Management of Air Cargo - Virgin Atlantic Cargo
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This document provides information about the management of air cargo, specifically focusing on Virgin Atlantic Cargo. It includes details about the history and background of Virgin Atlantic Airways, managerial aspects, corporate philosophy/culture, organizational chart, mission statement, resources, employees, equipment and key facilities, main airports served, type and number of aircraft, and more.
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Running Head: VIRGIN ATLANTIC CARGO
0
MANAGEMENT OF AIR CARGO – VIRGIN
ATLANTIC CARGO
0
MANAGEMENT OF AIR CARGO – VIRGIN
ATLANTIC CARGO
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VIRGIN ATLANTIC CARGO 1
Contents
VIRGIN ATLANTIC AIRWAYS HISTORY AND BACKGROUND....................................3
Managerial Aspects....................................................................................................................3
Corporate philosophy/culture.....................................................................................................4
Organizational chart..................................................................................................................5
Mission Statement......................................................................................................................6
Resources...................................................................................................................................6
Employees..................................................................................................................................6
Equipment and key facilities......................................................................................................7
Main airport that are served.......................................................................................................8
Type and number of aircraft.......................................................................................................9
Operation..................................................................................................................................11
Operational Philosophies.........................................................................................................11
Market served...........................................................................................................................12
Type of Cargo..........................................................................................................................12
General Cargo..........................................................................................................................12
Problem/Limitation..................................................................................................................12
Business relationship................................................................................................................13
Partners, Pacts, Alliances.........................................................................................................13
Code sharing and Joint Venture...............................................................................................14
Future Plans..............................................................................................................................15
Summary..................................................................................................................................16
REFERENCES.......................................................................................................................17
Appendix..................................................................................................................................22
Appendix C (Perishable Cargo)...............................................................................................25
Labelling..................................................................................................................................25
Pet Handling.............................................................................................................................26
Regulations...............................................................................................................................26
Aircraft consideration...............................................................................................................26
Contents
VIRGIN ATLANTIC AIRWAYS HISTORY AND BACKGROUND....................................3
Managerial Aspects....................................................................................................................3
Corporate philosophy/culture.....................................................................................................4
Organizational chart..................................................................................................................5
Mission Statement......................................................................................................................6
Resources...................................................................................................................................6
Employees..................................................................................................................................6
Equipment and key facilities......................................................................................................7
Main airport that are served.......................................................................................................8
Type and number of aircraft.......................................................................................................9
Operation..................................................................................................................................11
Operational Philosophies.........................................................................................................11
Market served...........................................................................................................................12
Type of Cargo..........................................................................................................................12
General Cargo..........................................................................................................................12
Problem/Limitation..................................................................................................................12
Business relationship................................................................................................................13
Partners, Pacts, Alliances.........................................................................................................13
Code sharing and Joint Venture...............................................................................................14
Future Plans..............................................................................................................................15
Summary..................................................................................................................................16
REFERENCES.......................................................................................................................17
Appendix..................................................................................................................................22
Appendix C (Perishable Cargo)...............................................................................................25
Labelling..................................................................................................................................25
Pet Handling.............................................................................................................................26
Regulations...............................................................................................................................26
Aircraft consideration...............................................................................................................26
VIRGIN ATLANTIC CARGO 2
VIRGIN ATLANTIC AIRWAYS HISTORY AND BACKGROUND
Virgin Atlantic Airways founded in the year 1984. After this, it has become second
biggest carrier serving of Britain by expanding its branches in major cities of the World. In
order to become the second largest carrier, it has brought various changes in its services. It
also operates long haul services around thirty destinations apart from Shanghai and Las
Vegas from the main hub at Heathrow airports and London Gatwick (Virgin, 2007).The fleet
of Virgin consists of the cargo aircraft as well as passenger that includes four airbus A340-
300s, 13 Boeing B747-400s, two Airbus A330-300s,19 Airbus A340-600s. The founder of
Virgin Atlantic Airways named Richard Branson started this airway when his flight cancelled
for Puerto Rico to the islands of British Virgin. Therefore, Richard promoted his first flight
on one of the terminal blackboard and named it as “Virgin Airways.” After this, Richard has
sold its record of around $1 billion in order to start the Virgin Atlantic Airways. However, it
started these airways with the second hand Boeing 747 (Greene, 2010). During the period, it
came up with the idea of starting an airline for every passenger who wants to move abroad,
and this led to the success of Virgin Atlantic airways.
In the starting phase, the cargo handling operation for this airway tends to be managed
by the air contact. Furthermore, it has been analysed that the Virgin Cargo has significant
potential in generating the revenue from cargo operation, as it created the Virgin Atlantic
Cargo. Therefore, their operation was managed through the Virgin Atlantic Cargo with all of
its services and operations located at the four core airports of United Kingdom. The Company
has also started the long haul cargo freight services form three major hub including: the
London Heathrow ( to Boston, Accra, Delhi, Dubai, Cape Town, Lagos, Johannesburg, Hong
Kong, Miami, Los Angeles, New York, Mumbai, Nairobi, Shanghai, San Francisco, Sydney,
Vancouver, Tokyo), Manchester (to lag Vegas, Barbados, and Orlando). It also operates in
London Gatwick (to Cancun, Barbados, Antigua, Havana, Bay, St, Lucia, Orlando, and
Tobago). Besides this, The Virgin Atlantic Cargo has started providing the cargo services to
the other airlines like Virgin Australia.
Managerial Aspects
The vision of Virgin Atlantic cargo is to provide effective and valuable services, and
fulfil the needs and expectations of their customers in present and future years. This is
VIRGIN ATLANTIC AIRWAYS HISTORY AND BACKGROUND
Virgin Atlantic Airways founded in the year 1984. After this, it has become second
biggest carrier serving of Britain by expanding its branches in major cities of the World. In
order to become the second largest carrier, it has brought various changes in its services. It
also operates long haul services around thirty destinations apart from Shanghai and Las
Vegas from the main hub at Heathrow airports and London Gatwick (Virgin, 2007).The fleet
of Virgin consists of the cargo aircraft as well as passenger that includes four airbus A340-
300s, 13 Boeing B747-400s, two Airbus A330-300s,19 Airbus A340-600s. The founder of
Virgin Atlantic Airways named Richard Branson started this airway when his flight cancelled
for Puerto Rico to the islands of British Virgin. Therefore, Richard promoted his first flight
on one of the terminal blackboard and named it as “Virgin Airways.” After this, Richard has
sold its record of around $1 billion in order to start the Virgin Atlantic Airways. However, it
started these airways with the second hand Boeing 747 (Greene, 2010). During the period, it
came up with the idea of starting an airline for every passenger who wants to move abroad,
and this led to the success of Virgin Atlantic airways.
In the starting phase, the cargo handling operation for this airway tends to be managed
by the air contact. Furthermore, it has been analysed that the Virgin Cargo has significant
potential in generating the revenue from cargo operation, as it created the Virgin Atlantic
Cargo. Therefore, their operation was managed through the Virgin Atlantic Cargo with all of
its services and operations located at the four core airports of United Kingdom. The Company
has also started the long haul cargo freight services form three major hub including: the
London Heathrow ( to Boston, Accra, Delhi, Dubai, Cape Town, Lagos, Johannesburg, Hong
Kong, Miami, Los Angeles, New York, Mumbai, Nairobi, Shanghai, San Francisco, Sydney,
Vancouver, Tokyo), Manchester (to lag Vegas, Barbados, and Orlando). It also operates in
London Gatwick (to Cancun, Barbados, Antigua, Havana, Bay, St, Lucia, Orlando, and
Tobago). Besides this, The Virgin Atlantic Cargo has started providing the cargo services to
the other airlines like Virgin Australia.
Managerial Aspects
The vision of Virgin Atlantic cargo is to provide effective and valuable services, and
fulfil the needs and expectations of their customers in present and future years. This is
VIRGIN ATLANTIC CARGO 3
considered as one of the major strengths of the company, as now it operates on the global
level in around 350 on going destinations. John Lloyd, the “senior vice president” of Cargo
directs their operations and other major activities. In the last few years, significant
fluctuations or changes were observed in the market of air cargo meanwhile, Virgin cargo
remained resilient. Lloyd believed in optimizing the contribution of Cargo, which is made to
the airline for getting best possible margin from their operations. In this way, from the recent
two years has proved their best for the Virgin Cargo in the period of five years. In the year
2013, it has achieved the revenue at GBP£225.3 million. Further, in the year 2014, its
tonnage was on the par as compared to the record of 2013 despite of the reduction in
capacity. Due to this, the company achieved an increment in their market share and acquired
the load factor of 74 per cent. This potential has helped the company in ensuring their growth
and development regardless of their despite of the reduced growth in the market within
freight industry globally (Kreeger, 2014).
Corporate philosophy/culture
The virgin Atlantic Cargo tends to provide the kid gloves treatment in freight for
ensuring the effective cargo operation to help their customers. Therefore, the customer centric
theory has proved to be successful for the cargo and made it the reputed and biggest air cargo
operation internationally. It does not believe in making fake promises to the customer on
cargo, which differentiates them from the other companies in the industry (KK Frieght). It
satisfies their customers by ensuring positive corporate practices and healthy work culture.
This characteristic led to the high rate for the company, as best cargo airline in the world and
winning the best “Caro Airline of the year” since the year 2002.
Organizational chart
considered as one of the major strengths of the company, as now it operates on the global
level in around 350 on going destinations. John Lloyd, the “senior vice president” of Cargo
directs their operations and other major activities. In the last few years, significant
fluctuations or changes were observed in the market of air cargo meanwhile, Virgin cargo
remained resilient. Lloyd believed in optimizing the contribution of Cargo, which is made to
the airline for getting best possible margin from their operations. In this way, from the recent
two years has proved their best for the Virgin Cargo in the period of five years. In the year
2013, it has achieved the revenue at GBP£225.3 million. Further, in the year 2014, its
tonnage was on the par as compared to the record of 2013 despite of the reduction in
capacity. Due to this, the company achieved an increment in their market share and acquired
the load factor of 74 per cent. This potential has helped the company in ensuring their growth
and development regardless of their despite of the reduced growth in the market within
freight industry globally (Kreeger, 2014).
Corporate philosophy/culture
The virgin Atlantic Cargo tends to provide the kid gloves treatment in freight for
ensuring the effective cargo operation to help their customers. Therefore, the customer centric
theory has proved to be successful for the cargo and made it the reputed and biggest air cargo
operation internationally. It does not believe in making fake promises to the customer on
cargo, which differentiates them from the other companies in the industry (KK Frieght). It
satisfies their customers by ensuring positive corporate practices and healthy work culture.
This characteristic led to the high rate for the company, as best cargo airline in the world and
winning the best “Caro Airline of the year” since the year 2002.
Organizational chart
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VIRGIN ATLANTIC CARGO 4
VIRGIN ATLANTIC CARGO 5
Mission Statement
The mission statement of the Virgin Atlantic airways states the aim to enhance spirit of the
humans and let them fly. Therefore, it believes in placing its customers and people first
before any corporate need. Besides this, mission statement of Cargo features the idealistic
phrases and lines that mostly end up by getting negative response from the staff instead of
confidence and motivation. Therefore, an overall mission that compares the corporate culture
of the organization rings of the insincerity to the staff, customer’s negative results, affecting
the image of company rather than ensuring benefit. The mission statement of the Cargo
features the idealistic phrases and lines that mostly end up by getting negative response form
the staff instead of confidence and motivation. Therefore, it believes putting their customers,
and their needs before any aspect within corporation. In this way, Virgin Atlantic Cargo
proved to be effectiveness in their mission statement through completing the goal of
providing the best quality services to all it customers and let them fly. Therefore, an overly
mission that stands in the contrast of corporate culture of the organization rings of the
insincerity to the staff, customers results in providing the more damage to the image of
company rather than benefit. In this way, Virgin Atlantic Cargo proved to be effective in its
mission statement by providing the best quality services to all it customers
Resources
John Lloyd the senior Vice president of Virgin Atlantic Cargo has joined it in the year 1987.
It worked in the cargo industry for around 30 years. At the starting, it has joined the Virgin
cargo as the operational officer based in Gatwick. Afterwards, it then shifted to the hierarchy
of the company from management and supervisory position to the general manager before
promoting to the current position of Cargo director.
Employees
In Virgin Atlantic Cargo, it has around 9000 employees across its group. It has appointed
three regional vice president: James Williams who oversees the America, Nike Jones the in-
charge of Middle East, Europe, and Africa, and Dominic Jones who is responsible for Asia
Pacific region. Therefore, Lloyd believed that Virgin Atlantic Cargo would not come on the
position of largest Cargo Carrier. Hence, instead encouraging passion for the better customer
service will established within the organization, and it practices to become the top rated cargo
carrying company (Royal, 2010).
Mission Statement
The mission statement of the Virgin Atlantic airways states the aim to enhance spirit of the
humans and let them fly. Therefore, it believes in placing its customers and people first
before any corporate need. Besides this, mission statement of Cargo features the idealistic
phrases and lines that mostly end up by getting negative response from the staff instead of
confidence and motivation. Therefore, an overall mission that compares the corporate culture
of the organization rings of the insincerity to the staff, customer’s negative results, affecting
the image of company rather than ensuring benefit. The mission statement of the Cargo
features the idealistic phrases and lines that mostly end up by getting negative response form
the staff instead of confidence and motivation. Therefore, it believes putting their customers,
and their needs before any aspect within corporation. In this way, Virgin Atlantic Cargo
proved to be effectiveness in their mission statement through completing the goal of
providing the best quality services to all it customers and let them fly. Therefore, an overly
mission that stands in the contrast of corporate culture of the organization rings of the
insincerity to the staff, customers results in providing the more damage to the image of
company rather than benefit. In this way, Virgin Atlantic Cargo proved to be effective in its
mission statement by providing the best quality services to all it customers
Resources
John Lloyd the senior Vice president of Virgin Atlantic Cargo has joined it in the year 1987.
It worked in the cargo industry for around 30 years. At the starting, it has joined the Virgin
cargo as the operational officer based in Gatwick. Afterwards, it then shifted to the hierarchy
of the company from management and supervisory position to the general manager before
promoting to the current position of Cargo director.
Employees
In Virgin Atlantic Cargo, it has around 9000 employees across its group. It has appointed
three regional vice president: James Williams who oversees the America, Nike Jones the in-
charge of Middle East, Europe, and Africa, and Dominic Jones who is responsible for Asia
Pacific region. Therefore, Lloyd believed that Virgin Atlantic Cargo would not come on the
position of largest Cargo Carrier. Hence, instead encouraging passion for the better customer
service will established within the organization, and it practices to become the top rated cargo
carrying company (Royal, 2010).
VIRGIN ATLANTIC CARGO 6
Equipment and key facilities
The figure given below shows the number of containers as well as their size that it allows for
the carriage on the partner airline and aircraft, VirginAustralia. However, the Virgin Cargo
does not hold the high amount of stock for selling, but the customers are allowed to make
special request with this cargo to lease the containers right from the cargo. They can also
source from the third party suppliers, and apart from this Virgin Atlantic has the approval of
FAA to carry the environtainer e1, CSafe RKN, and T2 RKN/RAP temperature controlled
containers. It also ensures providing the access to the temperature controlled storage facilities
for the store temperature sensitive cargo.
Equipment and key facilities
The figure given below shows the number of containers as well as their size that it allows for
the carriage on the partner airline and aircraft, VirginAustralia. However, the Virgin Cargo
does not hold the high amount of stock for selling, but the customers are allowed to make
special request with this cargo to lease the containers right from the cargo. They can also
source from the third party suppliers, and apart from this Virgin Atlantic has the approval of
FAA to carry the environtainer e1, CSafe RKN, and T2 RKN/RAP temperature controlled
containers. It also ensures providing the access to the temperature controlled storage facilities
for the store temperature sensitive cargo.
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VIRGIN ATLANTIC CARGO 7
Main airport that are served
It has been found that US is always the essential and primary market of the Virgin Atlantic
Cargo. It therefore competes well on the routes with reliability and high quality services. It
does not deluge the market in terms of capacity and have the good expanding of the medium
and high demanding routes. The latest route of Virgin Atlantic Cargo has currently started
positively with the encouraging load factors. Besides this, it has also started their tenth of the
US route to the Detroit in June. In addition, it provided the long haul freight facilities
internationally divided across three main regions named Middle East, Europe, Asia pacific
region, and Africa besides the US. The cargo operations are found across 32 destinations with
its major destinations includes Lagos (Nigeria), St Lucia San Francisco (US) and
Johannesburg (South Africa). Appendix A includes the whole network map of the Virgin
Cargo.
The core airports that served: for EMEA
Main airport that are served
It has been found that US is always the essential and primary market of the Virgin Atlantic
Cargo. It therefore competes well on the routes with reliability and high quality services. It
does not deluge the market in terms of capacity and have the good expanding of the medium
and high demanding routes. The latest route of Virgin Atlantic Cargo has currently started
positively with the encouraging load factors. Besides this, it has also started their tenth of the
US route to the Detroit in June. In addition, it provided the long haul freight facilities
internationally divided across three main regions named Middle East, Europe, Asia pacific
region, and Africa besides the US. The cargo operations are found across 32 destinations with
its major destinations includes Lagos (Nigeria), St Lucia San Francisco (US) and
Johannesburg (South Africa). Appendix A includes the whole network map of the Virgin
Cargo.
The core airports that served: for EMEA
VIRGIN ATLANTIC CARGO 8
Route A : Johannesburg to London Heathrow
Route B: London Heathrow to Lagos
For US
Route C: Boston to the London Heathrow
Route D: Miami to London Heathrow
For the Asia Pacific region
Route E: Shanghai to London Heathrow
Route F: Delhi to the London Heathrow
Virgin Atlantic Cargo network has increased their business line to more than 350
destinations all over the world through the trucking partners and global interline. The Air
Cargo also needs both short term as well as long-term forecasts. Short-term forecast is needed
to drive the budgets, as compared to the long-term budget in order to provide validation for
all the decisions related to investment in aircraft as well as other facilities. Besides this, Virgo
Atlantic Cargo has recently expanded the delivery network over 50 airports across thee
Europe with the Jan De Rijk in the April 2015. This recent agreement allowed the airline for
operates with wide variety of destinations to their freight customers into UK from the
Caribbean, North America, Middle East, Asia Pacific, and Africa. Due to this agreement, it is
able to offer destinations across the Scandinavia, and continent as the majority of Cargo come
at London on board Virgin flights for making the connection in Europe. Besides the huge
competition in cargo business, the virgin Atlantic Cargo put emphasis on the well-established
routes in terms of high quality carrier where the good cargo potential is presents along with
providing positive opportunities to customers. In comparison to this, Virgin Cargo has also
pulled around 15 years services in Mumbai this January due to the stagnant revenue
forecasting. In this way, Virgin Atlantic Cargo has found the significance on building
positive and healthy relationship with their customers. It also prefers to promote and
maximize the revenue and growth by making the most from using their expensive aircraft
assets.
Route A : Johannesburg to London Heathrow
Route B: London Heathrow to Lagos
For US
Route C: Boston to the London Heathrow
Route D: Miami to London Heathrow
For the Asia Pacific region
Route E: Shanghai to London Heathrow
Route F: Delhi to the London Heathrow
Virgin Atlantic Cargo network has increased their business line to more than 350
destinations all over the world through the trucking partners and global interline. The Air
Cargo also needs both short term as well as long-term forecasts. Short-term forecast is needed
to drive the budgets, as compared to the long-term budget in order to provide validation for
all the decisions related to investment in aircraft as well as other facilities. Besides this, Virgo
Atlantic Cargo has recently expanded the delivery network over 50 airports across thee
Europe with the Jan De Rijk in the April 2015. This recent agreement allowed the airline for
operates with wide variety of destinations to their freight customers into UK from the
Caribbean, North America, Middle East, Asia Pacific, and Africa. Due to this agreement, it is
able to offer destinations across the Scandinavia, and continent as the majority of Cargo come
at London on board Virgin flights for making the connection in Europe. Besides the huge
competition in cargo business, the virgin Atlantic Cargo put emphasis on the well-established
routes in terms of high quality carrier where the good cargo potential is presents along with
providing positive opportunities to customers. In comparison to this, Virgin Cargo has also
pulled around 15 years services in Mumbai this January due to the stagnant revenue
forecasting. In this way, Virgin Atlantic Cargo has found the significance on building
positive and healthy relationship with their customers. It also prefers to promote and
maximize the revenue and growth by making the most from using their expensive aircraft
assets.
VIRGIN ATLANTIC CARGO 9
Type and number of aircraft
Virgin Atlantic Cargo use the five types of aircraft, Boeing 747-400, Boeing 787-9,
Boeing 777-300, Airbus A330-300, and Airbus A340-600 with total fleet of around 43
aircrafts and 16 more on order. Table give below also provides the overview of total number
of various types of the aircraft named Virgin Atlantic Cargo, its history as well as the one
who will join their fleet in the near future (Morrell, 2011).
Fleet type Description/ History Nu
mber in
fleet
In-
service
On
Order
Boeing
787-9
In October month of 2014,
the advanced 787s aircraft has
combined the Virgin fleet that
indicates the huge leap in order to
improve the carbon footprint of
Virgin Atlantic Cargo’s in
particular. (Virgin Atlantic Cargo)
5 5 16
Airbus
A340-600
The A340-600 entered into
service with Virgin Atlantic Cargo
as they launch customer in the July
month of 2002. This series is
around 75.3 meters by the
lengthiest civil aircraft that is
produced. (Virgin Atlantic Cargo)
11 11 -
Airbus
A330-300
The A330-300 joined the
Virgin Atlantic Cargo fleet in the
April month of 2011. This aircraft
is the major member of the twin
engine A330 family. It has the
wingspan of 60.3 meters, with the
overall length of 63.69 meters.
(Virgin Atlantic Cargo)
10 10 -
Boeing
747-400
The B747-400 aircraft
consumes around 13% less fuel as
12 12 -
Type and number of aircraft
Virgin Atlantic Cargo use the five types of aircraft, Boeing 747-400, Boeing 787-9,
Boeing 777-300, Airbus A330-300, and Airbus A340-600 with total fleet of around 43
aircrafts and 16 more on order. Table give below also provides the overview of total number
of various types of the aircraft named Virgin Atlantic Cargo, its history as well as the one
who will join their fleet in the near future (Morrell, 2011).
Fleet type Description/ History Nu
mber in
fleet
In-
service
On
Order
Boeing
787-9
In October month of 2014,
the advanced 787s aircraft has
combined the Virgin fleet that
indicates the huge leap in order to
improve the carbon footprint of
Virgin Atlantic Cargo’s in
particular. (Virgin Atlantic Cargo)
5 5 16
Airbus
A340-600
The A340-600 entered into
service with Virgin Atlantic Cargo
as they launch customer in the July
month of 2002. This series is
around 75.3 meters by the
lengthiest civil aircraft that is
produced. (Virgin Atlantic Cargo)
11 11 -
Airbus
A330-300
The A330-300 joined the
Virgin Atlantic Cargo fleet in the
April month of 2011. This aircraft
is the major member of the twin
engine A330 family. It has the
wingspan of 60.3 meters, with the
overall length of 63.69 meters.
(Virgin Atlantic Cargo)
10 10 -
Boeing
747-400
The B747-400 aircraft
consumes around 13% less fuel as
12 12 -
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VIRGIN ATLANTIC CARGO 10
compare to the previous version
and engine noise is also half than
that of the original 747's in the
1970's. (Virgin Atlantic Cargo)
Boeing
777-300
The B777-300 aircraft are
fuel-efficient. Besides this, it also
has less emission, lighter structure
as well as more efficient engine
(Virgin Atlantic Cargo)
5 5 -
Table 1.1
In this way, from the above table, it has observed that Virgin Atlantic Cargo is
moving to the Boeing 747-400 freighter to the Boeing 787-9 Freighter. It is because Boeing
of 787-9 is much more effective as well as more fuel-efficient as compare to the Boeing 747-
400 (Eva, 2015). As per the Boeing of 2010 and 2014, the freight section of Boeing 787-9
also have the capacity to hold the three lower pallet as well as four more major deck pallets as
compared to the Boeing 747-400 freighter. By ensuring this, it believes in long run improving
the sustainability of Virgin Atlantic Cargo (Axlegeeks, N.D.).
Operation
In their operation, it follows the customer centric approach by making the World’s
most valued cargo organization internationally. It designed the wide range of product by
offering the reliable operation service, customer simplistic and providing flexible working
environment. It aims to work with large number of customers globally as well as offering
them solution for their dissimilar needs. It also believes in offering the unique service with
the availability of 24 hours. Therefore, there is no doubt that customer always get attracted to
the unique operational approach by the Virgin Atlantic Cargo.
Operational Philosophies
The operational philosophy of the Virgin Atlantic comprise of three values. These
values include the consistent delivery, security, and safety. The award winning service also
mainly put emphasis on providing the customer cargo full and proper treatment by ensuring
the proper and smooth functioning of journey and customers will not suffer any kind of
headache in their process. It also believes in bringing the regular improvement in the security
Table 1.1
compare to the previous version
and engine noise is also half than
that of the original 747's in the
1970's. (Virgin Atlantic Cargo)
Boeing
777-300
The B777-300 aircraft are
fuel-efficient. Besides this, it also
has less emission, lighter structure
as well as more efficient engine
(Virgin Atlantic Cargo)
5 5 -
Table 1.1
In this way, from the above table, it has observed that Virgin Atlantic Cargo is
moving to the Boeing 747-400 freighter to the Boeing 787-9 Freighter. It is because Boeing
of 787-9 is much more effective as well as more fuel-efficient as compare to the Boeing 747-
400 (Eva, 2015). As per the Boeing of 2010 and 2014, the freight section of Boeing 787-9
also have the capacity to hold the three lower pallet as well as four more major deck pallets as
compared to the Boeing 747-400 freighter. By ensuring this, it believes in long run improving
the sustainability of Virgin Atlantic Cargo (Axlegeeks, N.D.).
Operation
In their operation, it follows the customer centric approach by making the World’s
most valued cargo organization internationally. It designed the wide range of product by
offering the reliable operation service, customer simplistic and providing flexible working
environment. It aims to work with large number of customers globally as well as offering
them solution for their dissimilar needs. It also believes in offering the unique service with
the availability of 24 hours. Therefore, there is no doubt that customer always get attracted to
the unique operational approach by the Virgin Atlantic Cargo.
Operational Philosophies
The operational philosophy of the Virgin Atlantic comprise of three values. These
values include the consistent delivery, security, and safety. The award winning service also
mainly put emphasis on providing the customer cargo full and proper treatment by ensuring
the proper and smooth functioning of journey and customers will not suffer any kind of
headache in their process. It also believes in bringing the regular improvement in the security
Table 1.1
VIRGIN ATLANTIC CARGO 11
and safety and it does not satisfy only with the regulatory standard. Besides this, it also
encourages all the staff towards increasing the awareness for reporting any security and
safety issues. Virgin Atlantic also put emphasis on the importance of stability and consistency
at the time of providing cargo delivery. It helps it in building the reputation and confidence
with all its customers. It also becomes the driving force behind the brand of Virgin Atlantic.
Market served
Virgin Atlantic Cargo runs whole day by handling export as well as import of the
several types of cargo from the general cargo to the dangerous good. It is due to the partition
between the Virgin Atlantic Airways. Among all the carriers, It primarily Handle the belly
hold traffic of cargo through its several airport based in London.
Type of Cargo
Virgin Cargo is well known for their customer centric approach. Moreover, it designs
its services as per the needs of customers, and offers realistic and special services by adding
some type of flexibility. Several types of Cargo that Atlantic delivers is given below-
General Cargo
General cargo- It is best for the cargo that does not come under any type of special
cargo category. Due to their wide range of partner airline, and network, Virgin
Atlantic Cargo, Virgin Australia can also go forward with any of the destination of
VAC.
Must ride- Virgin Atlantic Cargo guaranteed the service for perishable shipment and
urgent shipment. It has decided if it will fail in completing on time, it will provide the
next service free of cost.
VEX- In this Cargo, it do the shipment for all the urgent shipment from one airport to
another airport.
Special Cargo
Pets- a safe, reliable service and flexible to all the dogs, cats and pets that tends to
travel on the VAC network.
and safety and it does not satisfy only with the regulatory standard. Besides this, it also
encourages all the staff towards increasing the awareness for reporting any security and
safety issues. Virgin Atlantic also put emphasis on the importance of stability and consistency
at the time of providing cargo delivery. It helps it in building the reputation and confidence
with all its customers. It also becomes the driving force behind the brand of Virgin Atlantic.
Market served
Virgin Atlantic Cargo runs whole day by handling export as well as import of the
several types of cargo from the general cargo to the dangerous good. It is due to the partition
between the Virgin Atlantic Airways. Among all the carriers, It primarily Handle the belly
hold traffic of cargo through its several airport based in London.
Type of Cargo
Virgin Cargo is well known for their customer centric approach. Moreover, it designs
its services as per the needs of customers, and offers realistic and special services by adding
some type of flexibility. Several types of Cargo that Atlantic delivers is given below-
General Cargo
General cargo- It is best for the cargo that does not come under any type of special
cargo category. Due to their wide range of partner airline, and network, Virgin
Atlantic Cargo, Virgin Australia can also go forward with any of the destination of
VAC.
Must ride- Virgin Atlantic Cargo guaranteed the service for perishable shipment and
urgent shipment. It has decided if it will fail in completing on time, it will provide the
next service free of cost.
VEX- In this Cargo, it do the shipment for all the urgent shipment from one airport to
another airport.
Special Cargo
Pets- a safe, reliable service and flexible to all the dogs, cats and pets that tends to
travel on the VAC network.
VIRGIN ATLANTIC CARGO 12
Problem/Limitation
Due to the regular slowdown in China, economic insecurity has been increased in Europe
and the high prices of fuel presenting the challenge for the entire aircraft sector in the past
years. Virgin Cargo has also achieved the revenue of around £221 for the year 2014 that was
1.8 per cent down from the previous year. Lloyd also expressed that the revenue imitated
another year of the resilience in the changing air Cargo globally yield the decline for the third
year. Even though, Virgin Cargo is far better than many of its record performance and many
of the peers in last few years. In these years, it was having 74 per cent of the load factor that
was low from 76 per cent in the year 2013. Virgin Atlantic increases their capacity very
cleverly and able to exploit the fluctuation pace in several markets. Later, in the year 2015, in
the month of march, Virgin Australia and Virgin Atlantic established the plan for deepening
its air cargo network and operation (Lloyd, 2015).
Business relationship
When Virgin Cargo has started its operation, its reputation and customer base has
grown rapidly. It has happened mainly due to its honest commitment toward the excellent
services and better customer centric approach. It also allows gaining the trust of current as
well as new customers. This dedication of Cargo to efficiency and quality allows it in getting
the respect of many big companies, and helps increasing the revenue from the various
business arrangements. It is true that Virgin Atlantic Cargo has excellent and efficient
working relationship with various airlines ; Delta, Virgin Australia, and the Cargo handling
agents such as Dnata, Number One, Cargo Point, Bedfont Road, and Stanwell.
Partners, Pacts, Alliances
Virgin Cargo has benefitted with the excessive deal from their partnership with the
Virgin Australia at the time of financial year. In the same year 2009, it sold the entire Virgin
Australia international long haul capacity, which connects the Brisbane and Sydney with the
Los Angeles. It was generating healthy huge amount of finance from the cargo without any
need of in house operation as well as trust in order to deliver a great level of customer service
(Lloyd). In the year 2014, within Australia, the amount of cargo has increased only 0% and
gradually grew up throughout the end of the year. The role of Virgin Cargo was to maintain a
strong connection with all their customers and ensure valuable transparency capacity all over
the world and in the rest of the US west coast. With the help of such partnership, Australia
has become the significant market for Virgin Atlantic Cargo emotionally and financially. It
Problem/Limitation
Due to the regular slowdown in China, economic insecurity has been increased in Europe
and the high prices of fuel presenting the challenge for the entire aircraft sector in the past
years. Virgin Cargo has also achieved the revenue of around £221 for the year 2014 that was
1.8 per cent down from the previous year. Lloyd also expressed that the revenue imitated
another year of the resilience in the changing air Cargo globally yield the decline for the third
year. Even though, Virgin Cargo is far better than many of its record performance and many
of the peers in last few years. In these years, it was having 74 per cent of the load factor that
was low from 76 per cent in the year 2013. Virgin Atlantic increases their capacity very
cleverly and able to exploit the fluctuation pace in several markets. Later, in the year 2015, in
the month of march, Virgin Australia and Virgin Atlantic established the plan for deepening
its air cargo network and operation (Lloyd, 2015).
Business relationship
When Virgin Cargo has started its operation, its reputation and customer base has
grown rapidly. It has happened mainly due to its honest commitment toward the excellent
services and better customer centric approach. It also allows gaining the trust of current as
well as new customers. This dedication of Cargo to efficiency and quality allows it in getting
the respect of many big companies, and helps increasing the revenue from the various
business arrangements. It is true that Virgin Atlantic Cargo has excellent and efficient
working relationship with various airlines ; Delta, Virgin Australia, and the Cargo handling
agents such as Dnata, Number One, Cargo Point, Bedfont Road, and Stanwell.
Partners, Pacts, Alliances
Virgin Cargo has benefitted with the excessive deal from their partnership with the
Virgin Australia at the time of financial year. In the same year 2009, it sold the entire Virgin
Australia international long haul capacity, which connects the Brisbane and Sydney with the
Los Angeles. It was generating healthy huge amount of finance from the cargo without any
need of in house operation as well as trust in order to deliver a great level of customer service
(Lloyd). In the year 2014, within Australia, the amount of cargo has increased only 0% and
gradually grew up throughout the end of the year. The role of Virgin Cargo was to maintain a
strong connection with all their customers and ensure valuable transparency capacity all over
the world and in the rest of the US west coast. With the help of such partnership, Australia
has become the significant market for Virgin Atlantic Cargo emotionally and financially. It
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VIRGIN ATLANTIC CARGO 13
was all because of the positive and strong relationship with their customers. Neil Vernon has
also currently appointed as the vice president of sales for managing the growing market of
Australia (Air Cargo News).
Virgin Atlantic Cargo has also appointed the Air Cargo global as its service agent and
generate sales agent in Dubai. Therefore, Virgin Cargo transfers around 5000 tonnes every
year on its day-to-day flight from Dubai to London Heathrow. Each cargo also offers 20 tons
of the capacity of cargo, and it is possible because of the advantage of the Dubai market. It
observes the significance of connection point in the network of Cargo and has attain success
for attracting the customers in Dubai for using the network of Virgin Atlantic Cargo as well
as the truck connection, an fast air through London for reaching the destination in US and
mainland Europe, Miami, New York and Ohio. After this, the UAE economy has grown by
four to five per cent in the year 2014. It also has the partnership with Swiss port international
and Dnata. Both of these companies are significant for the presence of Virgin Atlantic Cargo
in UK. It includes the contract involve the cargo Atlantic services for the major airport in UK
within which the Virgin Cargo serves its services. The Virgin Atlantic Cargo carries
2,00,000 tonnes of the total cargo, every year from the airports.
With the help of these contracts, it not only benefits itself but also benefit their
partners, for meeting the obligations of contract. In addition, it made certain investments for
catering to the future expansion of the Virgin Atlantic Cargo. Dnata has also built a vast
fright centre at the airport of London Heathrow. It was done for supporting the growth of
Cargo traffic from Virgin Atlantic Cargo. About 79,000 square foot west point and 1,40,000
square foot point in recent time handle the 21 wide body flight regularly for its Virgin
Atlantic Cargo with about 60,000 square foot facility. The Dnata city would also encompass
the handler that is existing around 60,000 square foot self-contained transport yard. In this
way, it consists the fleet of 85 modern technological trucks with having GPS tracking that
helps in providing the coverage 24 by 7.
It is true that strong and resilient business partnership is not possible without the
element of trust or confidence that all partners of business have in Virgin Atlantic. It is
brought by the strong ability of Virgin Atlantic Cargo employees in order to provide the
reliable and flexible services.
was all because of the positive and strong relationship with their customers. Neil Vernon has
also currently appointed as the vice president of sales for managing the growing market of
Australia (Air Cargo News).
Virgin Atlantic Cargo has also appointed the Air Cargo global as its service agent and
generate sales agent in Dubai. Therefore, Virgin Cargo transfers around 5000 tonnes every
year on its day-to-day flight from Dubai to London Heathrow. Each cargo also offers 20 tons
of the capacity of cargo, and it is possible because of the advantage of the Dubai market. It
observes the significance of connection point in the network of Cargo and has attain success
for attracting the customers in Dubai for using the network of Virgin Atlantic Cargo as well
as the truck connection, an fast air through London for reaching the destination in US and
mainland Europe, Miami, New York and Ohio. After this, the UAE economy has grown by
four to five per cent in the year 2014. It also has the partnership with Swiss port international
and Dnata. Both of these companies are significant for the presence of Virgin Atlantic Cargo
in UK. It includes the contract involve the cargo Atlantic services for the major airport in UK
within which the Virgin Cargo serves its services. The Virgin Atlantic Cargo carries
2,00,000 tonnes of the total cargo, every year from the airports.
With the help of these contracts, it not only benefits itself but also benefit their
partners, for meeting the obligations of contract. In addition, it made certain investments for
catering to the future expansion of the Virgin Atlantic Cargo. Dnata has also built a vast
fright centre at the airport of London Heathrow. It was done for supporting the growth of
Cargo traffic from Virgin Atlantic Cargo. About 79,000 square foot west point and 1,40,000
square foot point in recent time handle the 21 wide body flight regularly for its Virgin
Atlantic Cargo with about 60,000 square foot facility. The Dnata city would also encompass
the handler that is existing around 60,000 square foot self-contained transport yard. In this
way, it consists the fleet of 85 modern technological trucks with having GPS tracking that
helps in providing the coverage 24 by 7.
It is true that strong and resilient business partnership is not possible without the
element of trust or confidence that all partners of business have in Virgin Atlantic. It is
brought by the strong ability of Virgin Atlantic Cargo employees in order to provide the
reliable and flexible services.
VIRGIN ATLANTIC CARGO 14
Code sharing and Joint Venture
Due to the availability of code sharing mode within the airline, virgin cargo not only
limit itself with its major route, offers the several services to its customers. Services are
provided through a wide range of route together with many code sharing partner airlines, Air
China by offering the services to Beijing from Air New Zealand, London Heathrow. It also
offer the services to several destinations in New Zealand from all the Nippon Airways,
London Heathrow, offers the services to destinations in Delta Airline, Japan, Canada, US, Jet
airways, Caribbean; by offering the services mainly to Singapore Airlines, Mumbai,
Singapore, and on to the South African Airways, Australian destinations. Delta Cargo and
Virgin Atlantic Cargo has revealed the purpose of their joint venture, with the aim to
integrate the system of two carriers, leading to the increment of the capacity to maximise the
potential of Cargo on either airline aircraft and leveraging the flexibility. In this way, the
partnership led to the creation of high confidence in both, the Delta Cargo and Virgin Atlantic
(The Loadstar).
Virgin Cargo has also expressed their interest to join with the sky team, alliance prior
but as of now not made any essential moves towards it. Besides this, many of the code
sharing benefits presented but this partnership does not offer the similar connectivity offered
by the competitors as the real alliance. Virgin could use this method in order to avoid the
alliance membership fees. It has also veiled the possibility of starting its self-alliance, which
will be composed of the several airlines sin the Virgin Cargo group.
Future Plans
To remain updated and ensure high growth in the relevant in the fast changing industry
of air Cargo, Virgin Atlantic Cargo look for the innovative ways to achieve best in its
industry and earn high amount of revenue. Operation along the transatlantic route will also
prove to be the core strategy for the company. Through this, it will become able to secure
larger market share for its route.
In addition, it will also continue to improve the operating efficiency during the
difficulties. By introducing the new set of Cargo nets in lighter weight and durability, it will
be able to reduce the burning of fuel on most of its flights. By the introduction of ethical
standards related to the shipping of air cargo, Virgin Cargo is also leading the industry by
setting the example of ethical and moral framework used in the industry (Virgin). By this
initiative, it represents industry to the analyst and the world that it is always forward thinking
Code sharing and Joint Venture
Due to the availability of code sharing mode within the airline, virgin cargo not only
limit itself with its major route, offers the several services to its customers. Services are
provided through a wide range of route together with many code sharing partner airlines, Air
China by offering the services to Beijing from Air New Zealand, London Heathrow. It also
offer the services to several destinations in New Zealand from all the Nippon Airways,
London Heathrow, offers the services to destinations in Delta Airline, Japan, Canada, US, Jet
airways, Caribbean; by offering the services mainly to Singapore Airlines, Mumbai,
Singapore, and on to the South African Airways, Australian destinations. Delta Cargo and
Virgin Atlantic Cargo has revealed the purpose of their joint venture, with the aim to
integrate the system of two carriers, leading to the increment of the capacity to maximise the
potential of Cargo on either airline aircraft and leveraging the flexibility. In this way, the
partnership led to the creation of high confidence in both, the Delta Cargo and Virgin Atlantic
(The Loadstar).
Virgin Cargo has also expressed their interest to join with the sky team, alliance prior
but as of now not made any essential moves towards it. Besides this, many of the code
sharing benefits presented but this partnership does not offer the similar connectivity offered
by the competitors as the real alliance. Virgin could use this method in order to avoid the
alliance membership fees. It has also veiled the possibility of starting its self-alliance, which
will be composed of the several airlines sin the Virgin Cargo group.
Future Plans
To remain updated and ensure high growth in the relevant in the fast changing industry
of air Cargo, Virgin Atlantic Cargo look for the innovative ways to achieve best in its
industry and earn high amount of revenue. Operation along the transatlantic route will also
prove to be the core strategy for the company. Through this, it will become able to secure
larger market share for its route.
In addition, it will also continue to improve the operating efficiency during the
difficulties. By introducing the new set of Cargo nets in lighter weight and durability, it will
be able to reduce the burning of fuel on most of its flights. By the introduction of ethical
standards related to the shipping of air cargo, Virgin Cargo is also leading the industry by
setting the example of ethical and moral framework used in the industry (Virgin). By this
initiative, it represents industry to the analyst and the world that it is always forward thinking
VIRGIN ATLANTIC CARGO 15
industry. This image of the company brings the confidence in the leadership part of the virgin
Atlantic (Virgin Atlantic nets an environmental goal, 2015). Besides this, it also attracts
several businesses toward them.
For its airways, it also has the plan to acquire the fleet of new Boeing that is 787-9 in the
upcoming years. It will ensure improved efficiency in their operations for competing other
companies or competitors in effective manner.
Summary
The air traffic has started rising gradually due to the issue of economic crisis during
the year 2009, Air Cargo demand has become still over the years. For explaining these
aspects, a major impact on the air cargo carrier has found due to the rise of the Middle
Eastern carrier. This has been done by using the extra belly holding capacity, which can be
offered at the low prices. This has forced the cargo carriers for reducing the margins for
overcoming all the threats and barriers affecting their operations.
Cargo freighter will remain significant in the coming future, as it is true that not all
routes will be replaced with the capacity of belly hold. Once the passenger as well as their
baggage has been loaded, the capacity of payload will be reduced for the cargo. In such a
situation, freighter aircraft will dominate the shipment of cargo.
In addition, it will also emerge and grow in context to the business of carrying the
specialized cargo. Goods like oversized cargo, live animal and dangerous materials, will also
rely on the cargo freight. It is true that virgin Cargo already has the fleet of Boeing 747 with a
long range. All the aircraft has the capacity of long distance that has found as the major
necessity by the transpacific routes. Moreover, Virgin Cargo is also looking that path which
can decrease the cost of operations. For instance- it has ordered around 1800 lightweight nets
that are made with Dyneema. The main advantage behind this program is to increase the
efficiency of the aircraft fuel. This is the fact that a major emphasis has been laid by Virgin
Cargo on the aspect of providing better services to the customers around the world.
To conclude the discussion, it can be stated that despite the negative impact on the
working of the company, Virgin Atlantic Cargo always put several efforts to ensure high
customer satisfaction. It obtains a new competitive advantage for surviving in the competition
and grows amongst all the industries. This further ensures that the effective management of
industry. This image of the company brings the confidence in the leadership part of the virgin
Atlantic (Virgin Atlantic nets an environmental goal, 2015). Besides this, it also attracts
several businesses toward them.
For its airways, it also has the plan to acquire the fleet of new Boeing that is 787-9 in the
upcoming years. It will ensure improved efficiency in their operations for competing other
companies or competitors in effective manner.
Summary
The air traffic has started rising gradually due to the issue of economic crisis during
the year 2009, Air Cargo demand has become still over the years. For explaining these
aspects, a major impact on the air cargo carrier has found due to the rise of the Middle
Eastern carrier. This has been done by using the extra belly holding capacity, which can be
offered at the low prices. This has forced the cargo carriers for reducing the margins for
overcoming all the threats and barriers affecting their operations.
Cargo freighter will remain significant in the coming future, as it is true that not all
routes will be replaced with the capacity of belly hold. Once the passenger as well as their
baggage has been loaded, the capacity of payload will be reduced for the cargo. In such a
situation, freighter aircraft will dominate the shipment of cargo.
In addition, it will also emerge and grow in context to the business of carrying the
specialized cargo. Goods like oversized cargo, live animal and dangerous materials, will also
rely on the cargo freight. It is true that virgin Cargo already has the fleet of Boeing 747 with a
long range. All the aircraft has the capacity of long distance that has found as the major
necessity by the transpacific routes. Moreover, Virgin Cargo is also looking that path which
can decrease the cost of operations. For instance- it has ordered around 1800 lightweight nets
that are made with Dyneema. The main advantage behind this program is to increase the
efficiency of the aircraft fuel. This is the fact that a major emphasis has been laid by Virgin
Cargo on the aspect of providing better services to the customers around the world.
To conclude the discussion, it can be stated that despite the negative impact on the
working of the company, Virgin Atlantic Cargo always put several efforts to ensure high
customer satisfaction. It obtains a new competitive advantage for surviving in the competition
and grows amongst all the industries. This further ensures that the effective management of
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VIRGIN ATLANTIC CARGO 16
the Virgin will bring positive outcomes and will facilitate in acquiring competitive edge in
the future years.
the Virgin will bring positive outcomes and will facilitate in acquiring competitive edge in
the future years.
VIRGIN ATLANTIC CARGO 17
REFERENCES
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air-cargo-in-dubai.html
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resilience.html
3. Air Cargo World: Virgin Atlantic Cargo sees record-high revenues (August 7, 2012).
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high-revenues/
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Passenger Plane vs Boeing BBJ 787-9 Turbofan-powered Wide-body Commercial
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REFERENCES
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Retrieved from,
http://www.aircargonews.net/news/single-view/news/virgin-appoints-globe-
air-cargo-in-dubai.html
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resilience.html
3. Air Cargo World: Virgin Atlantic Cargo sees record-high revenues (August 7, 2012).
Retrieved from, http://aircargoworld.com/virgin-atlantic-cargo-sees-record-
high-revenues/
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a-year-when-everyone-can-make-money-209028
5. Axlegeeks. (N.D.). Boeing 747-400 Turbofan-powered Wide-body Commercial
Passenger Plane vs Boeing BBJ 787-9 Turbofan-powered Wide-body Commercial
Passenger Plane. Retrieved December 5, 2015, from
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6. Boeing. (2010). 747-400/-400ER Freighters. Retrieved December 5, 2015, from
http://www.boeing.com/resources/boeingdotcom/company/about_bca/startup/pdf/
freighters/747-400f.pdf
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December 5, 2015, from
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8. Branson, R. (2014). The Virgin Way. London, United Kingdom: Virgin Books.
9. Burns, J. (September 11, 2015). Virgin Atlantic Cargo Starts Using Lightweight
Cargo Nets. Retrieved from,
http://www.aircargoweek.com/virgin-atlantic-cargo-starts-using-lightweight-
cargo-nets/
10. dnata city at Heathrow - Building an Air Cargo Future for the UK (Jan 30 2013).
VIRGIN ATLANTIC CARGO 18
Retrieved from, http://www.dnata.co.uk/e-news/2013/jan/30/dnata-city-at-
heathrow-building-an-air-cargo-future-for-the-uk
11. Effects Of Airlines Alliances And Mergers On Fair Competition
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Deliveries To Over 50 Airports In Europe With New Jan De Rijk Contract. Retrieved
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deliveries-to-over-50-airports-in-europe-with-new-jan-de-rijk-contract
13. Five-Year Forecast Shows Improved Outlook For Air Cargo (October 22, 2014).
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14. Global Trade Daily: Virgin Atlantic Sees Record Chicago Cargo
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record-chicago-cargo-growth-adds-detroit-to-route
15. Greene, J. (2010). Design Is How It Works: How The Smartest Companies Turn
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Into Icons. Westminster, United Kingdom: Penguin Portfolio Hardcover.
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heathrow-building-an-air-cargo-future-for-the-uk
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wp039_en.pdf
12. Eva, International Media LTD (2015, April 16). Virgin Atlantic Cargo Offers
Deliveries To Over 50 Airports In Europe With New Jan De Rijk Contract. Retrieved
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deliveries-to-over-50-airports-in-europe-with-new-jan-de-rijk-contract
13. Five-Year Forecast Shows Improved Outlook For Air Cargo (October 22, 2014).
Retrieved from,
https://www.iata.org/pressroom/pr/pages/2014-10-22-01.aspx
14. Global Trade Daily: Virgin Atlantic Sees Record Chicago Cargo
Growth; Adds Detroit To Route (August 13, 2015). Retrieved from,
http://www.globaltrademag.com/global-trade-daily/news/virgin-atlantic-sees-
record-chicago-cargo-growth-adds-detroit-to-route
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Products
Into Icons. Westminster, United Kingdom: Penguin Portfolio Hardcover.
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http://www.hopper.com/articles/860/a-guide-to-the-three-major-airline-
alliances-star-alliance-oneworld-and-sky-team
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20. Home Page – Our Services. (N.D.). Retrieved from,
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Evaluation Of Forecasting Models For Air Cargo. International Journal Of
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27. Lennane, A. (2015). Virgin Atlantic’s Call For An Ethical Air Cargo Standard Falls
On Deaf Ears. Retrieved from,
http://theloadstar.co.uk/virgin-atlantics-call-ethical-air-cargo-standard-falls-
deaf-ears/
28. May, A., Anslow, A., Wu, Y., Ojiako, U., Chipulu, M., & Marshall, A. (2014).
Prioritisation Of Performance Indicators In Air Cargo Demand Management:
An Insight From Industry. Supply Chain Management: An International
Journal, 19(1), 108-113. Doi:10.1108/Scm-07-2013-0230
29. Morrell, Peter S. (2012). Moving Boxes By Air: The Economics Of International Air
Cargo. Farnham, Surrey, Gbr: Ashgate Publishing Ltd, 2011.
20. Home Page – Our Services. (N.D.). Retrieved from,
http://cargo.virgin-atlantic.com/gb/en/our-services.html
21. Home Page – Our Services – Our Equipment. (N.D.). Retrieved December 5, 2015,
from http://cargo.virgin-atlantic.com/gb/en/our-services/our-equipment.html
22. Home Page – Our Services – Our Products. (N.D.). Retrieved from,
http://cargo.virgin-atlantic.com/gb/en/our-services/our-products.html
23. Interview: Service pays off for Virgin Atlantic and deepening ties to
Virgin Australia are expected to improve results (March 04, 2015). Retrieved
from, http://www.impactpub.com.au/aircargo/AirCargo-archive-stories-issue-
235/interview-service-pays-off-for-virgin-atlantic-and-deepening-ties-to-
virgin-australia-are-expected-to-improve-results.html
24. Jiang, S. (March 10, 2015). Trade flows skew air cargo growth. Retrieved from,
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skew-air-cargo-growth
25. kk Freight: Freight forwarding - Virgin Atlantic Cargo. Retrived from,
http://www.kkfreight.com/virgin-atlantic-cargo.html
26. Klindokmai, S., Neech, P., Wu, Y., Ojiako, U., Chipulu, M., & Marshall, A. (2014).
Evaluation Of Forecasting Models For Air Cargo. International Journal Of
Logistics Management, 25(3), 635. Retrieved From,
http://search.proquest.com.ezproxy.libproxy.db.erau.edu/docview/1633960744
?accountid=27203
27. Lennane, A. (2015). Virgin Atlantic’s Call For An Ethical Air Cargo Standard Falls
On Deaf Ears. Retrieved from,
http://theloadstar.co.uk/virgin-atlantics-call-ethical-air-cargo-standard-falls-
deaf-ears/
28. May, A., Anslow, A., Wu, Y., Ojiako, U., Chipulu, M., & Marshall, A. (2014).
Prioritisation Of Performance Indicators In Air Cargo Demand Management:
An Insight From Industry. Supply Chain Management: An International
Journal, 19(1), 108-113. Doi:10.1108/Scm-07-2013-0230
29. Morrell, Peter S. (2012). Moving Boxes By Air: The Economics Of International Air
Cargo. Farnham, Surrey, Gbr: Ashgate Publishing Ltd, 2011.
VIRGIN ATLANTIC CARGO 20
30. May, A. Anslow, A. Ojiako, U. Wu, Y. Marshall, A. Chipulu, M. (2014). ‘Optimisation
of
key performance measures in air cargo demand management’, Journal of
Transport and Supply Chain Management 8(1), Art. #125, 9 pages. Retrieved
from, http://dx.doi.org/10.4102/jtscm.v8i1.125
31. Pearce, B., & Doernhoefer, G. (November 28, 2011). The Economic Benefits
Generated
By Alliances And Joint Ventures. Retrieved from,
https://www.iata.org/whatwedo/documents/economics/economics of
jvs_jan2012l.pdf
32. Revolutionary Worker #1136. Ruined By Enron (January 27, 2002). Retrieved from,
http://revcom.us/a/v23/1130-39/1136/enron_workers.htm
33. The Loadfactor: Delta and Virgin eye full IT integration for 2016
as cargo JV strengthens (September 07, 2015). Retrieved
from,http://theloadstar.co.uk/delta-boosts-its-footprint-in-europe-as-ties-
strengthen-with-air-cargo-partner-virgin/
34. Todd, A.F. (2011) Richard Branson And Virgin, Inc. Journal Of The International
Academy For Case Studies. 17(5), 109-121.
35. Virgin Atlantic Directors. Retrieved from,
http://www.virgin-atlantic.com/us/en/footer/media-centre/virgin-atlantic-
directors.html
36. Virgin Atlantic Swot. Little Red's Demise Further Re-Emphasises The
Atlantic And The Delta Ownership (2014, October 7). Retrieved from,
http://centreforaviation.com/analysis/virgin-atlantic-swot-little-reds-demise-
further-re-emphasises-the-atlantic-and-the-delta-ownership-190184
37. Virgin Atlantic nets an environmental goal (2015, September 11).. Retrieved from,
http://www.aircargonews.net/news/single-view/news/virgin-atlantic-nets-an-
environmental-goal.html
38. Virgin Atlantic, Delta Air Lines Sign Cargo Handling Agreement for New York-JFK
and
Boston. Retrieved from, http://theloadstar.co.uk/wp-content/uploads/NEWS-
RELEASE-Virgin-Atlantic-Delta-Air-Lines-sign-cargo-handling-agreement-
for-New-York-JFK-and-Boston.pdf
30. May, A. Anslow, A. Ojiako, U. Wu, Y. Marshall, A. Chipulu, M. (2014). ‘Optimisation
of
key performance measures in air cargo demand management’, Journal of
Transport and Supply Chain Management 8(1), Art. #125, 9 pages. Retrieved
from, http://dx.doi.org/10.4102/jtscm.v8i1.125
31. Pearce, B., & Doernhoefer, G. (November 28, 2011). The Economic Benefits
Generated
By Alliances And Joint Ventures. Retrieved from,
https://www.iata.org/whatwedo/documents/economics/economics of
jvs_jan2012l.pdf
32. Revolutionary Worker #1136. Ruined By Enron (January 27, 2002). Retrieved from,
http://revcom.us/a/v23/1130-39/1136/enron_workers.htm
33. The Loadfactor: Delta and Virgin eye full IT integration for 2016
as cargo JV strengthens (September 07, 2015). Retrieved
from,http://theloadstar.co.uk/delta-boosts-its-footprint-in-europe-as-ties-
strengthen-with-air-cargo-partner-virgin/
34. Todd, A.F. (2011) Richard Branson And Virgin, Inc. Journal Of The International
Academy For Case Studies. 17(5), 109-121.
35. Virgin Atlantic Directors. Retrieved from,
http://www.virgin-atlantic.com/us/en/footer/media-centre/virgin-atlantic-
directors.html
36. Virgin Atlantic Swot. Little Red's Demise Further Re-Emphasises The
Atlantic And The Delta Ownership (2014, October 7). Retrieved from,
http://centreforaviation.com/analysis/virgin-atlantic-swot-little-reds-demise-
further-re-emphasises-the-atlantic-and-the-delta-ownership-190184
37. Virgin Atlantic nets an environmental goal (2015, September 11).. Retrieved from,
http://www.aircargonews.net/news/single-view/news/virgin-atlantic-nets-an-
environmental-goal.html
38. Virgin Atlantic, Delta Air Lines Sign Cargo Handling Agreement for New York-JFK
and
Boston. Retrieved from, http://theloadstar.co.uk/wp-content/uploads/NEWS-
RELEASE-Virgin-Atlantic-Delta-Air-Lines-sign-cargo-handling-agreement-
for-New-York-JFK-and-Boston.pdf
VIRGIN ATLANTIC CARGO 21
39. Virgin Atlantic Cargo posts record year. (September 25, 2012). Retrieved from,
http://www.payloadasia.com/2012/09/virgin-atlantic-cargo-posts-record-year/
40. Virgin Atlantic Cargo achieves record load factors. (Jul 01, 2014). Retrieved from,
http://www.handling-network.com/virgin-atlantic-cargo-achieves-record-load-factors/
39. Virgin Atlantic Cargo posts record year. (September 25, 2012). Retrieved from,
http://www.payloadasia.com/2012/09/virgin-atlantic-cargo-posts-record-year/
40. Virgin Atlantic Cargo achieves record load factors. (Jul 01, 2014). Retrieved from,
http://www.handling-network.com/virgin-atlantic-cargo-achieves-record-load-factors/
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VIRGIN ATLANTIC CARGO 22
Type of aircraft Boeing 747-400
Destination of Cargo Sweden, Singapore to Goteborg, and
Singapore
Breaking down of cost Basic: SGD 21,696
Security fee: SGD 1,344
Fuel Surcharge: SGD 1,344
Misc. Fee: SGD 655
Total cost= SGD 33,295
Insured value/ Declared SGD 54,500
Weight Dimensional weight: 570 Kg
Content weight: 6,400 Kg
Billable Weight: 6400 Kg
Size of the Pallet Dimension: 121 ×101 ×14 (CM)/
Pallets
Type of commodity Apparel
Date of shipment Shipping Date: 11/19/2015
Expected date of delivery: 11/23/2015
Table 2.1
Type of aircraft Airbus A330-300
Destination of Cargo Turkey, Singapore to Ankara, and
Singapore
Cost breakdown Basic: SGD 8,640
Security Fee: SGD 315
Fuel Surcharge: SGD 2,250
Misc. Fee: SGD 165
Total Cost: SGD 11,370
Insured Value/ Declared SGD 18,000
Wight Dimensional Weight: 128 Kg
Content Weight: 1500 Kg
Billable Wight: 1500 Kg
Type of commodity Hobbies and Toys
Size of the pallet Quantity: 10
Dimensions: 80 ×60×16.3 (CM)/
Pallets
Date of shipment/ expected date of
delivery
Shipping date: 11/29/2015
Expected date of delivery: 12/07/2015
Table 2.2
Type of aircraft Airbus A340-600
Destination of Cargo Uganda, Singapore to Kampala,
Singapore
Cost breakdown Basic: SGD 42,288
Type of aircraft Boeing 747-400
Destination of Cargo Sweden, Singapore to Goteborg, and
Singapore
Breaking down of cost Basic: SGD 21,696
Security fee: SGD 1,344
Fuel Surcharge: SGD 1,344
Misc. Fee: SGD 655
Total cost= SGD 33,295
Insured value/ Declared SGD 54,500
Weight Dimensional weight: 570 Kg
Content weight: 6,400 Kg
Billable Weight: 6400 Kg
Size of the Pallet Dimension: 121 ×101 ×14 (CM)/
Pallets
Type of commodity Apparel
Date of shipment Shipping Date: 11/19/2015
Expected date of delivery: 11/23/2015
Table 2.1
Type of aircraft Airbus A330-300
Destination of Cargo Turkey, Singapore to Ankara, and
Singapore
Cost breakdown Basic: SGD 8,640
Security Fee: SGD 315
Fuel Surcharge: SGD 2,250
Misc. Fee: SGD 165
Total Cost: SGD 11,370
Insured Value/ Declared SGD 18,000
Wight Dimensional Weight: 128 Kg
Content Weight: 1500 Kg
Billable Wight: 1500 Kg
Type of commodity Hobbies and Toys
Size of the pallet Quantity: 10
Dimensions: 80 ×60×16.3 (CM)/
Pallets
Date of shipment/ expected date of
delivery
Shipping date: 11/29/2015
Expected date of delivery: 12/07/2015
Table 2.2
Type of aircraft Airbus A340-600
Destination of Cargo Uganda, Singapore to Kampala,
Singapore
Cost breakdown Basic: SGD 42,288
VIRGIN ATLANTIC CARGO 23
Security Fee: SGD: 1,008
Fuel Surcharge: SGD 7200
Misc. Fee: SGD 495
Total cost: SGD 50,991
Insured/ declared value SGD 45,000
Weight Dimensional weight: 457 Kg
Content Weight: 4800 Kg
Billable weight: 4800 Kg
Type of commodity Hardware
Total size of pallet Quantity- 15
Dimension: 151×121×10
Date of shipment or expected date of
delivery
Shipping date: 11/19/2015
Expected date of delivery: 11/25/2015
Table 2.3
Security Fee: SGD: 1,008
Fuel Surcharge: SGD 7200
Misc. Fee: SGD 495
Total cost: SGD 50,991
Insured/ declared value SGD 45,000
Weight Dimensional weight: 457 Kg
Content Weight: 4800 Kg
Billable weight: 4800 Kg
Type of commodity Hardware
Total size of pallet Quantity- 15
Dimension: 151×121×10
Date of shipment or expected date of
delivery
Shipping date: 11/19/2015
Expected date of delivery: 11/25/2015
Table 2.3
VIRGIN ATLANTIC CARGO 24
Aircraft Type Airbus A330-300
Cargo Destination Singapore, Singapore to London, UK
Breakdown of cost Basic: SGD 30,680
Fuel Surcharge: SGD 7,800
Security Fee: SGD 1,092
Misc. Fee: SGD 535
Total Cost: SGD 40,107
Declared/Insured Value SGD 38,000
Weight Content weight: 5,200 kg
Dimensional Weight: 900 kg
Billable Weight: 5,200 kg
Commodity Type Timepieces
Size Of Pallet Quantity: 25
Dimensions: 120 x 120 x 15.4 (CM) / Pallets
Shipment Date / Expected Delivery Date Ship Date: 11/29/2015
Expected Delivery Date: 12/04/2015
Table 2.4
Appendix C (Perishable Cargo)
Perishable Cargo is said to be products that deteriorates when it does not continue within the
existing humidity and temperature condition. As per the IATA, when shipping with the
goods, it is essential that the shipper deliver the highest allowed instructions related to storage
and transport time limit. It also ensures that all those good reach to the intended destination
safely, and with no damage. Temperature controlled containers take into existence, assist
Aircraft Type Airbus A330-300
Cargo Destination Singapore, Singapore to London, UK
Breakdown of cost Basic: SGD 30,680
Fuel Surcharge: SGD 7,800
Security Fee: SGD 1,092
Misc. Fee: SGD 535
Total Cost: SGD 40,107
Declared/Insured Value SGD 38,000
Weight Content weight: 5,200 kg
Dimensional Weight: 900 kg
Billable Weight: 5,200 kg
Commodity Type Timepieces
Size Of Pallet Quantity: 25
Dimensions: 120 x 120 x 15.4 (CM) / Pallets
Shipment Date / Expected Delivery Date Ship Date: 11/29/2015
Expected Delivery Date: 12/04/2015
Table 2.4
Appendix C (Perishable Cargo)
Perishable Cargo is said to be products that deteriorates when it does not continue within the
existing humidity and temperature condition. As per the IATA, when shipping with the
goods, it is essential that the shipper deliver the highest allowed instructions related to storage
and transport time limit. It also ensures that all those good reach to the intended destination
safely, and with no damage. Temperature controlled containers take into existence, assist
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VIRGIN ATLANTIC CARGO 25
protecting all the perishable shipment from the temperature by ensuring the freshness of the
shipment and protecting the aircraft from all the damages caused due to the shipping
containers and leaking boxes.
Labelling
This way up label if the Cargo requires proper required temperature.
Perishable label
Information related to temperature that requires the specific temperature
Keep cool by refrigerating and storing at the temperature of 2° to 8 ° C
Keep Cold and keeping frozen by storing at -15 ° to -20° C
Package without the label can also be store at the ambient temperature as per the IATA
standard.
Pet Handling
Virgin Atlantic Cargo uses the advance B747-400 freighter in order to handle the live
animals. It also uses extra equipment related to air conditioning that tends to regulate the
temperature in the compartment of Cargo between the 40 C to the 280 C. It has been found
that IATA Live Animals Regulation is the global standard for guiding the safety at the time
of transporting animal in cost effective manner.
It includes the:
Proper airline as well as fulfillment of all the government requirement at the time of
transporting the love animals
Information on all the essential requirement at the time of transporting the live animals
Guidelines for the non-air transport of plants and live animals.
Dangerous goods
Extra diligence and care is involved at the time of storing and handling the dangerous goods.
Most of the HAZMAT packed in the unique boxes and shipped as per the local laws of the
state.
protecting all the perishable shipment from the temperature by ensuring the freshness of the
shipment and protecting the aircraft from all the damages caused due to the shipping
containers and leaking boxes.
Labelling
This way up label if the Cargo requires proper required temperature.
Perishable label
Information related to temperature that requires the specific temperature
Keep cool by refrigerating and storing at the temperature of 2° to 8 ° C
Keep Cold and keeping frozen by storing at -15 ° to -20° C
Package without the label can also be store at the ambient temperature as per the IATA
standard.
Pet Handling
Virgin Atlantic Cargo uses the advance B747-400 freighter in order to handle the live
animals. It also uses extra equipment related to air conditioning that tends to regulate the
temperature in the compartment of Cargo between the 40 C to the 280 C. It has been found
that IATA Live Animals Regulation is the global standard for guiding the safety at the time
of transporting animal in cost effective manner.
It includes the:
Proper airline as well as fulfillment of all the government requirement at the time of
transporting the love animals
Information on all the essential requirement at the time of transporting the live animals
Guidelines for the non-air transport of plants and live animals.
Dangerous goods
Extra diligence and care is involved at the time of storing and handling the dangerous goods.
Most of the HAZMAT packed in the unique boxes and shipped as per the local laws of the
state.
VIRGIN ATLANTIC CARGO 26
Regulations
Various guidelines govern the transportation of the hazardous material. These are
found in UN and ISO standards, which are advisory and does have any regulatory power. For
instance-
ISO 16104 2003 is made for the transport packaging for the two dangerous goods. Model
regulations, Geneva and New York: United Nations, 2007.
Aircraft consideration
Aircraft is the fragile machine and if it incurs loss of the containment of the ingredient
in flight, it can pose safety risk and other threat to the flight crew. Several substances can also
outright banned being transported by the air. Mercury is one example.
Regulations
Various guidelines govern the transportation of the hazardous material. These are
found in UN and ISO standards, which are advisory and does have any regulatory power. For
instance-
ISO 16104 2003 is made for the transport packaging for the two dangerous goods. Model
regulations, Geneva and New York: United Nations, 2007.
Aircraft consideration
Aircraft is the fragile machine and if it incurs loss of the containment of the ingredient
in flight, it can pose safety risk and other threat to the flight crew. Several substances can also
outright banned being transported by the air. Mercury is one example.
1 out of 27
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