Air Cargo Management
We are here to listen and to provide answers to your air cargo challenges. We start with brief assessments to determine where the biggest leverage for improvement exists. A team of skilled aviation consultants experienced in air cargo management work in close co-operation with you to define improvement potential in your air cargo operations adding measurable value.
Proposed solutions always reflect the particular situation of each individual client. We draw on our extensive experience and Lufthansa Group background to develop individual solutions and an air cargo strategy which is right for your air cargo operations. The joint client/consultant project team evaluates the best possible alternative that will work. A detailed implementation plan coupled with professional project management ensures that potential barriers for implementation are removed, goals are accomplished, and the communication needs of all stakeholders are met.
Our air cargo consulting services include the following:
- Increasing your aircraft capacity utilization
Our air cargo consulting team analyzes booking-over-time profiles, no-show and go-show shipment ratios, overbooking levels, and the management of capacity commitments. If you are also operating air freighters, we will analyze your network using our proprietary COMPASS network management tool and reveal further improvement opportunities.
- Increasing revenues
Our air cargo consultants analyze demand structures with a view on optimization of your load and rate mix and evaluate up-selling strategies in order to exploit differentials in air freight densities for high-demand flights, optimizing your air cargo sales. We also look beyond your present fleet, network and business, and establish processes and structures that will enable you to continually re-evaluate opportunities to generate additional revenues from your air cargo operations.
We also audit your air cargo finance and accounting processes and structures, identifying gaps that limit the efficiency of your current systems. Best practice structures and systems can be adapted to your air cargo organization according to your specific strategic goals.
- Marketing and air cargo sales enhancement
Our consultants analyze your marketing and air cargo sales activities with respect to product mix, pricing policy, distribution channels and communications framework. Based on the findings, we identify potential for increased cost efficiency, improved steering, better positioning, and additional revenues. Our air cargo experts develop a sound marketing strategy and help you to implement it.
- Transfer pricing methodology for belly capacity utilization
Belly pricing is often a contentious issue as no scientifically proven 'correct' approach to this issue exists. Our air cargo consulting team carefully analyzes different approaches to aircraft capacity utilization such as the incremental cost, the full-freighter equivalent or the market value with respect to viability and suitability for your company. In the process, we consider corporate or group strategy, competitors' approach, cross-subsidizing and availability of cost and revenue information. We subsequently devise a transfer price methodology to create incentives for both air cargo and passenger units for market-oriented production and adequate sales while protecting the interests of the Group as a whole.
- Value contribution created by freighter operations
Freighter profitability is an important performance indicator. But beyond that our air cargo experts propose solutions for strategic and qualitative factors that apply to your airline such as market share, the ability to open new routes for air freight independent of passenger services, and client attractiveness resulting in a preferred carrier status and/or higher achievable average yield.
Contact
Lufthansa Consulting GmbH
Air Cargo Management
Mr. Thilo Schmid
