## 4 Case Study Results
### The Core Elements of AeroLogic's Business Model
#### 4.4.2 Location of the AeroLogic Operational Base  
In the global air cargo industry both the combination airlines and dedicated all-cargo airlines, as well as the integrators, operate from their home airport hub; for example, Cargolux Airline's primary hub is located at Luxembourg Findel Airport, Cathay Pacific Airways' primary hub is at Hong Kong International Airport, and Etihad Airways' principal hub is Abu Dhabi International Airport. AeroLogic has followed a similar strategy to these other carriers.  
Eastern Germany's Leipzig/Halle Airport was selected as AeroLogic's operational base [137]. In 2004, DHL decided to move its European intercontinental hub to Leipzig-Halle Airport, replacing its previous hub located at Brussels Zaventem Airport [138]. Deutsche Post invested around $300 million in constructing a new distribution hub for its DHL Express division at the Leipzig/Halle airport [139]. This includes an aircraft hangar, apron area, fuelling station and administrative offices. The Leipzig hub is strategically located to provide north-south and east-west services to Europe, and also connects both the established and emerging markets in Central and Eastern Europe and Asia [140]. In addition to Leipzig's close proximity to major markets in the emerging countries, the Leipzig/Halle Airport provided DHL with a location that could be easily expanded in the future [139]. Furthermore, the proximity to the airport is also valued by some of the world's largest Internet retailers. For example, Amazon.com maintains a logistics centre in Leipzig [141].  
Leipzig/Halle Airport is congestion-free, has two 3.6 km long runways and offers significant untapped aircraft landing and take-off slots. Since 2000, the airport's owner, Mitteldeutsche Airport Holding, has spent around $1.5 billion upgrading the airport [142]. The completion of the second runway has provided the airport with a vital parallel runway system [134]. The airport's decision to construct a second runway had been planned prior to the DHL decision to move their European hub from Brussels. The construction of the second runway was a critical pre-requisite for DHL [142]. Furthermore, Leipzig/Halle Airport has a 24-hour operating licence for freighter aircraft [143].  
Leipzig/Halle Airport has also completed construction on what is known as 'Cargo Area South'. The ramp apron area (12 hectares) can accommodate up to six freighter aircraft. The World-Cargo-Center GmbH (WCC) operates a 20,000 square metre air cargo terminal, capable of handling 200,000 tonnes annually. The WCC also has direct access to the airport apron. To allow the transhipment between aircraft and trucks the freight centre is equipped with 38 loading gates which trucks can easily dock on to. A total of 171 parking spaces are available to the tenants on the grounds. In addition, 3400 m\({}^{2}\) office space is available with a direct connection to the cargo building [144]. In preparation for the planned launch of the AeroLogic operations, Lufthansa Cargo moved operations into the Leipzig Airport's World Cargo Centre (which opened in 2007) [145]. The key air cargo and freighter aircraft handling infrastructure are as follows:  
* Sufficient airside apron parking space to accommodate aircraft up to International Civil Aviation Organization (ICAO) Category F (Apron 2, Apron 3). Note: Apron 2 can accommodate up to six Category F aircraft;
* World Cargo Centre (20,000 square metres) with direct access to Apron 2 (located in the airport security area);
* Close proximity to motorway and main roads;
* Railway ramp and track;* Veterinary/Plant Border Inspection Post; and
* Animal Export Centre [146].