Domestic Air Cargo Industry in Australia - Bureau of Infrastructure ...

More documents

Recommendations

Info

CHAPTER 9 CONCLUDING REMARKSThe domestic air cargo industry has grown substantially in the postwarperiod but it still accounts for a relatively small proportion ofthe total domestic cargo market in terms of tonnes and tonnekilometres.Overnight express cargo is probably the largest categoryin terms of revenue. The major competitor in the markets serviced byair transport is express road services and there has been some loss oftraffic to road transport operators in recent years.Commonwealth regulation of airline passenger, freight and mailservices has had a major impact on the development of the domestic aircargo industry. Detailed economic regulation comenced in 1952 andthe two airline pol icy subsequently enabled TAA and Ansett to attainprominent positions in the domestic passenger and cargo markets.The Cornonwealth Government was generally opposed to the establishmentof specialist air freight carriers for much of the post-war period butthere was some relaxation of this policy after 1976. This enabled thefreight forwarders to increase their presence in the air cargo market.The new entrants essentially filled market niches that were notadequately serviced by the major airlines, although there were alsosome areas of competition.Legislative changes passed in 1981 reduced direct Comnonweal thGovernment controls over the domestic air cargo industry and enabledspecialist freight operators to acquire large turbo-jet aircraft.However, the industry was not completely deregulated as significantdirect and indirect regulation still remained.These amendments were followed by the temporary entry of two all-cargooperators. In addition, IPEC expanded its freighter operations andEast-West increased its involvement in the cargo market. Forwardersa1 so continued to develop their air freight activities, with MayneNickless acquiring the remaining major independent operators. Changesin the trunk airlines' activities included the introduction of widebodyaircraft and jet freighters, establishment of new managementstructures and changes in the nature and scope of freight activities.75
Occasional Paper 87Initial analysis of the available data does not provide sufficientinformation to identify the impact of the regulatory changes on thelevel of air freight traffic. Developments in the industry after 1981were affected by a variety of factors such as the introduction of newaircraft to meet the requirements of the passenger market, high realinterest rates, changes in distribution practices and increasedcompetition from road transport operators.AAF and Australian still have major rolesin the carriage of airfreight and mail in Australia. IPEC has grown rapidly to become thethird largest carrier but traffic carriedby regional and commuterairlines has generally declined in recent years. Qantas providesdomestic transport for some overseas cargo under bond.Freight forwarders provide a substantial proportion of the cargocarried by the trunk airlines. Most of the forwarder trafficishandled by affiliates of TNT and Mayne Nickless and several of theseorganisations also operate air services. Companies controlled by TNTsupport AAF while Mayne Nickless has a close comercial relationshipwith Australian.Mixed-configuration aircraft provide a substantial amount of capacityfor the movement of air cargo but have several shortcomings from theviewpoint of air cargo operations. This has led to the operation offreighters on various services. The use of freighters is limitedbyfactors such as the small size of the Australian market, imbalances intraffic and the relatively high operating costs of these aircraft.Freighters are used for the movement of both overnight express freightas well as bank documentation and other urgent cargo during the day.Networks are operated by Australian, AAF, TNT Air, IPEC and the WardsExpress and Security Express - Country Couriers divisions of MayneNickless. The available data suggest that capacity utilisation onair1 ine freighter services has declined in recent years.Freight rate schedules are published by the major airlines and variousfreight forwarders. Rates vary between carriers andin response .tofactors such as delivery time and direction oftravel. Publishedrates generally apply to smaller shippers but there are substantialdiscounts for large shippers. Payments for the carriage of mail aremainly determined by a cost-based formula although there is also anelement of negotiation.Published freight rates generally increased in real terms during thelate 1970s and early 1980s but they declined in 1986. Information onthe market rates paid by larger shippers is more difficult to obtain,76
Page 1:
BTE Publication SummaryDomestic Air
Page 6 and 7:
CHAPTER 7CHAPTER 8CHAPTER 9APPENDIX
Page 8 and 9:
7.2Annual change in average yield i
Page 10 and 11:
CHAPTER 1INTRODUCTIONThe discussion
Page 12 and 13:
CHAPTER 2 THE AIR CARGO MARKETThe d
Page 14 and 15:
Chapter 2involved in the movement o
Page 16 and 17:
Chapter 2176 -150 -150 -140 -130 --
Page 18 and 19:
Chapter 21984-85. The importance of
Page 20 and 21:
Chapter 2sources indicate that the
Page 22 and 23:
Chapter 2TABLE 2.4 AUSTRALIAN DOMES
Page 24 and 25:
Occasional Paper 87commenced with t
Page 26 and 27:
Occasional Paper 87required the two
Page 28 and 29:
Occas ioml Paper 87market, Ansett a
Page 30 and 31: Occasional Paper 87specialist freig
Page 32 and 33: Occasional Paper 87characterised by
Page 34 and 35: Occasional Paper 87TABLE 4.1MAJOR E
Page 36 and 37: Occasiona 7 Paper 87general manager
Page 38 and 39: Occasional Paper 87also specificall
Page 40 and 41: Occasional Paper 871984, 2-3). A sp
Page 42 and 43: Occasional Paper 87the major operat
Page 44 and 45: Occasional Paper 87also substantial
Page 46 and 47: ~~CHAPTER 5 CURRENT INDUSTRY PARTIC
Page 48 and 49: Chapter 5TABLE 5.2 AUSTRALIAN DOMES
Page 50 and 51: Chapter 5newspapers accounted for m
Page 52 and 53: Chapter 5If cargo is not under bond
Page 54 and 55: CHAPTER 6 CURRENT OPERATIONAL PRACT
Page 56 and 57: Chapter 6not obtain as much of the
Page 58 and 59: Chapter 6divisions of AT1 at rates
Page 60 and 61: Chapter 6combined banks contract fo
Page 62 and 63: CHAPTER 7 RATING PRACTICESThe struc
Page 64 and 65: Chapter 7carried at the published r
Page 66 and 67: Chapter 7(Department of Aviation 19
Page 68 and 69: Chapter 7TABLE 7.2ANNUAL CHANGE IN
Page 70 and 71: Chapter 7contacted during the study
Page 72 and 73: Occasional Paper 87TABLE 8.1 FORECA
Page 74 and 75: Occasional Paper 87domestic routes
Page 76 and 77: Occasional Paper 87adequate capacit
Page 78 and 79: Occasional Paper 87large amount of
Page 82 and 83: Chapter 9but it appears that in at
Page 84 and 85: a30TABLE 1.1 AUSTRALIAN AIRLINES' F
Page 86 and 87: W TABLE 1.2 AAF'S FREIGHTER NETWORK
Page 88 and 89: TABLE 1.3-TNT AIR'S OVERNIGHT FREIG
Page 90 and 91: % TABLE 1.4 TNT AIR'S DAYTIME FREIG
Page 92 and 93: CO03 2r,TABLE 1.5 (Cont.) WARDS EXP
Page 94 and 95: Occasional Paper 87(1984), Transpor
Page 96 and 97: Occasional Paper 87- (1979e), Anset
Page 98: ABBREVIATIONSAA F Ansett Air Freigh
show all

Domestic Air Cargo Industry in Australia - Bureau of Infrastructure ...

Create successful ePaper yourself

Delete template?

Save as template?