Main Article Content
air cargo, time series modelling, regional air freight flows, error correction model, international trade
During the past 30 years, air cargo has evolved from a by-product to a potential profit centre for airlines. However, the success in the air cargo business depends on a number of factors. The evolution of world merchandise trade and particularly, the trade in high-value goods, is one of the determinants of the demand for air freight services. This paper provides an insight into the relationship between air cargo and merchandise trade on an aggregated as well as on a disaggregated level. Special attention is paid to the air cargo flows between major regions. By combining several levels of the air cargo market, this paper explains part of the economic rationality behind the air cargo market structure. The results of this paper will lead to a better knowledge of the air cargo sector, not only by academics but also by industry actors.