The air cargo industry is passing through difficult times and is facing increasingly stiff competition, due to rapid advances in the shipping industry. The future of the air cargo industry, therefore, lies in Creative Marketing. Creative Marketing involves the diversion of cargo from one mode of transport to another by economic justification, as well as other measures which result in the development of the total air cargo market. The Total Distribution Cost Analysis concept provides a potent tool, in this regard. An urgent need exists to convince customers that shipping by air, can become economic, in total distribution terms. A time has come when the air cargo industry as a whole must necessarily take active steps to promote the growth of the industry by ‘Creative Marketing’.