This paper is an analysis of the effect of rising oil prices on the air cargo industry
Written in 2006; 3,520 words; 18 sources; APA; $ 98.95
Paper Summary:
This paper explains that, even though oil companies are credited with most of the blame, reasons contributing to the recent high rises in oil are such factors as the increasing demands for oil products in Asia, Russia's primary oil company's recent failure, oil producing companies' political instability, terrorism and fears regarding military tactics. The paper points out that the air cargo industry is adversely affected by rising oil prices because fuel accounts for between 20-30% of their operational costs. The paper relates that these fuel costs for the air cargo industry also are affected by the airports that sell the fuel, the companies that supply the fuel to the airports and the government of the involved country. The paper includes a table, illustrations and the survey.
Table of Contents:
Introduction
Predicting Problems
Reasoning Factors
Best/Usual/Worst Scenarios
Projections
Present Concerns
Basic Factors
Energy Costs
Short and Long Term Effects
Conclusion
Locating Bright Spots In and On the Not So Bright Side
Effect of Rising Oil Prices on the Air Cargo Industry
Survey
From the Paper:
"Questions are regularly contemplated and discussed whether terrorists' attacks on September 11, 2001 could be an additional factor contributing to decreases in the air cargo's profits. Lufthansa Cargo, however, with huge freighter fleets had already begun to decease their company's capacity before 911, responding to economic fallout. Following the 911 disaster, nevertheless, most airlines reduced their capacity by 10 -15 percent. In addition, a majority of carriers began to impose security surcharges to upset counter-terror actions."
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