AIR LOGISTICS

BY,
AARTHI PONNUSAMY
SHANTHI PRIYADARSHINI
 LOGISTICS

Logistics is the management of the flow of

goods, information and other resources,
including energy and people, between the
point of origin and the point of consumption
in order to meet the requirements of
consumers
AIR LOGISTICS

•Air transport is a vital component of many international logistics

networks
•Speed of air transport is considered the fastest among the other modes of
transportation.
•In this mode the fixed costs are lower whereas the operating costs are
very high.
•Air transport brings distant markets closer -especially perishables market
in gulf countries.
 Overcomes the hassle and cost of setting up depots and
service centers overseas.

 High growth of 73% - Efficient services

 Cost structure is highly variable

 Transit times are fastest of all the modes, but rates are
highest.

 Average revenue per ton mile 18 times higher than rail; twice
that of motor carriers.

 Seek goods with a high value to weight ratio.(diamonds)

 AIR CRAFTS USED

 Larger cargo airlines tend

to use new or recently built

aircraft to carry their freight,

but many use older aircraft,

like the Boeing 707, Boeing 727, Douglas DC-8,

DC-10, MD-11, B 747#747-200F, Ilyushin Il-76
 2004 total scheduled freight tonne-kilometers
flown
1. FedEx Express 14.579 million

2. Korean Air 8.264 million

3. Lufthansa Cargo 8.040 million

4. United Parcel Service 7.353 million

5. Singapore Airlines Cargo 7.143 million

6. Cathay Pacific 5.876 million

7. China Airlines 5.642 million

8. Eva Airways 5.477 million

9. Air France 5.388 million

10.Japan Airlines 4.924 million

AIR FREIGHT

 Air freight is ideal for cargo’s with a high value to low weight ratio and

those which are urgent e.g. diamond

FEATURES OF AIR FREIGHT

1. High speed, quick transits

2. Low risk of damage or pilferage

3. Simplified documentation

4. Common code of liability conditions to all IATA accredited airlines.

5. Virtually eliminated packing costs

6. Quick transits reduce the amount of capital tied up in transit

7. Ideal for a wide variety of consumer type cargoes particularly

 Services are reliable and to a higher quality

 Major airports worldwide as compared to seaports.

 Air freight facilities the just in time concept with the air

freight distributor forming a link between the central

warehouse or manufacturing plant and the point of sale. goods
are simply replenished as they are sold at the importers
premises. E.g.: perishable goods .
 The air freight network worldwide is more extensive and offers
more frequent flights than the maritime network.

 Air freight capacity is continuously increasing.

 new airports continue to be introduced globally.

 The air freight market is very high tech with bar codes on the
consignments and online computer access to IATA agents and
airlines.
 LIMITATIONS OF AIR TRANSPORT SYSTEM

1. Accessibility is very in case of air transport- not all

areas have access to airports

2. Here reliability of the transport is subject to the

weather conditions as compared to the other modes

3. It is highly expensive as compared to the others.

THANK YOU!