Directions for Developing an Air Cargo System Planning Model

This paper highlights the need and provides a direction for formulating a system planning model to assess the requirements in all segments of the air cargo industry. Currently-operational models of the demand for and the supply of air cargo services are neither sufficiently policy-sensitive nor detailed enough to be responsive to the interactions of both supply and demand. Thus, based on classical economic theory an interactive framework for a system planning model is suggested. Techniques ranging from mathematical programming to econometrics are proposed to develop the various components within the system.