Air Cargo - Assignment Example

Air Cargo Introduction With the changing societal requirements and the travelling needs of the individuals, air cargo has been gaining popularity over the years. By taking into concern the development of trade and commerce in the Gulf Cooperation Council (GCC) countries, the need of travelling has evolved over the years. Moreover, with the prominence of the GCC countries, there has been a huge cluster of people across the globe who has been investing in these nations for reaping several significant benefits. Besides making considerable investments in the oil and natural gas sector, international investors have developed different portfolios to invest in other segments. It is worth mentioning that the airline sector has been developing in a massive rate and is growing faster than any other segment across the globe (Hvidt, 2013). Additionally, with the development of logistics, the transport sector of the GCC regions is identified to be flourishing in a massive manner. The GCC countries are majorly inclined in developing mobility connections across the countries with the aim of enhancing their network and transportation facility. Furthermore, with the recent development in trade and commerce, development of roads, airports and bus networks has become quite evident. This has further promoted the development of transport sector, which evolved largely after the decision made by the government towards making the airways sector privatized (Saif, 2009). With this concern, the essay intends to analyze and discuss about the airline and air cargo operations in the three GCC countries namely Bahrain, Qatar and UAE. Moreover, an attempt has been made in identifying the factors that contributed in evolving and changing such conditions over the preceding 30 years with making future projections about the development of the same. Types of Cargo Carried Out into the Three GCC Countries Since World War I, the aircrafts in the GCC nations were majorly used carrying lightweight materials. Presently, world cargo exchange is majorly based on air transport for both transferring lightweight as well as heavy weight materials. There has been a series of development that has been incorporated into the cargo sector for carrying the heavy materials throughout the globe. The cargo careers are highly modified to ease carrying the different materials across diverse regions. However, there always been a strict monitoring prevalent in the sector, which enhances the credibility of the careers to carry heavy goods. The types of cargo that are carried into the varied gulf countries generally constitute most of the foreign exchanges and different postal as well as other services. This even inflicts huge variation amongst the regions and enhances the trade links as well as develops international contacts at large (ICAO, 2004). Specially mentioning, the cargo carriers even adopt several initiatives to enhance the postal transportation system and likewise meet the needs of the same in delivering goods within stipulated time. The GCC countries majorly export crude oil and other oil products in different regions of the world. Thus, the aircrafts of these nations majorly carries different oil products as well as other goods from the countries to other areas. However, the major imported goods within the countries involve distinct conglomerate products as well as luxury goods such as cars are traded into the GCC countries (UNCTAD, 2013). Development of Air Cargo Networks, Hubs and Service Patterns With the development of the air service contracts, it can be found that the aviation sector of varied regions is developing by a considerable extent. The collaborative schemes of the air cargo networks have been developed by following different schemes and maintaining relevant regulations. Air transport has emerged to be one of the major industries, which depicts future growth and development. With the privatization of the sector, there has been an upward thrust in enhancing the credibility and rapid development of the same. The different airline alliances have even enhanced the development of the aviation sector at large. Initially, the GCC countries were less communicated with the airbase. The geographical locations of the countries are even noted to be quite non-communicable that effected the development of proper transport in the form of air cargo networks across the rugged geographical locations. There have (Saab, 2012). At present, the regions such as Bahrain, Qatar and Dubai have flourished as the major regions of the world to get involved in trade and commerce effectively. Moreover, the regions have flourished as one of the most visited areas across the globe and have been increasingly integrating development of airline routes to enhance their tourism sector. The development of different networks such as hubs, supply chain and efficient international connections in the region has certainly enhanced the trade and commerce in such regions. The air cargo networks have enhanced over the years and there have been developing across the globe. With the advent of internationalization, airlines have been an effective medium for the improvement of the region and survival of the economy. To flourish the relation of the international link ups the different aircraft manufacturing are even developing their services to cater trade across the globe (Ibrahim & Harrigan, 2012). Types of Aircraft Used and Change of the Same over the Years The aircrafts that are majorly used in the sector are broad and narrow-bodied aircrafts for carrying passengers. The development of the used aircrafts in the three GCC regions can be mainly witnessed post World War II. These used aircrafts have their initial development from the incorporation of hot air balloons that have been changing from previous years (Qatar Airways, 2014; IBM, n.d.). This has further developed the needs of employing effective technologies for reaping several significant benefits. The Dubai aircraft manufacturers have been manufacturing the broad bodied aircrafts to increase the carriers’ capacity to meet with global demands. The initial years of development of the aircrafts used in the three GCC regions can be majorly recognized with the initial enhancement of the narrow-bodied airbuses. Presently, Qatar possesses a fleet of the broad bodied airbuses and even large cargo carriers. Since, Dubai has an enormous connection with all the major airports across the globe, the broad bodied aircrafts are deemed to be most popular for carrying international passengers. With the development of international connection for oil business, the country effectively explored the air use. Initially, the aircraft manufacturers in the GCC countries were ruled by the British Airways, which was later taken over by the international aircrafts operating in the local areas. The rapid development of technology has initiated the development of the region and enhanced international connection at large (Emirates, 2012). Similarly, the change in the aircrafts used by Qatar can also be witnessed with the increased level of trade and commerce in the nation and development of different aircrafts. Moreover, the deployment of the military aircrafts that Qatar was providing to its US alliances has certainly enhanced the technology while engaged in aircraft manufacturing. The country even possessed a huge range of airbuses that are carrying the passengers across the globe. It can be apparently observed that the GCC region Qatar has been developing its aircraft manufacturing and logistics to meet with the international market of aviation. The aircrafts operating in Qatar are involved in developing their convention and appreciation to meet the needs of elite group passengers and develop their services in accordance with their requirements. On a similar note, the economic development has in turn developed the prominence of the region across the globe. This development of the region has fueled the development of airways to enhance international connection. To meet the different needs of internationalization, the country has developed international aircraft technology to meet with diverse needs. The different policies of the government within the GCC countries majorly developed their infrastructural development within the same region. This positive development has been integrating greater amount of foreign investments in the region (World Economic Forum, 2012). Role of Air Cargo Agents The air cargo agents have a huge role to play in the industry of aviation. The cargo agents are the main people who ensure proper arrangement of transport that are scheduled. This transportation is done with the use of the different cargo carriers that are available within the country. It is the sole duty of the cargo agents to arrange the shipment of the goods and services. They are regarded as the sole agents who take care of the different freight costs that are involved with the shipment and enhance proper transfer of cargo through the aircrafts. It is the role of the cargo agents to communicate with the consumers and even develop a proper integration with the different players involved in the transportation of cargo from one nation to another. These agents are often identified to embrace international delivery system, which enhances the procedures followed in providing a door-to-door service for air cargo at different destinations. The cargo agents even guarantee the reliable delivery of goods and keep a track of the movement of the same (Ramos, 2009). To develop a transparent system within the cargo industry, the cargo agents play an eminent role and develop the credibility of the different organizations involved with the use of cargo transportation. Furthermore, with the diversification of carriers in the aircraft sector, the roles play by the agents has certainly become quite evident. In Dubai, Qatar and Bahrain, the cargo agents often play the role of taking responsibilities of developing an eminent system and enhance the ease of delivery of goods from one region to another (World Economic Forum, 2012). The agents arrange for the carriers and develop a proper system that would ensure a proper delivery of goods in time through air. Moreover, it is the duty of the agents to ensure a fast and timely delivery of goods to the final consumers in relation to cargo industry. The cargo agents even ensure that they develop a proper channel through which the goods are to be delivered. This is even noted that the different cargo agents have been eminently developing their supply chain management (SCM) processes in order to enhance their method of supplying the goods. Furthermore, there has been a huge development in this sector since its inception. The cargo delivery has been a flourishing sector and has been increasingly attracting the investors from different regions throughout the globe. With the rapid growth in the airlines sector and the impact of globalization on the same, it is even noted that the different organizations acting in different sectors are keen in utilizing the effective opportunity available in the area of speeding up transportation. With the increase in the amount of international trade and commerce, the development of a proper supply chain has become mandatory to enhance the flow of goods from the initial sender to the final consumers. Since the sector has been changing in an effective rate there are a huge projected growth for the agents. The agents are even likely to develop their base and enhance their future prospects and the sector even projects a huge future development (World Economic Forum, 2012). Role of Automation in the Development of Hubs The development in technologies has further enhanced the progression of cargo and enhanced logistical services within the industry. This is even evident that the different technologies have been enhancing networks across the globe and developing different tie ups (Schroeder, 2010). With the rapid development of globalization, it is even noted that there has been a huge development of trade and commerce. In relation to the increased level of advancements in trade and commerce, the international links have been developed largely. With the enhancement in trade and commerce facilities as mentioned above, the transportation sector in Dubai, Qatar and Bahrain has also been developing in rapid pace. The international link ups have certainly fuelled a rapid growth in the industrial sector. Furthermore, the link ups have evidently enhanced the growth of different sector and further developed the airways. Globalization has enhanced the development of communication as well as international trade, which in turn enhanced the need of increasing the level of transportation through airlines. Furthermore, to meet with the changing needs of the society and developing technology, there has been an implementation of automation within the supply chain management (UNCTAD, 2013). The international hubs have been developing in the countries in order to comply with the changing technologies. To meet with the international level of development, it can be found that Dubai, as one of the GCC nations, has been enhancing its technology involved with operations of international airport and hubs for meeting the needs of traveling of the passengers. By the development of different hubs and networks, the international servers are developing their level of operation and enhancing their technology implication to develop the image of the country globally. With the development of the different international airport hubs as well as communication centers, the country has been enhancing its presence in the global domain. Furthermore, Qatar like Dubai is enhancing its global presence by effectively developing its prominence all over the globe. With the development of international trade and commerce, the airways of the GCC nations developed at an immense rate within a short span. With better and effective use of automation, the different operations of the airline networks are easily modified in accordance with the prevailing conditions (UNCTAD, 2013). With the development of international hubs at Doha, Qatar has been effectively enhancing its technology to meet the implications related to increased level of globalization. Bahrain on the other hand, is the hub of Gulf air and developing its technology incessantly to meet with the automation at the international scenario. The region is identified to be managing its international airline base as well as effectively administering services to all the major international regions across the globe. With the rapid increase in the internationalization level, maintaining an effective aviation hub has been a compulsion for the countries of GCC. These countries have effectively enhanced their respective international hubs in the form of managing large aircraft networks and most vitally developing the service patterns by a considerable extent. Rapid industrialization has initiated the development as well as the maintenance of international connection for the purpose of attaining significant benefits in the international context. This is even noted that with the development of international hubs, the gulf countries could credibly maintain their international connections. The transportation of cargo could be developed with the use of different technologies and most vitally with the development of automation of cargo. The automation of the supply chain management is going to increase transparency of the system and enhance the trade and commerce (Airbus S.A.S., 2011). Environmental Sustainability of Air Cargo in the GCC The rapid increase in industrialization has been a major cause for industrial degradation in different regions of the world. With the increase in consciousness amongst the different sectors, maintaining environment safety has been one of the major aspects for developing the entity of companies in the present business world. The change has majorly been observed with the rapid increase in the industries and huge development in transport. Specifically in Bahrain, the change in air quality has been noted in present years. It is even observed that the air contains enormous amount of sculpture gas. There has been a massive increase in the emission levels of greenhouse gases in the region. These are increasing at an alarming rate and further degrading the atmospheric conditions at large (Bachelorize, 2012). Additionally, with the development of intensive travelling in the region of GCC countries there has been a huge development in the aviation sector and has intensified the magnitudes of aircraft networks. This in turn threatened the environment degradation and thus further affected the environment at large. This is even noted that with the development of international link ups, the numbers of aircrafts that travel from and within the country are increasing by a considerable level (Ibrahim & Harridan, 2012). The emission rate has also been increasing with the rise in the number of aircrafts travelling from and within the areas. This emission level has further affected the air conditions in the gulf region and thus raised the pollution level. The aircraft pollution has been creating an adverse effect on environment development (Aspin all, n.d.). The different agencies that are operating in the aviation sector are enhancing their respective corporate social responsibilities by controlling distinct agents that are present in the emission of fuel from the aircrafts. In order to reduce the emission from the aircrafts the different aircraft agencies are using bio-fuels in their aircrafts. Qatar airlines agencies manufacturing aircrafts are majorly inclined in developing a sustainable environment with use of biomass liquid jet fuel (ATAG, 2011). By developing a sustainable reporting plan the GCC countries has been enhancing their sustainability planning and developing their CSR across the globe. Countries like UAE, Bahrain and Qatar are developing their research in order to develop a renewable energy and enhance the research capability (Bachelorize, 2012; Saab, 2012). For developing their social entities the country has been effectively enhancing their use of different fuels and further developing the quality of the air surrounding the area (Ray, 2014). Conclusion It is noted that with the development of different corporate and international relationship, the GCC countries are making initiatives in forming as well as developing international contacts. This has further developed their needs to enhance the use of cargo aircrafts within the area. With the development in trade and commerce, the development of networks and hubs has become compulsory for the GCC regions. This is even likely to increase the rate of development of cargo shipment and enhance the use of different transportation. With the rapid development of different technologies and increased automation role, there has been a huge development in the use of networks as well as hubs. The efficient development of the different techniques has been increasing the communication procedure amongst the different regions of the globe. The development of efficient networks has been further enhancing the level of trade and business. With the development in varied technologies, there has been a huge advancement in the use of aircrafts within the nations of GCC. This development has in turn enhanced the credibility of the sectors to conduct trade in an efficient manner. Specifically, the development of trade and commerce has initiated the transportation system to avail significant opportunities and overcoming any sort of threat. Furthermore, the rigorous international transactions have certainly increased the amount of travel within the nations and thus greater development within the air cargo industry can be witnessed. 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