Strategic Identification of Domestic Air Express Markets: Assessing Alabama's Market Potential

Abstract

The air express submarket of the air cargo industry plays a vital role in the movement of "time sensitive," high value, small-sized parcels. Air express is growing at a fast pace as shippers become more aware of the value of time utility. To meet the ever increasing demand for air express services many companies are being formed and the critical examination of markets is essential in planning for business growth. This paper deccribes a methodology by which the demand for air express services can be estimated. The air express demand model uses published secondary data which allows simple applications to estimate order of magnitude market potentials on a city, county, or state basis. The model is used to evaluate the air express market potential for the state of Alabama, segmented on a 2-digit SIC code market basis.