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Which of the following statements concerning factors affecting air freight rates is true? The allocation of costs in combination aircraft is easier than all-cargo aircraft. In cargo aircraft, utilization of available space and available lifting capacity must be optimized. The cargo rate structure contemplates higher rates for larger shipments. Competition is a minor factor in determining air freight rates because so many other factors such as volume of traffic, directionality and the value of the service taxes procedures.
Expert Answer
In cargo aircraft, it is important to optimize space and lifting capacity so as to maximize the revenue. If the large volume shipment is to be sent but has lesser weight, than, if only weight is the factor for cost, it will reduce the revenue. So, both, weight and volume are important.
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