The impact of fluctuating oil prices on air cargo industry: a case study of Das Air Cargo
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Date
2006-10
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
The researcher noticed that while demand for global airfreight was increasing with continual globalization, many air cargo companies were being forced out due to the fluctuating oil prices.
Through interviews, questionnaires, personal observation and secondary data, the researcher found out that, the major problem encountered is ever increasing price of jet fuel, which accounts for 20-30% of the operational cost, continue to put pressure on profit margins of cargo airlines.
She also observed that the oil crises is most likely to be a permanent problem for the air cargo industry and not just a temporary one, and that it was time the industry came up with strategies to overcome this problem and improve on their operations and efficiency, in order to maximize profits.
This is evident because, while in the midst of the oil crises and its effect on air cargo industry, there are some companies that have managed to excel and take advantage of the equally increasing globalization. It is these optimistic companies that give the industry some ray of hope.
The researcher drew upon findings some recommendations which can be used to curb the situation.
Description
A research paper presented in partial fulfillment of the requirement for the award of Bachelors degree in International Business Administration, of Kampala International University, academic year 2002-2006
Keywords
Oil prices, Air cargo industry, Das Air Cargo