Feasibility study on a newly entrant freight airline by a corporate-model simulation

with its risk assessment based on the Monte Carlo approach

Abstract

This paper examines a business feasibility of a newly entrant freight airline, through a risk assessment study based on the Monte Carlo approach. The paper concludes that the reduction of cost by 30-50% compared to regular airlines with a vertically integrated pricing strategy of forwarder and airlines would especially contribute to its commercial viability.