Introduction

Hong Kong International Airport and the Leipzig/Halle Airports are important ports in the import and export business in the world due to the various forms of cargo handled at the airports. Air cargo management process controls the amount, form and durability of cargo transported using the airports. Airlines location is determined by several factors mainly proximity to airport support materials which includes: space for development, logistics etc. Air cargo hubbing is a strategy whereby airline transport merchandises are brought to a certain hub airport in one aircraft, to be transported at the hub airdrome onto a further aircraft in order for the goods to be transported to their final destination with little or no storage of the merchandise involved at the hub airport (Shaw, 1993). On another phase, the goods brought to the hub may be stared as inventories in warehouses to be distributed to their markets upon demand. 

The Business Model of Hong Kong International Airport and Leipzig/Halle Airport

The Hong Kong International Airport has a centrality air cargo business model while the Leipzig/Halle Airports uses the intermediacy air cargo business model. Centrality is used to describe the importance of a certain city as a basis of central place for the distribution of goods and services to the adjacent areas whereas the intermediacy is used to describe a certain location which is well situated between crucial origins and destinations (Berry, Carnall& Spiller, 1996).

Factors promoting the success of the Hong Kong International Airport and Leipzig/Halle Airports

1.1 Airline network

This is the availability of a far-reaching airline grid run by a national transporter which mainly includes the passenger services but also a devoted freighter system which is very a crucial requirement for an air cargo hub airport (Butler & Keller 2007). Success of the hub airport is therefore highly dependent on the routes or the spokes run by the airlines to and from the hub airport (Janić, 2000). Leipzig/Halle airport serves the European and a majority of international destinations while the Hong Kong airport serves most of the Chinese mainland.

1.2 Airport and the air cargo facilities and the infrastructure

An air cargo hub airport requires a highly efficient interconnectivity between the various transport modes and international cohesive logistics services which are highly important attributes for its success (Butler & Keller 2007). A favorable environment where the foreign enterprises are allowed to operate without any restriction so as to encourage the foreign direct investment also plays a great role in the selection of the airport hub location. In order for an airline to enjoy and run the international flights to other airport hubs and other key cities all over the world it requires a large runway which is an essential necessity for a hub airport (Kleymann&Seristö, 2004).

1.3 The utilization of e-business systems

The major utilization of the e-business systems is often considered as a critical empowering tool for the logistics industry. Therefore, there is a great requirement for wide spread logistics and trade-related databanks, and for the hub airport to serve as a core of information networks in order to facilitate trade within the region. A look at the Hong Kong airport shows the application of Electronic Data Interchange which ensures pre-arrival clearance of cargo. 

The information technology leader must be able to identify areas that Hong Kong International Airport and Leipzig/Halle Airport can save money on by using technology. The target of airline is always the maximization of profits. With the growing technology, new methods of doing things come up every day. It is the role of the information systems leader to identify the new trends that can be used in managing the airports to save costs. The information leader is in a position to advise the airport management on the implementation methods of the system and its capacity to perform.

The information systems leader is able to identify areas of the business that need differentiation features. By differentiation, it means the airlines ability to find methods of interacting with customers via the internet. The live interaction with clients gives the airlines a better understanding of the customers and their unique needs. An information leader must ensure that the airline website has enough information. The information should be updated regularly to ensure that clients stick to the airline’s website to seek information on different issues. Information system leaders are able to assist the company in innovation of services. This is a necessity in the business world to stay ahead of the competition. The innovation may be in the form of how the airlines conduct their business or how it carries out its marketing strategies.

1.4 Airport costs

The costs of an airport mainly comprises of the landing charges of the aircraft, taxes and the parking charges. Devoted air cargo airlines always tend to have lower operating costs while compared to the combination of the airlines mainly because they have lower crewing costs, terminal costs, information technology costs, among others, on a per flight basis. The airport charges and the landing fees can represent a relatively greater proportion of the overall operation carriers for all the cargo airlines when compared to the operation of the combination of the airlines (Kleymann&Seristö, 2004).

1.5 The airport marketing strategies

In order to run and promote an air cargo hub airport, a rigorous competitive and marketing strategy becomes the key to its success. More so, airports need to boost their attractiveness for the freight operators by focusing on a specific area or specializing on the market segment. This way they are able to know which kind of the passenger to target and be able to maintain a competitive edge over their rivals (Butler & Keller 2007). The airports are able to maintain this by working with other business partners and undertaking initiatives to improve quality of services offered.

1.6 The geographical location

The airport location determines the attractiveness and the capacity of the passengers and the cargo that it handles. The location also attracts a lot of the foreign direct investors who largely contributes to the overall growth of the airport hub. The Leipzig/Halle Airports International Airport has a centrality air cargo business model where its located within the trans-European motorway network, while the Hong Kong uses the intermediacy air cargo business model where cargo depots are set up at strategic locations at the Pearl river delta (Berry, Carnall& Spiller, 1996).

1.7 The government policies and regulations

The government policies and regulations comprising the national customs service’s policies should offer convenience and the fulfillment for the operators of the facilities and the services which are offered for the hub airport (Berry, Carnall& Spiller, 1996). The inefficiencies in customs operations play a great role in the selection of an air cargo hub airport operation. It also greatly determines the reasons as to why several airline operators choose to expand in some areas as opposed to others. The government and the airport restrictions on the airline operations such as the hours of the nights that the aircraft can take land and take off in most cases can radically sway the appeal of the hub airport for air cargo operations. The airports which have noise quotas or restrictions are not majorly considered by the for the air cargo hub operations (Button &Stough, 2000).

1.8 Intermodal transportation services

 All cargo movements are usually intermodal in nature, therefore, air cargo are required to move to and from airports through ground centered transport modes which usually comprises of the trucks. Therefore the infrastructure must be in existence so as to ensure that there is efficient cargo movement via the intermodal terminals of the hub airport. Speed is one of the sole advantages of the air cargo transportation when compared to the surface based transportation.  The intermodal accessibility is dire for the hub airport mainly because the airport is supposed to ensure that there is adequate space for the delivery of facilities which are supposed to be used for the purposes of loading and unloading the trucks within the locality of the airlines cargo terminal (Kleymann&Seristö, 2004). The Leipzig/Halle airport for instance has 20,000 square meters of cargo handling space and 171 parking spaces for trucks this ensures sufficient space for packing before unloading.

1.9 Overall air cargo delivery times

The provision of the quality service is majorly influenced by the delivery times via the hub airport. Majorly the length the delivery times of the air cargo is majorly definitely associated with both the number of the airlines being served at the hub airport and the related level of the flight frequencies. Leipzig/Halle airport has a 24-hour operating license for cargo aircrafts enabling users to move their goods efficiently without delays. The air cargo delivery times are positively associated with the level of the competition in the programing of the air cargo carrying airlines which operates in a certain area (Button &Stough, 2000).

1.2 The international air freight forwarders

The international air freight forwarders mainly make use of the mix of the combination of the airlines which is a belly hold and the devoted freighter air cargo space. Therefore the airlines which normally deal with the freighter aircraft usually source their freight industry from an essential group of the international air freighter forwarders as opposed to sourcing of from multiple individual shippers. Furthermore, international air freight forwarders usually do not prefer to section their flow of air cargo.

2.0 The Hong Kong International Airport and Leipzig/Halle Airports provides the following air cargo-related and logistics infrastructure in order to facilitate in the operation of the airports.

2.1 The provision of the intermodal transportation services

The Hong Kong International airport has promoted intermodal transport through various ways: in 2003 it opened an Airport-Mainland Coach station which serves as a sheltered bay for the passengers and their goods waiting checking. On the other hand Leipzig/Halle airport has an ideal rail-road-air connection system where it’s easily accessible via roads and railway. All of the cargo movements in the airports are usually intermodal in nature. Therefore, air cargo must provide ground centered transport mode which usually comprises of the trucks to move the cargo to and from airports. The infrastructure must in existence so as to ensure that there is sufficient parking space for the trucks to ensure efficient cargo movement via the intermodal terminals of the hub airport. Speed is one of the sole advantages of the air cargo transportation when compared to the surface based transportation.  The intermodal accessibility is dire for the hub airport mainly because the airport are supposed to ensure that there is adequate space for the delivery of facilities which are supposed to be used for the purposes of loading and unloading the trucks within the locality of the airlines cargo terminal (help with data analysis for dissertation).

2.2 The business model

The Hong Kong International Airport and the Leipzig/Halle Airports have applied successful business models that have ensured their success.  The Hong Kong International Airport enjoys a central location in the European region where its customers originate from while the Leipzig/Halle Airports uses the intermediacy air cargo business model where it’s located at an intermediary location between areas in the China mainland and the outside world (Dempsey & Gesell, 1997).

2.3 Airline network

Hong Kong international airport serves several airlines including: Dragonair, Hong Kong Airlines, Hong Kong Express Airways and Air Hong Kong which is a cargo carrier line among others. This shows that the port is well connected to a variety of lines. The Leipzig/Halle Airport is also covered by a variety of lines some of which include European Air Transport, Aerologic and RuslanSalis.  

References

Dempsey, Paul (1999). Airport Planning and Development Handbook: A Global Survey. McGraw-Hill Professional. p. 106. ISBN 978-0-07-134316-9.

"Building Hong Kong's Airport". Extreme Engineering. Season 1. Episode 7. 14 May 2003.

"Hong Kong International Airport – Interactive Map". Hongkongairport.com. Retrieved 7 May 2011.

"HKIA Opens New Passenger Concourse to Enhance Service". Hongkongairport.com. 15 December 2009. Retrieved 7 May 2011.