Thursday, 13 March 2014

FACTORS INFLUENCES GROWTH IN AIR TRANSPORTATION

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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