Optimisation of key performance measures in air cargo demand management

Abstract

This article sought to facilitate the optimisation of key performance measures utilised for demand management in air cargo operations. The focus was on the Revenue Management team at Virgin Atlantic Cargo and a fuzzy group decision-making method was used. Utilising intelligent fuzzy multi-criteria methods, the authors generated a ranking order of ten key outcome-based performance indicators for Virgin Atlantic air cargo Revenue Management. The result of this industry-driven study showed that for Air Cargo Revenue Management, ‘Network Optimisation’ represents a critical outcome-based performance indicator. This collaborative study contributes to existing logistics management literature, especially in the area of Revenue Management, and it seeks to enhance Revenue Management practice. It also provides a platform for Air Cargo operators seeking to improve reliability values for their key performance indicators as a means of enhancing operational monitoring power.

Spatial relationships and movement patterns of the air cargo industry in airport regions

“…In recent years, much research was done on the economic impact of airport regions and related economies and various methods were explored to actually measure and monitor such impacts (see Luke & Walters 2010;May et al 2014). As experienced internationally, various academic discourses and research also focus on the social and environmental impacts (within the context of airport regions), and with specific reference to, for example, noise and safety (Freestone & Baker 2010a:264;Knippenberger 2010:101;Li & Loo 2016).…”

“…As experienced internationally, various academic discourses and research also focus on the social and environmental impacts (within the context of airport regions), and with specific reference to, for example, noise and safety (Freestone & Baker 2010a:264;Knippenberger 2010:101;Li & Loo 2016). Various attempts are being made to also study, measure and analyse the movement patterns and economic trends relating to the air cargo industry (see Boloukian & Siegmann 2016;Janic 2016;May et al 2014;Merkert et al 2017;Walcott & Zhang 2017).…”

“…It is very obvious from various readings that the general international trend is towards an increased use of air cargo and an expansion of the global logistics industry (see Alkaabi & Debbage 2011;Appold & Kasarda 2011;Bhat 2010;Charles et al 2007;Feldhoff 2002;Kesselring 2010;Lee & Yang 2003;May et al 2014;McKinnon 2009;Merkert et al 2017;O'Connor 2010;Rivera, Sheffi & Knoppen 2016;Stevens et al 2010;Yuan et al 2010).…”