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Roles of the airport and logistics services on the economic outcomes of an air cargo supply chain

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  • Yuan, Xue-Ming
  • Low, Joyce M.W.
  • Ching Tang, Loon

Abstract

This paper introduces an air cargo supply chain operations reference (ACSCOR) model to examine the integrated impact of airport operating strategies and industrial forces on airport performances, and quantifies the economic benefits of the air cargo service business. In the light of Singapore and Hong Kong statistics, it is shown that the cargo traffic at an airport is significantly influenced by its operating characteristics, the performances of its downstream airfreight and supporting logistics industry, and the economic environment that it is functioning within. Through the traditional economic models, it is found that on average Hong Kong experiences a higher accelerator effect but lower multiplier effect in airport investment compared to Singapore. While the multiplier effect may signify that Singapore can benefit from higher returns in terms of the spillover effect to the overall air cargo supply chain, the higher accelerator effect in Hong Kong corresponds to the empirical results from the ACSCOR model that advocate Chek Lap Kok airport increasing its physical inputs relative to human inputs.

Suggested Citation

  • Yuan, Xue-Ming & Low, Joyce M.W. & Ching Tang, Loon, 2010. "Roles of the airport and logistics services on the economic outcomes of an air cargo supply chain," International Journal of Production Economics, Elsevier, vol. 127(2), pages 215-225, October.
    • Handle: RePEc:eee:proeco:v:127:y:2010:i:2:p:215-225
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    References listed on IDEAS

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    3. Hong, Seock-Jin & Randall, Wesley & Han, Keunsoo & Malhan, Amit Sundeep, 2018. "Estimation viability of dedicated freighter aircraft of combination carriers: A data envelopment and principal component analysis," International Journal of Production Economics, Elsevier, vol. 202(C), pages 12-20.
    4. Lawrence C. Leung & Yer Van Hui & Gang Chen & Wai Hung Wong, 2017. "Aggregate–disaggregate approach to an airfreight forwarder’s planning under uncertainty: a case study," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(6), pages 695-710, June.
    5. Mayer, Robert, 2016. "Airport classification based on cargo characteristics," Journal of Transport Geography, Elsevier, vol. 54(C), pages 53-65.
    6. Ryan Lee & Moayad Shammut & Julian Allen & Xing Gao & Tianren Yang & Mengqiu Cao, 2021. "Investigating the Implications of the London Heathrow Airport Expansion for the Landside Freight Industry," Logistics, MDPI, vol. 5(3), pages 1-18, July.
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    8. Polater, Abdüssamet, 2020. "Airports’ role as logistics centers in humanitarian supply chains: A surge capacity management perspective," Journal of Air Transport Management, Elsevier, vol. 83(C).

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