According to IATA, freight within Asia Pacific, between Asia Pacific and North America and between Asia Pacific and Europe will account for 57% of the 36 million tonnes of international air freight tonnes in 2011, up from 55% in 2006. The majority of this growth will be from the outbound leg from Asia Pacific ("2008 Annual Report - Air Freight: Carriers Alter Course")."
Overall the article characterizes airfreight as an aspect of the industry that will continue to grow in spite of the fuel cost and economic slow down that seems to have negatively impacted the airline industry. The growth of economies such as China and India seems to contribute to the increased profitability of the air freight segment of the industry. It seems that the growth in air freight will continue well into the future.
Week 7-Article Critique
Issues associated with traffic flow, have been at the forefront of discussions involving the Airline industry. To address this problem some airlines have adopted the use of new technologies, one such airline is Continental. Continental and other airlines recognize that when flights are left to idle on a run way costly fuel is wasted and the lost cannot be recovered. An article entitled "Sensis service reduces airplane idling time" explains the need and the benefits associated with improving air traffic flow.
The article explains that the airlines use of the Aerobahn service began three months ago in Houston. The service works by collecting operational flight data from the Sensis system. Once the data is collected the Aerobahn alters the information into a form that is beneficial to the airline. The system utilizes information from the aircraft and the airport to formulate information that gives airline operators the information needed to improve air traffic flow.
The author explains that having access to this information also assists the airline in improving customer service. The information tells the airline whether or not delays are substantial and if delays are substantial customers are not boarded onto the plane. In doing this, customers are more comfortable because they are not forced to sit on the tarmac for hours waiting to take off. The article also explains that this technology is useful because it provides airlines with information not available to them before. The technology is also appealing because it provides real-time information to airline workers. It is apparent that the author believes such technology will play a key role in improving air traffic flow in addition to customer service.
Week 8- Article Critique
The airplane selection process can be a daunting task for both manufacturers and individual carriers. The manufacturer wants to produce an aircraft that is unique and competitive and the airline wants an aircraft in which customers will be comfortable and the carrier will be able to maintain in a cost efficient way.
As such a great deal of dilemma is often present during the selection process. An article entitled "The road to profitability," explains the issues that faced a Pakistani Carrier when selecting planes for a fleet.
According to the article, Pakistan international Airlines made a commitment to renew its fleet in an endeavor to increase profitability. Out of this endeavor the Boeing 777 emerged as an ideal selection for the carrier. In this article officials representing the carrier describe Boeing (the manufacturer, as a partner. The article explains that Boeing made a concerted effort to provide the airline with an aircraft that would be efficient and therefore increase profitability.
In addition, the article exposes just how much work was involved as it pertained to Boeing working with the Pakistani government and the airline to ensure that plane met the standards established by the government. Boeing also had to ensure that the plane was consistent with the airline's desire to accommodate customers while reducing costs associated with fuel efficiency and maintenance. The article describes the relationship formed as a long-term partnership. Both the manufacturer and the carrier recognize the need for open communication to ensure that the selection process runs smoothly and that the relationship formed between the two organizations will continue to flourish.
Week 9- Airline Competition
According to an article published by the Brookings Institute, the airline industry in America will celebrate 30 years since the passing of the Airline Deregulation Act of 1978. While this act has been succssful for many reasons including safer travel and more efficient business models., there is much to be desired within the industry. The author asserts that the deregulatin act greatly effects the manner in which the airlines compete (Wiston & Morrison).
The various airlines have attempted to adree this issue by changing the strategies by which they compete. For instance, the article explains that many airlines have been able to enhane the efficiency of their netwoks and expand both international and domestic flight to improve their routes (Winston & Morrison). Other airlines such as Northwest and Delta have opted to merge and form a sigle airline. The author asserts that such mergers allow the once competitors to pool their resources to form a united company that is more efficient.
Overall the competition amongst the airplane companies will continue. For the most part companies that are consistent with customer and the services they offer tend to have repeat scustomers. Those airlines that choose to charge consumers absorbanent fees are becoming less popular. For instance, part of th reason Southwest has remained popular is because it hedged its fuel cost, and as suhch it has not been effected by the increased cost of fuel to as severe a level as many other carriers. As such the aitline does not have to increase fares in the same manner other carriers have been forced to; this gives the company a substantial competitive advantage.
Week 10-article Critique
Both the starting and the maintaining of an airline are very costly endeavors. These costs are associated with the purchase and upkeep of a fleet of vehicles, safety regulations that take place in the airport and on the airplane and the costs associated with unexpected events such as a hijacking or the carrying out of terrorist attacks. According to an article entitled "FAA Funding Debate" the manner in which the federal government offers funding to the airlines has become increasingly bothersome to airlines. The FAA is the organization that is in charge of regulating aircraft safety among other factors within the United States. In some instances the FAA has been at odds with the airlines.
The author explains that problem of the problem that exists between the airlines and the FAA has to do with the modernization plans.
Both the FAA and the airlines recognize the need to revamp airports and aircraft systems to accommodate the growing number of aircraft, however they disagree on the manner in which to fund the modernization. According to the article airlines want funding scheme that frees them of having to pay any fuel taxes, and decreases the taxes they collect from passengers -- all at the expense of general aviation. Many of these principles are included in Senate bill S.1300 -- the Senate's funding proposal. The airlines also want to dominate any FAA-industry decision-making panels contained in legislation (Horne,2007).
Generally it appears that the airlines want greater control. Overall the author is clear and precise in explaining why this debate exists.
Week 11-article Critique
Every year throughout the world there are conferences and conventions held for individuals and companies who compose the airline industry. One of the premiere organizations in the industry is the International Air Transport Association (IATA). The IATA organization is actually a trade body responsible for monitoring the global airline industry. The organization was actually started by 23 airlines and at the current time is serves more than 200 airlines ("IATA at the Air Transport Industry's side").
According to an article published by the organization it has several goals associated with its mission. These goals are associated with representing, leading and serving. As it pertains to representing the organization hopes to improve communication and understanding amongst players in the airline industry.
It is believed that the enhancement of such communication will be a benefit to airlines throughout the world. In terms of leadership the goal of the IATA is to assists airlines in simplifying processes so that they operate in a more efficient manner. Finally the IATA has a goal of serving the airlines through the services that it provides throughout the world. The IATA understands the need and the desire of the airlines to serve customers well while also ensuring profitability.
Overall the IATA appears to be and international organization that is dedicated to the international airline industry. The organization is dedicated to ensuring that airlines throughout the world are operating in a manner that is efficient and optimal. The IATA is well respected by the industry and by the governments of various countries.
2008 Annual Report - Air Freight: Carriers Alter Course. http://www.logisticsmgmt.com/TalkBack/Comments-talk_back_header_id=6541525&articleid=ca6576170&article_id=6576170