Finding the optimal product mix for an Air Cargo Operator

This research project considers the operation of an Air cargo transportation provider. The available capacity on a given flight can be spilt into the following main segments: Must ride (premium rate and guarantee to fly), ad hoc bookings (with fixed rate), Permanent Bookings (commitment to regular capacity at a set rate), Spot bookings (rate and capacity negotiated at shipment level) and some others. Each of the elements exhibits different characteristics in terms of the rate, the probability of show up, the priority accorded and potentially the density, the booking date, and so on. The challenge is to understand what the optimum spilt of sales between the different types of cargo is and what capacity to make available and when. As the market is constantly evolving, recommendations should also include parameters to help define future segments.

This research project will be done in cooperation with a major industrial partner and hence is very likely to have a high practical impact in addition to the interesting theoretical aspects.

Candidates for this project should have obtained a first university degree with a substantial quantitative component, ideally a good degree with a mathematical or statistical major/minor. The research will involve computer programming, most likely in MatLab. Training and technical support will be given as necessary.

For further particulars please contact the supervisor, Joern Meissner.