Current domestic and international air cargo operations are studied and the characteristics of 1990 air cargo demand are postulated from surveys conducted at airports and with shippers, consignees, and freight forwarders as well as air, land, and ocean carriers. Simulation and route optimization programs are exercised to evaluate advanced aircraft concepts. The results show that proposed changes in the infrastructure and improved cargo loading efficiencies are as important enhancing the prospects of air cargo growth as is the advent of advanced freighter aircraft. Potential reductions in aircraft direct operating costs are estimated and related to future total revenue. Service and cost elasticities are established and utilized to estimate future potential tariff reductions that may be realized through direct and indirect operating cost reductions and economies of scale
