Global air cargo market to grow
Market expected to grow at a CAGR of 5.97 percent over the period 2012-2016.
April 15, 2014
The global air cargo market to grow at a CAGR of 5.97 percent over the period 2012-2016. One of the key factors contributing to this market growth is the increasing number of online retail stores. The has also been witnessing an increase in the number of new air routes. However, the increasing competition from surface transportation could pose a challenge to the growth of this market according to an analyst report by Research And Market.
The global air cargo market is witnessing an increase in airline research, which is resulting in the introduction of new air routes for cargo transportation purposes. This is a trend which is expected to continue over the years according to the report. Airlines are adopting the acquisitive route to enter the global air cargo market to increase their revenue. Airline research has also resulted in the adoption of a new concept of dedicated cargo terminals at airports.
Such terminals will be operated and maintained by cargo airlines and not by the airline that owns the airport. This concept can reduce the cost of airport operations for the airline. In this scenario, cargo airlines will use certain airports as their hub airports, from where they can transport goods and also try to capitalize on the air cargo markets in which those hubs are based.