Question 1
(a) Examine the competitive threat posed by a potential new provider of air cargo handling services at Changi International Airport. Which competitor would you suggest would likely pose the biggest threat to the incumbent operator at Changi airport? Give reasons for your recommendation.
(20 marks)
(b) The Singapore Ministry of Transport is considering awarding a license for another cargo handler at Changi International Airport. With reference to a ground handler of your choice that provides cargo handling at Changi International Airport, analyze the nature of operations and services provided by the ground handler in relation to air cargo handling at Changi airport.
(10 marks)
(c) The episode of COVID-19 has caused a surge in demand for hand sanitizers, surgical masks and toilet paper in Singapore. A local supermarket has asked for your company which deals in air shipments for a quotation on the charges for the following items shown in table 1. Assuming a charge $1.30/kg, recommend the price you will quote to the local supermarket to secure this business deal. Table 1: Information on volume and weight for respective cargo (please refer to the attachment)
(10 marks)
Question 2
(a) Changi International Airport handles more than 2 million tonnes of cargo on an annual basis. As a major logistics hub in Southeast Asia, the airport handles many air cargo operators. Based on the flight information and statistics available for Changi International Airport, indicate the top five air cargo operators at the airport in terms of market share.
(20 marks)
(b) With reference to the air cargo operators identified, apply the classification of cargo airlines to determine which type of air cargo operator the airline belongs.
(10 marks)
(c) With reference to the air cargo operators identified, can you interpret the strategies employed by each operator to compete in the air freight business?
(10 marks)
Useful information is available from:(please use below links for question 2 only) Air cargo statistics: https://data.gov.sg/dataset?q=Air+CargoFlight information:
http://www.changiairport.com/en/flights/arrivals.html#?status=arrival&date=today&terminal=all