Cathay Pacific Cargo Goes Live with JDA Cargo Revenue Management Solution

  Cathay Pacific Cargo Goes Live with JDA Cargo Revenue Management Solution

    Leading cargo carrier partners with JDA to improve allotment planning

Business Wire

SCOTTSDALE, Ariz. -- July 15, 2013

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 Optimizer, JDA^®
Reporting and JDA^® Enterprise Architecture in 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

“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.”

Tweet this: Cathay Pacific Cargo goes live with @JDASoftware Cargo Rev Mgmt
solution to improve allotment planning processes.

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 or email

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“JDA” is a trademark or registered trademark of JDA Software Group, Inc. Any
trade, product or service name referenced in this document using the name
“JDA” is a trademark and/or property of JDA Software Group, Inc.


JDA Public Relations Contact:
Stephen Phillips, Public Relations Manager
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