A TIGER WITH AIR CARGO BY THE TAIL

This article describes the operations of the Flying Tiger line, an air freight company, following the deregulation of the air cargo business. Wholesalers, such as the Flying Tiger line, felt the effects of regulation. The carriers could not move into new routes or change their rates without the CAB's approval. The CAB generally kept rates unrealistically low; Flying Tiger made a profit on U.S. operations in only four of the last ten years. The regulators also make it impossible for carriers to build truly effective marketing networks. The new law allows "certified" carriers to serve any domestic markets they want to, and to charge whatever rates they decide upon, so long as the board does not consider them predatory. One way the Flying Tiger Line hopes to speed expansion and maximize the benefit of deregulation is to tie in the domestic service with more cities abroad. In addition, the company would like to enter the small-package business that is now dominated by the Federal Express, and the long-distance truck business. Eventually, the goal of the Flying Tiger Line is to operate its own warehouse and take over the entire task of inventory control for its customers. The profitable development of this system depends on whether Tiger is permitted to use trucks, because the movement of goods in this kind of service would often be over such short distance that air shipment would make no sense. Combining airplanes, trucks, and wharehousing services in one system would assure Flying Tiger the capability to take advantage of new transport technology and to cope with changing demands of shippers.

  • Corporate Authors:

    Time Incorporated

    541 North Fairbanks Court
    Chicago, IL  USA  60611
  • Authors:
    • Loving Jr, R
  • Publication Date: 1978-6-19

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00178253
  • Record Type: Publication
  • Source Agency: Fortune
  • Files: TRIS
  • Created Date: Jul 19 1978 12:00AM