Its a mix of both.
Cargo handles a bit differently then Pax in that its more heavily dependent on RI. It's less forgiving then pax.
As for the calculation, it handles much like AWS 1.2. Its favors frequency alot. Price is not as big a factor as some would think. There's some favoring of CI as well. It allocates to whatever is supplied. If no aircraft capable of carrying HC, HC will transfer to SC or LC, depending on whats supplied. This applies to SC and LC. Cargo shifts to whatever the supply is based off its update.
From this, we can conclude so far:
Frequency controls cargo; Pax airlines will mostly likely win on LC and SC. Unless your willing to match frequency.
HC can only be taken by LG and VLG freighter. Since cargo re-allcates to whatever is supplied, Its typical (thus far) that putting a freighter on a route can max the HC demand on that route. While pax airlines will claim most of the LC and SC, all or most of the HC will be flown by you.
Since HC is the most profitable cargo and your taking most, if not all, chances are your making more money on the cargo side then the pax airlines.
Talentz
I've been wondering about frequency with regards to cargo and CBD...When we talk about frequency, are we talking about number of times we fly to a specific airport, or number of times we fly to a specific region or catchment area?
If there are six airports within a given catchment area or region and I fly to each of them once daily. Is that the same, more or less, as flying to one of those airports six times daily?
Understanding that not all potential demand at one airport is the exact same potential demand at a neighboring airport, but there IS some overlap in those two potential demand figures. Some of that demand just wants to go from A to B and doesnt care which airport provides that service.
If that basic assumption is correct, more or less, then if I fly once to both the airports in question, then that overlapping cargo would see two potential flights available, right?
As an example, I fly to Kennedy and La Guardia each once daily with HC supply. MY opponent flies once daily only to Kennedy, with no flights to any other NY-area airports. Are he and I competing only for the Kennedy cargo and therefore each have only one flight, or are he and I competeing for essentially ALL the NY-area cargo (or at least a lot of the same potential cargo) in which case I have more frequency than he does?
Hopefully this question makes some sense and isnt too dumb...