Air Cargo: Carriers, Cost, and Competition

Abstract

This dissertation examines the cost structure of U.S. air carriers participating in the freight transport sector. From 1991 to 2021, events such as the 9/11 terrorist attacks, the global financial crisis, and the COVID-19 pandemic have coincided with various events directly impacting the air freight transport industry. During this 30-year period, air transport has developed and implemented global tracking systems, engaged in labor negotiations, and weathered supply-chain shocks all of which warrant comprehensive evaluation of the U.S. air freight transport industry from the cost perspective. Chapter 1 of this thesis explores existence of natural monopoly and economies of scope among U.S. air carriers which transport both passengers and freight. Chapter 2 examines allocative efficiency and Chapter 3 measures productivity growth among U.S. air carriers which transport freight only.