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Air Cargo Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Do you want to start an air cargo company and need to write a plan? If YES, here is a sample air cargo business plan template & feasibility report. 

Air cargo business is one of the few businesses that are restricted to location and of course the presence of airports and it requires core professionals to handle.

It is a business that an investor with the right skills and connection can start. Below is a sample air cargo company business plan template that will help you successfully launch your own business.

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A Sample Air Cargo Company Business Plan Template

1. industry overview.

The Global Cargo Airlines industry includes businesses that provide air transportation for commercial and private cargo on either scheduled or non-scheduled routes. The industry also includes express services and air transportation that is part of a national postal system, while courier services are excluded from this industry’s operations.

Some of the key factors that will contribute to growth in this industry include growth in the manufacturing sector, consumption, international trade and also increase in technology reliance will provide new opportunities for logistics consulting and advisory services, particularly for distribution chain networks and logistics.

We are not ruling out the fact that technology can also cut some jobs in the industry. The Global Cargo Airlines Industry is indeed a very thriving industry in most countries of the world. It is a major sector of the economy of the united states and it generates over 1 billion annually from more than 6,275 registered and licensed air cargo / freight packing and logistics companies.

The industry is responsible for the employment of over 31,785 people. Experts project the industry to grow at a 1.9 percent annual rate between 2014 and 2019. FedEx Express and UPS Airlines Inc have a dominant market share in this industry in the United States.

Research conducted by IBISWORLD shows that over the five years to 2019, the Global Cargo Airlines industry has experienced constrained growth amid a chronic excess of cargo capacity and mounting competition from maritime transportation.

Additionally, demand for industry services has remained relatively weak during the five-year period despite rising global income levels and increased production activity among developed economies.

In fact, the total value of world trade has decreased at an annualized rate of 0.4 percent over the five years to 2019. At the same time, substantial declines in the world price of crude oil have prevented industry operators from generating revenue through fuel surcharge fees, further limiting industry growth.

Overall, industry revenue is estimated to increase at an annualized rate going forward. Starting and operating an air cargo company can be capital intensive and challenging, but the truth is that it can be rewarding at the same time.

One good thing about the industry is that it is open for both big time investors who have the capacity to start the business with their own cargo airplane and aspiring entrepreneurs who may want to start as middlemen between air cargo operators and customers.

2. Executive Summary

Eagle Express® Air Cargo, Inc. is a registered and licensed air cargo services company that will be based in New York City – New York. We are in business to provide air cargo services such as domestic air transit deliveries, international air transit deliveries, ground deliveries, messengers and local deliveries et al.

Eagle Express® Air Cargo, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States and other countries of the world. We will ensure that we abide by the rules and regulations guiding The Freight Packaging industry.

Our customers can be rest assured that they will get quality services at competitive rates. We will ensure the safety of goods under our care and our customers will get value for their money. At Eagle Express® Air Cargo, Inc. our goal is to provide excellent services to our customers and we pride ourselves on the integrity and competence of our company and our employees.

At Eagle Express® Air Cargo, Inc. we are passionate in the pursuit of excellence and financial success with uncompromising services and integrity which is why we have decided to start our own air cargo services business. We are quite optimistic that our values and quality of service offering will help us drive our business to enviable heights and also help us attract the number of clients that will make the business highly profitable.

We are quite aware that in order to become the number one choice in our city, we must continue to deliver timely and quality services.

We are open to the use of latest technology in The Global Cargo Airlines industry. No doubt our excellent customer service and the quality of services we offer will position us to always welcome repeated customers and handle massive deals both from government agencies and industrial giants.

Our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Eagle Express® Air Cargo, Inc. is a family business; it is owned by Spencer James Teddy and his immediate family members.

The company will be fully financed by the Spencer JT family. Mr. Spencer James Teddy has a diploma in Transport and Logistics Management, BSc. Business Administration and over 20 years of hands on experience working for some of the leading in companies in the Global Cargo Airlines industry .

3. Our Products and Services

Eagle Express® Air Cargo, Inc. is established with the aim of maximizing profits in The Global Cargo Airlines industry. We want to compete favorably with leading air cargo/freight packaging and logistics companies in the United States which is why we will ensure that every service carried out meets and even surpass our customers’ expectations.

We will work hard to ensure that Eagle Express® Air Cargo, Inc. is not just accepted in New York City – New York but also in other cities in the United States of America and Canada. Our service offerings are listed below;

  • Air transportation of cargo
  • Air transportation of national postal systems
  • Chartered airfreight services
  • Scheduled airfreight transportation

4. Our Mission and Vision Statement

Our Vision is to become one of the preferred choice when it comes to air cargo/freight packaging and logistics services in the whole of the United States of America.

Our mission is to ensure that we build a successful air cargo services company that will operate in the whole of the United States of America; a company that will grow to be listed amongst the top 5 air cargo services companies in the whole of the United States of America.

Our Business Structure

Our business structure will be designed in such a way that it can accommodate both full – time employees and part-time/contract staff; those who just want to take some time off to generate additional income.

We intend starting the business with a handful of employees (documentation officers, professional material handlers/yard spotters and back office staff) and some of the available sales and marketing roles will be handled by freelance marketers. Adequate provision and competitive packages have been prepared for all our employees.

At Eagle Express® Air Cargo, Inc. we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company.

For now, we will partner with air cargo operators and contract the maintenance of our planes to a service provider, we don’t intend to maintain a very large overhead from the onset. But as soon as the business grows and stabilizes, we will assemble our own in- house maintenance team. Below are the business structure and the roles that will be available at Eagle Express® Air Cargo, Inc.;

  • Chief Operating Officer (Owner)

Admin and HR Manager

Air Cargo and Logistics Manager

  • Marketing and Sales Executive (Business Developer)
  • Material Handlers/Yard Spotters/Forklifts Operators
  • Customer Services Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer (Owner):

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for coordinating loads and journeys
  • Responsible for operating IT systems for the organization
  • Responsible for negotiating and agreeing contracts for the organization
  • Responsible for developing and confirming schedules
  • Responsible for planning for and negotiating technical difficulties
  • Responsible for preparing paperwork for regulatory bodies
  • Responsible for implementing health and safety standards
  • Handles the planning routes and load scheduling for multi-drop deliveries.
  • Handles booking in deliveries and liaising with customers.
  • Responsible for ensuring all partners in the supply chain are working effectively and efficiently to ensure smooth operations.
  • Responsible for developing transportation relationships.
  • Responsible for monitoring transport costs
  • In charge of negotiating and bargaining transportation prices
  • Responsible for dealing with the effects of congestion
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Design job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defining job positions for recruitment and managing interviewing process
  • Carrying out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversee the smooth running of the daily office activities.

Marketing and Sales Executives (Business Developers)

  • Identify, prioritize, and reach out to new clients, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Document all customer contact and information
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managers with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Material Handlers/Yard Spotters/Forklift Operators

  • Responsible for packing goods for transportation
  • Responsible for crating goods for transportation
  • Responsible for wrapping goods for transportation
  • Freight consolidation
  • In charge of trade document preparation
  • Responsible for storing goods prior to and after freight
  • Responsible for handling packing services for motor carrier and storage services

Customer Service Officer

  • Welcomes clients and visitors by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized – customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products and, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Going by our vision, our mission and the kind of business we want to set up, we don’t have any other option than to follow due process. Following due process involves hiring business consultant to help us conduct SWOT analysis for our business.

Eagle Express® Air Cargo, Inc. hired the services of a seasoned business consultant with bias in startups in the U.S. to help us conduct a thorough SWOT analysis and to guide us in formulating business strategies that will help us grow our business and favorable compete in the Global Cargo Airlines industry.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Eagle Express® Air Cargo, Inc.;

Our strengths are strong management, robust network (serving some of the largest population centers in the U.S.), size advantages, cost advantages, customer loyalty and strong reputation amongst domestic and industry players.

Our business is centrally located in the airport in New York City – New York; our location is in fact one of our major strengths. Another strength that counts for us is the power of our team; our workforce and management. Our team are experts in the Global Cargo Airlines industry.

Our weaknesses are lack of finance, cost structure, lack of scale compared to our peers who have already gained ground in the industry. As a new business which is owned by an individual (family), and we may not have the financial muscle to acquire our cargo airline for now. As a new business, we are also quite aware that it will take time for us to build trust with our clients.

  • Opportunities:

The opportunities that are available to us as an air cargo services company in the United States are online market, new services, new technology, and of course the opening of new markets. We are centrally located in one of the busiest industrial areas in New York and we are open to all the opportunities that the city has to offer.

Our business concept also positioned us to be the preferred choice in New York City – New York. The truth is that there are no standard air cargo company within the area where ours is going to be located; the closest to our proposed location is about 15 miles away. In a nutshell, we do not have any direct competition within our target market area .

Some of the threats that we are likely going to face are mature markets, bad economy (economy downturn), stiff competition, and volatile operational costs.

Other threats that are likely going to confront Eagle Express® Air Cargo, Inc. is unfavorable government policies , seasonal fluctuations, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and of course emergence of new competitors within the same location where ours is located.

7. MARKET ANALYSIS

  • Market Trends

The market trends as it involves the Global Cargo Airlines industry especially in the United States is indeed dynamic and at the same time challenging.

But one thing is certain, once an air cargo company can gain credibility, it will be much easier for the company to secure permanent deals/contracts with organizations, big time merchants and warehouse operators who are involved in moving goods and materials from one location to another on a regular basis.

Most players in the Global Cargo Airlines industry are positioning their businesses to maximize profits in the industry. It is an established fact that some of the key factors that will contribute to growth in this industry include growth in the manufacturing sector, consumption, international trade and also increase in technology reliance. We are not ruling out the fact that technology can also cut some jobs in the industry.

Lastly, operators in this industry know that some of the major factors that count positively in this line of business are competence, trust, honesty, good relationship management and of course timely and safe pick-ups and deliveries. Hence, they will ensure that they portray their company in this light.

8. Our Target Market

Our target markets are basically every one; organizations and individual as well who have cause to move documents, goods and materials from one location to another. In other words, our target market is the whole of the United States of America and below is a list of the people and organizations that we have plans to do business with;

  • Merchants and Warehouse Operators
  • Retailers who would want to move their goods from one location to another via air
  • Manufacturers (Chemical manufacturers, and Textiles manufactures et al)
  • Corporate organizations who would want to move cargo via air
  • Government agencies who have cause to move goods and materials from one location to another locations via cargo

Our competitive advantage

The competitions that exist in the Global Cargo Airlines industry is stiff because anyone that has the finance and business expertise can decide to start this type of business howbeit on a small scale servicing a city or more. Although, the Global Cargo Airlines industry requires some form of training and expertise, but that does not in any way stop any serious-minded entrepreneur to start the business and still make good profit out of it.

The Business model we will be operating on, ease of payment, wide range of services and our excellent customer service culture will definitely count as a competitive advantage for Eagle Express® Air Cargo, Inc.

So also, we have a team that can go all the way to give our clients value for their money; a team that are trained and equipped to pay attention to details and deliver cargo and consignments safely, and on time both locally, nationally and international level.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Eagle Express® Air Cargo, Inc. will ensure that we leverage on our strength and the opportunities available to us in the U.S. market to generate enough income that will help us drive the business to stability. We will go all the way to explore every available sources of income in the Global Cargo Airlines industry. Below are the sources we intend exploring to generate income for Eagle Express® Air Cargo, Inc.;

  • Airfreight transportation integrated services

10. Sales Forecast

One thing is certain; there would always be individuals and corporate organizations in the United States of America who would always need the services of air cargo companies for the various purposes.

We are well positioned to take on the available market in New York City – New York and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow the business and our clientele base beyond New York City – New York to other cities in the United States of America where we intend marketing our services.

We have been able to examine the Global Cargo Airlines industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projections for Eagle Express® Air Cargo, Inc., it is based on the location of our business and the wide range of services that we will be offering;

  • First Fiscal Year (FY1):  $1.5 million
  • Second Fiscal Year (FY2):  $2.5 million
  • Third Fiscal Year (FY3):  $3.5 million

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. There won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

The marketing strategy adopted by Eagle Express® Air Cargo, Inc. is going to be driven basically by professionalism, excellent customer service, honesty and quality service delivery.

We will ensure that we build a loyal customer base. We want to drive sales via the output of our jobs and via referral from our satisfied customers. We are quite aware of how satisfied customers drive business growth especially air cargo/freight packaging and logistics services.

Eagle Express® Air Cargo, Inc. is strategically located and we are going to maximize the opportunities that are available which is why we spent more to locate the business in a location that will be visible and enable us to access our target market.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be equipped to meet their targets and the overall goal of Eagle Express® Air Cargo, Inc.

Our goal is to grow Eagle Express® Air Cargo, Inc. to become the leading air cargo services company in New York City – New York which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with in the Global Cargo Airlines industry. Eagle Express® Air Cargo, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our air cargo services business by sending introductory letters alongside our brochure to corporate organizations, merchants and warehouse operators, households and key stakeholders in New York City – New York
  • Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
  • Use friends and family to spread word about our business
  • Post information about our company and the services we offer on bulletin boards in places like schools, libraries, and local coffee shops et al
  • Place a small or classified advertisement in the newspaper, or local publication about our company and the services we offer
  • Leverage on referral networks such as agencies that will attract clients who would need our customized services
  • Advertise our business in relevant magazines, newspapers, TV and radio stations
  • Attend relevant expos, seminars, and business fairs et al to market our services
  • Engage in direct marketing approach
  • Encourage the use of Word of mouth marketing from loyal and satisfied students
  • Join local chambers of commerce and industry to market our services.

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street they are operating must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business beyond New York City – New York which is why we have perfected plans to build our brand via every available means.

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for both corporate clients and households in the whole of New York and beyond which is why we have made provisions for effective publicity and advertisement of our air cargo services company. Below are the platforms Eagle Express® Air Cargo, Inc. intends leveraging on to promote and advertise the business;

  • Place adverts on both print (newspapers and magazines) and electronic media platforms
  • Sponsor relevant community – based events / programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, YouTube, Google + et al to promote our services
  • Install our billboards in strategic locations all around New York City – New York
  • Distribute our fliers and handbills in target areas
  • Contact corporate organizations and households by calling them up and informing them of Eagle Express® Air Cargo, Inc. and the services we offer
  • List our company in local directories/yellow pages
  • Advertise our company in our official website and employ strategies that will help us pull traffic to the site.
  • Ensure that all our staff members wear our branded shirts and all our trucks and vans are well branded with our company logo et al.

12. Our Pricing Strategy

Eagle Express® Air Cargo, Inc. has perfected our plans to charge competitive rates since we have minimal overhead compared to our competition in the industry.

We will ensure that we leverage on price to win over customers; our prices will be affordable and negotiable. The fact that our business door is open to both individuals and corporate organizations means that we will have different price range for different category of clients. As the business grows, we will continue to review our pricing system to accommodate a wide range of clientele.

  • Payment Options

The payment policy adopted by Eagle Express® Air Cargo, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America. Here are the payment options that Eagle Express® Air Cargo, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment via online bank transfer
  • Payment via check
  • Payment via Point of Sale Machines (POS Machine)
  • Payment via bank draft
  • Payment via mobile money

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.

13. Startup Expenditure (Budget)

Having done our due diligence , this is what it would cost us to start Eagle Express® Air Cargo, Inc. in the United of America;

  • The total fee for incorporating the Business in the United States of America – $750.
  • The budget for Liability insurance , permits and license – $25,500
  • The amount needed to acquire a suitable Office facility in New York City – New York for 6 months (Re – Construction of the facility inclusive) – $250,000.
  • The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $15,000
  • The cost of logistics chain software, accounting software, CRM software and Payroll Software – $q3,000
  • Other start-up expenses including stationery – $1000
  • Phone and Utilities (gas, sewer, water and electric) deposits – ($3,500).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $120,000
  • The cost of acquiring forklifts – $17,000
  • The cost of launching our official Website: $600
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500

Going by the report from our market research and feasibility studies, we will need about $600,000 to set up a standard air cargo services business in New York City. Please note that we don’t own our cargo airline hence the reason for the budgeted amount.

Eagle Express® Air Cargo, Inc. is a family business that is owned and financed by Spencer James Teddy and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Eagle Express® Air Cargo, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to offer our air cargo services a little bit cheaper than what is obtainable in the market and also to ensure timely and safe deliveries. We are prepared to survive on lower profit margin for a while.

Eagle Express® Air Cargo, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check:>Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Renting of office facility and renovation of the facility: Completed
  • Conducting Feasibility Studies and market survey: Completed
  • Startup Capital Generation: Completed
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees and drivers: In Progress
  • Purchase of the needed forklift, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR) : In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with key players in the industry (networking and membership of relevant organizations and chambers of commerce) and cargo airline operators: Completed
  • Cargo Directory
  • Airport IATA Codes
  • Airline IATA Codes
  • Aircraft Codes
  • City IATA Codes
  • Country IATA Codes
  • Currency IATA Codes
  • Countries By Capital
  • International Dialing Codes
  • Country Codes by Alpha 2 and 3
  • ULD - Unit Load Device
  • Air Cargo Volume Calculator
  • Airway Bill Series Generator
  • Cargo Polls

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Cargo Airlines Business Plan

Cargo Airlines Business Plan

Have you ever dreamed of owning and running your own cargo airline business? It may seem like an unattainable dream, but with the right plan in place, it can be done. A well-crafted business plan is crucial for success; here we will outline what needs to go into a successful cargo airlines business plan.

Cargo airlines provide important services by transporting goods from one part of the world to another quickly and efficiently. With the global economy continuing to grow, there are numerous opportunities available for those interested in starting their own cargo airline business. To make sure that all goes as planned, creating a comprehensive and realistic business plan should be your first step.

In this article, we'll discuss how to develop a viable business plan for a cargo airline, including outlining objectives, setting goals, identifying potential competitors, and analyzing market trends. We'll also cover necessary financial projections and strategies on how to get started. By following these guidelines you can create a strong foundation for building a profitable venture.

Definition Of Cargo Airlines

Breaking the ice, cargo airlines are like well-oiled machines that seamlessly transport goods and merchandise across continents. The service provided by these freight carriers is essential for businesses to move their products around the globe, especially when it comes to air cargo. Cargo airlines refer specifically to commercial aviation companies whose primary purpose lies in transporting items of varying sizes and shapes from one destination to another.

These logistics services can range from carrying general cargo (like packages or mail) on passenger aircraft all the way up to entire planes dedicated solely to hauling heavy equipment such as oil rigs or even animals. Regardless of the type of load being shipped, cargo airlines are equipped with state-of-the-art technology designed to protect your possessions throughout their journey.

Moreover, modern cargo airplanes have specially designed compartments allowing them to safely and securely store large volumes while maximizing efficiency during flight operations. This ensures that any product transported via air will arrive at its designated location in pristine condition. In addition, many pilots employed by these companies undergo rigorous training programs before taking off passengers’ valuables onboard - making sure they always stay vigilant and adhere strictly to safety regulations.

Overall, what sets apart cargo airlines is their dedication to providing reliable shipment services no matter how far or complex the request may be. With this in mind, let us take a look into understanding more about the industry overview behind these enterprises…

Industry Overview

Now that the definition of cargo airlines has been established, it is important to gain an understanding of the industry in which they operate. The air freight transportation or cargo airlines industry involves companies providing transport services for goods and commodities by aircraft. This includes both domestic and international flights with a variety of plane sizes and payloads. In order to understand the size and scope of this sector, one must first look at the overall air cargo market as well as its major players.

The global air cargo market was worth $864 billion USD in 2020 and is estimated to reach over $1 trillion USD by 2023. Of this total value, roughly 33% can be attributed to international shipments while 67% are within countries' borders. There are several large firms that dominate the majority of shipments such as DHL Global Forwarding, FedEx Express, UPS Airlines, Cathay Pacific Cargo, Lufthansa Cargo, Qatar Airways Cargo, Etihad Cargo, Emirates Sky Cargo, Singapore Airlines Cargo, Turkish Airlines Cargo, Kuehne & Nagel International AG, Panalpina World Transport Ltd., Nippon Express Co., Ceva Logistics AG, and DB Schenker Logistics Inc. These firms have substantial control over pricing due to their collective dominance in the marketplace.

Companies looking to transport goods via air freight have a diverse range of options. While large international carriers offer a comprehensive array of services, smaller regional carriers cater to specific freight types or niche requirements that may not be available through their larger counterparts. Some of these regional operators concentrate on shipping perishable items like produce or seafood, while others are experts in transporting oversized cargo such as construction equipment or heavy machinery. For businesses planning an air freight venture, it is crucial to understand the role each type of carrier plays within the broader industry landscape and identify the most suitable option for their transportation needs.

A comprehensive analysis of current market trends will help inform strategic decisions regarding entry into this competitive arena. To remain competitive, it is vital that businesses accurately assess customer needs while staying abreast of changing regulations impacting the industry. With careful research and diligent analysis of market dynamics, a successful operational plan can be developed for any given organization looking to enter into air cargo operations. Market research and analysis should therefore form a cornerstone upon which all other strategies rest before launching any new enterprise into this vast yet highly regulated space.

Market Research And Analysis

We have conducted extensive market research and analysis to better understand the needs of our target customers. For example, we studied the success of FedEx in their cargo airline business – noting how they were able to grow from a small company into one of the world’s leading cargo carriers. We also reviewed competitor companies such as DHL and UPS, considering what strategies made them successful. This market research allowed us to gain an understanding of how our services could best meet customer needs and give us an advantage over other cargo airlines.

Our marketing research included gathering data on industry trends, potential markets for our services, cost structures for different types of shipping services, as well as customer satisfaction levels with existing providers. By analyzing this information, we are able to identify areas where there is demand for new solutions or opportunities to enhance current offerings. Additionally, we can pinpoint specific geographical locations that may be underserved by existing competitors and provide more value-added services than those currently available in the marketplace.

Our market analysis involved evaluating both internal factors (such as financial resources) and external forces (including economic conditions). We evaluated various pricing models to determine which ones would generate maximum revenue while still allowing us to remain competitively priced compared to other cargo airlines. The results gave us valuable insights into how much customers are willing to pay for certain services and helped us develop a pricing strategy that works for our business model.

By thoroughly researching the market and conducting detailed analyses of our own capabilities, we were able to put together a comprehensive plan for launching our new venture. Our findings will inform key decisions about product development, marketing campaigns, operations management, and more so that we can optimize growth potential moving forward. With these steps taken care of, it's time now focus on setting company goals and objectives that will ensure long-term success.

Company Goals And Objectives

Now that we have conducted thorough market research and analysis, it is time to develop company goals and objectives. Our main goal is to become a leading cargo airline business in our region. We will achieve this by focusing on providing reliable service with an emphasis on customer satisfaction. We plan to provide efficient delivery of goods while ensuring the safety of all shipments. To ensure quality standards are met, regular maintenance checks and inspections will be conducted on all aircraft.

We also aim to reduce operational costs while increasing revenue through strategic planning initiatives such as adopting automated cargo booking systems and implementing cost-cutting measures across departments. Additionally, we must focus on adhering to regulatory requirements set forth by aviation authorities. To do so, we must build relationships with governmental bodies responsible for regulating air transportation services in our region.

In order to make sure these goals are achievable, we need proper financing requirements in place. Thus, the next step will be to examine available sources of funding for setting up a successful cargo airlines business…

Financing Requirements

The financing requirements for a cargo airline business are enormous. It takes an absolute fortune to get the business started and keep it running smoothly. From loan requirements to finding the right capital sources, there is no shortage of financial considerations that must be taken into account. To unlock the potential of this lucrative industry, one needs to have a thorough understanding of all available financing options.

First and foremost, there are countless loan opportunities available. Banks typically offer favorable terms when it comes to loans for aircraft and other necessary equipment needed in order to run a successful cargo airline operation. Additionally, government grants can also provide additional funds if certain criteria are met; such as job creation or investments in local communities. Grants often come with specific conditions related to how they should be used and spent so it's important to familiarize oneself with any applicable rules prior to applying for them.

Other forms of funding include venture capitalists who will invest money in exchange for equity stakes in the company as well as angel investors who may look more favorably at new startups looking for seed money or expansion capital. The challenge here lies in convincing these individuals that your project has great long-term prospects and is worth investing their hard-earned cash into! However, with proper due diligence and research, entrepreneurs can find many interesting possibilities from which they may choose depending on their individual goals and objectives.

Finally, don’t forget about crowdfunding platforms! These days anyone can access public markets without having to go through traditional investment companies or banks. Crowdfunding allows entrepreneurs to raise small amounts of capital from large numbers of people over relatively short periods of time - making it possible even for those with limited resources or connections to obtain substantial amounts of external funding quickly and efficiently! With this powerful tool now widely accessible by virtually everyone, launching a successful startup just got much easier than ever before!

Now that we've covered the various types of financing required, let's take a closer look at financial planning and budgeting…

Financial Planning And Budgeting

Financial planning and budgeting are integral components of any successful cargo airline business. We must develop strategies to contain costs while maximizing profits in order to reach our financial goals:

  • Develop realistic revenue projections based on market trends and industry standards
  • Analyze historical expense data and identify areas for cost containment
  • Implement creative solutions such as exploring partnerships with other airlines or transportation companies
  • Utilize technology whenever possible to streamline processes, reduce expenses, and increase efficiency We will also need to plan for fluctuations in the economy and changes in customer demand. This can include setting aside funds during periods of growth that can be used during times when revenue drops. Additionally, we should strive to build a portfolio of investments so that even if one sector falters, others may yield positive returns. With these plans in place, we can ensure our success over the long term.

By establishing effective budgeting strategies and implementing proactive financial planning measures, we can position ourselves for sustainable profitability moving forward. Carefully monitoring spending and managing cash flow is essential for building a lasting foundation from which our company can grow and succeed. As we move into operational strategies, it's important that we maintain this commitment to fiscal responsibility.

Operational Strategies

Now that the financial plan and budget have been established, it's time to focus on operational strategies. These will be key in ensuring the success of a cargo airline business. The primary goals of any operation strategy should include route optimization, fuel efficiency, and demand forecasting.

Route optimization involves selecting those routes with the highest potential for profitability while minimizing costs associated with each flight. This can involve analyzing customer data as well as local market conditions. Additionally, careful consideration should be given to the type of aircraft used for certain routes based on size requirements and distance.

Fuel efficiency is critical for reducing operating costs associated with flights. Using modern technologies such as digital mapping software can help identify more efficient paths between destinations which could result in considerable cost savings over time. Fuel management systems can also help operators track usage and monitor the performance of different engines and other components related to fuel consumption.

Demand forecasting is important for predicting future trends within customer markets. By studying consumer behavior patterns and industry-wide changes, reliable predictions about future demand levels may be made. This information can then be used to adjust operations accordingly or launch new services that capitalize on current trends in air freight transportation demands.

The next step is to explore the fleet selection and acquisition options that best fit the needs of an individual cargo airline company’s mission statement and strategic objectives.

Fleet Selection And Acquisition

The fleet selection and acquisition plan for the cargo airline is a critical component of this business plan. The aircraft chosen will have to be able to meet various customer requirements, while at the same time being cost-effective. To ensure success, three key elements must be taken into account:

  • Fleet Acquisition - Identifying which aircraft best fits our needs
  • Cargo Aircraft - Selecting aircraft that are designed for cargo operations
  • Acquisition Cost - Analyzing total costs associated with acquiring the desired craft

To begin selecting the most suitable airplanes for our venture, we need to consider factors such as range, weight capacity, fuel efficiency, and capability of loading containers efficiently. We also need to make sure that any selected model has an abundance of parts available in case maintenance or repairs are needed. Furthermore, research must be conducted on current market prices so that we can find competitively priced aircraft.

Once these items have been evaluated and appropriate models identified, it's then time to move forward with negotiations and purchase contracts. Negotiations should include a detailed inspection checklist so all parties involved know what they're getting before signing off on any purchases. Additionally, delivery dates should be discussed upfront along with any additional services required from the supplier during the installation and setup stages. Once agreements are finalized, payment plans should be arranged accordingly with both vendor and finance companies if necessary.

Finally, proper post-purchase procedures must be implemented upon receiving each new aircraft into service. This includes registering them with local aviation authorities as well as ensuring pilots receive adequate training for the safe operation of said craft when carrying out flights or missions related to the airline’s business activities. With this knowledge in hand, marketing strategies can now be developed to increase brand awareness and promote sales opportunities going forward.

Marketing Strategies

We all know the feeling of being so excited about a product or service that we can't wait to share it with others. That's exactly how I feel right now as I'm writing this business plan for our cargo airlines company. To make sure everyone else feels just as enthusiastic, we need to create comprehensive marketing strategies and execute them effectively.

To start off, we must do market research in order to have a better understanding of our target audience and what they value when choosing an air transport provider. We should also conduct surveys and interviews to gain insight into customer preferences and expectations regarding services, pricing, convenience, etc., then use these insights to optimize our offerings accordingly.

In terms of branding strategies, we need to come up with a distinct logo, slogan, and color palette that will give us an edge over other competitors in the industry. This will help us stand out from the crowd and leave a lasting impression on potential customers. Additionally, we could invest in creating promotional materials such as flyers, brochures, and banners which would help spread awareness about our services among people who are not familiar with us yet.

We also plan to build relationships with cargo agents by offering incentives like discounts; this is likely to increase bookings significantly because most people prefer booking through third-party agents rather than directly through airline companies. All these measures taken together should enable us to reach more potential customers quickly and cost-effectively.

These marketing strategies form the foundation for growing our cargo airlines business successfully; however, their implementation requires dedicated human resources planning if we want the desired outcomes

Human Resources Planning

We will need to plan carefully and strategically when it comes to our human resources. Our staffing needs must be addressed, as well as the employee training that should take place in order for us to successfully launch our cargo airline business:

  • Staffing Needs:
  • Identify key positions, roles, and responsibilities needed within the organization
  • Design job descriptions for each role
  • Develop recruitment strategies
  • Employee Training:
  • Establish a training program for employees in their respective roles
  • Investigate professional development programs available from external sources
  • Create rewards systems to incentivize staff performance

Our human resources strategy is essential in optimizing operational efficiency throughout our business. An effective HR setup will ensure we are able to attract talented professionals who share our mission, vision, and values. This not only benefits us financially but also contributes towards improving morale amongst all stakeholders involved with the company.

With effective planning now complete, it's time to focus on risk management.

Risk Management

The sky, darkened by looming clouds of risk, presents a daunting landscape for the burgeoning cargo airline. The need to navigate this terrain requires an effective risk management plan in order to ensure success and avoid failure. To that end, we must assess all potential risks, mitigate those which can be minimized or avoided altogether and evaluate how our actions will affect outcomes.

Risk assessment involves looking at every possible scenario from multiple angles; considering both internal and external factors as well as short-term and long-term effects. We must recognize areas where things could go wrong before they do so that proactive steps can be taken to prevent them from happening in the first place. Once identified, these areas should then be addressed through rigorous processes such as policy-making or organizational changes. Additionally, any existing policies or procedures should be reviewed on a regular basis in order to identify any new issues or gaps that have arisen since their implementation.

When it comes to mitigating risks, there are several strategies available including insurance coverage, diversification of investments, and having robust contingency plans in place. Insurance is often seen as a cost but also provides peace of mind if something does go wrong; by spreading out investments across different assets you reduce your exposure while still being able to benefit from positive returns; finally, having a solid contingency plan allows us to respond quickly when necessary with minimal disruption to operations.

Finally, evaluating results helps us understand what works and what doesn’t work so that appropriate decisions can be made based on real data rather than guesswork alone. This process not only allows us to make better choices going forward but also gives insight into how we can refine our existing systems for greater efficiency moving ahead. By taking a holistic approach to risk management we can protect ourselves against potential losses while maximizing opportunities for growth along the way. As we look towards the next step in establishing our business—the creation of an IT infrastructure plan—we keep our eyes open for further opportunities down the road.

IT Infrastructure Plan

We have an extensive IT Infrastructure Plan in place for our cargo airlines business. This plan will ensure that the necessary hardware, software, and digital infrastructure are implemented efficiently to meet all of our operational needs. We will use a combination of on-site servers, cloud storage solutions, and third-party services to support our business operations. Additionally, we will employ experienced professionals with expertise in managing IT Infrastructure implementations and ongoing maintenance to ensure optimal performance levels.

Our IT Infrastructure implementation includes detailed testing procedures to identify any potential risks or vulnerabilities before they become issues affecting the overall functioning of the system. We also have protocols in place for regular updates and backups to keep everything running smoothly at all times. Our IT Infrastructure management team will provide 24/7 monitoring so that any problems can be identified quickly and addressed effectively as soon as possible.

Furthermore, we will maintain tight security standards across all areas of our IT infrastructure by establishing policies regarding access control, data encryption, authentication mechanisms, and virus protection systems. These measures are essential to keeping our customers’ data secure while providing an efficient platform from which to manage their accounts.

To wrap up this section, having a well-thought-out IT infrastructure plan is critical for the success of our cargo airlines business. As such, it is important that we take the necessary steps to ensure its proper implementation and ongoing maintenance going forward. Licensing requirements, permitting regulations, and compliance laws must also be taken into consideration when implementing these plans for extended operation throughout multiple jurisdictions.

Licensing, Permitting, And Compliance Requirements

To ensure the success of our cargo airlines business, it is essential to have a comprehensive understanding and practice of licensing, permitting, and compliance regulations. We must be aware of all local, state, federal, and international government regulations that apply to us. This includes obtaining necessary licenses or permits prior to operating as well as ensuring we adhere to safety requirements within our industry. In addition, we need to understand specific laws regarding aircraft maintenance and operations which could include staff certifications.

Furthermore, it is important for us to stay up-to-date with any changes in legislation or regulation related to the operation of the aviation business. It's critical that we identify those areas where additional research may be needed before launching into full-scale operations. Taking proactive steps will help us avoid costly fines from regulatory agencies due to non-compliance issues.

Finally, identifying potential risks associated with operating our cargo airline business can go a long way in avoiding crisis situations down the road. It's imperative that we assess possible concerns such as weather delays or mechanical failures and develop contingency plans accordingly. Understanding these elements allows us to create mitigation strategies based on worst-case scenarios should they arise in the future. As such, having proper risk management protocols in place is paramount for the successful implementation of our business plan. Moving forward with our plan requires careful consideration of contingency planning measures for unforeseen events both internally and externally.

Contingency Planning

The sky is often unpredictable and turbulent - like the business world. As an airline, having a solid contingency plan in place ensures that we are prepared for any disaster or emergency situation that may arise. Our team of experts has crafted an exhaustive contingency plan to ensure optimal effectiveness during times of crisis.

Disaster preparedness is one key component of our strategy; this includes identifying potential risks, creating safety protocols, and implementing evacuation plans as needed. We also prioritize emergency response training for all staff members so they know how to handle different situations while keeping passengers safe at all times.

Furthermore, our plan outlines preventive measures such as proactive communication with government agencies, ensuring compliance with industry regulations, and instituting security controls throughout the organization. This helps us minimize risk and protect operations from disruptions caused by external events or unforeseeable circumstances.

To maximize efficiency during critical moments, we have established clear lines of authority among personnel and collaborated with other stakeholders to create unified strategies. By doing so, we can be sure that everyone has access to the necessary resources when time is of the essence. Transitioning into action quickly gives us an edge in responding effectively should anything go wrong on our watch.

Exit Strategy

Our exit strategy is a critical part of our business plan. We have carefully considered the various paths that we can take when it comes time to leave the industry and return profits to shareholders. Our main focus on this plan will be ensuring that the company, its employees, and its investors are all taken care of in any eventuality.

The first step in our exit planning is to create an emergency exit route for each investor. This includes a provision allowing them to cash out their investments should they become unable or unwilling to continue with us. Additionally, there must be provisions put in place to ensure any applicable taxes are paid at the appropriate times.

The second aspect of our exit strategy involves creating options for ourselves as owners. Here are three ways we can do this:

  • Sell off parts or even all of the company’s assets and operations;
  • Engage other companies through acquisition or merger opportunities;
  • Liquidate remaining assets into cash reserves while keeping some control over operations until further decisions can be made regarding future plans.

Overall, success depends upon careful consideration of current market conditions, potential buyers or partners, and strategic financial analysis before making any final decisions about exiting from the cargo airlines industry altogether. To achieve maximum returns for stakeholders during this process, it's essential that proper research and due diligence occur prior to signing any documents related to closing up shop—whether temporarily or permanently.

Frequently Asked Questions

What is the estimated start-up cost for a cargo airline business.

The estimated start-up cost for a cargo airline business can be significant. Setting up an airline is expensive, and the cost will depend on many factors such as how much equipment you need to purchase or lease, hiring employees, marketing costs, and more. When determining the estimated start-up cost of your cargo airline business plan, it's important to consider all of these variables in order to get an accurate picture.

When creating your budget estimates for starting an airline business, there are several major categories that must be considered. First, purchasing aircraft and leasing space should be at the top of your list - this could include anything from large jets to small planes depending on the size of your operation – which can range anywhere from hundreds of thousands of dollars up to millions. In addition, you'll also have operational costs such as maintenance fees associated with each plane and any necessary staff members needed to keep things running smoothly; plus insurance premiums that cover both cargo and property damage.

Moreover, other expenses like advertising campaigns or special promotions should not be overlooked when calculating startup costs for a cargo airline business plan; these types of activities may help create awareness about your brand but they do come at a price tag. Additionally, if you're looking to expand further down the line then investing in additional infrastructure like new airports or runways would need to be factored into your initial budget too. Ultimately, every decision made needs to make sense financially in order for it to pay off long-term.

In summing up, there are numerous considerations when estimating the start-up cost for a cargo airline business plan; understanding what those costs might look like upfront is key in forming a successful venture moving forward. Being aware of the different elements required before launching will ensure that everything runs smoothly once operations begin.

What Are The Staffing Requirements For Cargo Airlines?

When considering a cargo airline business, staffing requirements must be taken into account. Cargo airlines need to ensure that they are adequately staffed in order to meet their operational needs and successfully transport goods. In this article, we will look at the specific staff requirements for cargo airlines and what they need to consider when making hiring decisions.

Firstly, it is important to note that the types of staff required by cargo airlines differ from those needed by traditional passenger-carrying airlines. This difference mainly relates to the fact that cargo aircraft have different loading methods than passenger planes, which has an impact on the kinds of personnel needed for operation. Additionally, there may be other specialized roles related to product handling or packaging that are necessary for these businesses.

In terms of specific staff members, some key players include:

  • Ground Crew:
  • Maintenance Personnel:
  • Technicians
  • Sales and Marketing

It is also important for cargo airlines to hire managers who can oversee day-to-day operations and make sure everything runs smoothly. These employees should have experience working in logistics or transportation management so they understand the complexities of running a successful business in this field. Furthermore, having dedicated customer service representatives with relevant expertise can help build relationships with clients and ensure satisfaction levels remain high. Lastly, safety must always come first when operating a cargo airline; thus all personnel should receive regular training on best practices and regulations pertaining to air travel industry standards. Hiring qualified professionals with appropriate certifications is essential for maintaining safe flight conditions at all times and complying with any regulatory body’s rules and guidelines related to aviation safety protocols. By taking these factors into consideration during recruitment processes, companies within this sector can confidently move forward knowing their team meets all necessary qualifications for success.

How Much Competition Is There In The Cargo Airline Industry?

Competition in the cargo airline industry has reached an unbelievable level. Every day new airlines are popping up, ready to take on the challenge and become a leader in this highly competitive market. It is essential for any business that wants to break into the cargo airline industry to consider its competition before they make any major decisions or investments. A thorough competition analysis must be completed, so potential businesses can understand what they're getting themselves into and how best to position themselves within the industry.

It's important to note that while there may be numerous competitors all vying for customers, it doesn't necessarily mean you should throw in the towel. Differentiating yourself from your competition by offering unique services and value propositions can help set you apart from other cargo airlines. Ultimately, success in this sector will depend on having strong relationships with customers as well as understanding consumer needs and preferences.

When conducting a competitive analysis for your cargo airline business plan, it's also important to dig deeper than just who your main competitors are. You'll need to have an accurate picture of trends in customer behavior across different geographic regions such as Asia-Pacific, Europe, and North America where most freight routes exist today. Additionally, you'll want to gain insights into the cost structure of competing companies so you can better assess whether entering a certain market segment makes sense financially or not.

Getting started in the cargo airline industry requires extensive research and planning - but if done right it could lead to huge rewards down the line! With substantial investment and dedication toward building customer loyalty, there is no limit to how far one could go when establishing a successful aircraft business venture!

What Are The Most Important Safety Considerations For A Cargo Airline?

Safety is always a top priority in the aviation industry. Cargo airlines are no exception. When it comes to air cargo safety, there are several important considerations that must be taken into account. This article will explore what these considerations are and how they can help ensure a safe flight for all involved.

One of the most important safety considerations for any cargo airline is the maintenance of its aircraft. All planes used by a cargo airline should undergo regular inspections and routine maintenance as dictated by their manufacturer’s specifications. This helps to ensure that all systems on board remain in good working order, reducing the risk of mechanical failure during flight or when transporting goods. Additionally, cargo airlines should take extra steps to ensure that only qualified pilots fly their planes and follow strict procedures while doing so.

Another key consideration is the type of cargo being transported by an airline. Airline safety regulations dictate certain limitations on what types of items may safely be carried onboard an airplane, such as hazardous materials or combustible liquids. It is up to each individual carrier to properly identify which items are suitable for transport before loading them onto flights – otherwise, serious risks could arise from improper handling or storage of dangerous items in flight.

Finally, many modern cargo airlines use advanced technologies such as automated tracking systems and real-time data analysis tools to monitor their operations more closely than ever before. These systems provide valuable insight into conditions inside aircraft cabins at any given moment, allowing carriers to better manage potential threats during transit and respond appropriately if necessary. By keeping track of various environmental factors like temperature, pressure, humidity, and turbulence levels on a continuous basis, these solutions can also help minimize disruptions caused by adverse weather conditions along route paths.

Ultimately, proper adherence to established safety protocols is essential for ensuring successful operation within the cargo airline industry today; this includes everything from aircraft maintenance requirements through careful selection of appropriate cargoes and monitoring conditions throughout every stage of flight with advanced technology solutions alike.

In conclusion, it is clear that starting a cargo airline business can be an ambitious endeavor. It requires careful planning and substantial start-up costs, as well as the right personnel to ensure success. Competition in the industry is stiff, so one must consider all aspects of their strategy before launching such a venture. Safety is paramount when dealing with air travel, so ensuring compliance with all appropriate regulations will be essential for any successful operation. Finally, external economic factors should also not be overlooked; if times are difficult then even the most carefully planned businesses may struggle to make ends meet. In sum, you need to weigh up all the pros and cons before taking off on this journey. With dedication and attention to detail from yourself and your team, however, there’s no reason why you couldn't enjoy a prosperous and safe ride in the cargo airline business!

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Air Cargo Business Plan Template

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Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management.

DOWNLOAD AIR CARGO LOGISTICS BUSINESS PLAN

Looking for an air cargo logistics business plan for your new or existing enterprise?

Download this air cargo logistics and transportation business plan, which you can download to present to NIRSAL, TEF BOI, BOA, and other investors.

Air Cargo Business Plan

Air cargo business is one of the businesses with a restriction to locations with airports, but this restriction really does not matter as a lot of people prefer getting their goods flown to them because of the swiftness.

The industry makes a profit off providing air transportation for cargo, either commercial or private cargo. The growth of this industry is heavily dependent on the manufacturing sector, consumption, economic upturn which will increase purchasing power, import and export will provide opportunities for the industry.

Running an air cargo company will definitely incur huge capital costs as it is capital intensive and really challenging, and cannot be operated on a small scale. These characteristics should not discourage potential investors from investing in the industry as it is very rewarding.

Although it has been noted that it is capital intensive and challenging as investors and entrepreneurs would have to own their own planes, aspiring entrepreneurs can start as middlemen between made cargo operators and customers.

1.0. Executive Summary

Get Across Inc. is a standard air cargo services company registered, licensed, and permitted to operate as an air cargo service company in Nigeria and the countries in which our services will be extended. The company will be located in Gwagwalada, Abuja. The location was chosen as it was strategically poised to garner trust and ease of access to airstrips. We are in business to make profits and also provide services like domestic deliveries, international deliveries.

Our customers can rest assured they will get the utmost value as we will provide the best and quality services at affordable and reasonable rates. The safety and proper handling of our customers’ cargo will be our priority and provide them excellent services and this will exhibit the competence of our company and cement our integrity.

2.0. Products and Services

Established to realize and exponentially maximize profits in the industry we wish to compete with leading companies in the industry and we will ensure that we execute and surpass the expectations of our customers.

The services we render are listed below;

  • Cargo air transit
  • Scheduled airfreight movement and delivery
  • Booked airfreight services

3.0. Our Business Structure

We are in the industry to deliver excellent services and we are aiming to achieve this by getting the best and experienced hands on deck. We will ensure we hire qualified, hardworking, and creative individuals. The following positions will be available for occupancy at our establishment;

  • Chief Operating Officer
  • Admin Manager
  • Air Cargo and Logistics Manager
  • Marketing and Sales Executives

4.0. SWOT Analysis

Get Across Inc. is in business to become one of the leading air cargo companies in the whole of Lagos and we are fully aware that it will take the right business concept, management, and organization – structure to achieve our goal.

The presence of other several companies that are in the same industry as us and can also boast of impeccable and unique craft are located in the same area we are intending to kick off operations which is why we are following the due process of establishing a business. This is the summary of the SWOT analysis that was conducted;

One of the strengths we will rely on its strong management and this is the best we can ever get as it is from within and this will help provide quality consistently throughout whatever we do.

Also, another of our strengths is our business’s location; our proximity to airstrips is a major profit.

The fact that we are a new air cargo company we will need time to gain ground, build trust and be able to compete well with our competitors. Also, most of the capital will be directed into acquiring our planes and mechanical maintenances thus not enabling us to funnel a lot of money into marketing

Opportunities

The opportunities open to us as an air cargo company in Nigeria are limitless the prevalence of online shopping and new technology is a major factor that contributes to the thriving of the company. And also our location exposes us to arrays of opportunities.

Like any other business, one of the major threats that we are likely going to face is an economic downturn. It is a fact that an economic downturn affects purchasing or spending power. Another threat that may likely confront us is the arrival of a new air cargo company in the same location where ours is located. So also, unfavorable government policies may pose a threat for businesses such as ours.

5.0. Target Market

Although anyone who has a cause to receive or move goods faster within the borders and beyond the borders of the country is a prospect. We have narrowed our target market to the following;

  • Warehouse owners
  • Manufacturers
  • Government agencies

How To Download Air Cargo Logistics and Transportation Business Plan PDF and Doc (With financial analysis)

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Airline Business Plan

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Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

Opportunity.

Economic growth and the requirements of redevelopment, not to mention the impending entry of several countries in the region to the European Union, are creating increased demand for air services between Western Europe and the countries of Southeast Europe and Turkey.

The market combines a variety of elements all of which demand a higher quality of air service than often currently available:

  • Business travelers requiring convenience, reliability, speed, and schedules built around business needs.
  • Government and international organization travelers, requiring the same elements.
  • Personal and leisure travelers from the Southeast Europe/Turkey region who have the money to travel by air and who increasingly demand a higher level of service and convenience, but at an economical cost.
  • The “Diaspora,” Personal and leisure travelers originally from the Southeast Europe/Turkey region, but now living and working in sizable numbers in the countries of Western Europe, with the same demands.
  • Western European personal and leisure travelers, primarily traveling on the airline’s routes between Western European points.
  • Seasonal (primarily summer, with some limited niche markets in the winter period) holiday travelers, primarily destined for Greece, Turkey, and the islands of the Mediterranean. Cost, reliability, convenience, and destination are their concerns.

The proposed new airline will appeal to all these distinct groups by offering better quality service (and in some cases, offering service where none now exists), at a higher level of safety, comfort, and convenience, and at reasonable fares, than currently available. The new airline also will focus on the niche markets identified in the Service Description section of this plan, enabling it to better serve and to become identified as the carrier of choice for those markets.

Competition

The overall airline industry operating between Western Europe and Southeastern Europe and Turkey consists of four primary segments:

  • Established mainline European carriers (primarily Swiss International, Austrian, Lufthansa, Alitalia, Malev, Turkish) utilizing their Southeast European routes as spokes connecting to main hubs in Western Europe (or Budapest and Istanbul in the case of Malev and Turkish, respectively) and serving to feed traffic to their prime intra-European and trans-Atlantic routes (or domestic Turkish routes in the case of Turkish).
  • Smaller, but generally well-established regional airlines primarily from Western Europe or the upper level of Eastern European states (primarily Swiss International, Tyrolean, and Adria) that perform essentially the same function as the mainline carriers or, in the case of carriers like Adria, link destinations in Southeast Europe to their own national capitals.
  • Home-based Southeastern European carriers (such as ADA Air, Albanian Airlines, Avioimpex, Balkan Air, Hemus Air, JAT, and Tarom Airways) that often operate older, Soviet-built aircraft or turboprops, offer a generally lower level of service (though not always lower fares), and are often less highly regarded, including by travelers from Southeastern Europe. These airlines connect points within Southeast Europe, or they may connect Southeastern European destinations to major destinations in Western Europe.
  • There also is a fourth segment worth noting, and that is the fairly significant charter market that exists within certain niche or seasonal markets. This market includes charter flights between Pristina and destinations in Switzerland and Germany, as well as primarily summer charters from Southeast Europe to New York and other destinations in North America. These charters are often operated by individual travel agencies or airlines, and often are categorized by a low level of service and utilization of older, often Soviet-built, aircraft. There also are the vacation charters that operate from Western Europe to Greece, Turkey, Cyprus, and the other holiday spots of Southeastern Europe and the Mediterranean.

It is anticipated that the proposed new airline would most closely fit into the second grouping above, but would compete effectively with all four main segments through a combination of a high level of safety and service, carefully selected routes, niche-market service, convenient schedules, reasonable and competitive fares, and modern, safe, comfortable aircraft. It also will offer service on under-served and unserved routes where little or no competition currently exists.

Air Leo will fill a niche in the growing air-travel and cargo markets linking Western Europe, and points beyond, to Southeastern Europe and Turkey; to achieve high, and profitable, load factors by identifying and serving key routes and city pairs currently unserved, under-served, or poorly served, and where significant unmet demand exists; and to set a new standard for air service and professionalism both within the target market region and beyond.

Expectations

Financial highlights by year, current alternatives.

The new airline’s main competitors will vary depending on market and route served, and the category of passenger. For the most part, competition can be expected as follows:

Business and Government/IO segments to and from Southeastern Europe

Austrian/Tyrolean

Swiss International

For SE European Regional and Diaspora Personal and Leisure Travelers

Balkan/Hemus

For Western European Personal and Leisure Travelers, as well as Business and Government/IO Travelers between Western European destinations

Air France/Air Inter

British Airways/CityFlyer 

Deutsche Air BA

TurkishJATKLM/KLM Cityhopper/KLM UK

For seasonal Holiday Travelers to Southeastern Europe and Turkey

British Airways

British Midlands

Hapag Lloyd

The larger, more established carriers often suffer from a lack of flexibility, and a focus on feeding their main intra-European and trans-Atlantic routes. The smaller regional carriers often are focused almost exclusively on their own core regional service. The Southeastern European airlines often suffer from poor service and poor reputations. And the larger, more established charter operators are focused on the holiday charter and package market.

Again, the extent of competition (and what is listed here is not comprehensive) dictates the importance of the new airline’s three-prong strategy to seek out unserved and under-served routes and city pairs, key niche markets where it can effectively compete or create its own market, and meeting peak travel demands on key regional, seasonal, and intermittent routes. It also points out the importance of standing out from the crowd through offering a higher level of service and convenience, and utilizing technology and a service-oriented staff to achieve recognition and passenger preference right from the outset.

Our advantages

In comparing the proposed new airline to its competitors, there are at least two levels of comparison that must be considered; the usually lower-standard airlines, both scheduled and charter, flying out of the Southeastern European region, and the higher-standard, more highly regarded airlines operating out of Western Europe.

Beating the former source of competition is both a reasonable and an essential goal. But comparing favorably, and even standing notably above, the latter also is an important objective since these airlines will represent direct competition to the new airline on many of its projected key routes, despite efforts to avoid such competition to the extent feasible.

Pro Tip:

In comparing the proposed new carrier to both its Southeastern European and its Western European competition, it is important to look at those factors that determine how most travelers choose an airline. They include the following (and the order of importance is different for each traveler and each situation, but the most important factors are listed):

  • Safety, actual and perceived;
  • Cost, and range of fares offered;
  • Destinations served;
  • Availability of seats;
  • Availability of fares;
  • Convenience of flight schedules, times of arrivals and departures;
  • Frequency of flights;
  • Connections, including reliability and convenience of connections;
  • Nature of flights: non-stop, direct, number of stops, aircraft changes;
  • Availability of different classes of service;
  • Onboard comfort, service, meals, and amenities;
  • Type of aircraft, including jet or non-jet, size, and speed;
  • Age and condition of aircraft;
  • Ease and efficiency of reservations and ticketing;
  • Reliability and on-time departures and arrivals;
  • Ground service;
  • Reliability and quality of baggage handling;
  • Friendly, competent service in reservations, check-in, and in the air;
  • Overall reputation of airline;
  • Nationality of carrier;
  • Factors of personal preference.

While no airline probably can excel in every one of these areas, the closer an airline comes to "excellent," or at least "good," ratings in each of these key areas, the better it will fare in its competitive standing.

Both in the overall design of the airline and its basic operational features, as well as in its management, quality control, and day-to-day operations, the proposed airline is expected to stand out positively in almost every regard.

Competition with Southeastern European carriers While not all Southeastern European carriers fit the stereotype presented here, and several are in the process of privatization and ostensible upgrading, most do operate at a lower level of service than is customary in Western Europe.

It is not uncommon for carriers in the region to operate older Soviet-built equipment (perceived to be less comfortable, less safe, and less reliable than its Western competition – perceptions that often are accurate).

For instance, such competing airlines as Avioimpex of the Former Yugoslav Republic of Macedonia, Albanian Airlines (Albania’s Kuwaiti-owned private carrier), ADA Air (a smaller private carrier in Albania with which BalkConsort has been partnered for certain purposes), Hemus Air and Bulgarian Airlines, both of Bulgaria, Tarom, Romania’s state carrier, and even Malev, the Hungarian airline, still operate Soviet-era aircraft in their fleets. In some cases, these aircraft are turbo-prop powered, and not pure jet.

While often it is relatively inexpensive to lease such aircraft, their operating costs tend to be significantly higher than newer, more fuel-efficient Western-built aircraft, and their safety, reliability, and noise factors are often poor, in some cases limiting their ability to operate in some markets.

Service levels are poor in general, among both scheduled and charter carriers, which represent a significant part of the market, particularly in service to Kosovo and Turkey, the two niche markets identified for the new carrier.

By utilizing modern, safe, reliable, and cost-effective Western-built regional jet aircraft, the proposed new airline will offer a far more attractive alternative to the traveler both from within and outside Southeast Europe, and will be able to operate with far lower fuel and maintenance costs than the competition.

The comfort, reliability, speed, and safety of the new airline’s aircraft all will enable it to be the airline of preference for virtually all business, government, and organizational travelers from both within and outside the target region when traveling to or within the region, and it also will be preferred by most leisure and personal travelers, including those from with the target region, as well.

Greater reliability and punctuality of the aircraft, augmented by state-of-the-art navigational devices that permit operation under a wider range of weather and visibility conditions, will enable the airline to compete most favorably on those bases also, and will ensure the least likelihood of flight cancellations, postponements, and missed or late connections.

On the basis of fares, the new airline will offer highly competitive fares which, in many cases, should be below those offered by its Southeastern European competition. Higher load factors, combined with greater efficiency both in operational costs as well as in reservations, ticketing, and check-in, will enable the new airline to be highly competitive from both a cost and a quality perspective, and will also enable it to retain a higher percentage of its revenues.

In short, the local competition, except in a few cases (such as Aegean/Cronus Airlines, and to a lesser extent Olympic Airways, from Greece; Adria from Slovenia; in some cases Malev, from Hungary; and the Turkish carriers) will not represent very strong competition to the new airline, and particularly in attracting the primary market groups at which the new carrier will be aimed.

Finally, the new carrier will be seeking out, as part of its business and marketing strategies, routes and city pairs that offer unserved or under-served demand. That strategy also will help reduce the threat from competition, and will enable the carrier to further establish itself as the carrier of choice in Southeast Europe.

Competition with Western European carriers The competitive picture is somewhat different when Western European carriers represent the competition. Many of the new airline’s competitive advantages relative to Southeastern European carriers are erased or at least minimized.

In most cases, the new airline will be competing with other carriers operating aircraft of a similar nature. Safety, comfort, convenience, and reliability, as well as in many cases cost, all are on a similar footing. To stand out from the crowd, the airline must do things either differently or better, or both, than its competitors, and it is here that both the design and the management of the new airline must be at their sharpest.

The competition in this region will include such well-established carriers as Swiss International, Austrian, Tyrolean, Lufthansa, KLM, British Airways, Air France, Alitalia, Sabena, and others of that nature. More recent, lower-cost, and "hipper" start-ups such as EasyJet, Go Fly, Bluebird, Virgin Express, and others like them will represent even more challenging competition in some cases.

But unlike any of its competitors, which may employ one or two or several elements of the proposed new airline’s marketing strategies, informational and electronic technologies, and management techniques, none of them – none – employ the full range of those elements that the proposed new airline will employ.

Consequently, the proposed new airline will be the real equivalent of a whole new generation of airline (regional or beyond), and will represent the kind of revolution in the aviation world that Pan Am, Icelandic, Laker Air, PEOPLExpress, Virgin Air Atlantic, EasyJet, and Air Blue represented in their day (and in some cases, their "day" is still today).

In that regard, the new airline might well be known as "TechnoAir" given its extensive deployment of state-of-the-art marketing, reservations, ticketing, check-in, baggage- and cargo-tracking, and operational and safety technologies.

In other key areas – routes, schedules, and fares – the new airline also will be carefully designed to either compete highly effectively or, alternatively, to go where the competition is limited or non-existent.

Requirements for interline arrangements In order for the new airline to be able to obtain the interline arrangements such as code-shares, interline fare agreements, frequent-flyer mileage sharing, and so forth, that will be so important to its competitive posture and overall success, it must:

  • Fly Western-built aircraft, preferably pure jet.
  • Meet the standards to have a two-letter airline code.
  • Meet the highest standards for safety, reliability, and service.
  • Be accessible through normal reservations and ticketing systems.

Meeting these requirements, and negotiating the desired agreements, will be priorities from the outset in setting up the new airline. Additionally, partnering and interline arrangements will be carefully identified and sought that will offer the new airline strategic partnerships that will help give it the "cover" of larger, more established carriers, and also the status and service and growth potentials it will need to grow beyond its initial stage and to become a true presence in the aviation world.

Keys to Success

In descending order of importance, the five critical keys to success for the proposed new regional airline are:

  • Employing an experienced, highly professional management team that combines vision; realism; financial ability; solid knowledge of the aviation business; familiarity with, and belief in, the utilization and benefits of the latest aviation, electronic, and informational technologies; on-the-ground knowledge of the region and markets to be served; realization of the crucial importance of an organization’s personnel to its success; and a total familiarity with, and commitment to, the overall mission and goals of the proposed new airline.
  • Intelligent, progressive, and aggressive marketing that identifies the airline as a different kind of player , one that is sharper and smarter, and with a higher level of professionalism and operational standard than is the norm in the target region. Concentration on safety, with highly trained, dedicated, and professional personnel, caring for the passenger and the passenger’s needs and wants, the advantages offered by advanced technology, and straightforward, understandable, highly competitive tariffs and fare pricing, all will form key pillars of the marketing strategy.
  • Identification, through careful market research, of unserved or under-served routes and city pairs  in the target market area with sufficient passenger demand to enable high load factors and profitable operations utilizing the category of aircraft envisaged.
  • Use of an all-jet fleet of newer, modern, Western-built regional aircraft  that offer a high level of comfort, safety, and fuel and operational efficiency and flexibility, which meet all normal aviation standards, and which offer sufficient, but not excessive, passenger and cargo capacity on the envisaged routes.
  • Use of advanced electronic and information technology  to reduce staffing and other operational costs; expand the potential market base; readily capture sales opportunities; simplify and speed passenger, baggage, and cargo handling; and enhance customer convenience and satisfaction.

Additional important, though less critical, keys to assuring the airline’s success include the following:

  • Identifying, negotiating, and entering into, in the pre-operational stage and early on, beneficial associations, cooperations, and partnerships with larger, more established, highly regarded carriers  both within and beyond the target market region to offer interline arrangements, through fares, frequent-flyer mileage sharing, and convenient hubbing and long-distance onward connections to passengers. Successful execution of this element of the business plan is crucial to the overall success and growth of the airline, and must be kept in mind in the organizational plan and structuring of the airline.
  • Establishing a high level of operational oversight and quality control  that will ensure that the airline always lives up to its marketing commitments and fulfills the promise of a high level of service, customer satisfaction, convenience, and safety, at a reasonable, highly competitive fare.
  • Avoiding the temptation to go head-to-head with established carriers  on routes that already are well-served, unless solid evidence exists of additional, significant pent-up demand, or widespread customer dissatisfaction with existing services.
  • Maintaining flexibility that enables the airline to always respond and adapt to changing market conditions and opportunities, without being erratic, and employing equipment, scheduling, and staffing on a basis that is sufficient to get the job done properly, efficiently, and at a high rate of return, without "overkill" or fielding costly excess capacity or, conversely, unduly cancelling scheduled flight operations.
  • Identifying, developing, and quickly and cost-effectively exploiting opportunities  for new markets, new market concepts, and expanded sales potential.
  • Supplementing regularly scheduled passenger service  with both regularly scheduled and also special cargo services when and where sufficient demand exists, and also with seasonal, peak-period, and other intermittent passenger services on certain key regional, seasonal, and variable routes where very high load factors can be predicted despite existing but lower-quality competition, or where competition cannot meet the demand. Larger, longer-range, or specialized aircraft may be employed on a charter or wet-lease basis to provide these supplemental, but potentially highly profitable, passenger and cargo services.
  • Looking to combine the core aviation business with ancillary marketing concepts and activities  and ground-based operations that support, supplement, and complement the aviation elements of the business, including such activities as package-, group-, and charter-travel program offerings; value-added sales and customer services, both land- and Internet-based; construction and operation of enhanced passenger-, baggage-, and cargo-handling facilities and services; and other logical business pursuits both within and outside the immediate aviation business.
  • Avoiding growth for growth’s sake , and instead looking for solid niche-enlargement opportunities that will allow incremental, but always profitable, expansion.

Marketing & Sales

Marketing plan.

The proposed new airline intends to cut out new territory as it goes about marketing itself. While it will clearly serve the target markets of Southeastern Europe and Turkey, it will just as clearly be a different kind of player on the field, and will seek to be known not only as a Western airline, but at the cutting edge of the aviation business in Europe.

The airline’s emphasis on the latest information and electronic technology, and its stress on comfort, convenience, safety and customer service, will be cornerstones on which the marketing strategy will be built.

The airline will utilize a combination of methods to achieve the recognition that it both desires and needs. A fairly large advertising budget is planned to buy the space and time to get its name and message in front of the largest possible group of potential customers that it can. Given the crowded field of European regional airlines, it is better to come on like a lion than a lamb, or you may be lost in the herd.

The airline will also utilize public relations to good advantage to extend and supplement its advertising budget.

Everything about this airline, from its name to its colors, from the look of its planes to its airport kiosks, from its smart but informal crew uniforms to its advertisements and literature should set it apart. And it costs little more to do things freshly and smartly than the more ordinary way of doing things. An organization is new only once in its life, so the airline should grab that opportunity and get all the attention it can at the outset. And it needs to have both an adequate budget, as well as an outwardly directed management, to achieve that end.

The new airline will become known as one where all the staff practice the motto, "We have a job to do, and we do it every day – for you!""

The airline’s sales strategy will flow from its overall concept and marketing approach. Mass marketing, but with a personal touch utilizing airline employees as spokesmen and women to explain that "I have a job to do, and I do it everyday – for you!", will aim to steer as many people as possible either to the airline’s website, or to its telephone-based customer-service representatives. While clients are free to utilize their own travel agents, and the airline may also want to be accessible through general travel sites such as Travelocity, the more customers that can be encouraged to use the airline’s own reservations and ticketing services, the less revenue will have to be shared in the form of expensive commissions.

E-reservations and e-ticketing, combined with e-check-in, make the most sense for any customers who have online access, and also for the airline itself. But nonetheless, the airline must not lose sight of the fact that many people do not have access to the Internet, or do not care to use it to arrange their travel, or perhaps just prefer a more personal touch, and so other means of access must always be readily available.

The regional and specialized sales and marketing managers, as explained in the section on Personnel, will concentrate their effort on targeting specific clients that have the potential to offer corporate or group travel (including contract arrangements), or who are potential air-cargo customers. The airline will not have the resources to field a large sales team, and so these regional managers must target their efforts, and the airline must effectively utilize its mass marketing methods as well as the Internet to attract individual travelers who, once they experience the new airline, hopefully will feel a close affinity toward it and will become loyal and happy customers.

Locations & Facilities

Financial, traffic, and other studies currently are underway to determine the optimal prime basing location for the proposed new airline. Among the locations under study are the following eight:

  • Luxembourg, Luxembourg;
  • Berlin, Germany;
  • London City Airport, London, United Kingdom;
  • Stanstead Airport, London, United Kingdom;
  • EuroAirport, Basel/Mulhouse, Switzerland/France;
  • Amsterdam, The Netherlands;
  • Cologne/Bonn, Germany;
  • Munich, Germany.

In selecting a location to base the new airline, the following 11 major considerations are being evaluated, in roughly descending order of relative weight:

  • The tax and business regime in place in the selected locale. A low profit tax rate and a regulatory and political climate supportive of business, and particularly foreign investment, are key considerations.
  • The availability of relatively low-cost facilities suitable for basing both the business and aircraft-support operations, as well as the aircraft, is another key consideration.
  • The availability of sufficient landing and parking slots and gate facilities to permit the desired level of service at the base airport.
  • The ability to interconnect with one or more major carriers for onward interline arrangements both within Europe as well as to trans-Atlantic and global destinations.
  • A location that, given the maximum range of the selected aircraft, will enable non-stop flights to the most important destinations within the new airline’s service area in Southeastern Europe and Turkey and, at most, one-stop service to more distant or secondary destinations.
  • The existence of relatively high-traffic volume between the base location and one or more key interchange points to provide sufficiently high load factors between the base location and onward destinations and points of origin.
  • The existence of a reasonably high level of cargo traffic, including opportunities for interline trans-shipment of both inbound and outbound cargo.
  • The support of a larger airline with which the proposed new airline can establish a particularly close working relationship.
  • The support of local airport and aviation authorities to facilitate establishment, certification, and ongoing operation of the airline and its aircraft.
  • A location outside of the U.K. to facilitate British trade finance on acquisition of the new aircraft, should decisions be made to acquire British-built Avro aircraft as previously noted, as well as to purchase, rather than lease, the aircraft.
  • A range of other factors, including the availability and cost of local skilled workers, the growth potential of the market selected, year-round climatic and weather conditions as they may affect flight operations, the "cache" of the locale for marketing purposes, the cost and convenience or difficulty involved in command and control of the airline involving key personnel, some of whom may be based at various other locations, and so forth.

It is anticipated that most routine maintenance will be performed at the base location, with some more minor maintenance and repairs relegated to other locations in the route network. In both cases, most of this routine maintenance and repair work will be contracted out to established and experienced service providers, reducing the need for the new airline to maintain its own extensive maintenance and repair teams and facilities.

The airline will, however, perform its own normal line maintenance at home base and will utilize locally available services away from home. Aircraft also may be based at key airline hub locations away from the home business base as well.

With acquisition of British-built aircraft, major overhauls and heavy maintenance may be performed at British Aerospace’s Woodford facility in the U.K. on a selective basis. In addition, it is anticipated that separate fixed-cost maintenance agreements will be entered into for both the airframes and the engines, or these elements will be included in any dry-leasing arrangements entered into.

Estimates for total labor and spare parts costs have been calculated as a fixed per-hour cost and included in the portion of this business plan dealing with anticipated operating costs.

Sufficient apron and hangar space for staging, parking, and storing, as needed on a short-term basis, up to the entire initial five-aircraft fleet will be required at the base location and any other hub locations selected.

As the fleet expands over time, additional parking and storage space will be needed either at the main base location or at regional hubs in the airline route network. Additionally, sufficient office space, preferably in one central location at or near the base airport, will be required to house the airline’s main administrative offices and its central reservations system.

While the airline may consider establishing its own sales offices in key market locations, in general sales will be handled through a combination of Internet marketing utilizing the airline’s own website as well as other Internet travel websites, designated general sales agents in given locales, and regular travel agencies everywhere.

Flight may be based on aerodynamics, but the proposed airline will be based on technology, and lots of it. Efficiency and convenience through use of the most up-to-date informational and electronic technologies, in addition to modern aviation and navigational technologies, are guiding principals of the proposed new airline. Technology will also be a cornerstone of the new airline’s marketing strategy.

Among the technological features  the  new airline will offer are:

  • Internet marketing and online reservations (e-reservations) and sales (e-sales)  that will provide quick and easy access to airline schedules, flight availability, reservations, and ticketing to a wide range of customers worldwide. This eliminates payment of agency commissions and keeps costs low – savings that can be passed on to the customer.
  • Electronic ticketing (e-ticketing)  which will enable passengers to obtain their tickets online and avoid the need to obtain paper tickets from airline offices, travel agencies, or at the airport. It also frees the airline from having to stock, track, and issue tickets and maintain paper trails of them. Again, more savings for both the airline and the customer.
  • Electronic check-in (e-check-in)  that will virtually eliminate waiting in line to check-in for e-ticketed passengers, enabling them to confirm their identities, obtain their boarding passes, and check-in their baggage (and even purchase tickets upon check-in) utilizing a user-friendly kiosk that eliminates those last-minute frustrating waits to get to the counter. And it also greatly reduces the airline’s needs to staff check-in desks, control long lines, employ local contract ground staff, and expend money and resources on an antiquated system that only adds to the traveler’s inconvenience and frustration. Another win-win situation for both airline and passenger.
  • Electronic baggage tracking (e-baggage tracking)  which will enable the airline to track any piece of baggage from check-in to final pick-up and claim. If courier services can track parcels as they move around the world, and enable customers to track their parcels using tracking numbers and online tracking systems, then why can’t the same system be used to assure that no passenger will ever again have to wonder where his or her baggage might be? There may still be contingencies (such as late check-in, lack of space, security restrictions, late connections, and so forth) that cause baggage not to be placed on a given aircraft, but at least both the airline and the customer can be assured that they both know exactly where the given item of baggage is at any moment, and when it might be expected to arrive at the destination. This could well be an exclusive feature of the proposed new airline since no other airline appears to be utilizing it at present.
  • Electronic cargo tracking (e-cargo tracking)  is the same basic idea as e-baggage tracking, and will use the same basic system, only for tracking cargo and parcels.

It also will track all elements of a given passenger’s or customer’s transactions and interactions with the airline, from initial flight inquiry through reservations, ticketing, check-in, flight, connections, and final baggage pick-up, claim, and check-out, as well as any standing preferences, follow-up comments, inquiries, or problems. It also will monitor things like weather conditions, flight delays or projected delays, gate jam-ups, and other contingencies, and will automatically notify both appropriate airline personnel as well as passengers and customers of any advisories, warnings, or changes.  

  • Electronic financial control  (e-finance) will enable complete electronic financial control and monitoring of the airline’s finances, clear advantages.
  • Additional technological features will be incorporated on-board the aircraft  to provide flight crews with the latest navigational and communication technologies to assure the highest level of passenger safety and also airline reliability and punctuality. Included in this technology, in the case of the Avro aircraft, is all-digital ARINC 700 avionics with advanced Cat IIIb low weather-minimal landing capability to permit landings under the poorest permissible approach and visibility conditions

Equipment & Tools

Another issue still being evaluated and which will be decided is the question of how to acquire the aircraft. For a variety of reasons, including the ease with which the leases can be cancelled by the lessor and the lack of "ownership" of the aircraft, wet leasing has been ruled out except for short-term acquisition of aircraft that would be employed in meeting peak demand-type services as outlined elsewhere in this business plan.

The two remaining options both need to be examined from cost, flexibility, and finance points of view: Dry leasing the aircraft (generally on a five-year lease), or outright purchase. Both provide long-term control over the aircraft, and while both options tend to restrict changes in the fleet that might be preferred after the initial years of operation, market conditions and high demand for aircraft indicate that it would be relatively easy to be released from the leases, or to sell or lease the aircraft to new owners or operators, or to return them to their sources.

A number of leasing sources are available for the BAe Avro aircraft being considered, and some used aircraft also are available from time-to-time on the market from various sources. In addition, new aircraft can be acquired directly from the manufacturer on a variety of different plans and options, as well as used aircraft on occasion.

Cost factors employed assume dry leasing of new Avro RJ100 aircraft in 99-seat configurations, with a comparison for purchasing. It is anticipated that finance guarantees up to 85 percent of the acquisition cost of the aircraft could be obtained from the Export Credit Guarantee Department of the United Kingdom (ECGD) for purchasing British-built aircraft exported from the UK.

Ownership & Structure

Reflecting the overall nature of the organization envisaged, there is very little hierarchy in the organizational plan for the airline. In an operation where safety and accountability are so much at issue, obviously someone has to be in charge, and there also have to be clear lines of authority (and expertise) in the operational aspects of the airline. But beyond that, the organization is designed around flexibility, a high level of personal accountability and responsibility, and common cross-training and sharing of responsibilities as need arises and circumstances permit.

The levels of organization (reflected in the personnel and salary chart in the Personnel section of this plan) are as follows:

  • President and chief executive officer (who reports to the Board of Directors of the airline company).
  • Vice president and general manager.
  • Functional vice presidents for the core areas of commercial activities, finance, and operations.
  • Directors covering sales and marketing, communications, human resources, flight safety, flight operations, ground operations, maintenance, and information systems.
  • Managers in sales and marketing, as well as in station management functions.
  • Professional, engineering, ground handling, service, and other support personnel.

On the flight side, which reports to the director of flight operations and also responds to the director of flight safety, there are only three levels of personnel:

  • First officer;
  • Flight attendant.

Salary scales and levels of authority have been simplified and based on a rational scale allowing for similar levels, though of different natures, of functional work to be compensated at the same pay levels. The overall objective is to foster an atmosphere of cooperation and shared responsibility to the overall mission, which is to provide the customer and client with the best possible, safest, and most satisfying experience with the airline. Cross-training and cross-functioning are important parts of the organization plan, as explained in more detail elsewhere in this document.

Management team

A complete management team, covering the elements of administration, aviation, and finance, is being assembled. This team brings together a wide range of skills and backgrounds covering the key areas needed to form, launch, and operate the airline, and from a range of national origins.

6.3 Management Team Gaps

It is premature to speak of management team gaps until a core management team is named. The individuals who will play leading roles with the new airline will need to possess the widest possible range of the requisite skills. The current project team believes investors in the airline will want to play a key role in helping formulate core management. Once primary investment is established, that step can be undertaken, and it is anticipated that the core team will be finalized quickly.

The new airline will need people with skill, experience, energy, and vision to head up and serve in such areas as information management, flight safety, aviation operations, aviation maintenance, ground operations, sales and marketing, communications, and human resources management. Also good pilots, co-pilots, cabin crew members, and ground staff, and administrative staff.

BalkConsort anticipates putting together the best possible airline management team in the business, one that also shares the common vision of what this new airline truly can be and what it can become.

Financial Plan investor-ready personnel plan .">

Key assumptions.

In addition to the general financial and business assumptions presented in  the following table, the key parameters presented on the next page also were included as Operating Assumptions in formulating the financial portions of this business plan.

Every effort was made to be realistic in these Assumptions, and if anything they were formulated conservatively, particularly in calculating initial load factors and revenue yields which, in practice, should be considerably higher than offered here. Additionally, passenger and cargo fares were considered to be flat over the entire period covered by this plan to compensate for the possibility that additional competition could force fares to remain relatively constant over the period. However, the objective of this exercise was to show that the proposed operation will be profitable even with much lower revenues than would normally be expected, and the numbers do in fact confirm a profitable outcome.

Additionally, expected net revenues from offering peak-demand special flights also are calculated. They are set apart separately from the scheduled-service revenues to show that both types of service – and particularly the more important scheduled service – are viable and the airline will be profitable even without these additional revenues.

The assumptions utilized here are based on dry leasing new Avro RJ100s at a high level of outfitting and with necessary spares included. A separate set of figures is provided following the Operating Assumptions section which gives a cost comparison should the decision be made to purchase the aircraft new, utilizing ECGD export financing for 85 percent of the purchase price of the aircraft.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

Start-up Expenses

Legal and consulting $200,000

Route and market study $100,000

Office supplies, stationery etc. $10,000

Brochures and marketing materials $30,000

Design consultants $60,000

Corporate insurance $20,000

Office rent $50,000

Software and systems development $100,000

Expensed equipment and off. furniture $150,000

Expensed vehicles (8) $100,000

Public relations and advertising $80,000

Crew, staff training and manuals $60,000

Other $30,000

TOTAL START-UP EXPENSES $990,000

Projected Profit and Loss

2018 2019 2020
Revenue $41,527,300 $95,102,400 $149,146,500
Direct Costs $1,997,851 $4,605,528 $7,266,483
Gross Margin $39,529,449 $90,496,872 $141,880,017
Gross Margin % 95% 95% 95%
Operating Expenses
Total Operating Expenses
Operating Income $39,529,449 $90,496,872 $141,880,017
Interest Incurred
Depreciation and Amortization
Gain or Loss from Sale of Assets
Income Taxes $0 $0 $0
Total Expenses $1,997,851 $4,605,528 $7,266,483
Net Profit $39,529,449 $90,496,872 $141,880,017
Net Profit/Sales 95% 95% 95%

Projected Balance Sheet

2018 2019 2020
Cash $39,529,449 $130,026,321 $271,906,338
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets
Total Current Assets $39,529,449 $130,026,321 $271,906,338
Long-Term Assets
Accumulated Depreciation
Total Long-Term Assets
Total Assets $39,529,449 $130,026,321 $271,906,338
Accounts Payable $0 $0 $0
Income Taxes Payable $0 $0 $0
Sales Taxes Payable $0 $0 $0
Short-Term Debt
Prepaid Revenue
Total Current Liabilities $0 $0 $0
Long-Term Debt
Long-Term Liabilities
Total Liabilities $0 $0 $0
Paid-In Capital
Retained Earnings $39,529,449 $130,026,321
Earnings $39,529,449 $90,496,872 $141,880,017
Total Owner’s Equity $39,529,449 $130,026,321 $271,906,338
Total Liabilities & Equity $39,529,449 $130,026,321 $271,906,338

Projected Cash Flow Statement

2018 2019 2020
Net Cash Flow from Operations
Net Profit $39,529,449 $90,496,872 $141,880,017
Depreciation & Amortization
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $0 $0 $0
Change in Income Tax Payable $0 $0 $0
Change in Sales Tax Payable $0 $0 $0
Change in Prepaid Revenue
Net Cash Flow from Operations $39,529,449 $90,496,872 $141,880,017
Investing & Financing
Assets Purchased or Sold
Net Cash from Investing
Investments Received
Dividends & Distributions
Change in Short-Term Debt
Change in Long-Term Debt
Net Cash from Financing
Cash at Beginning of Period $0 $39,529,449 $130,026,321
Net Change in Cash $39,529,449 $90,496,872 $141,880,017
Cash at End of Period $39,529,449 $130,026,321 $271,906,338

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Air cargo is now a $60 billion plus industry in an airline industry with over $700 billion in annual revenues.
During the next 20 years, cargo traffic is expected to more than triple, out-pacing passenger traffic and offering airlines more opportunities to generate new revenue.
Many global airlines generate over 30% of their revenue from air cargo.
The new air cargo world, uses both dedicated freighters as well as passenger bellies in an almost 50/50 split.
The cargo business model and business cycle is very different and distinct from the passenger model, even though they often use the same aircraft.
Air cargo is rapidly evolving into a highly specialized business with its own set of rules which are very different from those of the passenger carriers.
The air cargo business is rapidly moving away from “general cargo” in to highly specialized cargo product verticals, each with its own scientific base.
This new “specialization” will transform air cargo into a “dedicated business” requiring a whole new science and a different set of rules to be built around it.
Traditional suppliers to the air cargo industry will need to leverage data analytics and data mining technologies to create “bespoke” products for air cargo which are distinct from the passenger business
The new air cargo professional will need to become a “specialist” rather than a “generalist”, as the global air cargo industry moves away from the mass market into highly concentrated “micro markets”
   
AIRCARGOPEDIA, www.aircargopedia.com, is intended to be a highly specialized e-platform driving this change, showcasing the product and service offerings of “game-changing” vendors all over the world. At the same time, through this site we intend to build highly researched pages on each and every subject connected to air cargo operations, featuring top quality editorial, along with the offerings of vendors in that space.

INDUSTRY VERTICALS

Airline & forwarder “ branded” cargo products.

 
 
 
 
 
 
 

AIRPORTS, AIR CARGO HANDLING & ULD’s, SECURITY

 
 
 
 
 
 

COUNTRYWISE AIR CARGO DESTINATIONS

 
 
 
 
 
 

OPERATING, FINANCING AND MAINTAINING A CARGO AIRLINE:

 
 
 
 
 
 
 
 

DEVELOPING LANDING PAGES

 
 
 
 
 
 
 
 
 
 
 
   
 

VERTICALS COMING SOON!

 
 
 
 
 
 
 
 
 
 
 
 
 
     

transport logistics 2023

 

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Air Cargo Marketing Plans and Air Cargo Development

More often, recognizing the importance of air cargo, airports are dedicating financial and professional resources to enhancing air cargo. It is important for an airport to develop a marketing plan when pursuing new or improved air cargo service. The ACI-NA Air Cargo Guide, Chapter 2, Developing an Air Cargo Market details the aspects of an air cargo marketing plan. The guide reminds the reader that marketing goes hand in hand with facility development since neither can be done successfully without the other. Both programs need a single focus in order to be successful.

A few of the items needed for a marketing plan and air cargo development as highlighted in the guide include:

  • Market Assessment

An assessment of the regional market area in conjunction with an assessment of an airport’s strengths and weaknesses will be the backbone of the marketing plan. Identify the potential cargo market and the advantages of the airport and region as a location to do business. The items included in a market assessment are discussed in detail under the Explore Air Cargo section. More information regarding SWOT Analyses can be found on the Air Service Explore Page .

  • Clear, Specific, and Realistic Objectives

Once the market assessment is completed, the airport can set objectives to overcome deficiencies or weaknesses or capitalize on strengths or unique features.

  • Strategies to Achieve Objectives

Each strategy should promote an airport and region’s strengths and should be targeted on two primary customers- air carriers (all-cargo and passenger) and air freight forwarders.

  • Input from Other Stakeholders

The marketing plan should include participation and input from other organizations such as trucking companies, local air cargo associations, agencies such as Customs and Agriculture, state aviation agencies, and local economic development agencies and chambers of commerce. This input helps foster support for the air cargo development efforts as well as the airport overall.

  • Air Cargo Development

Pursuing new or improved air cargo service requires a thorough understanding of the customer and their needs. A vision of the opportunities available at the airport for a potential new carrier should be communicated and well-designed and cost-effective facilities should be developed to support customer needs. A report can be developed and presented to a carrier to highlight the airport’s benefits. Additional programs can be pursued to raise awareness of an airport’s cargo facilities and competitive advantage. These include:

  • Cooperative promotion programs
  • Informational programs
  • Advertising and cargo expositions

Chapter 4, Air Cargo Facility Analysis , Figures 1 and 2. Figure 1 outlines the marketing aspects of air cargo facility development while Figure 2 depicts the facility development process.

An example of a strategic plan for air cargo development at the Erie International Airport.

An example of a marketing plan that includes air cargo development.

This checklist describes information provided in typical sections of an Air Cargo marketing plan.

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Guidebook for Air Cargo Facility Planning and Development

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Guidebook for Air Cargo Facility Planning and Development

TRB’s Airport Cooperative Research Program (ACRP) Report 143: Guidebook for Air Cargo Facility Planning and Development explores tools and techniques for sizing air cargo facilities, including data and updated metrics for forecasting future facility requirements as a function of changing market and economic conditions. The procedures included in the report may help airport operators develop effective business plans and make decisions that meet the industry’s current and future technological, operational, and security challenges in a cost-effective, efficient, and environmentally-sensitive manner.

In addition to the report, a CD-ROM contains the Air Cargo Facility Planning Model in a spreadsheet format. This model includes procedures for planning, developing, and implementing air cargo facilities that can be adapted and applied by users to reflect local requirements and development conditions for cargo facilities serving a wide variety of markets, including international gateways, national cargo hubs, domestic airports, and others.

The CD-ROM is also available for download from TRB’s website as an ISO image. Links to the ISO image and instructions for burning a CD-ROM from an ISO image are provided below.

Help on Burning an .ISO CD-ROM Image

Download the .ISO CD-ROM Image

(Warning: This is a large file and may take some time to download using a high-speed connection.)

Accompanying the report is ACRP Web-Only Document 24 : Air Cargo Facility Planning and Development—Final Report, which reviews the process and information used in preparing the guidebook.

CD-ROM Disclaimer - This software is offered as is, without warranty or promise of support of any kind either expressed or implied. Under no circumstance will the National Academy of Sciences or the Transportation Research Board (collectively "TRB") be liable for any loss or damage caused by the installation or operation of this product. TRB makes no representation or warranty of any kind, expressed or implied, in fact or in law, including without limitation, the warranty of merchantability or the warranty of fitness for a particular purpose, and shall not in any case be liable for any consequential or special damages.

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  • Transportation and Infrastructure — Freight Transportation
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Suggested Citation

National Academies of Sciences, Engineering, and Medicine. 2015. Guidebook for Air Cargo Facility Planning and Development . Washington, DC: The National Academies Press. https://doi.org/10.17226/21906. Import this citation to: Bibtex EndNote Reference Manager

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What to Know About Air Cargo Handling

Shipping by air is a fast and efficient means of transport for goods. Airlines transport over 52 million metric tons of goods a year, representing more than 35% of global trade by value but less than 1% of world trade by volume. That is equivalent to $6.8 trillion worth of goods annually, or $18.6 billion worth of goods every day. However, the effects of COVID-19 on the industry dramatically affected the air industry including air cargo. Available cargo tonne-kilometers fell industry-wide by 21.4% year-on-year in 2020 . However, by the end of the year, industry-wide cargo tonne-kilometers had returned to near pre-COVID values. With so much air cargo being shipped worldwide and so many different parties involved in the supply chain, it is important to take a look at cargo handling for air transport.

What is cargo handling?

Cargo handling is the segment of the supply chain which processes goods landside in the cargo facility. From the delivery at the airport of origin until it is ready for loading on the plane, to the unloading at destination and handover to the consignee/freight forwarder, many steps are involved with cargo handling that must be closely followed to ensure shipments are delivered safely and securely. These steps are found in the cargo Master Operating Plan (MOP).

What is the cargo Master Operating Plan (MOP)?

The Master Operating Plan (MOP) describes the key processes and sub-processes involved in transporting air cargo from shipper to consignee in a systematic and harmonized manner. It provides the air cargo supply chain with the first, industry-endorsed, standard description of the end-to-end process for transporting cargo by air.

What is the cargo MOP?

As a result, the MOP comprises 19 main processes and 78 sub-processes split into five categories of activities as follows:

  • Origin Forwarder
  • Origin Carrier
  • Transport Carrier
  • Destination Carrier
  • Destination Forwarder

The primary objective for air cargo acceptance and handling is to ensure that consignments are ready for carriage in compliance with operator and IATA regulations, as well as with export and import rules of the countries through which the cargo will transit. In general, all items to be transported using commercial aircraft must pass through an acceptance process. There are certain procedures that must be followed regardless of the type of cargo. Other procedures may only apply to certain types of cargo.

The section below will provide you a quick overview of some of the key steps of the MOP. 

Booking & Planning Shipments

The process of cargo handling begins with booking and planning shipments, there is much to be done before the shipment even leaves the facility. Having a solid plan of action allows for smooth booking and prevents fewer problems further down the chain of events. It is necessary to follow the steps below to book your shipment properly. These activities also include the steps handled by freight forwarders as listed below:

  • Receive shippers’ requests and check the security status
  • Receive shipper freight information
  • Plan the routing-direct or consolidation
  • Request capacity against forwarder or carrier inventories
  • Confirm capacity
  • Arrange pick up of freight
  • Picked up from the shipper

How Air Cargo is Received and Accepted for Shipment

The next step in logistics is how air cargo is received and accepted for transport. This is a multi-step process that includes various stockholders including trucking companies, as well as cargo and ground handling service providers amongst others.

Throughout the shipment process, safety remains a priority for all parties of the air cargo supply chain. For instance, it’s important to ensure clear and correct labeling and identification of packages. In addition, the packages themselves must be suited to the content and be able to protect the goods from any damage.

Let's take a closer look at what happens once the shipment is received by the carrier when it comes to discussing air cargo handling as so much of the preparation for the flight happens there.

Receive Shipments into Carrier Domain

Once the freight forwarding truck arrives at the carrier's domain and the truck driver has informed the Cargo Handling Agent of their arrival, the carrier domain can receive the goods. They should have received the following information in advance, which is why filing electronically is always recommended:

  • Electronic air waybill information
  • Electronic house waybill information for consolidated shipments
  • Truck number and type (if available)
  • Estimated arrival time (if available)
  • Security screening needs (if known/available)

Once the information has been received, and the truck has arrived, an unloading slot and position will be assigned to the driver. Different slots are given according to needs, such as dangerous goods, live animals, ULDs, healthcare products, and more.

Accept Shipments as Ready for Carriage

When accepting shipment as ready for carriage, airport cargo and ground handling personnel must take several steps to meet the requirements to ship goods by air. First, they must verify if the shipments are security cleared. Then they must perform a ready-for carriage check. This entails verifying that all the information aligns with the actual shipment and ensuring all embargoes and operational restrictions are applied. Once everything has been checked, the information is validated against the booking and updated. The primary objective is to ensure the consignments are in compliance with

  • Carrier requirements
  • Local export rules and regulations
  • Rules and regulations of the transit airport(s) and air spaces (if any)
  • Import regulations of the destination country

Prepare Cargo for Flight

After accepting shipments ready for carriage, airport cargo and ground handling personnel can prepare the air cargo for flight. The goods in transit must be received and security cleared once again. Goods left on the aircraft that are in transit are considered transit cargo. Cargo and ground handling services must give this transit cargo security checks, including x-ray and Explosive Trace Detection (ETD) screening. A detailed exam of the e-AWB, integrity of the cargo, and piece count is made. Once the pre-plan details are received from the carrier, a build-up plan must be prepared, which indicates what air cargo is to be built for flight, and the information is sent to the warehouse.

Prepare cargo for flight

Send Shipments to Flight

Now it is time to move the loaded ULDs to a secure flight holding area while being mindful of all sensitive information such as temperature-controlled and dangerous goods. Ensuring no flights are delayed, the ULDs can be lined up in order, if it is known, to prepare for ramp transportation. All ramp safety protocols must be followed. To avoid accidents being mindful of all ground support equipment during the process of loading and unloading is necessary. This is why proper training in IATA's rules and regulations is imperative for all cargo and ground handling personnel.

At this time, the control of the air cargo passes from the warehouse operator to the ramp handler. The transport of goods from cargo terminal to aircraft is a multi-step process best lined out in the IATA Cargo Handling Manual (ICHM) . After following each of those steps explicitly, you would load the aircraft according to the load plan, making a note of arrangements for special cargo. Once the aircraft is loaded, any discrepancies must be addressed by updating the electronic Flight Manifest. It is now that the aircraft can depart, but the cargo loading procedure is not complete without mailing the flight manifest, loading, and carriage information.

How is cargo unloaded?

How Air Cargo is Unloaded

How air cargo is unloaded involves fewer steps for airport cargo and ground handlers than the shipping and loading process. There are still many rules and regulations cargo and ground handling personnel must comply with, however. Following ramp safety protocols while performing tasks in a methodical manner help alleviate accidents and keep aircraft turnaround times in check. According to the IATA Cargo Handling Manual , the following are the specific steps to unloading air cargo:

  • Unload and dispatch shipment to warehouse
  • Check-in shipments
  • Arrive shipments
  • Hand over shipments to forwarders           

What are the Last Steps Before Delivery?

Once the truck has collected the goods from the carrier’s domain it is transferred to the freight forwarder hub where it’s unloaded and checked. Often before goods are dispatched via a Forwarder Branch Facility before being handed to the Consignee and then they are finally delivered to the final customer. These steps fall under the following chapters of the ICHM where you’ll find more details about each step:

  • Arrive shipment at forwarder hub
  • Transfer shipment at forwarder hub
  • Load truck and produce run sheet
  • Delivery, obtain proof of delivery, and conclude the cycle

What is the IATA Cargo Handling Manual?

The IATA Cargo Handling Manual (ICHM) is a publication of the most current recommended practices for airline stakeholders to follow. It gives all the required documentation in an accessible step-by-step format. It was developed by an IATA council named the ICHC (IATA Cargo Handling Consultative Council) founded in 2011 by the Cargo Advisory Council (CAC). "The IATA Cargo Handling Manual (ICHM) covers all working instructions door to door, from shipper to consignee, with a strong focus on airport to airport activities where cargo handlers and airlines operate," according to André Majeres, Cargo Mail & E-Commerce Operations Manager at IATA.

The current issue contains 19 chapters in line with the Master Operating Plan (MOP). It includes the most up-to-date regulations regarding cargo handling and 10 appendices to expand on the subject, including a glossary, charts, various agreements, and more.

Who Needs IATA Cargo Handling Manual?

Anyone in the air cargo supply chain should use the IATA Cargo Handling Manual (ICHM) . This includes airlines, shippers, cargo agents, and many others. It allows you to see where each level of risk exists in the handling of air cargo. This manual meets every airline's guidelines, which is important since too many airports require their cargo handlers to operate under the guidelines of each specific airline. This could mean complying with 100 different working instructions, which is a lot to be expected and is a costly and timely practice. By using IATA's manual for meeting the rules and regulations, you save time and money.

Where to Find More Information?

You can find more information about the most up-to-date cargo handling guidelines that are strict enough to cover each airline in the IATA Cargo Handling Manual (ICHM) . In it, you will find everything you need to be compliant with the rules and regulations, and to follow the 19 steps of the MOP to mitigate the risks when handling air cargo.

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IMAGES

  1. Business Plan of Budget Airline Company

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  2. How to Start an Air Cargo Business: A Step-by-Step Guide

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  3. What is the Air Cargo Supply Chain

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  4. 😂 Cargo business plan. Starting a Freight & Cargo Containers Business

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  6. Chapter 3

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  14. Airline Business Plan Example

    A complete management team, covering the elements of administration, aviation, and finance, is being assembled. This team brings together a wide range of skills and backgrounds covering the key areas needed to form, launch, and operate the airline, and from a range of national origins. 6.3 Management Team Gaps.

  15. Aircargopedia

    Air cargo is now a $60 billion plus industry in an airline industry with over $700 billion in annual revenues. During the next 20 years, cargo traffic is expected to more than triple, out-pacing passenger traffic and offering airlines more opportunities to generate new revenue. Many global airlines generate over 30% of their revenue from air cargo.

  16. PDF White Paper

    6 Air cargo and e-commerce enabling global trade March 2019 Air cargo responding to the e-commerce challenge: the industry action plan Strengthen safety and security for air cargo and airmail Safety and security must be further enhanced with stronger collaboration and compliance with programs

  17. PDF AIR CARGO GUIDE

    Air Cargo Committee members. We believe the Air Cargo Guide is an ideal instrument to expand the knowledge base of interested air cargo professionals at airports and throughout the industry. With this resource, we believe airports can benefit, and in so doing enhance local and regional economies through growth in their supply chain and trade-

  18. PDF Checklist for Marketing Your Airport to Air Cargo Carriers

    Marketing Plans are essential to airports interested in pursuing new or improved air cargo service. A good marketing plan establishes objectives and goals specific to the airport's air cargo business, ensuring participation in future growth opportunities. The following topics are key components of a marketing plan: Market Research and Analysis

  19. Air Cargo Marketing Plans and Air Cargo Development

    The ACI-NA Air Cargo Guide, Chapter 2, Developing an Air Cargo Market details the aspects of an air cargo marketing plan. The guide reminds the reader that marketing goes hand in hand with facility development since neither can be done successfully without the other. Both programs need a single focus in order to be successful. A few of the ...

  20. Guidebook for Air Cargo Facility Planning and Development

    Read Free Online. Buy Paperback: $64.00. TRB's Airport Cooperative Research Program (ACRP) Report 143: Guidebook for Air Cargo Facility Planning and Development explores tools and techniques for sizing air cargo facilities, including data and updated metrics for forecasting future facility requirements as a function of changing market and ...

  21. PDF AIR CARGO MARKET ASSESSMENT

    This chapter identifies air cargo operators, top North American air cargo airports, and trends affecting the industry since its peak in 2000. 2.1 Air Cargo Industry Business Models The air cargo industry is comprised of four basic types of carriers. The dominant carriers of U.S. domestic cargo are integrated carriers

  22. IATA

    Shipping by air is a fast and efficient means of transport for goods. Airlines transport over 52 million metric tons of goods a year, representing more than 35% of global trade by value but less than 1% of world trade by volume. That is equivalent to $6.8 trillion worth of goods annually, or $18.6 billion worth of goods every day.

  23. PDF BUSINESS PLAN 2023-2025

    2023. 2025 BUSINESS PLAN3.1. During 2019, the Ofice of Internal Oversight (OIO) made an evaluation of results-based m. nagement (RBM) in ICAO. The purpose of the evaluation was to assess the application of RBM in the Organization, identify and learn lessons in implementing various aspects of RBM, including results-based planning, budgeting, mo.