Air Transport
-Significant advantage lies in the speed with which a shipment can be transported.
-Though the freight cost is very high, the same may be trade-off with reduced warehousing or inventory.
-Characterized by load size constraints and aircraft availability.
-Fixed cost associated with aircraft purchase and requirements for specialized handling systems is low as compared to rail, water and pipeline.
-Airways and airports are generally developed and maintained with public funds.
-Airfreight variable cost is extremely high as a result of fuel,maintenance and intensity of in-flight and ground crew.
-Airfreight is justified in following situations:
(a)High value products
(b)Perishables
(c)Limited marketing period.
(d)Emergency.
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