Trends in the air-freight business
Attention to commercial airline bussiness has heightened with the recent incident that occurred on United Airlines. However, air-freight business makes up a substantial portion of airline business. A consistent rise in this business has occurred since the 2008 financial crisis. The the past three years total revenue of all business combined has increased by a third. In addition, there is an increase demand in fresh produce and other foods. Airline travel allows these goods to be delivered with immediacy and this is essential for food that perishes quickly and needs to be consumed soon after production. The article goes on to state how detrimental restrictions on doing business with China could be. This is a concern considering much of US airfreight business is with international partners, especially China. Check out link to article below.
http://www.economist.com/news/business-and-finance/21720901-fewer-electronics-are-being-flown-instead-planes-are-full-fresh-produce-trends
4 comments:
This article is very interesting. This has to raise a lot of questions in people's heads regarding the outcome of these decisions for blockages on international ventures and business. With the recent troubles in the airline industry, I do not see how it could directly affect air-freight business, but I would understand and increase in airline travel protesting in the future. Maybe a decrease in air-freight business could occur for United specifically, but I guess we will see. I think United might have to restructure the way they due business as they have seen the potential of what could happen in time of failure.
This is an interesting article. When talks about the airline business, it is easy for people to ignore the air-freight business. I agree with Doug that this kind of business is relatively stable hard to be influenced by the service quality which passengers care more about. Also, the article mentioned that globalization is an important driving factor for the development of air-freight business. At the same time, air-freight business also pushes the international economic division and the specialization of production. However, I'm curious about how will the tariff policy affect the air-freight business?
This article was a good read. I could see the airline business taking off in the future because as technology keeps increasing it will be easier to order products and people do not like to wait for there products to arrive and flying is a lot faster then putting it on a boat and sending it over the ocean. I don't think that the United Airlines incident will effect the transportation business people are still going to use them if they need to get somewhere for cheap. I should of bought stock in united when it plummeted because it will recover after time passes and the news stops talking about it.
Air-freight began being explored further in delivering goods all over the world. Consequently, it is understandable that airlines are being subject to prioritizing merchandises and "replacing" them for passengers.
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