Airline Networks Summary

Airline Networks - Physical distribution
Supply chain:
 A supply chain is the flow of physical goods (or SLF) between the supplier (sender)
and receiver

Supply chain structure:
 .




Supply chain management:
 Management of every activity between the supplier and customer in such a way that
its efficient and effective
o Achieving this by:
 Standard times are determined for loading, transit, receiving
 Continuously measure the performance
 Evaluate actual vs standard times
 Determining standard times is a responsibility of the organization for internal and
external stakeholders
o Possible deviations
 Loading
 Processing speed to high, no transport capacity
 Transit
 Complexity of the route
 Receiving
 Not enough space, slots, capacity
 Meeting delivery conditions can only be proven with measurements of the
processes, using Key Performance Indicators

,Cargo Market:
 consignors (sender) / consignees (receiver
 Freight forwarders
 Airports & airport service providers
 Airlines & general sales agents




Incoterms:
 .




Carriage of air cargo:
 Belly-hold of passenger aircraft
 All cargo aircraft
 Combi aircraft

Why the demand for air cargo:
 Emergency goods
 Ultra-high value goods
 Perishable goods, medical samples (blood), time sensitive
 Routine, non-perishable goods

, Logistics:
 Strives for
o Meet customer demands
 Customer service
o Time is money
 Time reduction
o Go where it is needed
 Globalization
o Collaborate
 Organizational integration

Hub airport:
 Air traffic % transfer
o About 30% O/D required
 Dominant carriers
 Waves and banks
 Geographic location
 Structure of the airport
 Concentration of airports in/around the main city
o Parallel runways
o Centrally placed terminals

Secondary airports:
 Low cost / no frills airlines
o Chicago midway
o Houston hobby
o Dallas love field
o Brussels South / Charleroi
o Frankfurt Hahn
o Niederrhein
o Eindhoven

Cargo airport:
 Passenger / base hubs
 Integrator hubs
o FedEx
 Memphis (main hub)
 Indianapolis
 Newark
 Oakland
o UPS
 Louisville (main hub)
 Dallas
 Philadelphia
 Ontario
 Koln bonn