The Numbers Game

Published: Tuesday, November 8, 2016

The year is about to end with the numbers predominantly
determining where a company is headed and how reforms,
plans and strategies would figure to achieve corporate goals.
The sudden global slump on oil prices has impacted every
business on the planet and the air cargo industry is no

Lower fuel cost has essentially encouraged the return to the
market of less fuel efficient aircraft that led to increasing the
global air freight capacity despite a slowdown on international
commercial cargo activities.

Cargo volumes in the Middle East weren’t badly affected as
others but the circumstances had put a dent on its performance.
It posted a 6.5 percent growth for the first half of the year, based
on data from the International Air Transport Association—paling
in comparison to its record 14.3 percent growth for the same
period last year.

AITA projects the global cargo revenue to drop to $49.6 billion
this year from $52.8 billion in 2015.

The situation is forcing many companies to thoroughly examine
their performance and strategizes for more realistic goals.
While caution is how most companies approach the situation,
there are some who make bold decisions, with high hopes of
reaping benefits in the long run.

Take for instance, global online retail giant Amazon’s decision to
operate its own air cargo fleet rather than enjoin the services of
major couriers to deliver ordered products across the globe.

Under a partnership agreement, this long-term cost-effective
solution to hasten delivery time yielded 40 planes for this USbased
company. Air Cargo Update examines this on this issue.
And so is the push for more automation or the use of robots in
logistics and other related industries, which some fear may drive
more skilled workers out of job.

Robots with artificial intelligence will also be a familiar face in
airports, tourist spots and neighborhoods in Dubai as the
government opts to utilize them to provide security and easy
access to information for both residents and tourists. We have
this story for you on our Technology section.

And of course, we have the latest news and features on logistics,
air cargo, airlines, aviation and allied industries, from across the

Gemma Casas