The air cargo industry consists of full service air cargo airlines or dedicated fleets, regional operators, and passenger airlines that have air cargo operations (air cargo carriers). Some air cargo carriers provide aircraft, crew, maintenance, and insurance services (ACMI) for other airlines. Under an ACMI contract, customers receive dedicated aircraft capacity in exchange for a guaranteed minimum level of operation. Special services of air cargo carriers include collection or delivery of shipments at customers' facilities; loading and off‐loading; preparing cargo for transport using pallets, nets, and straps; and cargo insurance. Air cargo carriers' revenue is derived primarily from the carriage of cargo and mail and includes, among other things, revenue related to service options such as priority and express delivery preferences and fuel surcharges. FASB ASC 605‐20‐25‐13 recognizes that a variety of revenue and expense recognition methods are currently being used by freight service entities, such as air cargo carriers.


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    Title :

    Air Cargo Operations


    Published in:

    Publication date :

    2016-10-28


    Size :

    8 pages




    Type of media :

    Article/Chapter (Book)


    Type of material :

    Electronic Resource


    Language :

    English




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