Low-cost air cargo delivery to Ukraine.

Any enterprise is looking for ways to optimize costs. Transportation costs are a significant burden on the cost of goods in the importer's warehouse. In search of optimization of expenses on air cargo delivery, many importers look at the proposals of low-cost airlines. Let's go through the inner kitchen of low-cost carriers and ways to reduce costs in air transportation. 
The topic "Economics of low-cost shipping: how airlines reduce costs and increase revenues" is an interesting and relevant area for our review. Let's take a look at the history of low-cost carriers and innovative principles in air transportation that allowed low-cost carriers to gain an impressive share of the air transportation market.
 

History and evolution of low-cost carriers in air cargo transportation
 

1. First steps

• 1940s-1960s: During this period, air cargo transportation was just beginning to develop. The focus was on passenger transportation, and cargo transportation was seen as a value-added service.
• 1970s: With the growth of international trade, the need for fast and reliable cargo delivery increased. The first specialized cargo airlines began to appear.
   

2. The emergence of low-cost carriers

• 1980s: Against the backdrop of the success of low-cost carriers in passenger transportation (e.g. Southwest Airlines), a similar model began to be implemented in cargo transportation. The main principles included cost reduction, use of secondary airports and load optimization.
• 1990s: Low-cost carriers began to make extensive use of new technologies to automate and improve logistics processes. Examples include DHL and FedEx, which actively implemented new management and logistics models.
   

3. Technological innovations

• 2000s: The development of IT technologies and the Internet allowed for significant improvements in booking and cargo tracking systems. Low-cost carriers started using big data and analytical tools to optimize routes and reduce operating costs.
   

4. Current trends

• 2020s: Current trends include sustainable development and environmental responsibility. Low-cost carriers are actively adopting green technologies and strategies such as the use of biofuels and reducing CO2 emissions.
• COVID-19 Pandemic: Led to changes in supply and demand in the air transportation market. Low-cost carriers have begun to adapt to new conditions, including the rise of online commerce and changes in supply chains.
   

Cost reduction
 

1. Optimization of fuel costs

• Use of more fuel-efficient airplanes.
• Introduction of alternative fuels.
• Optimization of routes to reduce fuel consumption.
   

2. Reduction of operating costs

• Utilize aircraft of the same type to simplify maintenance.
• Minimize maintenance and repair costs.
• Automation and digitalization of processes.
   

3. Reduced personnel costs

• Optimization of staffing.
• Utilization of temporary and contract staff.
• Implementation of HR management systems to improve efficiency.
   

4. Infrastructure costs

• Selection of less congested and cheaper airports.
• Sharing terminals and warehouses with other carriers.

Increase in revenues
 

1. Increase in flight utilization

• Optimization of routes and schedules to maximize cargo space utilization.
• Flexible pricing system depending on demand.
   

2. Diversification of services

• Provision of additional services such as express delivery, cold chain, etc.
• Partnerships with logistics companies and courier services.
   

3. Marketing strategies

• Targeting small and medium-sized businesses looking for more economical ways to deliver goods.
• Developing loyalty programs for customers.
• Utilizing digital platforms for booking and tracking shipments.
   

4. Innovation and technology

• Implementing blockchain for transparency and security.
• Use of big data for demand forecasting and optimization of cargo operations.
• Development of unmanned and automated delivery systems.