Air transport

Air freight has been growing faster than global trade for the past fifty years, with its market share steadily increasing. Advances in aviation technology, the commercial efforts of carriers, and changes in logistics management methods are the main drivers of growth for a mode of transport that accounts for about 1% by weight but 25% by value of global trade.

Air cargo also accounts for a small portion of airlines' business; passenger transport generates about 85% of revenue, but there is considerable variation around this average.

The fundamental economic characteristic of air freight is a paradox that can be expressed as follows: how can a higher transport price result in lower distribution costs for certain types of products and under certain circumstances?

After devoting the first part of this report to solving this apparent puzzle, we will then review the resources deployed (capacity, cargo units, ground facilities, IT systems), the key players in air freight (customers, airlines, freight forwarders, and airports), and its marketing (market segmentation, pricing, revenue management – revenue optimization –, transport documents), as well as the role of e-commerce and e-business. We will conclude by examining three major issues on which the future of this mode of transport partly depends:

• the environment;

• security;

• wedding rings.

Readers may find the following references useful: [1][2][3][4] in .