Cargo Revenue Management Of China Southern Airline

As the fulfillment of large hub like Beijing, Shanghai and Guangzhou, domestic airlines all use the Hub and Spokes route network. The advantage of this network is it can connect more cities without increasing flight. We have to do revenue management work, and the result directly link to the benefit and fame of the airline.Revenue management is a marketing management system to gain the maximum revenue, which use computer technology and probability mathematical statistics, operational research, forecast and decision-making technology, classical microeconomics such subject to achieve the target of sale the right product to the right customer at the right price and right time. For air cargo industry, revenue management is a management ideology to achieve the maximum revenue, which use forecast and optimizing such method to sale the cargo space of the flight at the right price.China Southern airlines will become more internationally with the sound network, therefore we have to take effort to use the revenue management theory to increase the network revenue. This article firstly introduces cargo transfer service of China Southern Airlines, analyzing the operation process and present situation, then pointing out the problem exist. According to the theory of revenue management, China Southern Airlines has already implement demand forecasting and class space control. This article uses linear programming methods to establish air cargo network revenue model, optimizing the space allocation to maximize earnings. Then applying this model to actual situation, analyzes and compares effect of this model to improve China southern air cargo network revenue management level.