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Pages 72-120

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From page 72...
... Page 4-1 CHAPTER 4: TASK 1 -- OVERVIEW OF AIR CARGO INDUSTRY AND TRENDS CHAPTER OVERVIEW Through collection and detailed analysis of the necessary data, an overview of the state of the air cargo industry was developed to classify its components and identify trends seen in recent years. The overview focused on four components: air cargo carrier activity at airports, air cargo facility development and funding at airports, air cargo industry trends, and air cargo personnel and culture.
From page 73...
... Page 4-2 Figure 4-1 Historic Air Cargo Market Share (SOURCE: Boeing 2014-2015 World Air Cargo Forecast.) Passenger Airlines – Air cargo services provided by passenger airlines vary in scope and size from airline to airline, based on the type of aircraft operating within their fleet.
From page 74...
... Page 4-3 partition in the aircraft cabin to allow both uses at once. These combi aircraft typically feature an oversized cargo door, as well as tracks on the cabin floor to allow the seats to be added or removed quickly.
From page 75...
... Page 4-4 DHL FedEx Express UPS Tocumen International Canada Toronto Pearson International John C Munro Hamilton International Europe/Middle East/Africa Leipzig/Halle Cologne Bonn Airport Cologne Bonn Airport East Midlands Airport Paris-Charles de Gaulle Airport Bahrain International Asia Pacific Hong Kong International Guangzhou Baiyun International Hong Kong International Chennai International Shenzen Bao'an International Shanghai Pudong International SOURCE: CDM Smith.
From page 76...
... Page 4-5 to which it does not fly aircraft. These services are typically allocated an airline waybill number although no aircraft may be involved in the transport.
From page 77...
... Page 4-6 Figure 4-2 Wide Body Freighter Sample, Boeing 777-200. (SOURCE: Boeing Aircraft Characteristics for Airport Planning.)
From page 78...
... Page 4-7 Figure 4-4 Narrow Body Freighter Sample, Boeing 757. (SOURCE: Boeing Aircraft Characteristics for Airport Planning.)
From page 79...
... Page 4-8 theft. A disadvantage of both is that they are easy to damage.
From page 80...
... Page 4-9 medium-sized twin-engine freighter aircraft, respectively, that have significant advantages in fuel efficiency, range, and emissions over their three and four engine predecessors. Aircraft Range Improvements in aircraft manufacturing and design have led to aircraft that can fly longer distances and still transport a significant amount of payload.
From page 81...
... Page 4-10 cargo to justify air cargo-related operations. As with the air cargo hub, much of the cargo moving through a gateway airport does not originate and is not destined for the gateway airport's surrounding market area.
From page 82...
... Page 4-11 operational costs. If the carrier cannot meet the aircraft operational costs, the cargo is trucked to the hub or another local market station where it is loaded onto an aircraft.
From page 83...
... Page 4-12 Figure 4-7 Airports with Significant Role in Air Cargo Industry (SOURCE: CDM Smith) FAA Airport Classifications The FAA defines airports by five categories of airport activities, including commercial service, primary, cargo service, reliever, and general aviation airports, as shown below: Commercial Service Airports are publicly owned airports that have at least 2,500 passenger boardings each calendar year and receive scheduled passenger service.
From page 84...
... Page 4-13 Primary Airports are Commercial Service Airports that have more than 10,000 passenger boardings each year. Cargo Service Airports are airports that, in addition to any other air transportation services that may be available, are served by aircraft providing air transportation of only cargo with a total annual landed weight of more than 100 million pounds.
From page 85...
... Page 4-14 The HACTL (Hong Kong Air Cargo Terminals Limited) SuperTerminal 1 is the largest single cargo terminal in the world with over 3.5 million tons of annual cargo handling capacity.
From page 86...
... Page 4-15 Converted Hangars/Warehouse – A converted hangar/warehouse is a stand-alone building originally designed as an aircraft hangar, converted to be used as a warehouse for the storage and transfer of air cargo. DHL's converted warehouse at San Francisco International is a prime example of this type of facility.
From page 87...
... Page 4-16 Heathrow in London is another. The Heathrow Consolidation Center (HCC)
From page 88...
... Page 4-17 Narrow-body cargo screening became effective in October of 2008 and required that 100% of cargo carried on narrow-body aircraft (domestic or international) must be screened at the individual parcel level before it is netted, containerized, or shrink-wrapped.
From page 89...
... Page 4-18 First, an examination of basic cargo flow is needed to better understand the process. Figure 4-8 illustrates the cargo flow at Austin-Bergstrom International Airport.
From page 90...
... Page 4-19 Figure 4-8 Cargo Flow Diagram (Austin-Bergstrom International Airport)
From page 91...
... Page 4-20 Figure 4-9 First Line, Second Line, and Third Line Air Cargo Facilities at Chicago O'Hare International Airport. (SOURCE: Lynxs Group, Google Earth Pro)
From page 92...
... Page 4-21 services of the user. It is important to understand the dynamics of site selection and the advantages and disadvantages of the various sites which might be available for air cargo.
From page 93...
... Page 4-22 • Warehouse area • Office area • Other specialized handling areas (hazmat, cold storage, high value, live animal, etc.) • Customs and border protection and other official-use areas • Cargo screening and scanning areas • Airside access point • At grade entrances at back of building providing equal access to and from • Other designated and secured AOA entry areas • Cargo handling areas • Aircraft parking areas (often called the "apron," "ramp," "tarmac," or "hardstands")
From page 94...
... Page 4-23 manufacturing or storage in the past, but are now suitable for service providers, smaller logistics, and similar functions. Many airports, particularly those that are located in older, well developed urban areas, have an abundant supply of these types of facilities.
From page 95...
... Page 4-24 Sometimes there is simply no space available on the airport, so companies must choose Third Line facilities and make them work for their own needs. Irrespective, the value proposition for Third Line sites is cost – they are almost always less expensive in terms of rent, traditionally by half – but during recessionary periods, that gaps lessens as on-airport space typically discounts its leasing rates.
From page 96...
... Page 4-25 Figure 4-12 Determining Appropriate Handling Systems. (SOURCE: Lynxs Group.)
From page 97...
... Page 4-26 security-screened on site. Simultaneously, paperwork is processed and other formalities transpire in adjacent offices and on the warehouse floor.
From page 98...
... Page 4-27 Figure 4-15 Elevating Transfer Vehicle (ETV) Systems.
From page 99...
... Page 4-28 Air Cargo Facility Finance and Funding Airports are required by the federal government to be as self-sustaining as possible. Within this context, airports must often fund very expensive projects.
From page 100...
... Page 4-29 hangars, and revenue-producing areas is available for non-primary airports and airports in the military airport program. AIP grants are either entitlement or discretionary.
From page 101...
... Page 4-30 Revenue bonds may be issued tax-exempt for qualifying projects, including terminals, runways, hangars, repair shops, and land-based navigational aids. Construction of facilities such as airport hotels, retail facilities, industrial parks, and commercial office buildings on- airport, generally do not qualify for tax-exempt status.
From page 102...
... Page 4-31 Figure 4-16 Five Ps Development Model. (SOURCE: Lynxs Group.)
From page 103...
... Page 4-32 requirements are considered. The cost of risk must also be considered.
From page 104...
... Page 4-33 airports dominating the U.S. air cargo industry may provide examples that are less applicable to the vast majority of U.S.
From page 105...
... Page 4-34 Airport (code)
From page 106...
... Page 4-35 timeframe (2000-2010, inclusive) allowed the consultants to compare the last year for which complete data sets were available with the last year (2000)
From page 107...
... Page 4-36 Commodities shipped during this period also changed as fewer documents were sent overnight as electronic transfer of legal and finance documents became more prevalent, as well as email substituting for regular mail. There were, however, increases in shipments among machinery, perishables, temperature sensitive pharmaceuticals (active product ingredients and finished product)
From page 108...
... Page 4-37 Table 4-5 U.S. Integrator Hub Airports: Comparative Standing.
From page 109...
... Page 4-38 While the most devastating effects in surplus facilities, lost landing fees and employment, were undoubtedly imposed at airports hosting closed hubs, the ramifications rippled throughout much of the airport industry. In 2000, the top fifty commercial airports commonly had at least six all-cargo tenants.
From page 110...
... Page 4-39 While both integrator hubs and international gateways have been affected by modal shifts favoring surface transportation, air transport has also lost market share to sea transport in some traditional commodity groups. As the retail prices of electronics have declined, the value of premium air service has eroded in favor of slower, cheaper ocean transport.
From page 111...
... Page 4-40 cornerstones of U.S. international air cargo trade.
From page 112...
... Page 4-41 carriers and all-cargo airlines, Newark Liberty serves as the regional hub of FedEx Express and a major hub for United (actually a Continental legacy hub)
From page 113...
... Page 4-42 replacing outdated cargo facilities than adding new capacity. Meanwhile, the second tier airports commonly have cargo facility surpluses with no near-term prospects to backfill vacancies.
From page 114...
... Page 4-43 Table 4-8 U.S. Southeastern Region Airports: CY 2000 – 2010 Cargo Growth.
From page 115...
... Page 4-44 Figure 4-20 Air Cargo for DHL, Emery, and BAX Legacy Hubs. (Data Source: Airports Council International – North America, Analysis Webber Air Cargo)
From page 116...
... Page 4-45 2010 U.S.
From page 117...
... Page 4-46 21.8% decrease. The region also includes the previously described FedEx Express regional hub at Alliance Fort Worth.
From page 118...
... Page 4-47 Northwest The Northwest region includes FedEx's western hub at Oakland International Airport (12th) , major international gateway San Francisco International Airport (14th)
From page 119...
... Page 4-48 expense of other western airports such as San Francisco that lost freighters as carriers consolidated their operations around LAX. The region also includes LA/Ontario International Airport which hosts the UPS western region hub and is managed by the same operator – Los Angeles World Airports (LAWA)
From page 120...
... Page 4-49 The airport industry is a transportation utility which, in the U.S., is often publicly owned and operated. Airport management focuses on aviation business success as well as the safety of the flying public and aviation businesses.

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