Study On Revenue Management Of Airlines' Cargo

With the constant development of China's air industry, the competition of air cargo is becoming fiercer and fiercer. The ever-increasing international oil price increases the cost of airlines. As a high-risk and low- benefit industry, profits of airlines are getting further decreased. Consequently, many airlines are seeking for resources of new profits. In order to increase competition competence, airlines hope to cut cost and add income by increasing transporting efficiency, under circumstances of transporting and producing ability being comparatively stable. As the competition in air industry is getting fiercer, foreign airlines are all carrying out revenue management of air cargo in order to get the competition advantages. However, China's airlines, being bound up by ideas of "more emphasis on passengers than on cargo" and "cargo following passengers", etc., are weak in cargo revenue management. With the success of revenue management in air passenger transport and the promising development of air cargo market, people begin to turn to air cargo market and view the income of air cargo as a new economic increasing point and an important part of profits. This paper, in response to the elements of air cargo revenue's characteristics, contents, influence,etc, illustrates the application of revenue management in air cargo field; analyzes disadvantage of the present price system, putting emphasis on its market problem, and starts a primary probe into the establishment of air cargo's multi-classes cargo space system; analyzes the existing problems and puts forward appropriate suggestions for improving cargo revenue management with the present situation of Xiamen Airlines' air cargo revenue management being the case.In this study, the writer makes a comparative analysis between revenue managements of air cargo and passenger transport in order to refer to its successful experience suitable for revenue management of passenger transport and enhance the system of air cargo revenue management. Some main contributions are:1.Introducing the managing idea of "multi-classes and multi-spaces" in passenger transport and completing managing system of the marketized cargo price and space.2. Analyzing the revenue management system of air cargo, exploring the EMSR Model carrying out cargo revenue management, and makes a quantitative analysis based on it.By carrying out cargo revenue management, optimum allocation and full and efficient use of cargo space resources, turning potential productivity into real productivity, it can promote the level of airlines' cargo management and make airlines realize the transformation from extensive management into intensive management, thus to improve airlines' cargo revenue and competition competence, which seems to be specially important.