Track: Transportation and Traffic

Abstract

It is crucial for countries located in mountainous areas where the surface transportation system is extremely poor to have effective air freight capabilities. As a case study, the objectives of this research are to identify the principal factors required to enhance air cargo operations at Paro International Airport in Bhutan, and to prioritize the importance of each factor to determine solutions for the effective development of the airport. The study utilizes the fuzzy analytic hierarchy process (AHP) as its research methodology. According to the analysis of the data obtained via the AHP survey through air cargo management experts in Bhutan, cargo handling infrastructure is identified as the most important area needing improvement, followed by airport charges and cargo security service. This study finds three main conclusions. First, the airport authority should devise a financing plan, and this plan should utilize airline participation if the airport authority does not have a sufficient budget for airport infrastructure development. Second, the airport should look to utilize a small number of employees who can perform multiple duties. For instance, security functions and customs functions for cargo operations could be carried out via combined procedures by multi-functional staff members, which would reduce operational costs and cut back on airport charges related to cargo operations. Third, the airport should increase its supply of flight services by lobbying for economic deregulation in the aviation industry. This could, for example, pave the way for foreign airlines to start using the airport.