Industry Analysis & Industry Trends
The performance of the Freight Air Transport industry relies on transporting time-sensitive goods and valuable items. Merchandise trade volumes were significantly down during the recession, which hurt the industry. Industry revenue is expected to decrease by 2.0% per annum over the five years through 2011-12. The most significant contraction occurred during 2009-10, when revenue fell by 13.4%. This happened during the heart of a recession, as businesses ran down inventories and trade plummeted. During 2011-12, a recovering economy will result in a slow increase in cargo volumes, with industry prices gradually recovering. This will lead to forecast 3.8% growth in industry revenue, to total £640.2 million.
After suffering a 3.6%.. purchase to read more
Industry Report - Starting a New Business Chapter
The Freight Air Transport industry has high barriers to entry. These are mainly associated with the capital costs involved in starting a business, licensing requirements and the need for skilled staff. The level of investment required to enter the market is dependent on the size of operations, but investment is generally high as freighters are expensive. As capital requirements are high, securing finance for such a venture may be difficult, particularly when credit markets are tight.
Air transport requires a high level of skilled labour in terms of pilots and engineers. Securing skilled staff can be difficult when the labour market is tight... purchase to read more