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The Important Role Air Cargo Plays in the Global Supply Chain

cargo

The Important Role Air Cargo Plays in the Global Supply Chain

For over a century now, air cargo has played a crucial role in getting time-sensitive and high-value shipments from one point to another as quickly as possible. The world’s first cargo flight was in 1910. Since then, air cargo and private cargo shipping have played a crucial role in transporting time-sensitive and high-value goods internationally and domestically.

Over the years, air transport has also proven to be a key “connector” between the manufacturers and the consumers. In the midst of the COVID-19 pandemic, shipments that took too long to get from one point to another were quickly transported via air.

According to the International Air Transport Association (IATA), air cargo has played a pivotal role in delivering much-needed medical equipment (including repair components and spare parts) and medicines.

Air cargo has also kept the global supply chains functioning for time-sensitive materials. This was carried out by utilizing cargo capacity in passenger aircraft, dedicated cargo freighter operations, and relief flights to affected areas.

IATA added that airfreight had been used to transport a staggering $6 trillion worth of goods annually. This represents at least 35 percent of all global trade by value. However, it is less than 1% of the trade when measured by volume.

The imbalance between value and volume can be attributed to the fact that most of the products that are shipped via air have a high value. Within a given 24-hour period, air cargo providers around the world have:

-Utilized over 100,000 airplanes

-Transported over 20 million parcels

-Shipped a whopping $18.6 billion worth of cargo

Economic Benefits of Air Transport

The air transport industry has a massive and significant impact on other industries and is also considered a growth facilitator. It also affects the global economy’s performance by enhancing the efficiency of other industries across the entire spectrum of economic activity. This is also referred to as “spin-off” or catalytic benefits.

Air transport helps facilitate world trade.

Air transport has allowed countries to participate in the global market by giving them access to primary markets and allowing globalization. Air transport also helps countries to specialize in activities where they have comparative advantage. It also helps facilitate trade with countries that provide other goods and services.

Air transport has been indispensable in the tourism industry.

Air cargo is especially useful for tourism on the island and remote destinations. Tourism directly supports employment in airports and airlines. Spending of tourists and visitors that arrive by air also creates a significant number of jobs in the tourism space.

Air transport boosts global productivity.

Improved air transport links have been pivotal in helping global markets expand. As a result, companies can exploit economies of scale better. This reduces cost dramatically and, as mentioned earlier, allows companies to specialize in areas of comparative advantage.

As more markets open up, air services can introduce companies to more competition and encourage them to become more efficient in the process.

Air transport improves supply chain efficiency.

Countless industries utilize air transport to reduce delivery times as part of the “just-in-time” delivery systems. This will reduce costs and enable companies to deliver products to customers reliably and quickly.

Air transport encourages effective collaboration and networking.

Air transport has been helping promote collaboration and networking among companies from different parts of the world. An excellent transport infrastructure also encourages companies to spend more on development and research.

Final Thought

As the world continues to deal with the unprecedented impact of the COVID-19 pandemic, air transport will continue to play an increasingly vital role in keeping the world’s supply chains running smoothly.

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Melissa Hull is the Content Marketing Strategist for Aviation Charters, a West Trenton, New Jersey-based private aviation company that provides on-demand aircraft charter, aircraft management, and aircraft acquisition services. Aside from her passion for writing, she loves to travel and read espionage books.

Transport and logistics

How to Attract and Retain Young and Talented People in Transport and Logistics

When people talk about transport and logistics, they think it is all about moving goods. However, they are wrong. Transport and logistics are not about the goods, but about the people – people are the driving force behind this industry. Yet, those same people, or to say, the lack of those people, are the ones posing the colossal threat to the industry because they keep leaving. Thus, it goes without saying that the industry needs to step up to attract and retain young talented people in transport and logistics. It is time for a ‘make-over.’

So, what is happening to the transport and logistics industry? It suffers from a lousy image! Young generations consider working in this sector undesirable. And, as a result, the industry is faced with an existential crisis – the current workforce is aging, and there is no one younger to replace them.

You Need to Show Trust and Kindness

If you want to attract young talented people not only in transport and logistics but in every possible industry out there, the first thing you need to do is show trust and kindness. According to a recent study, 95% of the young people examined said that mutual respect and trust are the most critical aspects of a working relationship.

The work atmosphere is essential. Finding happiness at work must be possible in all sectors and all industries. Thus, transport and logistic managers must learn how to lead the way properly. They must trust their workers and take the best of their intellect and creativity while giving them a voice. Caring for workers and recognizing all their contributions is the thing that will help you first attract, and afterward retain, young and talented people.

Offer Training and Development Opportunities

Most jobs in transport and logistics are a part of a deskless workforce. While most people say that they prefer this kind of job position, one that will not force them to sit in the same spot for 8 hours, logistics and transportation managers still have to do a lot more to attract young talents.

They can do that by finding a way to conduct training lessons differently. Instead of having courses in the classroom, teachers, leaders, and managers should take the trainees outside. Going to the place where the action happens can provoke excitement and show how interesting this job can actually be.

Moreover, in order to retain workers, they must be given constant training and development opportunities. Luckily, there are many ways to improve training and achieve measurable business results. For instance, training can be mobile – young generations are tech-savvy and will appreciate this. Or, you can organize some training activities during work getaways or team-building events where employees can talk to their supervisors and learn from the best.

Allow Flexibility at Work  

Flexibility at work is fundamental for all young workers out there. This is a thing that will both attract and retain young talented people in transport and logistics industry. Create a business culture where integrating professional and personal is painless.

All workers, and especially younger ones, prefer a job position where work-life balance is possible. Many parts of transportation and logistics job positions can be done from home. So, allow that possibility! Moreover, create more flexible schedules where possible. Give your workers a sense of freedom, and they will stay.

Offer a Relocation Package for Foreign Workers 

If finding professional and experienced people in transportation and logistics or finding people willing to learn this new skill was futile and unsuccessful, consider widening your candidate pool. The only way to do that is to look for talents from other countries. If you offer a good salary and the previously mentioned flexibility, trust, kindness, and an opportunity to grow, you will have no trouble finding people you need.

However, keep in mind that people from other countries may find it difficult to relocate, mainly because of financial reasons. So, offering a relocation package is the way to go. A relocation package, among other things, includes hiring a moving company, which will tend to all your employee’s needs. By doing this, the pool of potential workers you will attract will rise.

Suggest a Fair Salary, And Be Willing to Negotiate 

Of course, one of the first things potential employees see when they look at the job position is the salary. And, many people think that a high salary is a thing that attracts workers the most. But, they are wrong. Young generations are more interested in getting fair and transparent wages. That is the main thing that will keep them on board.

All workers will be satisfied as long as their salaries seem adequate and up to standard. However, employers should always keep an open mind and be willing to negotiate with their employees, both current and potential future ones. This is how they show the previously mentioned trust, kindness, and respect. Moreover, giving the employees an opportunity to grow and a promise of a higher salary will also improve the company’s efficiency and employee productivity.

If you do your best to attract and retain young talented people in transport and logistics, you will completely change the image this industry has been struggling with.

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Jennifer Delaney is freelance content creator for companies like Heart Moving, NYC. Relocation and logistics topics are her specialty, given that she had worked in for a moving company before she decided to embark on a different career path. She spends her free time tending to her garden and playing with her two kids and a dog.

jet

How Tech and Innovation has Propelled the Private Jet Industry to New Heights

Do you need to book a last-minute private jet flight from your phone using cryptocurrency?

Leading private jet companies like Monarch Air Group have understood that investing in technology in this shared economy is instrumental to serve a technology-driven pool of customers. As President David Gitman stated, “having the capacity to adapt to customer expectations and behaviors will lead to higher levels of trust and satisfaction.” In other words, being able to meet the needs of today’s dynamic and fast-paced environment is paramount for the long-term success of the entire private jet industry. And technology is the key for that relationship.

The Fort Lauderdale-based firm was one of the first in the industry to accept digital currencies to book their charter flights. This came as a response to their client’s needs, an extremely fast-shifting group of customers. “The days when private aviation only served large corporations and multimillionaires are long gone. Today, with the rise of the millennials and the need for more reliable and safe ways of transportation, private aviation is experiencing a true shift in demand. Adapting to those new requirements is our commitment”, said Gitman.

From market research to booking apps and instant quoting systems, the business aviation market is using all available tools to understand what drives clients towards their service. Do they travel for business or pleasure? What is the best way to stay connected with each client and receive feedback? All these questions give relevant information to improve customer service and satisfaction and make each passenger’s flight highly tailored and unique.

A fast-paced environment

The flexibility and agility of private aviation are also represented in the capacity to adapt to new technologies and innovations. Tailoring every aspect of the experience to the customer and making passengers really feel in control of their flight process defines private jet flight. Choosing the departure and landing point, the aircraft, in-flight amenities, ground transportation and method of payment is only possible thanks to technology.

Although planes are fast, time efficiency can be affected if the right equipment is not in place to serve the passengers. Innovative live quoting tools, instant bookings, and cryptocurrency-based payments lead the way today. Monarch Air Group launched a unique charter cost calculator to provide users a faster and easier way to receive a quote. Once users are prompted to select, they can decide on an option depending on the distance and desired aircraft type. Upon making their selection, the user’s flight request is then submitted to a group of Account Executives who will assist clients in finalizing their travel plans in just minutes.

This technology-driven booking functionality enables customers to make all their travel arrangements on their phone, also providing text or chat, video conference, and even video messaging features to connect with the client.

High expectations

Entrepreneurs are gaining relevance within this segment and expect charter companies to move as fast as their businesses. They need the aircraft ready after they book it through the smartphone in their pockets and do not want more steps in the process, like confirmation phone calls (they prefer text, video, or even email), and possible last-minute setbacks. They also have a need for a quiet in-flight experience. Their aircraft must be equipped with the latest technology to provide a working space along with a relaxed atmosphere.

Their fast-paced world is well paired with private air travel. Time efficiency is this sector’s main asset. Take-off in minutes after arriving at the terminal with no check-in lines and landing at the private airport that is closest to the destination. Private aviation adapts completely to a business environment where time is money.

“The need to exceed expectations is paramount as well as understanding the dynamic trends developing at unparalleled speed. The technology within this industry is second to none, from a user standpoint (booking and payment) and a safety and maintenance perspective. Accounting all these variables will help us deliver an all-around exceptional service”, concludes Gitman.

Modern aircraft and top-notch facilities are important, although an agile business model will be the difference-maker in today’s economy. Technology, innovation, and flexibility will. Paying for a flight on the spot with cryptocurrencies, credit, or debit cards are solutions driven by technology, although remaining flexible to the client’s requests and working towards solutions instead of excuses is driven by superior customer service; pairing both aspects will lead this industry to achieve new heights.

aviation

Global Private Jet Predictions after COVID-19

The global pandemic has changed the way we travel. Concerns regarding the hygiene of commercial aircraft and how crowded terminals may play a role in the transmission of the virus have taken the aviation industry by storm. Today, six months after the initial reports of coronavirus cases in the western hemisphere, there are enough trends to project how the aviation industry will behave in a post-pandemic environment. Private air charter solutions company Monarch Air Group weighs in.

Change of perception for private aviation

Before the coronavirus pandemic, the majority of the population still perceived private aviation as a luxurious means of transportation reserved only for the wealthy. With a change in travel restrictions and growing safety concerns, this segment has started to serve a new pool of travelers seeking a reliable and secure way to fly, far away from the concerns of a commercial flight. It is possible that not all of them will continue flying private when they find out commercial aviation is safe once again (whenever that might be in the future), although some of them might continue flying at least on an occasional basis. This change in perception only benefits the industry as a whole.

Turboprops have demonstrated their value

Linked to the previous topic, turboprops, as the most cost-effective option for a private flight, has been the go-to option for most new travelers in this segment. Especially for shorter routes of less than 3 hours, single and twin-engine turboprops serve as the perfect transition from commercial aviation. Passengers get to use a private terminal, they escape the crowded airports, they get to choose who they travel with, enjoy a comfortable aircraft and almost at half the price than a small jet. Turboprops like the Pilatus PC12N and the King Air 350i have demonstrated their real value as private air workhorses and will continue to do so in the foreseeable future.

Diversification as a safety net

The flexibility of private aviation has been a coveted asset worth paying for. The possibility to depart from almost any airport and to choose from thousands of different aircraft at any moment is second to none. Nevertheless, the global pandemic has demonstrated that private aviation also provides flexibility to the global travel industry, and not only to the private passenger, having served governments with repatriation flights, humanitarian missions, and cargo charters. This diversification has also allowed the different players in the industry to maintain the number of operations and flight hours, proving that the flexibility of this market goes way beyond luxury.

Carbon footprint discussion

Private aviation has been publicly scrutinized due to its carbon footprint compared to commercial aviation, even though leading private air companies have implemented programs to offset the carbon emission. While the amount of fuel burnt by a private jet is a lot less than a commercial aircraft, and therefore CO2 emitted is also a lot lower, private planes carry fewer people, sometimes even one per route, meaning they’re considerably less efficient, and the personal carbon footprint of passengers who choose to travel this way is much higher. The previous discussion has come to a standstill amidst the coronavirus pandemic (and probably will continue this way), because the main concern today is maximizing safety (avoid infection), while maintaining high levels of efficiency, something that commercial aviation cannot guarantee in the near future.

Full recovery of the market

While diversification is a great asset, the core demand of this industry is generated by business trips, sporting events, weddings, and overall leisure. Although Monarch Air Group has reported a sustainable growth in demand during the last two months, until the aforementioned events don’t regain full shape, it is hard to determine when full recovery of the market will occur, because they all depend on local restrictions.

Private aviation has passed the test imposed by COVID-19 by demonstrating its diverse pool of services, its safety and cost-efficiency, demystifying what so many commercial passengers thought before experiencing this service, positioning itself as a more approachable and accessible means of transportation. It is safe to say that private aviation will have a higher and more diverse demand than before the outbreak, fueled by new clients that have recognized that flexibility, safety, dependability, and superior customer service doesn’t necessarily mean a higher price.

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Established in 2006, Monarch Air Group is a leading provider of on-demand private jet charter, aircraft management, and long-term aircraft lease. Among Monarch’s customers are Fortune 500 corporations, leading entrepreneurs, Government agencies, and world-leading NGO’s.

LATAM

Delta-LATAM Airlines Partnership Increases Connectivity and Options for Customers

Delta and LATAM Airlines confirmed a strategic partnership this week, ultimately combining strengths and bringing an increase in overall connectivity between in North America and Latin America. This partnership represents added opportunities within the existing partnerships such as extending networks and each company’s global presence. By adding value and optionality to their Americas customer base, both Delta and LATAM are enabled to increase customer destinations while combining strategies for top-notch passenger service.

“This transformative partnership with LATAM will bring together our leading global brands, enabling us to provide the very best service and reliability for travelers to, from and throughout the Americas,” said Ed Bastian, Delta’s chief executive officer. “Our people, customers, owners and communities will all benefit from this exciting platform for future growth.”

Beyond the customer impact the partnership creates, opportunities for investment and savings will also play a key role in offering support, free cash flow, forecasted debt reduction, aircraft acquisitions and more. Delta confirmed a $350 million establishment investment in addition to a $1.9 billion investment for a 20 percent stake in LATAM through a public tender offer at $16 per share.

“This alliance with Delta strengthens our company and enhances our leadership in Latin America by providing the best connectivity through our highly complementary route networks,” said Enrique Cueto Plaza, chief executive officer of LATAM. “We look forward to working alongside one of the world’s best airlines to enhance the travel experience for our passengers.”

To learn more about this strategic partnership, please visit ir.delta.com OR www.latamairlinesgroup.net/investor-overview for webcasts recapping partnership details. 

Source: Delta Airlines