World Air Cargo Markets

World Air Cargo Markets

This report analyzes the worldwide markets for Air Cargo in Millions of Revenue-Ton-Kilometers.The report provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Annual forecasts are provided for each region for the period of 2001 through 2015. A ten-year historic analysis is also provided for these markets with annual market analytics. The report profiles 139 companies including many key and niche players worldwide such as Air China Limited, Air France-KLM, Air France, Alitalia, American Airlines Inc., Asiana Airlines, ASTAR Air Cargo, Atlas Air Worldwide Holdings, Inc., British Airways PLC, Cargolux Airlines International S.A, Cathay Pacific Airways Ltd, China Airlines, China Cargo Airlines Ltd., Continental Airlines, Inc., Delta Airlines Inc., DHL International GmbH, Emirates SkyCargo, EVA Airways Corp., FedEx, Japan Airlines System Corporation, Korean Air, Deutsche Lufthansa AG, Malaysia Airlines Cargo Sdn Bhd, Martinair Cargo, Nippon Cargo Airlines Co Ltd., Northwest Airlines, Polar Air Cargo Worldwide, Inc., Qantas Airways Limited ABN, Singapore Airlines, Thai Airways, United Parcel Service of America Inc., and United Airlines Inc. Market data and analytics are derived from primary and secondary research. Company profiles are mostly extracted from URL research and reported select online sources.

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I. INTRODUCTION, METHODOLOGY & PRODUCT DEFINITIONS

Study Reliability And Reporting Limitations I-1
Disclaimers I-2
Data Interpretation & Reporting Level I-2
Quantitative Techniques & Analytics I-3
Product Definitions And Scope of Study I-3


II. EXECUTIVE SUMMARY

1. Market Snapshots II-1

2. Industry Overview II-2
Global Air Cargo Industry - An Overview II-2
Powered by a Favorable Economy II-2
Years 2001 - 2005: A Review II-2
Current and Future Analysis II-2
United States Rules the Market While China Races Ahead II-2
Industry Drivers II-3
Economic Factors Have a Direct Influence II-3
Other Factors II-3
The Asian Influence II-3
Fuel Prices II-3
Pricing Structure II-4
Competition from Other Transportation Modes II-4
Airfreight Drives Air Cargo Traffic II-4
Table 1: Global Air Cargo Traffic (2000-2015): Percentage
Breakdown of RTK by Segment -Freight and Mail for years
2000, 2005, 2010, and 2015 (includes corresponding
Graph/Chart) II-4
Non-US Airlines Dominate Global Air Cargo Traffic II-5
Table 2: Global Air Cargo Traffic (2007): Percentage
Breakdown of FTK by Airline Domicile- Non-US Scheduled, US
Scheduled, Non-US Charter, US Charter, US Mail and Non-US
Mail (includes corresponding Graph/Chart) II-5
2005: Intra-Asia Leads in Tonnage Carried II-5
Table 3: Global Air Cargo Market (2005): Percentage
Breakdown of Tonnage Carried by Route- Intra-Asia,
Europe-Asia, Asia-North America, Europe-North America,
Domestic China, Into, Out and Within Middle East, Southwest
Asia, Intra-Europe, Into, Out and Within Africa, Latin
America-North America, Domestic and International Combined
for Commonwealth of Independent States, Latin
America-Europe and Others (includes corresponding
Graph/Chart) II-5
Industry Structure II-6
Business Models - Integrated & Non-Integrated II-6
Cargo Vs. Passenger Traffic: A Comparative Overview II-6
Leading Cargo Carriers II-6
Table 4: Global Air Cargo Market (2005): Leading Airlines
Based On Cargo Volume (in Thousand FTK) (includes
corresponding Graph/Chart) II-7

3. Trends II-8
Global Air Cargo Growth Falls in 2007 (Jan- April) II-8
Globalization Spurs Air Cargo Demand II-8
Global - Supply/Demand Dynamics II-8
Emerging Economies Take the Honors . II-8
The China Factor . II-8
No1. Air Cargo Market by the Year 2025 . II-9
India - Fueling Growth in Asian Market II-9
Attractive Cargo Market Prompts Airlines to Grab Business II-9
Infrastructure Stifles Potential Air Cargo Market II-9
India - Malaysia’s Biggest Air Cargo Market in South Asia II-9
U.S. Postal Service Leads Domestic Air Cargo Market II-10
Table 5: Domestic Air Cargo Market in the United States (FY
2005/06) - Percentage Breakdown by Volume for US Postal
Service, FedEx Express, UPS, DHL and Others (includes
corresponding Graph/Chart) II-10

Table 6: Domestic Air Cargo Market in the United States
(FY2005/06) - Percentage Breakdown by Revenue for US Postal
Service, FedEx Express, UPS, DHL and Others (includes
corresponding Graph/Chart) II-10
Revised Inventory Polices II-11
Trend Towards E-Commerce II-11
Industry Consolidation on the Move II-11
Global Alliances II-12
The WOW Alliance II-13
Others II-13
Global Freight Exchange II-13
SkyTeam Cargo Alliance II-13

4. Freighter Fleet II-14
Overview and Outlook II-14
Table 7: Global Air Fleet (2005): Freighter Operators and
Fleets by Region- North America, Europe and CIS, Asia-
Pacific, Latin America, Africa, and Middle East (includes
corresponding Graph/Chart) II-14

Table 8: Global Air Fleet (2005): Number of Aircraft by
Freighter Type- Large, Long-Range, Regional and Small Jets
(includes corresponding Graph/Chart) II-15

Table 9: Global Air Fleet (2005): Number of Aircraft by
Freighter Type- Large, Long-Range, Regional and Small Jets
for North America, Europe and CIS, Middle East, Latin
America, Africa and Asia-Pacific (includes corresponding
Graph/Chart) II-15
Airfleet Growth by Aircraft Type II-15
Small Jet Freighters II-16
Regional Freighters II-16
Long-Range Freighters II-16
Large Freighters II-16
Demand for Widebody Freighters Soars II-16
Conversions: Salvaging Value from Grounded Aircraft II-16
Why Conversions are Increasingly Preferred? II-17

5. Service Introductions II-18
JAL Group Sets Fleet Plan, Cargo Business Route, for FY2007 II-18
Singapore Airlines Cargo Introduces Service to Kenya’s Capital II-18
Pudong Airport Builds Public Cargo Station II-18
UPS Introduces UPS Trade Direct in Japan II-18
Transmile Starts Service to Kuala Lumpur, Hong Kong from Los
Angeles II-18
Cargolux Launches Air Cargo Service to Dammam II-19
Sodexi Opens Hub At Paris-Charles De Gaulle Airport II-19
Cathay Pacific Operates Daily Cargo Services to Shanghai II-19
Container Corp. Launches Air Cargo Linked Truck Services II-19

6. Recent Industry Activity II-20
DHL and Polar Join Hands II-20
DHL Expands Operations in Atlanta II-20
NCA Commences Operations in US and Europe II-20
Macquarie Acquires Mercury Air Centers II-20
Mercury Snaps Up JetSouth II-20
Global Aero Logistics Buys Out World Air Holdings II-21
Towne Holdings Acquires Complete Transport II-21
Air India Introduces Committed Cargo Service II-21
Allcargo Acquires Hindustan Cargo II-21
NCA Orders Replica of Boeing 747-8 Model Freighter II-21
Air China to Form Joint Venture with Cathay II-21
Menzies to Buy Out Universal Air Cargo II-21
FedEx Express Buys Flying-Cargo Hungary Kft II-22
Nippon and Jett8 Join Hands II-22
Air China Cargo is Now an Independent Carrier II-22
Air China Sells Stake in Dragon Airlines II-22
Temasek and Partners Form Air Cargo Firm II-22
Volo do Brasil Acquires VARIG LOG II-22
Cathay Buys Remaining Stake in Dragon II-22
Martinair Acquires GSA Sales Network II-23
Hong Kong Airport and Arup Sign Deal II-23
Chinese Mainland and Hong Kong Enters into Agreement II-23
FedEx Express Places Order for Boeing 777 Aircraft II-23
Menzies Acquires Airline Services Alliance II-23
Bass Enterprises Snaps Up Cargo 360 II-24
Pemco Delivers Converted B737-400 Freighter II-24
Cygnus Air Places Order for Converted 757-200 Freighter II-24
SAS Cargo Inks Deal to Expand Capacity II-24
Asian Cities Escort CPS Bookings II-24
Philippines and Taiwan Sign Air Cargo Deal II-24
SAS Cargo Links with Cargo Portal II-24
TSA’s New Air Cargo Strategic Plan II-25
IATA’s E-Freight Aims at Paperless Cargo Processing II-25
DOT Grants Cargo Rights to US Players II-25

7. Focus on Key Players II-26
Air China Limited (China) II-26
Air France-KLM (France) II-26
Air France (France) II-26
Alitalia (Italy) II-26
American Airlines Inc. (USA) II-26
Asiana Airlines (South Korea) II-27
ASTAR Air Cargo (USA) II-27
Atlas Air Worldwide Holdings, Inc. (USA) II-27
British Airways PLC (UK) II-27
Cargolux Airlines International S.A (Luxembourg) II-28
Cathay Pacific Airways Ltd (Hong Kong) II-28
China Airlines (Taiwan) II-28
China Cargo Airlines Ltd. (China) II-29
Continental Airlines, Inc. (USA) II-29
Delta Airlines Inc. (USA) II-29
DHL International GmbH (Germany) II-29
Emirates SkyCargo (UAE) II-29
EVA Airways Corp. (Taiwan) II-30
FedEx (USA) II-30
FedEx Express II-30
FedEx Ground II-30
FedEx Freight II-30
FedEx Custom Critical II-30
FedEx Trade Networks II-31
FedEx Services II-31
Japan Airlines System Corporation (Japan) II-31
Korean Air (Korea) II-31
Deutsche Lufthansa AG (Germany) II-31
Logistics II-31
Malaysia Airlines Cargo Sdn Bhd (MASkargo) (Malaysia) II-32
Martinair Cargo (The Netherlands) II-32
Nippon Cargo Airlines Co Ltd(Japan) II-32
Northwest Airlines (USA) II-32
Polar Air Cargo Worldwide, Inc. (USA) II-32
Qantas Airways Limited ABN (Australia) II-33
Singapore Airlines (Singapore) II-33
Thai Airways (Thailand) II-33
United Parcel Service of America Inc. (USA) II-33
United Airlines Inc. (USA) II-34

8. Global Market Perspective II-35
Table 10: World Recent Past, Current & Future Analysis for Air
Cargo Traffic by Route - China-North America, China-Europe,
Domestic US, Domestic China, Asia-North America, Europe-North
America, Asia-Europe, North America-Europe, Europe-China,
North America-Asia, North America-China, Europe-Asia,
Japan-North America, South America-Europe, South America-North
America, Japan-Europe, North America-Japan, Africa-Europe,
Europe-Japan, Europe-Africa and Others Independently Analyzed
in Billion Freight Ton Kilometers for the Years 2000 through
2010 (includes corresponding Graph/Chart) II-35

Table 11: World Long-Term Projections for Air Cargo Traffic
by Route - China-North America, China-Europe, Domestic US,
Domestic China, Asia-North America, Europe-North America,
Asia-Europe, North America-Europe, Europe-China, North
America-Asia, North America-China, Europe-Asia, Japan-North
America, South America-Europe, South America-North America,
Japan-Europe, North America-Japan, Africa-Europe,
Europe-Japan, Europe-Africa and Others Independently Analyzed
in Billion Freight Ton Kilometers for the Years 2011 through
2015 (includes corresponding Graph/Chart) II-36

Table 12: World 10-Year Perspective for Air Cargo Traffic by
Route - Percentage Breakdown of Freight Ton Kilometers for
China-North America, China-Europe, Domestic US, Domestic
China, Asia-North America, Europe-North America, Asia-Europe,
North America-Europe, Europe-China, North America-Asia, North
America-China, Europe-Asia, Japan-North America, South
America-Europe, South America-North America, Japan-Europe,
North America-Japan, Africa-Europe, Europe-Japan,
Europe-Africa and Others for the Years 2003, 2007 and 2012
(includes corresponding Graph/Chart) II-37

Table 13: World Recent Past, Current & Future Analysis for
Air Cargo Traffic by Destination -International and Domestic
Independently Analyzed in Billion Freight Ton Kilometers for
the Years 2000 through 2010 (includes corresponding
Graph/Chart) II-38

Table 14: World Long-Term Projections for Air Cargo Traffic
by Destination -International and Domestic Independently
Analyzed in Billion Freight Ton Kilometers for the Years 2011
through 2015 (includes corresponding Graph/Chart) II-38

Table 15: World 10-Year Perspective for Air Cargo Traffic by
Destination - Percentage Breakdown of Freight Ton Kilometers
for International and Domestic for the Years 2003, 2007 and
2012 II-38


III. MARKET

1. The United States III-1
A.Market Analysis III-1
Domestic United States- The Largest Market III-1
Table 16: US Intercontinental Air Freight Demand
(2006-2008) By Route - US-Latin America, US-European Union
and US-Asia (In Million Metric Tons) (includes
corresponding Graph/Chart) III-1
Airlines Industry: An Overview III-1
After Effects of 9/11 Attacks III-2
US Domestic Air Cargo III-2
Table 17: Domestic Air Cargo Market in the United States
(FY 2005/06) - Percentage Breakdown by Volume for US
Postal Service, FedEx Express, UPS, DHL and Others
(includes corresponding Graph/Chart) III-2

Table 18: Domestic Air Cargo Market in the United States
(FY 2005/06) - Percentage Breakdown by Revenue for US
Postal Service, FedEx Express, UPS, DHL and Others
(includes corresponding Graph/Chart) III-3
North American Transborder Air Trade III-3
Table 19: North American Air Cargo Market (2005): Leading
Five Air Cargo Carriers based on Volume Handled (in
Thousand FTKs) (includes corresponding Graph/Chart) III-3
Sluggish Growth Prospects Necessitate Quest for New Business III-4
Table 20: Domestic Vs. International Air Cargo Traffic in
the US: 2001, 2005, & 2010 (In Percentage) (includes
corresponding Graph/Chart) III-4

Table 21: US Domestic Air Cargo Market (2007): Percentage
Breakdown of RTK by Type-Scheduled Freight, Chartered
Freight, Mail and Express Carriers (includes corresponding
Graph/Chart) III-5

Table 22: International Air Cargo Traffic in the US:
Percentage Breakup by Cargo Type - Scheduled Freight,
Charter Freight, and Mail for 2000, 2002, 2004 & 2006
(includes corresponding Graph/Chart) III-5
B. Key Market Trends III-5
Trend Towards Time-Deferred Services III-5
Increasing Usage of Trucks III-6
Price Fluctuations III-6
C. Factors Affecting the Market III-6
Impact of Iraq War III-6
Antiterrorism Regulations III-6
D. Strategic Developments / Service Launches III-7
E. Key Players III-9

2. Canada III-13
Market Analysis III-13
An Overview III-13
Air Cargo Market III-13
Table 23: Canadian Air Cargo Market (2000-2010): Total
Enplaned and Deplaned Air Cargo at Domestic, International
and Other Transborder levels in Thousand Tons (includes
corresponding Graph/Chart) III-13
Table 24: Canadian Air Cargo Traffic: Percentage Breakup by
Type - Freight and Mail (includes corresponding Graph/
Chart) III-14
Table 25: Domestic Vs. International Air Cargo Traffic in
Canada (In Percentage) (includes corresponding Graph/Chart) III-15

3. Europe III-16
A.Market Analysis III-16
Europe-North America III-16
Table 26: Europe-North America Air Cargo Market (2007):
Percentage Breakdown of Tonnage Carried from Germany, UK,
France, Italy, Netherlands and Others to North America
(includes corresponding Graph/Chart) III-16
Europe-Asia III-16
Europe-Latin America III-16
Table 27: Europe-Latin America Air Cargo Market (2007):
Percentage Breakdown of Tonnage by Commodity-Automobiles
and Accessories, Electrical Machinery, Transport Equipment,
Industrial Machinery and Equipment, Manufactures of Metals
and Others (includes corresponding Graph/Chart) III-16
Intra Europe and Inter-Continental Air Cargo Services III-17
Table 28: Intra Europe Air Cargo Market (2007): Percentage
Breakdown of RTK by Type- Scheduled, Mail and Express
(includes corresponding Graph/Chart) III-17

Table 29: German Air Cargo Market (2005-2006): Total Cargo
Loaded and Unloaded at German Airports in Million Tons III-17

Table 30: European Air Cargo Market (2005): Leading Five
Air Cargo Carriers based on Volume Handled (in Thousand
FTKs) (includes corresponding Graph/Chart) III-17
Russian Airlines Industry: An Overview III-18
Table 31: Russian Heavy-Lift Air Cargo Market (2004-2006):
Percentage Breakdown of Major Players - Volga-Dnepr
(Russia), Antonov (Ukraine), Polet (Russia), and Others
(includes corresponding Graph/Chart) III-18
B. Trends III-18
Eastern European Countries Join the Bandwagon III-18
Air Cargo Services in Europe III-19
Dependence on Night Flights III-19
Trucking - An Integral Part of Scheduled Freight Services III-19
Exchange Rates and Air Trade Directionality III-20
C. Strategic Developments / Service Launches III-20
D. Key Players III-21

4. Asia-Pacific III-24
Overview and Outlook III-24
Table 32: Asia-Pacific Air Cargo Market (2005): Top Five Air
Cargo Carriers with Volume in Thousand FTKs (includes
corresponding Graph/Chart) III-24
Economic Overview III-24
Influencing Factors III-25
Electronics Shipments Propels Air Cargo Rates III-25
Impact of FDI III-25
Factors Influencing Regional Trade III-26
Major Markets III-26
China III-26
Economic Overview and Outlook III-26
Table 33: Total Trade Value in US$ Billion Between China
and US (2001-2006) (includes corresponding Graph/Chart) III-27
Major Provinces III-27
Table 34: PRC Air Freight in Thousand Tons by Commodity-
Intermediate Goods, High Tech Goods, Consumer Goods,
Capital Goods and Other for Years 2005 and 2006 (includes
corresponding Graph/Chart) III-28
Investments Pour for Infrastructure Development III-28
Asia- North America III-28
Table 35: Asia-North America Air Cargo Market (2007):
Percentage Breakdown of Tonnage in Eastbound Transpacific
Flow by Commodity- Office Machines and Computers, Apparel,
Telecom Equipment, Electrical Machinery, Miscellaneous
Manufactured Items and Others (includes corresponding
Graph/Chart) III-29

Table 36: Asia-North America Air Cargo Market (2007):
Percentage Breakdown of Tonnage in Westbound Transpacific
Flow by Commodity-Documents and Small Packages, Electrical
Machinery, Chemical Materials, Organic Chemicals, General
Industry Equipment, Miscellaneous Manufactured Items and
Others (includes corresponding Graph/Chart) III-29
Asia-Europe III-29
Table 37: Asia-Europe Air Cargo Market (2007): Percentage
Breakdown of Tonnage in Eastbound Flows by Commodity-
Miscellaneous Manufactured Items, General Industry
Machinery, Documents and Small Packages, Electrical
Machinery and Apparatus, Pulp and Waste Paper and Others
(includes corresponding Graph/Chart) III-29

Table 38: Asia-Europe Air Cargo Market (2007): Percentage
Breakdown of Tonnage in Westbound Flows by Commodity-
Articles of Apparel, Miscellaneous Manufactured Items,
Electrical Machinery and Apparatus, Documents and Small
Packages, Office Machines and Others (includes
corresponding Graph/Chart) III-30
Intra-Asia III-30
Southwest Asia III-30
Europe- Southwest Asia’s Principal Air Trade Partner III-30
India and Pakistan Drive Southwest Asian Air Cargo Sector III-31
India III-31
Attractive Cargo Market Prompts Airlines to Grab Business III-31
Table 39: Indian Air Cargo Market (2000-2010): Air Cargo
Traffic in Thousand Metric Tons by Destination-
International and Domestic (includes corresponding
Graph/Chart) III-31
Infrastructure Stifles Potential Air Cargo Market III-32
India- Malaysia’s Biggest Air Cargo Market in South Asia III-32
Strategic Developments / Service Launches III-32
Key Players III-36

5. Latin America III-40
Overview III-40
Table 40: Latin American Air Cargo Market (2005): Leading
Five Air Cargo Carriers based on Volume Handled (in Thousand
FTKs) (includes corresponding Graph/Chart) III-40

Table 41: Air Cargo Traffic in Latin America: Percentage
Breakup by Cargo Type - Freight and Mail (includes
corresponding Graph/Chart) III-40
Overall Latin American Airline Industry: Bucking The Trend III-40
Latin America-North America are Back on Track III-41
Mexico Dominates Central America- North America Market III-41
Latin America-Europe III-41
Principal Goods Shipped by Air III-41
Table 42: Latin America-Europe Air Cargo Market (2007):
Percentage Breakdown of Tonnage by Commodity- Flowers,
Automobiles and Accessories, Electrical Machinery, Fish,
Leather and Leather Manufactured Goods and Others
(includes corresponding Graph/Chart) III-41
Key Players III-42

6. Rest of World III-43
The Middle East III-43
Economic Overview III-43
Europe-Main Trade Partner III-43
Major Commodities Shipped Through Air III-43
Table 43: Africa/Middle East Air Cargo Market (2005):
Leading Five Air Cargo Carriers based on Volume Handled (in
Thousand FTKs) (includes corresponding Graph/Chart) III-43
Africa III-44
Economic Outlook III-44
Europe- Principal Trade Partner III-44
Aviation Infrastructure Relatively Better III-44
Strategic Developments / Service Launches III-44
Key Players III-45


IV. COMPETITIVE LANDSCAPE