Paper 8: Cargo Operations and Management Module-32: Leading Airline Cargo Players 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. Sandeep Guleria, Principal, ITFT College, 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. 32 Module Title Leading Airline Cargo Players Objectives To Know the Airfreight Industry and Leading Players of it Keywords Aircrafts, Boeing, Airbus, Air Freight, Cargo Airlines TABLE OF CONTENTS 1. Learning Objectives 2. Introduction 3. Aircrafts Used in Cargo Industry 4. Top 10 Air Freight Companies 4.1 FedEx Express 4.2 UPS Airlines 4.3 DHL Aviation 4.4 Cathay Pacific 4.5 Korean Air Cargo 4.6 Lufthansa Cargo 4.7 China Airline Cargo 4.8 Singapore Airline Cargo 4.9 Emirates Sky Cargo 4.10 Cargo lux 5. Worldwide Scenario of Cargo Industry 5.1 Asia Pacific Region 5.2 North American Region 5.3 European Region 5.4 Middle East Region 5.5 Latin American Region 5.6 African Region 6. Indian Scenario of Cargo Industry 7. Summary QUADRANT- I 1. Learning Objectives After completing this module, one shall be able to understand: Airlines which are mainly in the business of Air Freight Aircrafts used for air freight by different airlines Global Scenario of Air freight industry Indian Market of Air Freight Top 10 Air Freight companies of the world http://cdn.prezly.com/93/96ed60eb6e11e591524b9eabc40056/Cargo-loading-Budapest.jpg 2. Introduction Entire world has witnessed the growth of Airline Industry after the World War II. Since then, the usage of Aircraft has not been confined to Defense forces but to the civil aviation also. The no. of air passengers in domestic as well as international market has grown exponentially. Nowadays besides passenger traffic, air transport has become the an integral component of international logistic network, which manages and controls the flow of goods, information, products, services, people from one market or production houses to another. Logistics through airways includes the transfer of raw material, unfinished or finished goods, inventories as well as work in process geographically. In normal passenger aircraft there is a provision of cargo hold in which passengers can put their luggage and transfer from one place to another with them. These days there are many airlines which specifically deals in transporting only cargo from one place to another. These airlines are known as Cargo airlines. The cargo airlines which basically deals only in the transport of the cargo by air are known as Air Freight Carriers. It can be seen that most of the Air Freight Carriers are subsidiaries of well-known passenger airlines. https://i.pinimg.com/originals/32/30/1f/32301fa9f6561eb82cb24c205dc0d361.jpg 3. Aircrafts Used in Cargo Industry In Cargo Market both old as well as recently built aircrafts are being used for transportation. Due to emergence of new sector of air freight in aviation industry new aircrafts are plying in the market, these aircrafts are Boeing 707, Douglas DC-8, Boeing 727, Douglas DC-10, MD 11, Airbus A300 and Ilyushin II-76. Douglas DC-3 are still in use which are around 60 years old aircraft. These aircrafts are flying around the world for transporting passengers as well as cargo. Some old aircraft are modified as per the new standard requirements of air freight industry. Some short range airliners like An-12, 26, Fokker Friendship and British Aerospace ATP are still in use. Glazed windows has been modified into opaque panels, a broad top hinged door has been inserted to one side of fuselage with strengthening of the cabin floor. A Ukrainian Cargo airline (Antonov Airlines) used An-225, world’s largest aircraft. The world’s Largest aircrafts are Antonov An-225 Mriya and Antonov An-124. Both the planes are used for the transportation of oversized cargos. Ukraine’s Antonov Airline is pioneered using large military airplanes for commercial purposes. Some of the cargo airlines deemed to carry a few passengers on flight. UPS airlines also started passenger charter airline but became unsuccessful. US is known for main aviation market where cargo planes are forbidden from carrying non- employee passengers. EAT (European Air Transport) Airbus A300B4F is a subsidiary of DHL Aviation. EAT is one of the largest cargo companies of the world. http://www.americanmachinist.com/sites/americanmachinist.com/files/uploads/2016/03/BoeingC argoForecastInfographic-595.jpg 4. Top 10 Airfreight Companies There are more than 100 Companies deal in Airfreight business. Among them top 10 Airfreight Companies are as follow: http://images.fedex.com/images/us/2011crimages/expressfreight/exp-freight-banner-plane.jpg 4.1.FedEx Express FedEx Express was founded by Fredrick W Smith with its headquarters at Memphis, Tenneesee, US. Its subsidiaries are Subsidiaries: TNT Express, FedEx Office, FedEx Ground, and GENCO. It commenced its operations in 1973. FedEx Express has 688 aircrafts in its fleet and covers more than 375 destinations worldwide. In terms of volume of air freight handled FedEx has built its name. It has its dedicated fleet who completed this task. In the fleet of FedEx they have 12 Boeing 777 Freighter. In addition to it they have ordered 15 additional aircrafts for the enhancement of its fleet. FedEx Express has the fourth largest fleet in the world. If some wants to see the diversity in the fleet of FedEx then he can witness it from light carrier like Cessna 208 to huge Airbus A300 at Memphis International Airport. The propeller driven aircraft fleet of FedEx help the carriers which handle larger goods under its Feeder program. FedEx Express is at the top of the world in the cargo market which is driven by the Middle Eastern and all other cargo airlines. As per the data revealed by World Air Transport Statistics (IATA), despite a 1.4 percent decrease in demand FedEx managed to maintain its place as the world’s busiest cargo airline. Due to weakness in global economic conditions and capacity reductions, the weight of FedEx international priority and international airfreight shipments declined still package numbers increase during the year 2016. https://upload.wikimedia.org/wikipedia/commons/4/41/UPS_Boeing_747-400_in_Dubai_KvW.jpg 4.2.UPS Airlines UPS Airlines is one of the America’s top class cargo airlines besides FedEx. The owner of UPS Airlines is United Parcel Service Incorporation. The headquarter of UPS Airlines is at Louisville, Kentucky. The international all –point air hub, world port is at Louisville International Airport. The airline was started in 1982. The UPS Airlines has the fleet of 519 aircrafts including chartered planes, and covers more than 700 destinations worldwide. Its headquarters from where UPS Airlines operates is at Louisville International Airport. UPS have given the orders for Boeing 777 freighter. The inclusion of Boeing 777 would definitely add further capacity and functionality to its operations. The shipping and logistics of UPS Airlines functions for just every country of the world. http://goglobal.dhl-usa.com/blog/wp-content/uploads/2015/05/Future-Aviation.jpg 4.3. DHL Aviation One of the division of DHL Express is DHL Aviation. DHL Aviation is not a single airline. It is airline owned, co-owned or chartered by DHL Express. The Headquarter of DHL Aviation is at Derby, United Kingdom. It was founded in the year 1969. DHL Aviation has the Fleet Size of 75 aircrafts and covers around 150 destinations world- wide. The company comprised of main airlines like European Air Transport Leipzig, DHL Air UK, DHL Aero Expresso and SNAS/DHL. Together all these subsidiaries claim for carrying 12 percent of the total market worldwide and emerged as global leader in air freight. It is very difficult to match the breadth of its freight operations. http://images.indianexpress.com/2017/05/cathay-1.jpg 4.4.Cathay Pacific Cathay Pacific, is the flag carrier of Hong Kong. Its Headquarter is located at Hong Kong International Airport. Its main subsidiaries are Cathay Dragon, Asia Miles, HAECO, Air Hong Kong. The airline was founded in 24th September 1946. The Fleet size of Cathay Pacific Cargo is 22 which covers 59 destinations world-wide. Cathay pacific Cargo is air cargo service of Hong Kong. Cathay Pacific Cargo has established the prominent position for growth in Chinese economy. In future Cathay Pacific is looking to add 10 Boeing 747-8F and 8 Boeing 777F Planes more in its fleet to meet the growing demand of region. https://upload.wikimedia.org/wikipedia/commons/e/e2/Boeing_747-4B5F-SCD%2C_Korean_Air_Cargo_AN1893203.jpg 4.5.Korean Air Cargo Korean Air Cargo has 24 aircrafts in fleet which covers total 116 destinations worldwide. Korean Air Cargo is the largest airline in South Korea. Korean Air Cargo is set to add seven Boeing 747-8F freighters and five Boeing 777F planes in its fleet. As per present scenario Korean Air Cargo is well positioned for any future venture of enhancement in the freight industry. Its main subsidiaries are Jin Air, Czech Airlines, Korea Airport Service Co Ltd. https://lufthansa-cargo.com/documents/20184/38128/lcag_OAG_rms_210716-XL- Slider_Bild3_10.jpg/04bc7b42-d541-40c3-8684-bf92794d87f2?t=1425507736000 4.6.Lufthansa Cargo Lufthansa Cargo AG is a German cargo airline. It is owned subsidiary of Lufthansa. It operates worldwide air freight and logistics services. The headquarter of Lufthansa Cargo is at Frankfurt Airport, the main hub of Lufthansa.