Cathay Pacific Cargo Goes Live with JDA Cargo Revenue Management Solution

Jul 16, 2013

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--JDA® Software Group, Inc., The Supply Chain Company®, today announced that Cathay Pacific Cargo, the world’s leading cargo airline, is using JDA solutions to help optimize profitability through improved capacity forecasting accuracy and optimized allotment planning activities across its network. Cathay Pacific Cargo went live with JDA® Cargo Revenue OptimizerJDA® Reporting and JDA® Enterprise Architecturein the second quarter of 2013.

Cathay Pacific Cargo is an international airline registered and based in Hong Kong, offering scheduled cargo and passenger services to over 120 destinations in 36 countries and territories. From its origins as a small regional freight operator established in 1946, Cathay Pacific Cargo has grown to become one of the world’s leading international air cargo carriers. Cathay Pacific Cargo’s business of USD $3.2B currently accounts for around 30 percent of the Cathay Pacific Airline’s annual revenues, and has helped to build Hong Kong into the world’s busiest air cargo hub.

JDA solutions support the airline’s new allotment planning process designed to find the best mix of business for the network, considering both profitability and historic allotment performance. Given that most of its revenues are managed through allotments, Cathay Pacific Cargo needed a robust solution to support this process through accurate capacity forecasts, optimal deck configurations and overbooking levels. Combined with allotment rates and historic allotment utilization behavior, the system generates optimal allotment recommendations for the business to meet the goals of the process.

The go-live was achieved after an extensive implementation effort that involved the development of advanced mathematical optimization techniques to create a cutting-edge revenue management solution that solves the air cargo allotment planning problem. Cathay Pacific Cargo and JDA together rigorously tested the solution to ensure that it met all business requirements before going live. The next phase of the project involves the implementation of the short-term revenue optimization solution by the end of the year.

“As one of the world’s largest cargo carriers with a hub at a strategic location, it is vital to Cathay Pacific Cargo that our allotment planning processes are advanced and reliable to support our business,” said James Woodrow, general manager, cargo sales and marketing, Cathay Pacific Cargo. “We needed a solution that would meet our current and future requirements, and JDA’s revenue management solution provides us with that capability. The solution is yielding us substantial benefits through improved capacity forecasting and the adoption of contribution based allotment optimization process.”

“We are delighted that Cathay Pacific Cargo has gone live with JDA’s medium-term revenue management solution, which is designed to deliver air cargo carriers like them significant benefits. This successful first phase has resulted in a state-of-the-art allotment planning approach that will give Cathay Pacific Cargo distinctive advantage in the marketplace,” said Anand Medepalli, vice president, industry strategy, JDA Software. “We now look forward to our work with them on the short-term revenue management solution, which will enable optimization in a more dynamic manner.”

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About JDA Software Group, Inc.

JDA® Software Group, Inc., The Supply Chain Company®, offers the broadest portfolio of supply chain, retail merchandising, store operations and all-channel commerce solutions to help companies manage the flow of goods from raw materials to finished products and into the hands of consumers. JDA’s deep industry expertise and innovative cloud platform help companies optimize inventory, labor and customer service levels. As a result, JDA solutions have become the standard for the world’s leading retailers, manufacturers and distributors. To learn more, visit jda.com or email info@jda.com.

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