Airline Cargo Analysis

In: Business and Management

Submitted By bk2025
Words 1099
Pages 5
Brian Kim
April 18, 2012
Airline Cargo Regional Analysis
Southeast Asia is a region that has been growing in terms of economics and in turn that includes the amount of exports and imports moving via aircrafts. They have a major hand in the international trade market that has to provide for a large demand. This includes everyday commodities such as cell phones, computers, home appliances, etc. South Korea has been a bigger player in all the trade between Asia and North America. These products are sold all around the world and they need the demand to grow if they want their country to survive. The dependency is obvious due to the imports of natural resources as they have minimal amounts in their country.
In the past decade South Korea has been able to see large growth in their cargo that move in and out of the country. Their biggest airline is Korean Air and they handle a large portion of the freight. Even with all the positive signs for their cargo fleet, they are facing obstacles like every other airline such as the rising cost of fuel. They need to compete with airlines such as Cathay Pacific, China, Japan and others which are all trying to find ways to make Air cargo profitable. The problem is that almost all the crude oil used in countries such as Japan and Korea are imported via ships. This automatically makes it even more expensive for the oil refineries than countries such as China and America, where oil can be produced. The 4 dollar average Americans pay per gallon seems a little better when you compare it to about 2 dollars per liter. This means that you would pay about 7.80 for a gallon of gas. You take that number and see how many times more it cuts into the airlines revenues and profits.
One of the major exports from Korea is the electronics. This is anything from the cell phones, tablets to home appliances such as your washer and dryer. The two…...

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