Transportation Management
The transportation industry is closely linked to the cycles of the economy. If the economy is on top, the transportation companies prosper and, on the contrary if the economy hits the bottom, many companies fail. The reason for i... moreTransportation Management
The transportation industry is closely linked to the cycles of the economy. If the economy is on top, the transportation companies prosper and, on the contrary if the economy hits the bottom, many companies fail. The reason for it is that the demand for transportation services is created by the customer demand for goods and services. Therefore, a slump in the economy has a crucial influence on the transportation industry, in particular airline companies. For instance, because of the downturn, customers choose cheaper transport means, other than air express. Thus, the airlines companies have faced the problem of increase in general expenses and decrease in income due to high fuel costs and reductions in flying.
In order to recover and remain as profitable as possible, the airline companies have to minimize their transportation assets. Hereby, there is a strong relationship between the capacity planning and cost efficiency. According to Gudmundsson, “extraordinary events and economic cycl... less
