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© IPC, 2008 1 IPC Initiative Future of Mail by Air; why we started
© IPC, 20082 first transcontinental air mail flights in the US began on September 8, 1920
© IPC, 20083 Mail carried by air has come a long way since Passenger Flag Carriers have been traditional partners of Posts for a long time
© IPC, 20084 Do we have a sustainable and reliable air network for mail carriage ? Airline industry crisis and competition hit flag carriers Airlines bankruptcies -- SABENA, Swissair others in bad shape Since 2001 the airline industry had 9/11 crisis SARS crisis fuel price crisis and Growing market share of “Low Cost Carriers”
© IPC, 20085 Do we have a sustainable and reliable air network for mail carriage ? Rationalisation of passenger driven network: Smaller aircrafts fast turnarounds less frequency Increased cancellations more ground handling failures more luggage in relation to capacity of aircraft Higher yield on cargo so less capacity for mail less interest in mail
© IPC, 20086 Trends on capacity for mail carriage
© IPC, 20087 What are the expectations on in the future available capacity for mail Demand: Cargo demand is growing by 6% increase annually Mail letter volumes stable (decrease traditional mail, increase direct mail, increase packages) parcel volumes increase strong, >10% annually Luggage more per flight
© IPC, 20088 What are the expectations on in the future available capacity for mail Supply: On the one hand increase number of flights (> aircraft purchases) On the other hand traditional network is shrinking due to mergers and rationalization Regional Airports and Low Cost Carriers not for Mail Belly space for Cargo + Mail is less per flight “Mail Airports” congested
© IPC, 20089 What are the expectations on in the future available capacity for mail Key issue: Mail competes with Cargo Are Posts key account customers? Yield Mail versus yield Cargo?
© IPC, 200810 Demands on Sustainable and Reliable Network
© IPC, 200811 Visibility – Supply Chain Management Capacity is not the only aspect when it comes to a sustainable and reliable network Growing customer demand, means Post have to show the customer the supply chain is managed including transport Therefore Visibility of Mail in the mail pipeline, including Transport is a must 11
© IPC, 200812 Who wants to know where the mail is? Customer for planning Synchronising media for advertising campaigns Cash flow estimated for bill payment Post operations To ensure targets are met To manage container/receptacle inventory Post Finance for payments to other Posts/Carriers Carriers to ensure contracted quality & payments Ground Handlers to meet targets Regulators to assess licence compliance Customs for inspection after arrival
© IPC, 200813 Item scan - barcode Scanning receptacle labels RF-ID postal tag in test letter How do we know where the mail is?
© IPC, 200814 Initial views Future of Mail by Air Posts & Airlines
© IPC, 200815 Future of Mail by Air Initiative; Initial divergent views Carrier view Mail should be treated like cargo in carrier systems Space should be booked well in advance Accounting should work on electronic data Posts should change their systems
© IPC, 200816 Future of Mail by Air Initiative; Initial divergent views Postal operator view Receptacle-level tracking essential Only some hours notice possible Accounting should work on electronic data Carriers should change their systems 16
© IPC, 200817 Future of Mail by Air Initiative; On mature reconsideration Paper-free transport & electronic accounting are joint objectives Carriers will perform receptacle level tracking Mail can be managed as easily as cargo by carriers Posts will use ULDs for mail as much as possible Posts will book space based on day-by-day historical data adjusted for special peaks Both Carriers & Posts will change their systems Pilot trials needed between Carrier/Post pairs to assess how it works
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