The Development Team

Paper 8: Cargo Operations and Management

Module 04: Types of Airlines & Cargo Air crafts

THE DEVELOPMENT TEAM

Principal Investigator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari

Co-Principal Investigator Dr. Prashant K. Gautam Director, UIHTM, Panjab University, Chandigarh

Paper Coordinator Prof. S. P. Bansal Vice Chancellor, Indira Gandhi University, Rewari

Paper Co-Coordinator Dr. Amit Katoch Assistant Professor, UIHTM, Panjab University, Chandigarh

Content Writer Dr. Amit Katoch Assistant Professor, UIHTM, Panjab University, Chandigarh

Content Reviewer Prof. S. Kabia Chairman, Institute of Tourism and Hotel Management, Bundelkhand University, Jhansi

ITEMS DESCRIPTION OF MODULE

Subject Name Tourism & Hospitality

Paper Name Cargo Operations and Management

Module No. 04

Module Title Types of Airlines & Cargo Air crafts

Objectives To have understanding of airlines and types of cargo aircrafts

Keywords History of airliners, transatlantic services, jet airliner, airline business models, cargo aircrafts.

TABLE OF CONTENTS

1. Learning Outcome

2. Introduction

3. History of Airliners

4. The Transatlantic Services

5. The jet airliner

6. Airline Business Models

7. Aircraft and Freighter Fleets

8. Summary

QUADRANT I

1. Learning outcome of module

After completing this module, the students will be able to learn about:

• History of Airliners • The Transatlantic Services • The jet airliner

• Airline Business Models • Types of cargo aircraft • Aircraft and Freighter Fleets

http://www.wright-brothers.org/Information_Desk/Just_the_Facts/Airplanes/Wright_Airplane_images/Model%20B/Atwood_in_Model_B.jpg

2. Introduction

Aeroplane has changed the world. The time when first aeroplane started flying, the concept behind it was totally unbelievable, that how a heavy object can fly in the sky. Before that this idea was just illogical. In today’s time aeroplanes are carrying millions of people and tons of material daily with fast speed that helps saving the time.

https://www.ohiohistory.org/getmedia/a695a6d5-2652-4d9a-90b7-99ed04374aa4/Parmalee

Many entrepreneurs tried to commercialize the air flights which would lead to the birth of this air freight industry very quickly. If we talk about the first actual air freight shipping it took place in November, 1910; it was department store from Ohio who shipped silk bolt from Dayton to Columbus. This was first time when aeroplane competed with express train and the winning result was very clear.

It is true that first shipment consignment was more of testing then commercial trade. The shipping companies realized in very early time that they have got powerful equipment. Quick service and far distance covered in shorter period of time was what air freight industry gave to the customer.

http://www.aerofiles.com/stear-natparks.jpg

Post some years, delivery through air stayed more unusual, but September 1927 was the month when it all changed with first air cargo delivered by National Air Transport, from Dallas to

New York. After that air freight quickly touched the sky in terms of business. If we talk about figures, in 1927 air freight weighed in about 46,000; but in 1929 it crossed 257,000 pounds of weigh.

Important fact about air freight is that till that time it survived as air transportation only.

The cargo-only air freight industry was not really flourished until the Second World War. The first

air freight only flight was took to the sky by united airlines in 1940 which helped in delivering mail from New York to Chicago and return.

The air freight industry grew quickly after World War II. All-freight services were growing up, along commercial airlines. In 1949 many such airlines were licensed by the civil aeronautics board.

Not only were the “big boys” like commercial airlines getting more heavily involved in the business, but. The Civil Aeronautics Board licensed four such airlines in 1949, rest small pilots and airlines delivered goods in backwaters of U.S during that period. Simultaneously air freight was growing in the other regions also.

3. History of Airliners

Figure- Douglas DC-3

http://www.aviation-history.com/douglas/dc3-3a.jpg

1931 – 1939

Till 1930 many airlines were flying in a great network of air-routes providing services in different parts of the world, such airlines were SWISSAIR, UNITED, Lufthansa, QANTAS, AMERICAN, TWA, VARIG, VASP, SABENA, Imperial Airways and KLM.

Multi-engine aircraft replaced the old post-great war aircraft which was predominantly designed to carry good number of passengers and for airlines services. In 1930’s, first sleek metal with modern- look airliners came in the market. Douglas DC-3 was the most important airliner that came forward from Pre-World War 2.

Figure- Savoia_Marchetti_S.73

https://upload.wikimedia.org/wikipedia/commons/0/0b/Savoia_Marchetti_S.73.jpg In 1938 – 1939

Many important airlines were introduced by Europe; one of them was the Savoia-Marchetti 73/83 airliners. But later on war resulted in bringing the American-made airliners in the airline market.

Imperial Airways and Pan American Airways served in trans-oceanic services which used large flying boat airliners and showed hopeful signs of long-haul possibilities in 1930s. This helped in giving experience for the operations during wartime over Atlantic.

Figure- AVRO 691 LANCASTRIAN C MK3 Transport Aircraft

http://www.airpowerworld.info/transport-aircraft/avro-lancastrian.jpg

1940 – 1949

Air travel changed all over after World War 2 by introducing flying boat era vanishing as new land-operating aircrafts by the end of war.

Large airbases having long concreted runway and large aprons were supplied excessively in whole world and importantly in Europe after the war. This resulted in land-based service of airlines naturally.

Post world war many new airports were designed and they were very much close to the cities of Europe. For some time pre-war type were used on international service, while European routes

mostly pressed ex-USAAF aircraft by the same time national aircraft industry of European countries were re-started.

The gap between the design of modern civilian types and airlines introduction were filled by converted war planes. During urgent post-war time Yorks, Lancastrians and C-47s were used by airlines and when the war was ended in Europe these were used on Berlin Air Lift.

New types were expected to be seen at Europe’s new airport by the end of 1940’s. Start of the BEA European state airline was experienced by Heathrow and Northolt; Viking and Ambassador were included in its new type. Along the extended range Lockheed's Constellation, Douglas DC6s and 7s and Boeing's Stratocruiser Tran-Atlantic services came of age along the Trans World Airways and Pan American World Airways flying regularly between London Heathrow and New York.

1950 - 1959

The first turbo-propeller airliners were launched and they were followed quite soon by the first jet airliners in 1950s. Beginning of jet’s faced tough time as it was a wrong start to ‘Jet – Age’ and also because of pressurization accidents.

Figure- De Havilland DH-106 Comet 1

http://www.airliners.net/index/aircraft-types/De-Havilland-DH-106-Comet/De-Havilland-DH-106-Comet-1/4119/19227

May 2, 1952 on the London - Johannesburg route, the De Havilland Comet 1, came into the services and was the first jet airliner. BOAC flight which was ancient was followed by UAT Comet flights between Dakar and Paris, and Jo'burg were bought by South African to London service in rivalry with the services of BOAC. Comet 1 jets were flown on their Paris - Beirut service by air France and Comet 3 jets were ordered from De Havilland by Pan American.

Three Comets lost during landing accidents resulted in very first comet crashes and it was because of genuine accident and thunderstorm resulted in the loss of another.

The jet airliner was very handy pilots changing from the same old propeller style; just like all new aircraft types civil or military had. At that particular time on January 10th, 1954 BOAC Comet 1 broke-up during departure from Rome. On April 8th the doubtful thing behind this was firmed when a South African Airways Comet vanished at high altitude. This resulted in grounding the comet 1 jets permanently and metal fatigue around the window frames were found to be the cause of the cabin disintegrating.

Figure- Boeing 707-120

https://simviation.com/hjg/aircraft1/boeing/b707-120/b707-120f_arca_colombia_1975_120f_hk1773.jpg

Then later on comet 4 and Boeing 707-120 was introduced in 1958 which gave a tragic false start to the ‘Jet Age’, post one year DC8-30 was put into the service From 1955 Tu-104s was used by

Aeroflot and from 1956 ‘test flights’ having new short-haul Caravelle jet were flown by Air France.

BOAC comet 4 was the first jet service all over the north Atlantic started in October 1958, just after three weeks Boeing 707 was used by Pan American flying started its first operation in competition with BOAC.

Tupolev Tu-104 'Camel' jets were the first sustained scheduled jet airline service which was started by Soviet Union's Aeroflot airline in 1955s summer time and was mainly for the internal routes.

1960 - 1969

All major airlines replaced their old piston engine types with new jet airlines which helped to increase the hold of ‘Jet Age’ during 1960s.

Figure- Stratocruisers

http://www.aviation-history.com/boeing/377-4a.jpg

Old and historic DC7s, Stratocruisers, and Constellations were replaced by Boeing 707s, DC8s, Convair 880s and VC10s on long-Haul routes. The piston-twin types on short and medium-haul routes were replaced by Caravelles, Boeing 727s, DC9s, BAC111s and Tridents.

http://duibe7slt06r7.cloudfront.net/Live/Binaries/en-GB/images/Fokker-27-large_tcm36-3565.jpg In 1950s, Fokker 27 and Viscount were introduced which were new turbo-prop short-haul types and they became the main type at regional airlines for many where less economical (for short routes) pure jet aircrafts were used.

Figure- Lockheed L-1011

https://bloximages.chicago2.vip.townnews.com/tucson.com/content/tncms/assets/v3/editorial/f/21/f213e9bc-6807-11e7-91de-ef9353bdceef/5967 d4c357ca5.image.jpg?resize=1200%2C701

1970 - 1979

Large - body 'Jumbo' jets were introduced during 1970’s. In the beginning of 1970s Boeing 707s and DC8-63s on the long-haul routes were replaced by Douglas Lockheed L1011 Tristars, DC10s and Boeing 747s which were introduced at that period time.

Boeing's 737 and the Airbus A300 were also introduced during this decade and they showed their power to the world. And it was in a way the second generation of jet airliners for the medium and short haul routes.

Air France and British Airways also introduced the Concorde Super Sonic Transport in 1974. Interesting shapes and interesting aircrafts were introduced during 1970s which resulted as most interesting decade for jet transportation.

Figure-MD80

http://ww3.hdnux.com/photos/51/21/23/10818762/5/920x1240.jpg

1980 - 1989

1980s was the decade for computer-generated twin-fan airliner. During this period the old 1960s and 1970s types were stopped using and it was replaced by MD-80s, Boeing 737-300s and airbus A310s.

During this period First and second generation airliners were also withdrawn from large airline fleets and Boeing, Airbus and McDonnell-Douglas replaced them. It was the end for Fokker which was world’s one of the most important airliner maker. It was a very big loss and was very sad moment

1990 – 2000

By1990s new partnerships were formed by airlines manufacturers. Boeing merged with McDonnell-Douglas to compete with the most successful rivalry Airbus Industries; it was a

Partnership between manufacturers of European Aircraft.

After more than 70 years of airliner productions, Fokker ceased trading by the 1990s which was a Dutch airliner.

http://i.telegraph.co.uk/multimedia/archive/01007/comet_1007196c.jpg

4. The Transatlantic Services

United States and Europe are the most travelled and more important air routes in the Western world and no other route is as important comparatively to these.

Airline business people had been exploring the possibilities of flying transatlantic routes and it’s going on from the arrival of commercial air travel after World War I. Europe and America were the two great centres for industry worldwide reason for conquering the Atlantic was this only. In 1920s the commercial transatlantic air travel got prohibited due to the limitations of aviation technology, in 1927 the old flight of Charles Lindbergh made the interest of many who desired of daily flights over the vast extend of ocean.

Unpredictable weather and the huge distances involved issues and the other fact was there was no intermediate stopping point or emergency stopping points which was the major challenges for aviators in the North Atlantic.

https://www.jetfriends.com/Portals/2/ArticleImages/Teens/4_3_2_Lufthansa%20erleben/4.3.2.3_%20Lufthansa/4.3.2.3.3_Lufthansa-Geschichte/ 432332_en_header.jpg

In 1930s, Deutsche Lufthansa which was a German airline tried with some mail routes across North Atlantic with seaplanes as well as dirigibles but they were not scheduled properly and regularly which resulted that they were unable to perform commercial operations.

In 1936 only British Imperial Airways and Pan American Airways started their work for experimental transatlantic flights and many other airlines also did the same; as the Britishers were not willing to give or pass landing rights to American air carriers till that moment. So both airlines thought of using flying boats as concrete runways were very less at coastal airport on the Atlantic, and the second reason was that landplanes were having the capability of flying long distances without refuelling which was the best thing about it. During the start-up both the airlines focused on caring mail instead of people. One whole day was utilized by the Short S.23 Empire flying boats which was a simple flight from one coast to another coast.

At that time both the political factors and technological frontiers were the main factors in expansion of air travel as a commercial benefit; and this thing is very clear with the history of commercial transatlantic air travel which tells the same.

By the end of World War II, transatlantic routes were dominated by American Air service but the advantage of growing market was taken by the European carriers. Now in 1940s passengers across the Atlantic as part of a new post-war air travel boom

If we talk about 1940’s the transalantic route was very rarely used or travelled route In terms of caring passengers, but in just 10 years of span it became the most highly revenue generation route and termed as world’s number one route in terms of traffic too. Now Atlantic was finally been conquered by and for the common passenger.

Figure- Jet Airliner

https://i.ytimg.com/vi/l-RnoHkD1lE/maxresdefault.jpg

5. The jet airliner

equipped airplanes. After World War II, civil aircraft builders and U.S. Air Force both found it capable and they were attracted towards it. Transferring jet engine technology to the commercial aviation sector was a big task to perform and was the major concern.

Airline executives after the war era were aware about this thing that despite the fact they were simpler than old piston engines, aircraft's longevity and reliability will for sure be affected as it require very expensive metal alloy components because they have high operating temperatures. Then the next biggest trouble was amounts of fuel as jet engines consumed more fuel than the earlier technology. Longer runways were required for low take-off speed. All these issues finally lead to increasing the costs. This thing resulted in “wait-and-see” approach which was adopted by U.S. passenger air carriers as they did not support the building of jet airliners just after the war era because they were not ready to take risky path.

https://cdn.airplane-pictures.net/images/uploaded-images/2010/4/18/86117.jpg

Commercial jet airliner was first introduced and bought into the service by the British Overseas Aircraft Corporation (BOAC), the national British carrier. On July 27, 1949 the 36-seat Comet 1 which was built by De Havilland was taken to the sky. On May 2, 1952 the world's first commercial jet service was inaugurated by BOAC. Initially flights carried passengers from London to Johannesburg in South Africa, and their stoppages were Khartoum, Rome, Beirut, Entebbe and Livingstone, near Victoria Falls. 180 miles per hour was the top cruising speed of DC-3 which was the most well-known piston-engine aircraft at that time. 480 miles per hour was the cruising speed of Comet which made passenger to travel comfortably and this made the air travel revolutionized. The new technology installed comet planes were relatively quiet and

vibration-free then old piston planes. But unfortunately, the number of tragic accidents happened with the Comet, and within two years these were suspended by BOAC.

Pan American Airways ordered for new 76-seat Comet 3 in 1952 but the accidents of crashes lead to doubt in the contract. By the time, domestic U.S. companies also started building jet airliners. Various factors, like improved jet engines, resulted in convincing these companies to reconsider their initial decision of building commercial jet planes.

On December 10, 1958 National Airlines within United States became the first who begin jet service by introducing Boeing 707s. On January 25, 1959 first domestic jet service was offered by American Airlines using its own aircraft flight from New York to Los Angeles.

Pan American Airways was there that set the standards for service in new jet era and there were many other airlines also which were first to offer regular services on different international routes.

6. Airline Business Models

The new upcoming forms of business models in the industry of airlines are represented in terms of how the revenue is generated by this carrier, value-added services, its product offering, source of revenue and the target customers.

New competitive interactions and the deregulation between the firms always end with some adjustment of the player’s own business model in comparative to the competitor. Business models airline have following main sets:

1. Full-Service Carriers 2. Regional Carriers 3. Traditional Freight Carriers 4. Charter carriers or Holiday carriers 5. Integrators 6. Hybrid Carriers 7. Low-Cost Carriers

Full-Service Carriers

A wide range of pre-flight and on board services which includes different service classes and connecting flights are focused by full service network carrier which is an airline type. Hub-and-spoke airlines are usually referred to these group of airlines as most FSNCs operate a model of hub-and-spoke.

In many parts of Europe, the national carrier is operated as an FSNC. Lufthansa, , Iberia Air France/KLM, Austrian Airlines, LOT, British Airways or the multi-national airline Scandinavian are some examples. The only country in which quite a significant number of independent, fully privatized FSNCs operate is USA. Only one state-owned FSNC operates if we talk about African and Asian countries.

There are additional, independently owned and operated except from national carriers, EU countries with some FSNCs. British Midland and Virgin Atlantic (UK), Air One (Italy), Spanair and Air Europa (Spain) and Aegean are some of the most prominent examples.

Regional Carriers

These are also known as commuter airlines or feeder airlines, they generally use small aircrafts with 20-100 seats and they restrict their flight routes to a geographically limited area that means they travel to nearby area only. But there are some regional carriers that work independently and their main motive is on decentralized point-to-point flights that run between smaller airports, then there are some others who work as feeder airlines for FSNCs and later connect with regional airports in the hinterland. VLM from Belgium is an example for the first group that is a 50-seater and operates between the Benelux countries, UK and Germany. Euro wings from Germany is a typical feeder airline which flies from Frankfurt and Munich on behalf of Lufthansa.

Unit costs of regional airlines are usually significantly higher than those of LCCs, FSNCs and holiday carriers as it is a smaller aircraft.

Traditional Freight Carriers

The traditional air cargo chain has to be distinguished from the integrated one in the air cargo market. Cargo airlines usually cooperate closely with freight forwarders who buy cargo capacity

from the airline and organize delivery services and pick-up services on the ground; this is about the traditional air cargo chain.

Charter carriers or Holiday carriers

A charter carrier (CC) is defined, as ‘an airline company that operates flights outside normal schedules, by a hiring arrangement with a particular customer’. It transports only the leisure tourists or vacationists going to the tourist destinations. The tickets for charter services are sold by tour operator companies and not by the chartered flights. These carriers carry passengers individually, small or mega groups who have booked their services. But, generally, these charter services sell the flight service in form of a holiday package along with accommodation and additional services. Also, the flight only packages are also sold for many destinations. The EU deregulation have helped the selling of these flight only packages and a good number of European charter services are now component or elements of vertically integrated organizations putting together travel agencies, tour operators, airline, hotels and ground transport companies. Some of its examples are Condor, Britannia Gmbh, Air Jet, and Virgin Sun. some full service carriers (FSC) has established charter divisions such as Lufthansa owns Condor or KLM owns Martin Air. The advantages of charter carrier (CC’s) over the LCC’s are that the CC’s have large aircrafts which fly to long-haul destinations, have high load factor, good aircraft utilization and employment efficiency and lower allotment costs, landing fees, finance costs etc.

Integrators

The integrators just like cargo airliners barely provide any ground service and primarily do sale of air transport spaces to forwarders. They provide door to door services to shippers & fully manage sales as well as their transportation services. The conventional cargo carriers and forwarders ship practically all types of products; integrators give attention to time-definite services for documents and smaller goods of up to 31.5 kg. To guarantee worldwide deliveries in short, pre-defined (often overnight) time frames, integrators operate hub-and-spoke networks. To secure overnight deliveries between the most important regions, nightly hubbing is a crucial element of an integrator’s business model. The main players are DHL, FedEx, TNT and UPS which all offer worldwide services using their respective in-house and contract airlines.

Hybrid Carriers

These are carriers which started selling the leisure routes on some select destinations. This type of mechanism was adopted by a large number of airlines especially operating at smaller scale. The best example of this type of hybrid carriers is Air Berlin which till middle nineties operated as charter carrier, but was a pioneer airline which started selling seats on leisure routes before its opponents.

Low-Cost Carriers

Cost reduction is the main focus of low cost carriers and thus implements a price leadership strategy on the markets they serve. Use of medium-sized aircraft that are young and homogenous usually helps in lowering or reducing the cast of fuel, over-heads, maintenance, and staff; if orders is placed at large quantity then discounted prices helps in saving capital cost.

Fixed costs can be attributed to more seats and passengers although high-density seating leads to reducing unit costs of all categories. When more passengers are onboard variable in-flight seating costs increase. To maximize the number of daily block hours, thus aircraft utilization should keep a check on ground times and delays are reduced by serving less, uncongested airports is one of the important fact to be considered and by focusing on point-to-point flights, without any connections, enabling an LCC.

7. Types of cargo aircraft

Different cargo can be transported by passenger, cargo or Combi aircraft:

1. Passenger aircraft-use the spare volume in the airplane's baggage hold (the "belly") that is not being used for passenger luggage - a common practice used by passenger airlines, who additionally transport cargo on scheduled passenger flights. This practice is known as Belly Cargo. Cargo can also be transported in the passenger cabin as hand-carry by an “on-board courier”. 2. Cargo aircraft-are dedicated for the job - they carry freight on the main deck and in the belly by means of nose-loading or side loading. 3. Combi aircraft-carry cargo on the main deck behind the passengers’ area with side loading and in the belly.

Nearly all commercial cargo aircraft presently in the fleet are derivatives or transformations of passenger aircraft. However, there are three other methods to the development of cargo aircraft.

1. Derivatives of non-cargo aircraft 2. Dedicated civilian cargo aircraft 3. Joint civil-military cargo aircraft

7.1 Derivatives of non-cargo aircraft

Existing air cargo derivatives of passenger airplanes have been very fitting. For example, the Boeing-747-200F has proven to be the big payload toiler of the air cargo fleet and could continue unmodified for a number of years. Each derivative freighter has the benefit of having most of its development costs already assessed against the transaction of its passenger equivalent. Furthermore, the financial arrangements for buying the airplane have already been established and there is a quite short lead time before production (as compared to all new aircraft). A main drawback of existing air cargo aircraft is that they represent older technology; thus their direct operating costs are higher than what might be achieved with current technology. Additionally, since they generally have not been designed specifically for air cargo, loading and unloading can cause problems; the aircraft may be pressurized more than necessary, and there may be apparatus manufactured for passenger safety that is not necessary for cargo.

7.2 Dedicated civilian cargo aircraft

A dedicated commercial air freighter is an airplane which has been designed from the beginning as a freighter, with no restrictions caused by either passenger or military requirements. Over the years, there has been a dispute concerning the cost effectiveness of such an airplane, with some cargo carriers stating that they could consistently earn a profit if they had such an aircraft. To help resolve this disagreement, the National Aeronautics and Space Administration (NASA) selected two contractors, Douglas Aircraft Co. and Lockheed-Georgia Co., to independently evaluate the possibility of producing such a freighter by 1990. This was done as part of the Cargo/Logistics Airlift Systems Study (CLASS). At comparable payloads, dedicated cargo aircraft was said to

provide a 20 percent reduction in trip cost and a 15 percent decrease in aircraft price compared to other cargo aircraft. These findings, however, are extremely sensitive to assumptions about fuel and labour costs and, most particularly, to growth in demand for air cargo services. Further, it ignores the competitive situation brought about by the lower capital costs of future derivative air cargo aircraft.

The main advantage of the dedicated air freighter is that it can be designed specifically for air freight demand, providing the type of loading and unloading, flooring, fuselage configuration, and pressurization which are optimized for its mission. Moreover, it can make full use of NASA’s ACEE results, with the potential of significantly lowering operating costs and fuel usage. Such a high overhead raises the price of the airplane and its direct operating cost (because of depreciation and insurance costs) and increases the financial risks to investors, especially since it would be competing with derivatives which have much smaller development costs per unit and which themselves have incorporated some of the cost-reducing technology.

7.3 Joint civil-military cargo aircraft

One benefit of a combined development is that the development costs would be shared by the civil and military sectors, and the number of airplanes required by the military could be decreased by the number of civil reserve airplanes purchased by air carriers and available to the military in case of emergency. There are some possible drawbacks, as the restrictions executed by joint development, the punishments that would be suffered by both civil and military airplanes, and the difficulty in discovering an organizational structure that authorizes their compromise. Some features appropriate to a military aircraft would have to be rejected, because they are not suitable for a civil freighter. Moreover, each airplane would have to carry some weight which it would not carry if it were independently designed. This additional weight lessens the payload and the profitability of the commercial version. This could either be compensated by a transfer payment at acquisition, or an operating penalty compensation payment. Most important, it is not clear that there will be an adequate market for the civil version or that it will be cost competitive with derivatives of passenger aircraft.

8. Aircraft and Freighter Fleets

Freighter fleets currently account for about 10% of the total airplane fleets operating globally. As air cargo volume and traffic levels triple over the next two decades, the preference among airlines and shippers will be a shift toward wide body freighters which will increase the average payload per aircraft. This increase in payload capacity will account for the difference between demand growth for cargo services and growth of freighter fleets. By 2031, 36% of freighter fleets will be comprised of large category wide body aircraft which is an expansion from the current wide body aircraft share of 31%. Over half of all additions to cargo fleets will be in the medium / large freighter market, which has capacities of 40 tons+ per aircraft. Of the freighter fleet additions, 70 percent will come from modified aircraft and 30 percent of airplanes will be new production large freighters with 80+ tons capacity per aircraft. New production aircraft provide many benefits to the airlines and operators such as technical advantages, reliability, fuel efficiency and overall low operating costs.

9. Summary:

In today’s time of globalization air freight has become crucial. There was time when goods use to take weeks, to travel in different parts of world, now a day’s air freight operators delivers material from New York to Beijing; or the African bush, in just hours and days. United States and Europe are the most travelled and more important air routes in the Western world and no other route is as important comparatively to these.

The world air travel was revolutionized by one great technology which was jet engine. Jet planes were having tremendous speeds; it was totally different from old planes which were powered by piston engines which helped to save time. The new upcoming forms of business models in the industry of airlines are represented in terms of how the revenue is generated by this carrier, value-added services, its product offering, source of revenue and the target customers. The various business models of airline are Full-Service Carriers, Regional Carriers, Traditional Freight

Carriers, Charter carriers or Holiday carriers, Integrators, Hybrid Carriers and Low-Cost Carriers. Different cargo can be transported by passenger, cargo or Combi aircraft:

Nearly all commercial cargo aircraft presently in the fleet are derivatives or transformations of passenger aircraft such as derivatives of non-cargo aircraft, dedicated civilian cargo aircraft and Joint civil-military cargo aircraft.