The impact of e-commerce on the logistics function of an airline - Executive Brief

Seminar paper from the year 1998 in the subject Business economics - Trade and Distribution, grade: 1, The University of Sydney, language: English, abstract: TThe impact of electronic commerce on logistics functions is considerable. It will foster the necessity of coordinating particularly marketing and logistics functions. The use of electronic commerce will lead to significant reductions in cost and increased revenues

(sections 6 to 10). The most important being: significant reduction in distribution cost (section 9).

Incremental revenues through reduced inventory of seats (section 8)

The costs of implementing electronic commerce are significant, however savings in airline operations costs of up to 70% have been reported, depending on the share of electronic tickets. As long as this share remains low, short-term revenues cannot be expected (section 11).