Economics, Econometrics and Finance
8 years ago

Integrated air cargo giants unlock cost-saving secrets, reshaping industry dynamics.

Journal of Air Transport Management
Economies of traffic density and scale in the integrated air cargo industry: The cost structures of FedEx Express and UPS Airlines
Paulos Ashebir Lakew

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

Low-cost carriers drive scale economies in Korean airline industry.

Air Transportation
1 view
Economics, Econometrics and Finance
6 years ago

Airlines must rethink cost structures to survive in competitive market.

Air Transportation
Economics, Econometrics and Finance
8 years ago

New study challenges traditional economic assumptions, paving way for more accurate models.

Monetary Models
Economic Growth
Macroeconomic Analysis

The article looks at the costs of FedEx Express and UPS Airlines in the air cargo industry. They found that FedEx Express is more cost-efficient than UPS Airlines. UPS Airlines benefits from having more traffic, while FedEx Express doesn't gain as much from traffic. Both companies save money by being bigger. FedEx Express and UPS Airlines can save money by adjusting their network size as they grow.