...Competitor Analysis of Cathay Pacific Airlines Cathay Pacific Airways is an international airline registered and based in Hong Kong, offering scheduled cargo and passenger services to more than 110 destinations around the world. The main competitors of Cathay Pacific are Singapore Airlines and China Southern Airlines . In this competitor analysis for Cathay Pacific we will assess China Southern Airlines only. 1. What are the objectives of this competitor? The objectives of China Southern Airlines are as follows: * To build an international network-oriented airline with core competitiveness and sustainable profitability. * Core value of "customer first * striving for excellence * continuous innovation and contributing to the society", and the vision and mission of "becoming the most favorite airlines for both customers and employees 2. What is its current strategy? Currently, China Southern operates more than 460 passenger and cargo transport aircraft, including Boeing 777, 747, 757 & 737 and Airbus A380, 330, 321, 320, 319. The airline fleet is ranked among the world’s top six airlines (in terms of fleet size) and with Guangzhou and Beijing as its central hubs, the carrier boasts a substantial route network spanning more than 150 destinations in China and more than 40 destinations in Asia with service to Europe, America, Australia and Africa.. * Substantial Flight Capabilities China Southern continues to be a leader in the Chinese aviation...
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...domestic scheduled and charter air services for passengers , cargo and mail. Structure of the company: British Airways is one of the top ten airlines in the world and serves 200 destinations in more than 80 countries. The airline also operates a freight handling centre, Ascentis, which is considered as one of the most advanced freight-handling facilities in the world. Virgin Atlantic Airways Ltd Activities Virgin Atlantic Airways is engaged in the operation of scheduled air services for the carriage of passengers and freight. Structure of the company: Virgin Atlantic was founded in 1984, and is one of UK’s second-largest long-haul carrier airlines serving the world’s major cities. The company’s schedule includes twenty one (21) destinations from its operational centres at Heathrow and Gatwick airports. Global Supply Systems Ltd Activities Global Supply Systems Ltd is a dedicated operation company using only freight aircraft to carry goods without having any dedicated scheduled flights. Structure of the company: The Company is a subsidiary of River Don ltd. Global Supply Systems ltd is majority owned by a British entrepreneur, while Atlas Air inc has a minority shareholding in the company. Channel Express(Air Services ) Ltd Activities The Company operates cargo aircraft on charter contracts in Europe. Structure of the company: The Company was founded in 1987. In February 2003 it commenced as a passenger airline flying daily from Leeds Bradfort International airport...
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...2. A review of current and expected economic conditions (e.g. inflation, recession) that would be material in forming your recommendation.The current global economy highly influenced by the debt crisis in Europe zone, the overll air freight is weaken compared to previous year however the number of air freight remaining positive except middle eastern airlines taking more than 50% of the air freight than other regions. IATA (2012) indicated the growth rate of China’s gross domestic product has resulted in a three-year low, a slow growth for industrial production as well as retail sales, contributing a slow growth rate at 4.4% in China's domestic passenger markets. In Lanman, S. and Panckhurst, P., (2012)'s news report, China’s export growth cooled to 9.2 percent in the first half of the year, a 24 percent decrease in the first six months of 2011, the figure reflected declining number in both cargo and passengers carrier for Cathay Pacific and China Southern Airways, accompany with the high jet fuel prices, the future in airlines industry is pessimistic.According to Wallis (2012), China Southern Airlines claimed there is 50% drop in net profit compare to last year, contributed by high jet fuel costs, losses in exchange rate (6.3760 against the dollar) and China’s slowing down economy due to Europe’s austerity measures and government debt burdens. On the other hand, its major rival Cathay Pacific announced billions dollars investment on more fuel efficient and nautical miles aircrafts...
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...Special Cargo (Author’s name) (Institutional Affiliation) Fragile Cargo These are items which can easily be damaged during transit if they are handled roughly, dropped or get bumped upon. Fragile cargo mainly consists of electronics, ceramics, chemicals, paintings, trophies, animals, flowers and musical instruments among others. Cargo handling Fragile cargo items are easily damaged when not handled with care. The items have to be handled with utmost care so as to ensure safe delivery to their destinations. In aircrafts, for fragile items to be transported, they have to be well packaged. (O’Brien, 2003) This is to reduce the chances of the cargo getting damaged. Most aircrafts prefer that fragile goods be kept in overhead cabins. In some cases, when the cargo is too fragile, the aircraft management recommends that a full fare ticket be bought for the goods. Regulations For fragile goods to be transported in aircrafts, they have to meet the aircrafts regulations. Cargo may be transported in a passenger seat if it if very fragile. The cargo, if transported in a passenger seat, should not obscure other passengers in their seats or in their pathways. The cargo also should not be dangerous to passengers for example chemicals in case it is damaged. Aircraft considerations Aircrafts allow items such as carry-on baggage only if it complies with the respective carry-on baggage allowances. Most aircrafts require that the cargo should not exceed a weight limit of 100lbs (45 kilograms)....
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... * Industry regulation * Technical requirements * Pilot shortages * Government control () The airline industry requires large capital and high technical. Also, there are a lot of regulations within the industry. And many government now put pressures on new start-up aviation companies, take China as an example, Civil Aviation Administration of China now do not approve to set up new airline companies. New entrants into this field would face large barriers. Thus, the treat of new entrants is low. 2. Threat of substitutes—Medium * International routes-shipping * Domestic routes Long distance bus Railway High-speed rail… In the international routes, the substitute for airline is shipping. In domestic routes, the substitutes are long distance bus, railway, and high-speed rail. Although, these would take more time to reach destination. However, they are cost- effective choices especially the high-speed rail comparing with airplane. High-speed rail is gradually operating in a large scale with convenience and comfort. There is a saying that in the future, once the airplane could reach, so could high-speed rail. So we judge the threat of substitutes is medium. 3. Bargaining power of suppliers—LOW * Aviation fuel * Aircraft In terms of fuel, the airline company is the recipient of the oil price. In terms of aircraft purchase, Airline Company is in the weak negotiation position. Thus the bargaining power of suppliers is low. 4. Bargaining...
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...aerodromes were constructed and the Tata Sons Ltd. started operating internal air services (1922). Flying clubs were opened in Delhi, Karachi, Calcutta (now Kolkata) and Bombay (now Mumbai) in 1928. In 1933 another company Indian National Airways was constituted to serve between Karachi and Lahore. In 1938 .the Empire Air Mail Service was introduced to carry mail between the empire countries. In 1946, the Government set up the Air transport Licensing Board which granted 11 licenses. At the time of Independence 4 companies were operating their air services (Tata Sons Ltd., Indian National Airways, Air Services of India and Deccan Airways). By 1951 there were 4 new entrants: (Bharat Airways, Himalayan Aviation Ltd., Airways India, and Kalinga Airlines). Airports India has international airports besides 87 aerodromes divided into major, intermediate and minor categories. Its 5 major international airports are: Mumbai (Santa Cruz), Kolkata (Dum Dum), Delhi " (Palam), Chennai (Meenambakkam) and Thiruvananthapuram. The operation, management, planning and development of these airports are the responsibility of the International Airports Authority of India. These airports lie on the International Air routes and are used by Air India and foreign airliners. Here landing facilities are of...
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...Background: - Cathay Pacific was founded in Hong Kong on september 24 1946 - it is held amongst two, Roy Farrel and Sydney de Kantzow - as mentioned in the video, in its early stages, cathay pacific only flew to few routes between hong kong, sydney, manila, singapore - when it bought butterfield and swore it expanded its fleet and its destinations routes to European and North American countries. - this has continued to the current days in their developments Future Forecast: - in the short term, revenue of cargo may increase because cathay pacific is introducing new cargo terminals in hong kong this year - the firm has ordered around 92 fleets expecting to introduce new flights and destinations which will allow it to increase Industry Comparison: - revenue: throughout the years, it is shown that british airways' revenue has been higher than cathay pacific, because of the financial crisis in 2008, they had begun to face negative drawbacks and growth, they began to operate in different markets and expand their fleets and destinations which had allowed their revenue to increase, british airways was bound to take such an action in order for them to keep gaining profit and remain in the industry, as the scale of the company grows the revenue will increase with it - expenses: we can also notice that both company's share similar expenses where as their revenues have a drastic difference, this shows that cathay pacific may be more efficient in delivering their service...
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...sometime things fly because it is better to keep the planes moving instead of just sitting on the ground. History of Air Cargo Even before there were airplanes in the sky, mail was being moved by balloons, dirigibles and ravens. The first cargo moved by aircraft occurred on 7 November 1910 when a few bolts of silk were transported by air from Dayton to Columbus, Ohio. Phillip Orin Parmelee used a Wright Brothers Model B to travel 65 miles carry 200 pounds of silk for the opening of a store. It was the first cargo only flight that was commissioned by a merchant solely for the transport of goods. Tis was also one of the first times multimodal transport was used to include aircraft since it was first moved by car. In 1911, the united states postal office experimented with the moving of mail by way of air and Germany followed in 1912. It wasn’t until 1925 before air mail was a regular service. World war 2 helped increase the freight movement by using large scale cargo was moved by C-46 and C-47’s to help support the war effort in India and China also known as “Flying The Hump”. Over 650,000 tons of cargo was transported between India and southern China between the years 1942 and 1945. Later from 1948 to 1949 the largest airlift in history occurred to support the blockaded city of Berlin, Germany. Wide body jets that were introduced in the 1970’s helped move air cargo...
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...Introduction to e-AWB April 2013 1. Understanding e-AWB IATA Cargo 2 © International Air Transport Association 2013 What is e-AWB? The Air Waybill (AWB) is a critical air cargo document that constitutes the contract of carriage between the “shipper” (forwarder) and the “carrier” (airline) e-AWB removes the requirement for a paper Air Waybill, significantly simplifying the air freight supply chain process With the e-AWB, there is no longer a need to print, handle or archive the paper AWB IATA Cargo 3 © International Air Transport Association 2013 e-AWB Benefits Improve productivity by eliminating manual tasks and streamlining processes Reduce processing costs due to the removal of paper AWB and the elimination of the requirements to file paper AWB Improve customer service by speeding up cargo processing Increase quality of information thanks to electronic data that are used from the very beginning to the very end of the air cargo supply chain IATA Cargo 4 © International Air Transport Association 2013 How does e-AWB work? Front Reverse Paper Air Waybill + Electronic messages 5 e-AWB IATA Cargo + Signed e-AWB agreement © International Air Transport Association 2013 2 kinds of e-AWB agreements & Bilateral agreements (Recommended Practice 1670) IATA Cargo 6 MULTILATERAL AGREEMENT Multilateral agreement (Resolution 672) © International Air Transport Association 2013 ...
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...Article: ATA reports decline in December passenger revenue, increase in November cargo traffic. http://air-transport.org In this article the “Air Transportation association of America” (ATA), they reported that passengers revenue, based on an example of group of carries it drop 4% in the month of December in comparison to the month of December in the year 2008. Fewer passengers traveled on U.s airlines, while the average price to fly on mile fell more than 2%. Most of this market fell in Trans-pacific side. Among the cargo airlines or traffic the measure of revenue grew 7% over year. This percentage was divide in 2% domestically and 11% international. The percentage was drive primarily because of the increase of international trade. The increase was observed from July 2008.in agreement with the author. Annually, the commercial aviation helps drive more than $1 trillion in the U.S economy and nearly, But with nearly 26,000 flights in eighty country, using more than 6,000 airplanes an average of two million passengers and 50,000 tons of cargo. The cargo industry for sure has made an increase in their revenue. The author supported to this evidence of the increase revenue. The author include that for the year of 2009, the revenue for passenger airlines dropped or declined 18 percent compare to the one of 2008. This drop includes 6% drop in passengers, and the drop in the average to fly one mile. This decrease exceeded the one observed from 2000-2001. The only logical omissions...
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...Incoterms 2000 Quick Reference Best Terms for Buyers (our preference and priority in red) FOB – Free on Board – Ocean only. FOB point must be the origin port. Buyer controls ocean freight routing. Seller must deliver the freight to the named origin port. 2) FCA – Free Carrier – All modes of transportation. Best when used from seller’s premises but can also be from the carrier’s terminal at origin. Unlike FOB the loading charges come forward to the buyer. Buyer controls ocean or air freight routing or, in the case of “FCA seller’s premises”, door to door. DDU – Delivery Duty Unpaid – All modes of transportation. Seller must deliver all the way to the buyer’s door and is responsible for any loss along the way. Buyer takes care of Customs clearance. This term is based for shipments of replacement parts or when the buyer has little resource to handle international logistics. 1) EXW – Ex Works – All modes of transportation. Buyer takes care of everything once the freight is pushed out of the door of the seller onto a truck. Seller provides documents but the buyer must arrange export formalities at origin (export customs clearance). “FCA seller’s premises” is the preferred term. Buyer controls freight from door to door. Best Terms for Sellers CFR – Cost and Freight – Ocean only. CFR point must be a destination ocean port (no inland points allowed, see CPT). Seller controls the freight all the way to the destination port but risk for loss passes to the...
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...discuss the insights of the Hong Kong and international business environment in air cargo industry. Details: In March 2012, the Hong Kong Government has approved in principle to adopt, for planning purposes, the three-runway option as the future development direction for Hong Kong International Airport (HKIA), with the recommendation by Airport Authority Hong Kong (AAHK). Besides, the third air cargo terminal in Hong Kong will commence its operation next year. Meanwhile, the competition among Asia-Pacific countries becoming more intense as some of them change their close skies policy to open their skies for foreign air freighters. These big changes produce a huge impact to the air cargo industry in Hong Kong. Assume that your group is an external consultant to evaluate the impacts of the above mentioned changes to the major players of air cargo industry in Hong Kong. Your group should discuss the above-mentioned issues from various aspects and insights. Your discussion can focus in, but not limited to, the following areas: Discuss the impacts of the three-runway option (proposed by AA) on major players of air cargo industry in Hong Kong. (e.g. the impacts on the major players for setting/adjusting their strategic plans, capital investments, information systems, process re-engineering, etc.) Discuss the impacts of the commencement of the third air cargo terminal on major players of air cargo industry in Hong Kong. Discuss whether Hong Kong should consider open skies policy...
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...Consensus". LAN’s raising and its expansive through Latin America. LAN Chile born as a state enterprise in 1929. In 1946 opens its first international route to Buenos Aires; in 1956 it expanded its operations to Lima; Miami in 1958 and in 1970 to Europe. After a privatization process is consolidated locally in Chile, then position in Latin America and assist its internationalization. In 1985 the government of the time transformed the company into a public limited company to start its privatization. In 1989 the sale of 51% to domestic investors and SAS (Scandinavian Airlines System) is specified, until in 1994 the Chilean government sold all the shares held by it, at Piñera and Cueto group become owners LAN majority. The business starts a second phase in 1997 when LAN acquires 99.5% stake in the Chilean airline LADECO, achieving full coverage of air traffic in Chile. The same year signed an agreement with American Airlines to operate routes between Chile and the US. In a third phase of expansion that began in 1999, LAN is involved in an aggressive international expansion, operating from multiple logistic centers in several countries, beginning with the creation of LAN...
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...2014 Young Freight Forwarder of the Year Award Competition Multimodal Transport Operations in Practice: Radioactives and Abnormals From and to South Africa Submitted 29th April 2014 | Page | 1 TABLE OF CONTENT 1 ACKNOWLEDGEMENTS ................................................................................................................................................. 4 2 INTRODUCTION ............................................................................................................................................................ 5 3 INTERNATIONAL TRADE CYCLE – RADIOACTIVE EXPORTS TO NAMIBIA ........................................................................ 7 3.1 3.2 SELLER CONFIRMS ORDER.................................................................................................................................................. 7 3.3 BUYER ARRANGES FINANCE ............................................................................................................................................... 7 3.4 BUYER INFORMS FORWARDER OF ORDER.............................................................................................................................. 7 3.5 FORWARDER LIAISES WITH SUPPLIER FOR SHIPMENT ARRANGEMENTS ........................................................................................ 8 3.6 ORIGIN INLAND....................................................................
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...PRAKASH NAIR - MANAGER NETWORK CARGO SALES DEVELOPMENT. EMAIL ADDRESS : SKYCARGODXB@EMIRATES.COM Emirates’ strong fl eet of 150 aircraft is one of the youngest in the skies. Emirates SkyCargo’s fleet includes seven freighters (three Boeing 747-400Fs, two 747-400ERFs and two 777Fs) and now serves over a 100 destinations in 63 countries on six continents. In the 200 9-10 fi nancial year, Emirates SkyCargo carried 1.6 million tonnes of cargo, an improvement of 12.2 percent over the year’s previous 1.4 million tonnes. Cargo revenue, at AE D 6.3 billion (U S$ 1.7 billion), including mail and courier , contributed 17.2 percent of the airline’s total transport revenue. In June 2009 Emirates SkyCargo took delivery of its second Boeing 777F. Scheduled freighters now operate to 20 destinations. Over the next few years, the airline will welcome 203 aircraft to its fl eet, including two B oeing 777Fs and five Boeing 747-8Fs (with options for a further four 777Fs and fi ve 747-8Fs). T he total value of aircraft now on its order books is US $67 billion. In 2010, the carrier has already won a clutc h of awards: ‘Cargo Airline of the Y ear’, ‘Best Cargo Airline to the Middle East’ (22nd year running) and ‘Best All Cargo Airline’ (3rd year running) at the prestigious Cargo Airline of the Y ear Awards 2009 from Air Cargo News. It was bestowed the Gold Award at the Annual Air Cargo Excellence A wards at the Iat a World Cargo Symposium in V ancouver, Canada, as well as Cargo Airline of the Y ear presented by...
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