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Essay / Research Paper Abstract
A 15 page paper assessing the air freight industry in terms of demand, finance, government regulation and potential mergers. Demand for air cargo services had declined since the turn of the new century but began posting increases in 2006. Industry observers expect for demand to be much greater in 2007 and beyond, as more manufacturers use the more costly form of transport for higher-value items such as consumer electronics. Both industrial and commercial changes are occurring throughout the world, as is the regulatory environment in the face of continuing terrorism threats and increased use of passenger planes for cargo transport. Bibliography lists 12 sources.
Page Count:
15 pages (~225 words per page)
File: CC6_KSairCargoInd.rtf
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Unformatted sample text from the term paper:
more cost effective when items have low unit value and relatively low selling prices - i.e., textile items - but higher-value items can justify the higher costs of shipping by
air cargo. Air freight is of vital importance within the borders of the US, but in this age of globalization it is equally valuable in a high number of
industries. It is also of obvious value to the organizations providing air cargo services: "While in terms of weight, air cargo accounts for only about 2% of all
cargo moved worldwide, in value terms it constitutes more than a third of the total" (Freight flies higher, 2002; p. 5). This figure
likely has changed in the five years since its publication. The president of a logistics firm states that in the US and Europe, trucking companies have taken significant market
share from air cargo carriers, whether those carriers are dedicated to moving only freight (i.e., FedEx or UPS) or are passenger airlines first seeking to fill cargo holds for greater
operational profitability (i.e., Continental Airlines, United) (Coppersmith, 2007). Coppersmith (2007) also expects the air freight industry to regain much of its lost market share, particularly if it can train
its vision on areas other than China. Current Situation "Our industry in 2007 will grapple as it always has with the challenge of
finding new, sustainable and profitable business" (Coppersmith, 2007; p. 72). Within the US, paradoxically one of the countrys most well-managed and perennially profitable airline, Southwest, faces pressures to expand
to achieve economies of scale and to boost per-flight payload. Recently the legacy carriers "have been driving down their costs ruthlessly, some of them using the bankruptcy courts to
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