., Cooper, W. L., & Gupta, D. (2011). A Note on Air-Cargo Capacity Contracts. Production and Operations Management, 20(1), 152–162. https://doi.org/10.1111/J.1937-5956.2010.01158.x
Asch, T. Van, Dewulf, W., Kupfer, F., Meersman, H., Onghena, E., & Van de Voorde, E. (2019). Air cargo and airport competitiveness. Journal of Air Transport Studies, 10(2), 1–27. https://doi.org/10.38008/jats.v10i2.142
Bakhitiyorjon, A., & Lee, H. (2017). A Study on the Factors Affecting the Flexibility of cargo airlines to switch the airport. International Commerce and Information Review, 19(2), 237–258.
Bombelli, A., Santos, B. F., & Lóránt, T. (2020). Analysis of the air cargo transport network using a complex network theory perspective. Transportation Research Part E, 138, 1–21. https://doi.org/10.1016/j.tre.2020.101959
Chao, C., & Li, R. (2015). Effects of cargo types and load ef fi ciency on airline cargo revenues. Journal of Air Transport Management, 30(2015), 1–8. https://doi.org/10.1016/j.jairtraman.2015.11.006
Chen, C., Chang, Y., & Chou, S. (2008). Enhancing the design of air cargo transportation services via an integrated fuzzy approach. Total Quality Management & Business Excellence, 19(6), 661–680. https://doi.org/10.1080/14783360802024218
Dewulf, W., Meersman, H., & Van de Voorde, E. (2021). The Strategy of Air Cargo Operators About Carpet Sellers and Cargo Stars. February. https://doi.org/10.1108/S2212-160920190000008008
Feng, B., Li, Y., & Shen, Z.-J. M. (2015). Air cargo operations : Literature review and comparison with practices. Transportation Research Part C, 56(2015), 263–280. https://doi.org/10.1016/j.trc.2015.03.028
Gupta, A., & Walton, R. O. (2017). Assessment of air cargo airlines: An interpretive structural modeling approach. Procedia Manufacturing, 11(2017), 1908–1915. https://doi.org/10.1016/j.promfg.2017.07.333
Hajjar, B., & Kaitouni, O. D. (2018). Success Factors for developing Air cargo in African Markets. Proceedings of the International Conference on Industrial Engineering and Operations Management, 2450–2461.
Hong, S., & Jun, I.-S. (2015). An evaluation of the service quality priorities of air cargo service providers and customers. World Review of Intermodal Transportation Research, 1(1), 55–68. https://doi.org/10.1504/WRITR.2006.011151
IATA. (2019). Air cargo and e-commerce enabling global trade.
Larrodé, E., Muerza, V., & Villagrasa, V. (2018). Analysis model to quantify potential factors in the growth of air. Transportation Research Procedia, 33(2018), 339–346. https://doi.org/10.1016/j.trpro.2018.10.111
Magaña, U., Mansouri, S. A., & Spiegler, V. L. M. (2016). Improving demand forecasting in the air cargo handling industry: a case study. International Journal of Logistics Research and Applications, 1–22. https://doi.org/10.1080/13675567.2016.1263610
Merkert, R., Van de Voorde, E., & de Wit, J. (2017). Making or breaking - Key success factors in the air cargo market. Journal of Air Transport Management, 30(2017), 1–5. https://doi.org/10.1016/j.jairtraman.2017.02.001
Noss, M., & Wenzel, D. (2015). Air cargo market – assessments and forecasts (Issue July).
Reis, V., & Silva, J. (2016). Assessing the air cargo business models of combination airlines. Journal of Air Transport Management, 57(2016), 250–259. https://doi.org/10.1016/j.jairtraman.2016.08.011
Rodbundith, T. S., & Sopadang, A. (2021). Evaluation of factors affecting air cargo terminal operation performance during COVID-19. Proceedings of the 11th Annual International Conference on Industrial Engineering and Operation Management, 6687–6696.
Sahoo, R., Bhowmick, B., & Tiwari, M. K. (2021). Developing a model to optimise the cost of consolidated air freight considering the varying scenarios. International Journal of Logistics Research and Applications, 1–25. https://doi.org/10.1080/13675567.2021.2010682
Sales, M. (2016). Aviation Logistics: The Dynamic Partnership of Air Freight and Supply Chain. Kogan Page Ltd.
Tan, D., & Tsui, K. (2016). Investigating causality in international air freight and business travel: The case of Australia. Urban Studies, 1–16. https://doi.org/10.1177/0042098015620520
Van Vliet, N. S. C. (2010). Air cargo alliances: Walking on a Thin Line -- A study on the impact of air cargo alliances (Issue May). Open University of the Netherlands.
Ying, Y.-H., Chang, C.-P., & Hsieh, M.-C. (2008). Air Cargo as an Impetus for Economic Growth through the Channel of Opennes: The Case of OECD Countries. International Journal of Transport Economics, 35(1), 31–44.
Zhou, J., Leng, L., & Shi, X. (2022). The Impact of Air Cargo on Regional Economic Development: Evidence from Chinese Cities. Sus, 14, 1–16.
Zhu, L., Wu, Y., Smith, H., & Luo, J. (2022). Optimisation of containerised air cargo forwarding plans considering a hub consolidation process with cargo loading. Journal of the Operational Research Society, 1–20. https://doi.org/10.1080/01605682.2022.2096493
Downloads
Published
How to Cite
Issue
Section
License
Authors who publish their manuscripts in this journal agree to the following conditions:
- The copyright on each article belongs to the author(s).
- The author acknowledges that the Journal of Accounting and Finance Management (JAFM) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
- Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Journal of Accounting and Finance Management (JAFM).