Time to Change?

Traditional Air Cargo business has been operating on the maxim 'Higher the weight, Lower the rate'. Is it not the time that this is changed? The dropping yields have been a matter of concern and while Airline may be smart to fill their aircraft belly with the right mix of cargo to maintain an acceptable yield but is that always possible? The small packets / cargo may be diverted to Integrators besides can one be complacent with limiting to an 'acceptable yield' only? The cost elements continue to rise and the bottom line margin will continue to dwindle. Integrators have been successful in being different with their pricing so what is stopping us from looking at alternate pricing models. We do have competition from the shipping industry, however the need for Air Cargo will continue. Revenue Management, long term contracts with Agents and Shippers and other promotional activities may to a certain extent offer sustained payloads and the committed revenue but isn't it a right time for us to innovate and work for a pricing model that will help the industry remain competitive and yet improve their yields. Personally, I am exploring what alternate model may work. My thinking cap is on!


要查看或添加评论,请登录

Mukesh Mudholkar的更多文章

  • Will you and how much will you undertake air travel in the near future?

    Will you and how much will you undertake air travel in the near future?

    One's earnings will definitely determine the willingness to undertake air travel as a preferred option. So the question…

  • Vaccination and Revival of the Aviation Industry

    Vaccination and Revival of the Aviation Industry

    There is an optimism that the corona vaccine will see the light of the day soon. Two major questions are now on top of…

    2 条评论
  • Cargo Rates - Is a change required?

    Cargo Rates - Is a change required?

    Dear Industry friends and colleagues, I am doing a research on the current air cargo rating structure and request for…

  • 'Remote' - Do we have boundaries?

    'Remote' - Do we have boundaries?

    Over the several months, all the possible 'Normal' models have changed. Be it business, finance, work, education…

    1 条评论
  • Planning Ahead!

    Planning Ahead!

    The STAT Trade Times edition of February 2020 mentioned that the global pharmaceutical market is worth $1.2 trillion…

  • Re-imagining the future.

    Re-imagining the future.

    The world is undergoing a turmoil and we do not know when this would end. On the positive side the carbon footprint has…

    1 条评论
  • IATA Cargo Strategy-2018

    IATA Cargo Strategy-2018

    https://www.iata.

  • How much of Technology do we need?

    How much of Technology do we need?

    When my son asked me the meaning of a word which I could not recollect, I instantly had the thought to look this up on…

  • Airline Cargo Business Analyst

    Airline Cargo Business Analyst

    Looking for Business Analyst with 4-5 years of experience in Airline Cargo with knowledge of Cargo IT Systems. Must be…

    1 条评论

社区洞察

其他会员也浏览了