services

What is different about air cargo?

As air cargo is less well developed than the passenger business it is generally forecast to grow at a significantly faster rate than the passenger business. The air cargo market divides into three broad sector categories, integrated cargo operators providing a door-to-door service, passenger airline belly-hold cargo and air freighter operators.

In spite of the importance of air cargo in the UK, foreign operators dominate the market and the major UK airlines are generally much weaker in the freighter sector than their major European counterparts. Part of the reason for this difference is due the large volume of belly-hold capacity of larger aircraft on the well-developed long-haul passenger network. One other reason may be due to the imbalance in the directional flows, large imports and small exports.

MSP Solutions understands the challenges of the cargo market including producing credible forecasts of future business activity. Today there are many more business development opportunities in the air cargo related activities. Many of the established players will need to review their strategies to remain competitive in these markets. However, the pressure to improve general business efficiency and cut costs will continue to assist in the overall growth in the air cargo market.

The MSP Solutions Approach

MSP Solutions have specialist expertise in airline business and understand the critical importance of inter-modal solutions to achieve a competitive door-to-door air cargo product. Consistent, reliable performance with the ability to track the progress of packages at all stages of the transportation process are also important factors in success and failures can no longer be tolerated.

We offer advice on cargo to airports, airlines and other organisations interested in the air cargo market, whether this relates to the selection of aircraft, the development of networks, establishment of cargo hubs, or simply managing an existing business.

 

We recently carried out a study of the long- term cargo demand in the UK and compared this with the likely availability of airport capacity at the airports located closest to demand. We discovered that the DfT's plans for UK airport development would not meet the long terms needs of the air cargo industry. We believe that the industry and the Government will soon need to review the position again.

The benefit to our clients

Using MSP, our clients benefit from our detailed sector knowledge of the air cargo market and the associated airport and ground transport infrastructure. Combining modeling techniques and expert domain knowledge allows MSP to project, derive and develop flexible models for a variety of applications. This also provides the basis of sound strategic advice in the air cargo sector to meet the specific client needs.

Hence we are able to provide our clients with the understanding they need of the intrinsic risks associated with the air cargo business, key trends and the factors affecting the markets as well as the likely demand and supply parameters of its future business environment.