Question: Will moving cargo by air continue to increase in capacity?.
The passenger airlines carry more cargo than do the cargo specialist and it .
still only counts for 10% of airline revenues.
Discussion.
Cargo hasn't received acknowledgement in important airline decisions that .
seam to cater to the passenger airlines as airlines operate aircraft that have the .
capability to carry cargo in the belly while still handling passengers, mail, and .
baggage. They can make additional revenue by moving cargo along with .
passengers, and with a network of airports all over the US. Airborne exports .
account for 30% of total exports and between 15 to 20 percent of all imports to .
the US. The Government keeps tabs on the cargo industry insuring a viable Civil .
Reserve Air Fleet is available for emergency situations around the world.
Air Cargo has three forms: air freight, mail and air express. The first .
airmail route went from New York City to Washington D.C. in 1918. Mail .
dominated revenues until aircraft arrived specifically designed for passengers. .
Airmail; still only accounts for 2 or 3 percent of airline revenues with the United .
States Postal Service being the only airline that revenues come completely from .
carrying mail and is the nation's largest shipper and carrier.
Air Express service began in 1927 as American Railway Express .
Company started contracts with a number of airlines to move small packages. .
Soon changing their name to Railway Express Agency owned by the railways. .
They had the ground connections and could move parcels by rail if aircraft .
canceled. They were able to stay in business until the 1970's when they were .
overrun by faster services. They declared bankruptcy in 1975. In 1971, Federal .
Express opened its cargo hub in Memphis, Tennessee and could guarantee .
overnight service anywhere in the US. Being an integrated carrier, Federal .
Express can pickup, transport, and deliver by 1030 the next day.
