Global logistics & SCM

Unit 3

Definition of Air Transport

Air transport is an aircraft design for transporting passengers and freight from one location to
another in the air using airplanes, jets, rockets helicopters, and drones.
Each of these type of air transport has a unique way of achieving speed and the sustainability of it
voyage,

However there are other types of air transport which may or may not be used for conveying goods,
but could be used for recreational purposes, they include,hot air balloons, blimps,gliders,hang
gliding,parachuting etc.

Types of air transport :

 Commercial airplanes
 Helicopters
 Private planes
 Blimps
 Gliders
 hang gliders
 Zeppelin
 parachute

Commercial airplanes: these are the common ways in which people travel through the air, the
commercial planes provide a fast means of transportation compared to other modes of transport
such as road transport, rail transport and water transport. Airplanes are capable of carrying hundreds
of people from on location to another at a time; the seating is sometimes divided into two or four
classes.

Helicopters: helicopters are another fast means of air transport; these move people through the air.
Helicopters when compared with commercial airplanes are much more limited when it comes to
passengers space and can only transport a few people at a time, whereas some commercial airplanes
can transport hundreds of people at a time.

Private planes: private planes are made to provide transportation service for a single person or at
most five (5) people at a time. Private planes range from the smallest Cessna to luxury jets such as
the Citation CJ1, which carries up to five people in leather-seated comfort.
Blimps: blimps and hot air balloons are used to transport people for recreational purposes. They
cover a limited area that enables tourists to see a location on a larger scope than if they tried to view
the area from the ground. Blimps used to be a form of commercial transport but are no longer used
for that.

Glider: a glider, which is also called sailplane, is a type of glider air craft used in the sport of gliding
or for recreational activity. Sailplanes are aerodynamically streamlined and are capable of gaining
altitude when flown in rising air.
Rocket: a rocket is any vehicle that uses a rocket engine; it includes a missile, spacecraft, aircraft or
other vehicle. Rockets have been used at least since the 13th century for small-scale military
applications and recreational displays.
 Zeppelin: a Zeppelin was a type of rigid air ship named after the German Count Ferdinand von
Zeppelin, it consists of a cigar-shaped, trussed, and covered frame supported by internal gas cells.
Count Ferdinand von Zeppelin designed Zeppelin in the early 20th century. Zeppelins almost look like
blimps but they differ by two points: Zeppelins have a metal skeleton with a rigid covering, and they
use hydrogen gas to float. These two elements made zeppelins larger when compared to blimps.
Parachute: this is a cloth canopy that is filled with air and allows a person, package or a heavy object
attached to it to descend slowly when dropped from an aircraft, or which is released from the rear of
an aircraft on landing to act as a brake.

Development of Air Transport

Air transport is the newest means of transport; this means of transport was introduced in 1903 but
developed into full means of transporting people and freights in the 1930s.
The greatest of air transportation started after the Second World War (WW11).
This means of transportation can be used for both domestic and international flights.
Of all transport development of the 20th century, those in air transport have been the most striking
ones. Who would have thought that when the Wright brothers made their historic flight in 1903, that
aircraft would become one of the most important means of passengers transport within just three
generations?
Improvements have indeed been rapid: jet engines replaced propellers, radar was introduced, the
size of aircraft has grown to jumbo proportions; supersonic speeds have been achieved and vertical
take-off is now possible.
Today, across the world, air transport is used extensively both for passengers and freight.
Broadly, there are two types of services:
Those operating for particular purposes on and ad hoc basis and those operating on regular
schedules.
Into the first category, you will have the flights. (For example, those for tourist in summer and for
mineral deposits between inaccessible mines and industrial regions), however, into the latter
category would come those services run by British airways and the other world airlines.

Advantages of Air Transport

 Air transport is a fast and efficient system which is especially suited to passenger traffic, offering
comfort and high quality service; today long distance passenger movements are made almost
entirely due to air transport.
 Air transport involves the use of direct routes.
 It is suited to high quality, expensive and perishable cargoes for which speed is essential;
aircraft may also carry freight too small to interest the providers of other transport systems.
 It can often reach areas inaccessible to other modes of transport. For instance, areas of in
hospitable environment such as Central Brazil and Northern Canada.
 It offers complete freedom of movement and this provides potentially flexible routes and
services (although most air movements are channelled along strict routes and political factors may
restrict both landing and flight paths).

Disadvantages of Air Transport

 Air transport is very expensive and as a result of this, it disqualifies all heavy, bulky or low- value
cargoes.
 Aircraft are expensive to build and operate; it requires elaborate provisions in the form of airport
facilities, controlling systems and maintenance.
 It depends on weather conditions and therefore can provide and unreliable services.
 As aircraft becomes larger, the number of airports capable of being used is declining. This
reduces flexibility. There is a growing difficulty of finding suitable sites for airport building as
well.
 Some airports are far away from urban centres and this offsets the advantage of speed and
convenience.
 It offers no access between termini and therefore minimum potential for intervening
opportunity.
 Airports use up valuable land and aircraft cause a lot of noise and air pollution.

Air Freight
What is Air Freight?
1. Air freight is another term for air cargo that is, the shipment of goods through an air carrier. Air
transport services are the most valuable when it comes to moving express shipments around the
globe. Just like the commercial or passenger airlines, air freight flies in the same gateways.
2. Air freight, on the other hand, means the amount to be paid for the transportation of goods by air.
When goods are shipped from one place to the other, the amount paid for the movement of the
goods is called freight. Therefore, air freight means the charges paid for air transport.

Air Cargo

Air Freight, also known as air cargo, is the mode of transport used to transport cargo swiftly by air.
Airfreight is the most valuable form of transport when shipping or transporting goods in the fastest
time around the globe. Air cargo is shipped through the same gateway as the passenger or
commercial airlines.
General and Special are the two types of Air Cargo:

General Cargo - This type of cargo consists of high-value cargo like pharmaceuticals, jewellery, and
electronics. Even though air shipping is more expensive than sea transport, it is still the best mode
for transporting high margin and fragile goods.
Special Cargo - Preferred type for transporting under special conditions such as temperature control,
air conditions, and special casing, usually in cases of hazardous goods or livestock

International Air Transport Association (IATA):

The International Air Transport Association (IATA) is the global trade association for the world’s
airlines.
Its mission is to lead and serve its members, as well as to represent their interests in a way that
boosts the airport transport industry.

Key facts about IATA:

 It represents around 260 airlines or 83% of total air traffic.
 It has global reach.
 Flights by IATA members represent 83% of total traffic.
 It was founded in Havana, Cuba, in April 1945.
 It had 57 members from 31 nations, mostly in Europe and North America when it was first
established in 1945. Today it has some 260 members from 117 nations in every part of the globe.
 It’s priorities include safety, security, environment, services, simplifying the business and helping to
build relationships within the industry.
 IATA’s Billing and Settlement Plan serves as the financial backbone of the industry by managing the
flow of the over $270 billion generated annually by travel agent ticket sales to airlines.
International Air Transport Association profile:

IATA is a globally recognised trade association for airlines and has been operating for more than 50
years. Its members include both freight and passenger carriers and it has offices in 53 countries
around the world.
It has grown alongside the air travel industry, working in conjunction with the sector to help develop
standards, practices and procedures to regulate it and ensure consistent levels of service for
customers. The IATA is a truly global organisation and its 260 members come from more than 117
nations.
As well as consumer protection, the IATA has been involved in helping the airline industry become
more sustainable. The organisation offers information on airlines, a range of publications and training
programs and accreditation for those working in the travel industry.
In addition, it supplies a range of financial services, such as a debt collection service for airlines.

The International Air Transport Association (IATA) is a global trade association for the
airline industry.

It was founded in 1945 and has its headquarters in Montreal, Canada,

with executive offices in Geneva, Switzerland.

IATA plays a significant role in the aviation industry by representing, supporting, and
advocating for airlines around the world.

Here are some key aspects of IATA:

1. Membership: IATA's membership includes more than 290 airlines, which

together account for the majority of global air traffic. Members range from
major international carriers to regional and domestic airlines.
2. Standardization: IATA develops and promotes industry standards and best
practices for airlines, including safety and security protocols, ticketing and
reservation systems, cargo handling, and more. These standards help improve
the efficiency and safety of air travel.
3. Advocacy: IATA advocates for the interests of its member airlines with
governments, regulators, and international organizations. It works to influence
aviation policy and regulation to benefit the industry and its customers.
4. Safety and Security: IATA promotes safety and security in air transport
through initiatives such as the IATA Operational Safety Audit (IOSA), which
assesses airlines' safety management and operational processes.
5. Financial Services: IATA provides financial services to airlines, including the
IATA Clearing House (ICH) for settling interline accounts and the Billing and
Settlement Plan (BSP) for managing ticket sales through travel agents.
 6. Industry Data and Analysis: IATA provides data and analysis on industry
trends, market conditions, and economic factors affecting air transport. This
information helps airlines make informed business decisions.
7. Training and Professional Development: IATA offers a range of training and
certification programs for aviation professionals, covering topics such as
safety, security, operations, and management.
8. Environmental Sustainability: IATA works to promote environmental
sustainability in the aviation industry by supporting initiatives to reduce
carbon emissions, improve fuel efficiency, and develop alternative fuels.
9. Crisis Management and Recovery: IATA provides support to airlines during
crises, such as natural disasters and global health emergencies, to help them
manage and recover from disruptions.
10. Passenger Rights and Experience: IATA advocates for passenger rights and
works to improve the passenger experience by promoting seamless and
efficient travel processes.

Cargo handling

refers to the process of managing and transporting goods or cargo, particularly in

the context of aviation. In the air transport industry, cargo handling involves a series
of activities that ensure the efficient and safe movement of goods from the point of
origin to the final destination.

Here are some key aspects of cargo handling in the air transport industry:

1. Cargo Acceptance and Documentation: Cargo handling begins with the

acceptance of goods for transport. This includes checking the cargo against
the booking details, verifying its compliance with safety and regulatory
requirements, and completing necessary documentation such as airway bills
and customs declarations.
2. Cargo Screening and Security: Cargo must be screened for security
purposes, following national and international regulations. This includes
checking for prohibited items and ensuring the cargo is safe for transport.

As per the IATA (International Air Transport Association) data, 52 million tons of air cargo was
transported in 2016 in the world. According to the mass, it is less than 1% of the world trade,
however, it presents more than 35% of the world trade value, accounting for the value of around 6.8
US$ billion daily. Air cargo transport realizes 9% of total aircraft operators’ income, being twice the
income resulting from first class passengers. Directly and indirectly, air cargo business provides
around 32 million of work places around the word.

When it comes to air cargo transport, competition among airports is very strong, especially in
relation to intercontinental traffic. Airports winning in this market competition are the ones having:
competent staff, appropriate cargo infrastructure, developed route network, good traffic links of the
airport with the railway, technology implementing latest developments, quality based on ISO
standards, IATA projects such as Cargo 2000 (C2K) management system [2], e-freight technology [3],
iQ and the like. Cargo iQ is an IATA interest group with the mission of creating and implementing
quality standards for the worldwide air cargo industry. For that reason every handling agent, or air
cargo handling service provider, makes efforts to improve quality of the process in all elements, in
order to be competitive in the market.

AIR CARGO HANDLING PROCESS

Air Cargo Handling Process belongs to core business processes regardless if the airport itself
conducts it or it is managed by a specialized organization in the liberalized market conditions.

2.2 Hierarchy of Air Cargo Handling Process

Any process has its hierarchy,. The Air Cargo Handling Process is a very complex process for several
reasons:
 cargo handling activities at arrival (receipt) and departure (dispatch) run simultaneously, so that
this process has two sub-processes: 1) air cargo handling sub-process – arrivals and 2) air cargo
handling sub-process – departures;
 airsideandlandsideactivitiesrunsimultaneously;
 physical and documentary receipt and dispatch activities (handling) run simultaneously.

Here's an overview of the typical process:

1. Cargo Acceptance:
2. Cargo Screening and Security:
3. Packaging and Labeling:
4. Storage:
5. Loading:
6. Documentation:
7. Safety and Security Checks:
8. Transport:
9. Unloading:
10. Customs Clearance:
11. Delivery:
12. Documentation and Reporting:

Designing an international information system involves creating a platform or

system that can support the needs of global businesses and organizations in their
international operations.

This type of system should be

robust, flexible, and scalable to handle a wide range of data and processes across
different countries, languages, and regulatory environments.

Here are some key considerations and steps in designing an international

information system:
1. Requirements Analysis:
o User Needs: Understand the specific needs of users from different
countries and cultures. Consider language, time zones, units of
measurement, and other local preferences.
o Business Processes: Identify the key business processes the system will
support, such as supply chain management, finance, customer
relationship management, and human resources.
o Compliance: Ensure compliance with international and local
regulations, including data privacy laws, trade regulations, and industry
standards.
2. Global Data Management:
o Data Standardization: Use consistent data formats, units of
measurement, and naming conventions across the system to facilitate
data integration and analysis.
o Data Localization: Provide support for local data requirements, such as
language translation, currency conversions, and local regulations.
o Data Security and Privacy: Implement data security measures such as
encryption and access controls, and adhere to data privacy laws like
GDPR.
3. System Architecture:
o Scalability: Design the system to handle increasing volumes of data
and users as the business grows internationally.
o Distributed Infrastructure: Consider using distributed data centers or
cloud services to ensure high availability and low latency for users
around the world.
o Integration: Ensure the system can integrate with other systems and
services commonly used in international business, such as payment
gateways, logistics providers, and customs authorities.
4. Localization and Internationalization:
o Localization: Adapt the system's user interface, content, and
functionalities for different regions and languages.
o Internationalization: Design the system to easily support multiple
languages, currencies, and cultural preferences.
5. User Experience:
o Consistent Interface: Provide a consistent user experience across
different regions to facilitate ease of use and training.
o Multi-language Support: Offer the system in multiple languages to
cater to a diverse user base.
6. Communication and Collaboration:
o Real-time Communication: Facilitate real-time communication and
collaboration among international teams using features like chat, video
conferencing, and file sharing.
 o Time Zone Management: Implement features that help manage
communication across different time zones, such as scheduling tools
and time zone conversion.
7. Performance Monitoring and Support:
o Performance Monitoring: Continuously monitor the system's
performance and availability to ensure it meets the needs of
international users.
o Technical Support: Provide round-the-clock technical support to
address issues in different time zones and languages.
8. Testing and Quality Assurance:
o International Testing: Conduct thorough testing in different regions
to identify and address issues related to localization and
internationalization.
o Feedback and Improvement: Gather feedback from users in different
regions and use it to make continuous improvements to the system.
9. Compliance and Regulations:
o Legal and Trade Compliance: Ensure the system complies with legal
and trade regulations in different countries.
o Cybersecurity Compliance: Implement cybersecurity measures and
ensure compliance with international standards.
10. Future-Proofing:
o Emerging Technologies: Keep the system adaptable to emerging
technologies such as AI, blockchain, and IoT, which may impact
international business operations.
o Evolving Markets: Stay informed about evolving markets and
regulations to ensure the system remains relevant and compliant.

international information system typically consists of various modules that work

together to support the needs of global businesses and organizations in their
international operations. Each module serves a specific purpose and handles
particular functions. Here are some common system modules in an international
information system:

1. Global Data Management:

o Master Data Management (MDM): Manages and maintains master
data such as customer, product, and supplier information across
regions.
o Data Localization: Handles local data requirements such as language,
currency, and measurement units.
2. International Finance and Accounting:
o Multi-Currency Management: Supports transactions in different
currencies and conversion rates.
 o Taxation and Compliance: Manages international tax regulations and
compliance requirements.
o Financial Reporting: Generates consolidated financial statements
across different regions and currencies.
3. Supply Chain and Logistics:
o Global Inventory Management: Tracks and manages inventory across
international locations.
o International Shipping and Logistics: Handles shipping and logistics
for international deliveries, including customs clearance and
import/export documentation.
4. Customer Relationship Management (CRM):
o Multi-Language Support: Supports interactions with customers in
their preferred language.
o Global Marketing and Sales: Manages marketing campaigns and sales
efforts across different regions.
o Customer Data Management: Maintains customer data and
preferences across regions.
5. Human Resources Management:
o Global Payroll and Benefits: Manages payroll, benefits, and taxes for
employees in different countries.
o Time and Attendance: Tracks time and attendance across different
time zones.
o Compliance and Regulations: Ensures compliance with local labor
laws and regulations.
6. Business Intelligence and Reporting:
o Global Analytics: Provides insights and analysis of data across regions.
o International Reporting: Generates reports that consolidate data from
multiple regions for strategic decision-making.
7. E-commerce and Online Presence:
o Multi-Language and Multi-Currency Support: Supports online
transactions in different languages and currencies.
o Global Content Management: Manages content for different regions
and languages.
8. Communication and Collaboration:
o Real-Time Communication: Provides chat, video conferencing, and
other collaboration tools for international teams.
o Time Zone Management: Helps manage communication across
different time zones.
9. Compliance and Security:
o Data Privacy and Protection: Ensures compliance with international
data privacy laws like GDPR and other local regulations.
 o Cybersecurity: Implements cybersecurity measures to protect data and
systems.
10. Integration and APIs:
o System Integration: Integrates with other systems and services such as
payment gateways, logistics providers, and regulatory agencies.
o API Management: Manages APIs for communication with other
systems.

Air Distribution
Introduction :
Air-distribution systems include air handlers, ductwork, and associated components for heating,
ventilating, and air-conditioning buildings.

They provide fresh air to maintain adequate indoor-air quality while providing conditioned air to
offset heating or cooling loads.

Their many components need to operate in unison to properly maintain desired conditions.

They use relatively large amounts of energy so applying smart operational strategies and good
maintenance practice can significantly reduce energy consumption.

Types of Air Distribution Systems

Air-distribution systems fall into two broad categories, constant-volume (CV) and variable-air-
volume (VAV).
The following descriptions provide an overview of generic system types commonly found in larger
commercial and institutional buildings.

Constant Volume

Constant-volume systems operate at a constant airflow rate; only temperature varies to maintain the
zone setpoint. Constant-volume units can be used in single-zone or multizone applications.

A single-duct system provides ventilation and cooling to the conditioned space.

Zones requiring heating may have a heating component in the terminal unit while some rely on a
completely separate system for heating.
A dual-duct system uses a single fan to move air through both cooling and heating coils in the air
handler, distributing the air through separate hot and cold ducts.

Depending on the zone requirements, the air streams may either blend at a terminal mixing box or
provide just cooling.
Another constant-volume system is the multizone unit. The multizone unit supplies air to several
zones from a centrally located air-handling unit. Individual zone requirements are met by mixing cold
and warm air through dampers in the air handler. The tempered air is then distributed to the zones
via single ducts.

Variable Volume
The volume of supply air from a VAV air handler varies in response to terminal units' intake of supply
air to maintain zone temperature setpoints.
The supply-air fan is controlled to maintain a static pressure setpoint in the ductwork.

In response to a static pressure sensor in the duct, supply-air volume is regulated in one of three
ways:
1) bypass dampers,
2) inlet vanes either upstream from or inside the supply fan casing, or
3) a variable-speed drive (VSD) on the fan motor regulating the fan speed.
Variable-volume systems provide ventilation and cooling, usually through a single-duct system. If
necessary, air is heated at the terminal unit.

Distribution and transportation

are essential components of air transportation, enabling the movement of goods

and passengers from one location to another.

In the context of air transport, distribution refers to the process of planning and
coordinating the movement of goods and passengers to their final destinations.

Transportation encompasses the physical movement of these items.

Here are some key aspects of distribution and transportation in air

transportation:

1. Air Cargo Transportation:

o Cargo Types: Air transportation can handle various types of cargo,
including perishable goods, live animals, hazardous materials, high-
value goods, and general cargo.
o Cargo Consolidation: Consolidation services combine shipments from
multiple customers to optimize space and reduce costs.
o Special Handling: Special handling is provided for sensitive cargo,
such as temperature-controlled environments for pharmaceuticals and
live animals.
o Freight Forwarding: Freight forwarders manage the logistics of
shipping goods by air, including arranging transportation,
documentation, and customs clearance.
2. Passenger Transportation:
o Domestic and International Flights: Airlines operate flights within and
between countries, connecting passengers to their destinations.
o Network Planning: Airlines plan routes and schedules based on
demand, competition, and regulatory considerations.
o Passenger Services: Airlines provide services such as ticketing, check-
in, baggage handling, and in-flight amenities for passengers.
3. Logistics and Supply Chain Management:
 o Last-Mile Delivery: The final leg of cargo transportation, last-mile
delivery involves getting goods from the airport to the final destination.
o Hub-and-Spoke Model: Airlines often use a hub-and-spoke model,
where flights connect through a central hub, allowing for efficient
distribution of passengers and cargo.
4. Intermodal Transportation:
o Integration with Other Modes: Air transportation often integrates
with other modes of transport, such as trucking and rail, for seamless
movement of goods and passengers.
o Multimodal Shipping: Multimodal shipping combines different modes
of transportation (e.g., air, sea, rail, road) to optimize delivery routes
and costs.
5. Cargo Tracking and Monitoring:
o Real-Time Tracking: Cargo tracking systems provide real-time updates
on the location and status of shipments.
o Security and Safety: Security measures, such as screening and
monitoring, are in place to ensure the safety of cargo and passengers.
6. Airport Infrastructure:
o Cargo Terminals: Airports have dedicated cargo terminals for
processing, storing, and transferring goods.
o Baggage Handling: Airports handle passenger baggage, ensuring it
reaches the correct destination on time.
7. Regulatory Compliance:
o Customs and Documentation: Air transport must comply with
customs regulations and documentation requirements for international
shipments.
o Safety and Security: Airlines and airports follow strict safety and
security protocols to protect cargo, passengers, and personnel.
8. Technology and Automation:
o Automated Systems: Automated systems streamline processes such as
check-in, baggage handling, and cargo tracking.
o AI and Machine Learning: Advanced technologies help optimize
routes, predict demand, and improve operational efficiency

Revenue logistics

is a strategic approach to managing the flow of goods, services, and information

throughout the supply chain with the goal of maximizing revenue and profitability
for businesses.

It involves optimizing the logistics and distribution processes to increase efficiency,

reduce costs, and improve customer satisfaction.
Here are some key challenges & challenges of revenue logistics:

1. Demand Forecasting:
o Predicting customer demand accurately to align supply chain
operations with market needs.
o Utilizing data analytics and market trends to forecast future sales and
adjust inventory levels accordingly.
2. Inventory Management:
o Maintaining optimal inventory levels to meet customer demand while
minimizing carrying costs.
o Implementing just-in-time (JIT) inventory systems to reduce excess
inventory and associated costs.
3. Order Fulfillment:
o Streamlining order processing and fulfillment to ensure timely and
accurate delivery of goods to customers.
o Automating order management systems to improve efficiency and
reduce errors.
4. Transportation Optimization:
o Selecting the most cost-effective and efficient transportation methods
and routes for delivering goods.
o Considering factors such as distance, shipping time, and mode of
transport (e.g., air, sea, road) to optimize transportation costs.
5. Warehousing and Distribution:
o Designing warehouse layouts and processes to maximize space
utilization and reduce handling times.
o Utilizing distribution centers strategically located to minimize
transportation costs and delivery times.
6. Supply Chain Visibility:
o Implementing tracking and monitoring systems to provide real-time
visibility of goods throughout the supply chain.
o Using this information to proactively address potential disruptions and
improve decision-making.
7. Customer Relationship Management (CRM):
o Building strong relationships with customers to understand their needs
and preferences.
o Offering personalized services and promotions to increase customer
loyalty and repeat business.
8. Pricing and Revenue Management:
o Setting competitive and dynamic pricing strategies based on market
demand and customer preferences.
o Implementing revenue management techniques such as yield
management to optimize prices and maximize revenue.
9. Risk Management:
o Identifying and mitigating potential risks in the supply chain, such as
disruptions, delays, or regulatory changes.
o Developing contingency plans to minimize the impact of unforeseen
events on revenue.
10. Performance Measurement and Analytics:
o Tracking key performance indicators (KPIs) to measure the efficiency
and effectiveness of logistics processes.
o Using data analytics to identify areas for improvement and optimize
operations for revenue growth.