Each of country has their own air transportation to move the goods and people in their country. Airline travel is a common form of
transportation for long distance to passenger and freight travel. That is
reasonable alternatives when time of the essence. The services that provide of
each air transportation are more better compare with another mode of
transportation because they give comfortable sit during flight. However, the services that they provide give a big impact to their price because the price
is also higher. Many of reasons that cause the growth in air cargo.
First reason is regulation and liberalization of the
air cargo industry.
In term of regulation and liberalization, the management of
air transportation is different compare with now and past. This is because before
this when they flight in another countries travel to our country they have
to get a document from parties that involves in management of air
transportation. Because of this regulation our country not gets interested from
another country to fly in Malaysia. So, now Malaysia and also another country
had given deregulation for their freight travel freedom to anywhere without any
problem and delay because all the rules that they have follow is now had
deregulation.
Second is global interdependence helped by world trade
agreements.
In this world, we have much business that needed support from each
other to run business smoothly without any problem. One of the most important
things is logistics management. Without logistics, the business that our
country involves cannot go through in international business because with
logistics the supplier can supply their raw material to manufacturer or goods
to company that needed with efficiently and effectively. For example, Malaysia has
business agreement with Japan to get supply parts of car from Japan. So without
a good collaboration and logistics, the business cannot run smoothly and
win-win situation. So, each of country in the world have to interdependence
each other to become successfully country and compete each other
Third reason is international production
and sales of goods and service.
Normally, many company used air
transportation to deliver their goods internationally. This is because by using
air transportation, it has many benefits such as can reduce time and also can
increase their customer satisfaction. Air transportation is the important mode
of transportation because of their speed. By the way, by using air
transportation it also have some disadvantage such as it may have a
postponement because of the bad weather. In addition, many company use air
transportation to import their product internationally. For example, if they
have a new product but the products come from different country. So that, they
need to use air transportation in order to reduce their time.
Forth reason is new inventory management
concept such as “JIT” and “ZERO” stocks.
As what we know, JIT is a management system
in which materials or products is produce only as demand requires. Purpose of
JIT is intended to avoid situations in which inventory exceeds demand and extra
inventory. While “ZERO” stocks is a system in which company keeps very little
inventory in storage , there is simply exactly what it needs to sell and
receiving it in a timely manner. Air transportation has their own scheduling
whether to import or export the goods. Air transportation cannot achieve availability
because of the weather or any other problem.
Fifth reason is new air-eligible
commodities.
In air carrier, it also has new
air-eligible commodities. Which is it also can carry perishable goods such as
vegetables, fruit, flower and medicine. The perishable goods will arrive at the
destination without any damages and still in fresh condition.
Sixth reason is the vast development of
high value and limited time-consumable commodities.
For example of this reason is for computer
or chip and the time of transportation cannot keep for a long time.
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