Department of Maritime and Logistics Management Essay - 1

Department of Maritime and Logistics Management - Essay Example Businesses tend to opt for air cargo due to quick and safe on time delivery. The cargo handling and processing procedure is critical as goods need to be transported elegantly and safely (Wensveen, 2012,p.14). Airlines throughout the globe ensure to deliver best cargo services as revenue generation from cargo is more than passengers’ shipment. The purpose of this paper is to elucidate about the acquisitions and deployment of aircrafts into the fleets. The key factors involved in the aircrafts addition to the fleets have been elaborated. Furthermore, the air cargo handling procedure along with the difference from handling passengers and luggage is demonstrated. The intention remains to present the entire view about the airlines logistics management. Acquisitions and Deployment of Aircrafts: The addition of aircrafts into the fleet is a matter of serious concern for the organization. Several elements need to be examined before taking this step. Initially the need and requirement paradigm is explored. The strategic business units dig in that either it is adequate and necessary to pursue for this step or not. The organizational expeditions are certainly expanded by opting for the option of adding aircrafts into the fleet. The mergers and acquisitions in the airlines industry have not worked out pretty well in the past. The only successful merger was of Air France with KLM in 2004, making it Air France KLM. The newly merged company escorted for adding new aircrafts into the fleet but that decision was made after one year operations collectively (Gudmundsson, 2010, p.48). The management of aircrafts previously became an issue for the organization but they sorted it out by inaugurating information systems into the firm. All the operations were virtually connected and scheduling of flights and delivery of cargo was certainly more transparent and viable. After getting heads up in the respective area, Air France KLM went to the addition of aircrafts into the fleet (Romano, 2012, p.23). Some of the key factors that need to be considered airline’s decision in adding aircrafts into the fleet are given below. Organizational Status: The airlines need to determine that either it is internally strong enough to deploy and acquire aircrafts into the fleet. The strategic business department of the airline needs to watch this matter deeply and scrutinize that either is the organization capable to handle the load. The requirement aspect wants to be covered too. The addition of aircrafts into the fleet without acknowledging, that either airlines market position is stable or not is vital. The organization propensity and tendency is crucial too. The addition of aircrafts requires expansion in staff and more finances for the organization. Some of the airlines go for acquisition and deployment step without working on these steps (Borken-Kleefeld, Berntsen and Fuglestvedt, 2010, p.5702). The precise understanding of the magnitude of coming events is imp ortant in the airlines industry. There are several external and internal factors that affect business endeavors of airlines industry, so it is eminent for the firms to concisely acknowledge the organizational status before stepping into something deep. The customers and business requirement is secondary issue but it is of much more significance. Airlines should have well equipped technological setup that would create synergy between the