Category: Transportation

ATA SmartBrief is a United State Company associated with airing noteworthy news concerning the U.S’ airlines and Aviation companies. The following is the prime news highlighted by the company in the second week of October (9th – 14th). The news is grouped into three main categories; Company Watch, Inside Aviation and Energy Bulletin (ATA SmartBrief, 2011).

The vital news highlighted on 10/9 was about how American Airlines taps TIMCO Aviation services for 757 works. It stated that there would be provisioning of extreme repairs for American Airlines on four Boeing 757 aircraft by the TIMCO Aviation Services.

Andrea Huguely, who is the spokesperson for the airline, stated that the Airlines have to acquire a powerful strategic advancement into its upkeep planning requirements. This was reported in Tulsa world, Okla. On the same day, there was a report from Bloomberg on the contract talks between American Eagles and the pilot union stall.

On 10/10, AMR proclaimed capacity reduction and plane retirements for American Airlines (ATA SmartBrief, 2011). AMR is planning to reduce the capacity of these airlines to 3 percent for the rest of the year 2011. This is due to the doubtfulness of the company’s economic environment caused by high fuel costs.

Moreover, AMR is also planning to issue extra pilot retirements all through the fourth quarter. Still, on the same day, Canada was preparing for planned strike by Air Canada flight entourages, since the government of Canada was dissatisfied with the union’s decisions (ATA SmartBrief, 2011).

Bloomberg repeated this report on 10/11. Another report on the same day was about concerns raised by Southwest Airlines due to the changes in policy.

The vice president of marketing and strategy at the frog firm, Adam Richardson stated that his favorite carrier was the Southwest Airlines, but he did not concur with some current changes in the Company’s policies. One of the policies that he did not agree with was the new check-in-procedure and recurrent-flier-encode. Harvard Business Review printed this report.

On 10/12, the ATA SmartBrief had news concerning the regulators’ approval for slot swap between the U.S. Airways and Delta. The Delta Airlines will achieve management of half of the flights at the LaGuardia Airport in New York through operational landing slots and takeoffs with the U.S. Airways at Ronald Reagan Washington National Airport (RRWNA).

The federal Controller approved that slot swap was implemented. In other words, Delta Airlines are targeting to own the New York market, and that is why they are doing everything possible to reach it. Helane Becker who is a Dahman Rose & Co. analyst issued this statement (ATA SmartBrief, 2011).

Moreover, a report by Nasqad.com asserted that the United Continental Holdings’s CEO, Jeffrey Smisek is concentrating on changing the disputes of joint cultural amid carrier with its pilot coalition.

He added that it is extremely easy to talk about culture, but it is very difficult to take action on it. Smisek also uttered that the coalition airline was not ready to decline any moment soon in its journey bookings, in spite of the delicate economy revival.

On 10/13, AMR reports advancement of earnings had to be done on Monday that followed. AMR Corporation, which is the third-largest airline machinist in the U.S., showed a positive gain viewpoint for the third quarter. Psychoanalyst personnel foresee that this could direct the stock of AMR to rise about $5.65 for every portion (ATA SmartBrief, 2011).

However, another quarter of defeat may occur as a result of fuel costs and other cost issues despite the expected growth in revenue. On 10/14, SmartBrief highlighted the news concerning Retirements where the union meeting could denote American nears the labor deal.

A huge number of pilot withdrawals directed the American Airlines to secure a crew base in San Francisco and minimize fourth-quarter seating by about 3 percent. The Allied Pilots Association proposed that America might be in the process of signing another agreement with the pilots after five years of compromise (ATA SmartBrief, 2011).

Another report by the Dow Jones Newswire and the Wall Street Journal was about the attendants of the Air Canada who were stroke with undue labor grievance. The Air Canada, together with the Canada Industrial Relations Board (CIRB), blamed the Canadian Coalition on the bad-faith negotiating public workers.

Note that the Coalition stands for 6,800 airplane employees, and the grievance was reported few hours after Lisa Raitt, the Labor Minister, had chucked the airline’s employees from striking. The Airline stated that the coalition had reached a deal in bad faith, since its membership had refused two hesitant contracts supported by coalition leaders.

There was some news concerning the Aviation department and these was as highlighted here. On 10/9, there was news about how the Airlines were reducing their paper use, where they are putting most of their postings, using digital boarding passes and flight electronic version manuals.

However, since the system has not fully adapted to digital versions, the paper use is still on, although at a reduced manipulation. Victoria Day, who is the Air Transport spokesperson, gave the statement (ATA SmartBrief, 2011).

This was a report by Pittsburg Tribune. On 10/10, UPS Airlines public relations manager stated that the Brookley Aeroplex employees have been offered a movable sorting facility, where they are now able to work anywhere else in the company because it has plans to close down the Brookley operations.

She added that the modification would enable the company to identify vital operational reserves (ATA SmartBrief).

This was a report by the press-Register. On 10/11, which was on Wednesday of that week, there was reporting that the California aerospace team was targeting to modify its commercial aircraft departures. The team situated at the Polytechnic State University in California was striving to minimize the noise, and speed up takeoffs of commercial airplanes.

NASA gave out a token of $4.5 million grant to establish an aircraft that would improve commercial air voyage. The following day which was on 10/12, the Federal Aviation Administration (FAA), rewarded Boeing $3.1 million for its Green Skies Inventor 2 (ATA SmartBrief, 2011).

Neil Planzer, Boeing personnel, stated that Green Skies 2 design signified another vital achievement while Boeing helped reinforce the implementation of NextGen. This was a report from Air Transport World.

Moreover, the Association Press, as well as CNN, reported on Thursday 10/13 that there was a likelihood that American Airlines encounter increased in MRO prices.

The Original item producers, who were becoming more influential with minimal competition in the maintenance field, could affect the bottom line airplanes, a statement given by the Maintenance, Repair, and Overhaul Europe in the 2011 meeting.

On Friday 10/14, the company highlighted that the present report by the Government Accountability Office discovered a jagged rise in air traffic Controller faults and occurrences encompassing illegal planes, people and vehicles on runways (ATA SmartBrief, 2011).

The regulators’ errors that permitted planes to take off too close to each other simultaneously have almost doubled in the past three years, although the FAA stated that the rise was the outcome of enhanced reporting. Nevertheless, the report by GAO denoted that the most significant occurrences, which nearly resulted in a crash, went down to 6 in 2010 from 53 that was reported in 2001 (ATA SmartBrief).

Still on the same day, City Business Journals reported that, on Thursday, the United Airlines proclaimed that Boeing had completed construction of the first 787 Dreamliner carriers, and the firm anticipated it would be the country’s first carrier acquiring a jet well referred to as the state-of-the-art jet.

The aircraft was developed using light complex materials and that it had been handed over to the All Nippon Airways of Japan during the last month. Continental Airlines, as well as United Airlines, have each requested 25 of the 787 jets. Note that the two Air companies are planning to merge.

The Plain Dealer (Cleveland) published news concerning the Energy Bulletin. The first bulletin on this was produced on 10/9 where Airline industry sloped up efforts to establish biofuels. Airlines on the globe have anticipated to create around 220 million tons of fuel this year producing up to 650 million tons of carbon discharge (ATA SmartBrief, 2011).

Therefore, the industry is struggling to come up with biofuels because the price of fuels has continued to rise and coold compel firms to minimize emissions. On 10/10, the ATA SmartBrief reported that Bilal Borman, who is a NASA researcher, together with his workmates were rising plants rich in oil hoping that they would enhance production of aviation biofuels.

Such first-generations have been in use in motor vehicle industry for a long time, but these fuels have not been an alternative fuels for airplanes (ATA SmartBrief). Besides, The New York Post reported on the same day that Columinist Patrick Michaels, who is a superior individual in environmental learning at the institute of Cato, illustrated how Europe prepared to impose a tax on planes flying into and outside its airports.

The reason given by Europe concerning the issue is that global warming is extreme, and in order to take full responsibility, they have to tax the planes. The Aviation and Space Technology personnel reported on 10/11 that the worldwide airline industry and the governments’ exterior to the European Union have presently been increasing their exertion to prevent enclosure in the emissions-business systems of the European Union.

The association of air transport conveyed a contest against the system that a European Union judge advocate presently authorized that the emissions-business system had a legal legislation.

On 10/11, the company reported that LanzaTech and Virgin Atlantic have joined hands to establish a low-carbon airliner fuel that can be helpful in the carrier aircraft of the passengers. The two firms are planning to develop a skill that will capture the waste gases from the steel industry.

The gases are to be captured, uproar and chemically transformed through the technology of biofuels obtained from Sweden and to be used as jet fuel.

ATA SmartBrief reported on Wednesday 12th that United Airline and Boeing associated to emphasize modifications in passenger air travel that were minimizing the jet discharge. For instance, the organization is effectively developing biofuels to reduce fuel expenditure (ATA SmartBrief, 2011). This was a report by Chicago Tribune.

Moreover, there was news concerning the Virent Energy Systems which is said to be generating 100 percent of renewable jet fuel. The system developed a plant-centered jet fuel which is 100 percent renewable and has successfully gone through a range of examination by the Air Force Research Laboratory.

“These AFRL outcomes are amusing since they illustrate the potential of Virent Energy catalytic procedure to develop renewable plant-centered jet fuel that can be excellent in comparison to the petroleum-based jet fuel requirements at 100 percent concentration” (ATA SmartBrief, 2011) Aaron Imrie who is the manager of commercial fuels at Virent said.

On 10/13, the company highlighted news that the production was evaluating the significance of biofuels to aviation. A collection of insiders from aviation was congregated in Copenhagen Denmark to talk about the role of the industry in advancing clean energy.

All these steps are taken towards production of biofuels. This is because several individuals believe that aviation could gain from it since it has minimized fueling points in comparison to other transportation modes. This was a publication by the BioFuelsDigest.com.

Reference

ATA SmartBrief 2011, American Airlines, Air Transport Association. New York. Available from: https://www.smartbrief.com/ [ 15 October 2011].

The automotive industry is one of the most lucrative industries in the world. The marketing aspect was as simple as selling a well-built car and then provide a decent after-sales service. But after a short time, buyers became more sophisticated and as a result auto manufacturers had to develop more effective marketing strategies to succeed in a highly competitive world (Heath, 1997).

Customers are no longer interested in one type of car; they demand to have choices such as cars with different features and cars that are energy efficient. Auto-manufacturers had to hire consultants to understand what the market is looking for. These consultants help them understand the target market and provide insights that could help develop products that can make the company profitable (Hutt & Speh, 2010, p.64)

The purpose is to anticipate the needs of the consumers and then develops a car that can provide the best comfort using the best technology at a competitive price (Hutt & Speh, 2010, p.64). Therefore, auto-manufacturers will grab every opportunity to market their cars and as a result they are more than willing to participate in a prestigious event like the Geneva Motor Show.

The purpose of this essay is to examine the benefits of PR and RM when it comes to the promotion of an international event. At the end of the essay it will be pointed out that the PR and RM activities evident in the Geneva Motor Show was considered effective.

The success of the Geneva Motor Show can be attributed to the organiser’s expert use of Public Relations (PR) and Relationship Marketing (RM) strategies.

The best way to appreciate public relations is to view it from this perspective: “Public relations creates awareness, educates, and influences public opinion, promotes and protects reputations, and guides organisations to communicate change and to re-examine the values and ethics of their operations” (James, 2006, p.2).

A related concept to PR is relationship marketing. It is also about communication but relationship marketing is more than informing the public and its logical base can be understood through the following definition: “Communication adapts the relationship that is required for the committed trading that is necessary to produce mutual enrichment” (Varey, 2002, p.47). The following pages provide an overview of the event and detailed assessment of how the organisers utilised PR and RM strategies.

Before going any further it is important to have an overview of the event, “the Geneva Motor Show is held annually at the Geneva Palexpo convention centre and is organised by the Organisation Internationale des Constructeurs d’Automobiles” (Motor Trend, 2011, p.1).

The purpose of the event is to provide a venue for exhibitors such as carmakers, manufacturers of automotive products, car tuners, and car dealers to showcase their various products and services. But the true stars of the show are the production and prototype cars that came from the factories of legendary carmakers like Lamborghini and Ferrari to mainstream automakers like Ford, General Motors, BMW, Hyundai, Honda, Fiat and others (Biztradeshows, 2011).

The secondary purpose of the event is to provide a neutral ground for various stakeholders of the automotive industry to gather and interact with each other. There are at least five major stakeholders in this event and they are: a) carmakers; b) car dealers; c) sellers of various automotive-related products and services; d) the consumers; and e) media practitioners from both mainstream and alternative media. The carmakers provide the main draw of the event; their presence creates an atmosphere where all the stakeholders can benefit.

The dealers on the other hand take advantage of an international event to meet with a significant number of customers. The entrepreneurs selling various products and services related to the auto industry have the same mindset for this is the time to to connect with customers that came from different parts of the globe.

The consumers are attracted to the event for obvious reasons because they wanted to take a look at new models and prototypes. They are also there to take advantage of great deals and to initiate the first of many steps in acquiring their new car and accessories. The media practitioners are aware of the significance of the event and that there are many people all over the world eager to learn more about new models and prototypes and therefore they serve as information gatherers to satisfy the needs of their viewers, listeners, and readers.

There are many reasons why this international event is so successful and attracts a significant number of exhibitors. For one, this annual event is well known all over the world because it made its debut in 1905 and as a result “it has exhibited almost all cars that have an internal combustion engine” (Motor Trend, 2011). It is not only popular but it has become a reliable partner when it comes to showcasing “prototypes, new technology, international deals and rebates” (Motor Trend, 2011, p.1).

Another major reason for its success can be understood by looking at the following statement: “With no home-grown auto industry to call its own, Geneva is neutral ground for the world’s carmakers to convene and display… almost all of the world’s major brands were exhibited there and many of Europe’s noted tuners showed their latest high-performance efforts also” (Popular Mechanics, 2004, p.4).

The success of the event is also seen in the way it caters not only to the dealers and manufacturers but also to the consumers. Consider for instance that the event helps display various types of accessories like “tyres, fuels, lubricants, mechanical and electronic” and as a result “there will be a lot of fun for the motor car lovers and they will also know about the latest models” (Biztradeshows, 2011, p.1).

In other words, the Geneva Motor Show enables the flow of communication from manufacturers to consumers and vice-versa. It can be argued that this particular international event has the capability to bring business people closer to their target market.

An overview of the Geneva Motor Show would reveal that its success can also be attributed to the use of public relations and relationship marketing techniques. These are concepts that go beyond traditional advertising strategies. The end goal of advertising is usually to sell something; however, the overreliance on advertising can mean that other aspects of the organization can be overlooked (Henslowe, 2003).

The definition of public relations highlights the fact that PR is all about creating awareness about the brand but there is more to it than advertising. In advertising the company creates focused messages about a particular product produced by the company (Bivins, 1999). However, when it comes to PR the main goal is to educate the masses with regards to the value of the company, even beyond the products that it sells (Hougaard & Bjerre, 2004).

PR is a powerful tool and can help shape public opinion regarding the company. PR can also be understood as a defensive strategy whenever negative comments about the organisation have been circulated by competitors or critics (Smith, 2002). However, the beauty of true PR work is not only seen in the selfish considerations of business leaders but it can also be understood as a tool to gauge how the organisation gives back to the community through corporate social responsibility.

In the case of the Geneva Motor Show, PR was used to make the whole world aware of the existence of the event. PR was also used to present the event in the best possible light.

The organisers made sure that by attending the event, all the stakeholders would benefit and that it is to their loss if they would ignore the annual gathering of motoring enthusiasts. The result of such moves did not only increase the value of the event but also to make sure that influential carmakers and important customers would come visit Geneva, Switzerland at that particular time of the year.

Relationship marketing is also a major reason for the success of the Geneva Motor Show. It has been made clear that RM is not just about communication or the use of communication to manipulate the consumers to doing something in favour of the corporation (DeYoung, 2011).

A key feature of relationship marketing is the creation of exchange channels as stakeholders develop business relationships in order to achieve a common goal (Shajahan, 2004, p.30). In the Geneva Motor Show the organisers created an atmosphere conducive to mutual enrichment. Now, it is time to examine PR and RM in depth by attempting to understand PR and RM activities within the context of the event.

With regards to the use of PR, the Geneva Motor Show was advertised using various types of mass communication media including “print, blog, reviews in websites, news, video, photos, and galleries that can be accessed in the World-Wide-Web” (Harrison & Pulman, 2011, p.1).

It can also be accessed through traditional mass communication media such as TV and newspaper. It is a massive bombardment of information and the fact that a great number of people love and appreciate cars, the ripple effect of that various marketing activities can be felt on a global scale.

Prior to the event car enthusiasts from all over the world can easily notice how the organisers used different communication strategies to connect with their target market. The first major achievement of the organisers is to capitalise on the prestige of the event. An event that has been in existence for the last 100 years is already considered a tradition for car enthusiasts.

But the organisers did not simply rest on their laurels for they expertly use their influence to work with various mass media practitioners from print, TV broadcasting, blogging and other forms of electronic journalism. By harnessing the power of traditional mass media agencies and Information Technology type such as social media networking and live blogs the organisers made sure that they widen the net so to speak.

The power of public relations was carefully utilised to educate and influence. A new generation of car enthusiasts are not only going to be made aware of the existence of this particular international event but they would also be educated about the importance of such an event and why it has to be held in Geneva, Switzerland. Finally, the organisers were able to influence the opinion of the general public regarding the value of the event in the motoring world.

Another major reason for its success is the effective use of relationship marketing strategies. Relationship marketing is a major feature of this event and it begins in the way the organisers trumpeted the history of the Geneva Motor Show. The organisers worked closely with the members of the press and bloggers to highlight the fact that the event made its debut in 1905.

The mere mention of the year when everything was started is enough to generate a level of trust regarding the company behind the event and the event itself. It has created a perception that the organisers can be trusted because they were able to successfully stage an event for many decades.

After enhancing the value of the event and increasing awareness about the Geneva Motor Show the organisers simultaneously created an atmosphere that brought all of the major car manufacturers and dealers to one location.

The organisers understood the importance of a neutral ground to stage such an international event so that everyone can be convinced that their products and presentation can be viewed without bias and appreciated for what it is. There is no fear of being upstaged by another company with a strong local presence. Every car manufacturer can set-up their exhibits from scratch and this level playing field has created a deep level of trust between organisers and various stakeholders.

The creation of an atmosphere wherein mutual enrichment is possible is just one of the characteristics of relationship marketing but by focusing on that one aspect the organisers are able to bring business people and their target market together under one location. The ability to interface with various stakeholders created a level of interaction that strengthen the relationship not only of the organiser and the car manufacturers but even the relationships of customers, dealers, tuners, and various types of entrepreneurs and car enthusiasts.

From a theoretical perspective one can understand the effectiveness of the PR activities demonstrated in the Geneva Motor Show. This is made evident when viewed through the following theoretical framework: “communication, in one form or another is no longer a luxury but a necessity, because both the media and the public are today much more questioning than in the past” (Henslowe, 2003, p.7).

Based on this theory the goal of every organisation is to create a connection with various stakeholders so that they remain interested and willing to partner with the organisation. Using PR strategies, the event organisers were able to not only communicate the purpose of the Geneva Motor Show but also enhance its value in the eyes of the stakeholders.

In terms of gauging the effectiveness of marketing the event, one can use the theoretical perspective that says that businesspeople should never consider marketing to be strictly “a parametric, program-oriented function but as a pattern of total organisational behaviour” and that “interdependence, mutual cooperation and commitment between supplier and customer to be absolutely crucial” (Hougaard & Bjerre, 2004, p.41).

In this regard the event organisers used relationship marketing not only to communicate with their target market, but also establish a relationship with them. Therefore, conventional advertising is not enough, it is also important to create an atmosphere where various stakeholders can interface with each other.

In closing, it can be said that event organisers succeeded in achieving their goals. The purpose of the event is to attract exhibitors from all over the world to showcase their products and services to a global market. It is therefore important for the organisers to make sure that all the major carmakers, manufacturers of automotive products, care tuners, and car dealers would gather in one place.

The second major purpose of the event is to create an atmosphere where various stakeholders can interface with each other develop an interaction that would lead to mutual enrichment.

The analysis of the Geneva Motor Show revealed the importance of PR and RM when it comes to staging an international event. It is imperative to manage the flow of information especially with regards to how it can influence the opinion of the general public regarding the organiser and the event itself. But more than that PR and RM can be used to develop an atmosphere of mutual enrichment that increases the probability of earning customer’s favourable response and enduring loyalty.

Thus, it can be argued that PR and RM must work together. Business leaders must use PR to draw in people and then when they have caught their attention the use of RM will enable them to establish long-term relationships with potential clients.

With all the marketing strategies at their disposal business leaders are still very much aware that it is their ability to maintain a long-term relationship with their customers that can ensure sustainable results. A successful business must ensure that the customers are satisfied with a particular product and at the same time loyalty to a particular brand.

PR is not enough to sustain a long-term relationship with customers. The use of TV commercials and newspaper advertisements cannot provide a mechanism that enables manufacturers and customers to interact with each other (Gummesson, 2002). It is therefore important to use RM so that consumers will greatly appreciate the way the organisation strives to provide them what they needed.

In the case of the Geneva Motor Show the gathering of various exhibitors is for the convenience of the consumers who can interact with them in one location only. Nevertheless, TV programs and newspapers are still powerful instruments that can reach a great number of people. It is therefore important to combine the advantages of PR and RM. The end goal is to develop a level of relationship with their customers so that there is mutual enrichment.

The event organiser can improve the use of public relations and relationship marketing by providing more avenues wherein car enthusiasts can interact with representatives from car manufacturers and tuners.

The event organiser must also focus on the casual fan that may not be able to purchase expensive cars at the moment but a few years down the road they would have the financial capability to buy high-performance cars and even expensive cars displayed at the event. In this way the organisers would be able to improve on an environment that allowed for mutual enrichment. Thus, at future events these customers and casual fans can help spread the word regarding the annual event.

References

Bivins, T. (1999). Handbook for Public Relations Writing: The Essentials of Style and Format. IL: NTC Business Books.

Biztradeshows. (2011). Geneva International Motor Show. Web.

DeYoung, B. (2011). What is Relationship Marketing? Web.

Gummesson, E. (2002). Total Relationship Marketing. 2^nd ed. Oxford: Butterworth-Heinemann.

Harrison, S. & B. Pulman. (2011). Geneva Motor Show 2011. Web.

Heath, R. (1997). Strategic Issues Management: Organizations and Public Policy Challenges. UK: Sage Publications, Ltd.

Henslowe, P. (2003). Public Relations: A Practical Guide to the Basics. UK: Kogan Page.

Hougaard, S. & M. Bjerre. (2004). Strategic Relationship Marketing. New York: Springer-Verlag.

Hutt, M. & Speh, T. (2007). Business Marketing. OH: Southwestern-Cengage Learning.

James, M. (2006). Public Relations. NSW: Career FAQs Pty. Ltd.

Motor Trend. (2011). Geneva Motor Show. Web.

Popular Mechanics. (2004). Geneva Motor Show. Web.

Shajahan, S. (2004). Relationship Marketing: Text & Cases. New York: McGraw-Hill Publishing.

Smith, R. (2002). Strategic Planning for Public Relations. New Jersey: Lawrence Erlbaum Associates, Inc.

Varey, R. (2002). Relationship Marketing: Diaologue and Networks in the e-commerce era. New Jersey: John Wiley & Sons, Inc.

Creativity and innovation in the transport sector has seen this industry propel to higher levels of effectiveness, in terms of speed, time, and mass transportation of both goods and persons. The creativity and innovative thinking is not a new idea but it has been there since time immemorial, and has improved our lives as the years go by. This paper seeks to explain how the innovative thinking and the creativity process can be applied in real life situations advancing the transport sector.

Thesis Statement

• How can innovative thinking and the creative process be used in real life situations to bring advancements for transportation in the United States?

Relevant Facts

The creative process involves a cycle through four different realms of knowledge accumulation that is the preparation, incubation, illumination and the implementation stages. The preparation stage is the work phase where the innovator comes with the idea, identifies a problem and tries to see how he can solve that problem.

The illumination juncture is where the normal reasoning is suppressed to allow the mergence with the unknown. After the validation the innovative product is then implemented to benefit the society. Innovative thinking on the other hand is about exploring ideas, generating possibilities, and looking for many right answers instead of one answer.

Innovation and creativity has been responsible for most of the advancements in the transportation sector, and to understand how it can be used in the present real problems situations we have to understand how it was used in the earlier years in this sector. Innovation in the earlier years involved the acquisition of knowledge just as it does in this present time.

Knowledge can generally be acquired through experience, acquisition, and by experimentation (Bessant, & Tidd, 2007, p. 185). Learning from experience is the least effective method since it does not automatically translate into knowledge, and organizations and people can incorrectly learn when using experience as a medium.

Knowledge through experimentation on the other hand is more systematic and a central feature of research and development activities, and market research among others. Knowledge through acquisition on the other hand involves scanning internal and external environments to evaluate and filter potential opportunities from outside and inside an organization.

Innovative knowledge is of two types that is explicit and implicit, in which case the latter can be codified and expressed in numerical, graphical or textual forms for easy communication. Tactic or implicit knowledge, on the other hand is more of personal, context-specific, experimental and a bit difficult to communicate.

Other types of knowledge include: embrained, embodied, encultured, embedded, commodified, and encoded (Bessant, & Tidd, 2007, p. 186). Embrained knowledge to greater extent relies on the cognitive abilities and conceptual expertise. Embodied knowledge is action-oriented and is more of problem-solving and involves learning by doing.

Encultureed knowledge is socially constructed and open to negotiation. This knowledge involves socialization and acculturation. Embedded knowledge resides in systematic routines and processes and includes resources and relationships between roles, technologies, procedures, and is related to the notion of organizational capabilities. Last in the list, encoded knowledge is presented by symbols and signs and is inclusive of designs, manuals, blue prints and other electronic media.

Innovation is born from knowledge and creative thinking, and it is largely dependant on the source, type, form and how this knowledge is manipulated for effective use. The advancement in knowledge results into availability of more innovative ideas, which when implemented leads to advancements in the transportation sector of the United Sector.

References

Bessant, J., & Tidd, J. (2007). Innovation and entrepreneurship. West Sussex: John Willey and Sons.

Weiner, B. (2008). Urban transportation planning in the United States: history, policy, and practice. Washington, DC: Springer.

Rail Australia is undoubtedly the leading organization in the provision of rail transport and passenger services in Australia. Major rail operators in Australia have formed an alliance to deliver joint tourist-oriented and passenger services. Rail operations and infrastructure are not only owned and managed by government agencies but also by private operators. Rail operators include Countrylink, Great Southern Rail, Transwa and Traveltrain Holidays (Rail Australia, 2010).

Countrylink offers long distance services to travelers in New South Wales and other 360 destinations. Traveler services include XPT, XPLORER and the Country Coach Network. Great Southern Rail is tourism oriented and service operations offered by this operator include the Overland, Indian Pacific and the Ghan.

Transwa is a regional transporter in Western Australia and it services more than 275 destinations. The last operator in the organization is Traveltrain Holidays which delivers diversified services to both long distance passengers and tourists. It also offers a number of distinct travel packages tailored to suit all customers.

Porter’s 5 Forces in the industry

Traditional competition is very high because of the existence of stiff competition as evidenced by the number of distinguished rail service providers. Each service provider aims to be the leading in the industry in the satisfaction of traveler needs and thusly the continuous diversification of traveler packages. Profitability within the industry is influenced by the delivery of customized packages to suit every clientele. For instance, almost every operator offers more than three types of service operations based on the targeted market.

Porter’s 5 forces existing in the Australian rail organization are confirmed by rivalry in market control within the industry. There is high entry of substitute products and services into the market. This is well explained by the highly diversified traveler packages provided by the different rail operators.

Horizontal forces include the ever changing alternative passenger and tourist packages. The diversification of service operations forces operators to develop new products. Established rail operators are also using their economies of scale to increase their profitability levels as well as funding their operation levels.

The last among the horizontal forces is the threats associated with the entry of new operators (Porter, 2000). The entry of new rail service providers is low because other rail operators are very established and are jointly owned by the organization. Therefore the major obstacle faced by new entrants is establishing their services to compete with those standards prevailing in the industry and partly due to the lack of economies of scale (Laudon and Laudon, 2006).

The customer’s bargain power is high because there is availability of a variety of travel packages from where they can choose from. They determine vertical competition due to their service tastes and preferences. This is the reason for the existence of differentiated service packages among the service operators designed to suit their needs.

On the other hand, supplier’s bargaining power is low as evidenced by the diversified range of services on offer. The customers are well informed of the services forcing the suppliers to instill some element of bargaining power to woo customers to purchase the travel packages.

Strategies and recommendations

The availability of competition within an organization in the same industry is not a good idea because the management of operations is run by one single body (Rainer &Turban, 2009). Therefore, the organization should develop strategies aimed at addressing the impacts brought about by the porter’s 5 forces.

This includes controlling the line of operations that each service provider should concentrate in the provision of services. It will help to prevent rail operators from operating in areas that are not related to their area of specialization. The number of operating destinations must also be minimized to certain specified regions.

Furthermore, the organization must be the determiner of services packages delivered by operators. This will help in the reduction of supplier bargaining power and the influence from customers and thusly limiting the threats associated with alternative operational services. It will also reduce mushrooming of diversified service packages tailored to suit customer needs

Reference List

Laudon, K. C. & Laudon, J. P., 2006. Management Information Systems: Managing the Digital Firm, 10^th edn. Prentice Hall, New Jersey.

Porter, E. M., 2000. What is strategy? Harvard business review.

Rail Australia, 2010. The Rail Australia alliance. Web.

Rainer & Turban, 2009. Information systems and the modern organisation. In Introduction to information systems, 2nd Edition. Wiley, New York.

Statement of the Problem

Saudi Arabia has already developed transportation and communication networks to experience long-term economic growth, expand business, connect national citizen with foreigners, decrease congestion, and ensure more facilities for the people of KSA and tourists.

However, Library of congress (2006, p.17) reported that the existing railroads remain relatively undeveloped, though demand of rail service is too high in terms of passenger traveling service and cargo handling. In addition, this segment of transportation service remains undeveloped due to lack of long-term initiatives from the private sector and foreign investors.

Background

The concept of the development of railway transportation networks is a large project in terms of required financial investment, but it is not impossible to implement this project successfully for the private entrepreneurs.

This is because Saudi Arabia is the member of World Trade Organization (WTO), which gives the opportunity to the foreign companies to invest and provide technological support for the development of transportation networks; in addition, the policy makers and local investors will be interested in it considering competitive advantage and importance of railway networks.

Need

Hajj is the fifth pillar of Islam and the biggest pilgrimage (religious gatherings) in the world; moreover, all Muslims who are physically able and can afford must make this journey once in a lifetime; therefore, it is the most important priority of the Saudi Arabian Government to ensure flexible, safe, and low cost transportation system for the Muslim World.

In addition, the purchasing power of the international customers have reduced due to adverse impact of global economic downturn; therefore, millions of Muslims of the GCC Countries and rest of the world fail to come in KSA to perform the hajj and many pilgrims need to work hard to arrange fund for Airline tickets.

At the same time, many old people would like safe journey at low costs, and some of them are not able to find out exact route; as a result, it is essential to develop railroads.

On the other hand, Library of congress (2006, p.17) reported that more than 790,000 passengers traveled and carried 1.50 million tons of cargo on Saudi trains in 2001; however, the importance of train service is raising due to development of the future economic position and improvement of urban lifestyle.

Benefits

This project will help millions of Muslims to undertake Hajj with their limited budget, help government ensure safe journey, and increase number of pilgrims and tourists because this project has capacity to serve $1 million passengers and the price of train ticket is lower than airline ticket.

On the other hand, this railway transportation network will serve the oil exporter and importer, which will save more than $50 million of local companies like SABIC.

Qualifications of Personnel

Three entrepreneurs Sara Aldossari, Hind alessia, and Reem are the student of Prince Mohammad Bin Fahad University and major is Finance. However, same educational background helps them coordinate the activities of the project particularly convince investors and other parties of the several contracts.

In addition, they will assess financial risks of the projects at the very beginning of the projects, which will reduce hazard in the future to implement their projects.

At the same time, Prince Mohammad Bin Fahad University has strong reputation in Saudi Arabia to maintain quality education for all students, and three entrepreneurs are the student of the finance department; therefore, bank and other investors will trust in their proposed plan to develop the Train in Saudi Arabia, as they will design their plan considering Dubai railway service.

Sara, Hind, and Reem will research on the entire project-plan and visit location to gather experience about the railway transportation and then they will prepare financial plan, annual report of the project, audit report, remuneration plan, annual budget for different departments and functions.

On the other hand, they will be responsible for monitoring the activities of the employees, communicating with the partners, coordinating the works of several segments, meeting conditions of the banks and other investors, ensuring safe workplace and using capital properly.

However, all of them have leadership quality and managerial skills; thus, they will lead the company efficiently, motivate the employees, ensure equal opportunity, arrange training program, and improve diversity management, and so on.

Data Sources

The main inspiration for this project came from the best railway services in certain European and American countries, as well as in Dubai and Iran. However, this report has used secondary data sources, for instance, Library of Congress (2006) and Reuters (2010), which provided information about the current situation of railway and importance of the future development.

At the same time, Carey (2011) described about new project of oil exporter and AME Info (2008) emphasized the activities of Ministry of finance and other related authority. For the primary data sources, a survey was conducted amongst regular train travelers and PMU students to gather information to assess the suitability of this project.

About 80% respondent answered “yes” while they were asked if they would prefer to have separated areas for both men and women for performing Salat while doing a train journey (especially for Hajj pilgrims). Conversely, 75% respondent answered “yes” against the question that if it is necessary to expand railway services in the country for long-term economic growth.

About 82% thought that it is viable to spend a bit more for a service that is extremely speedy, and 89% said that they would spend more for scientifically sophisticated, fuel efficient, comfortable, and elegant rail service. Moreover, 78% said that oil exporters need more railway roads to reduce costs.

Limitations and Contingencies

The implementation of this project involves a number of legal issues, which may have direct impact on the project, such as it needs to take permission from the Saudi Railways Organization along with the other related authority.

In addition, it is a potential business plan, which would require heavy investment, but foreign investors, banks and other local companies may not rely on the junior entrepreneurs because of lack of experience to execute such a large project.

Scope

This project-plan provides detailed information along with clarification about the duration to execute the plan, project costs, background, key benefits and significant of the projects, facilities for the human resources, budget of the project, implementation process, methods, services, raw materials, compensation plan, feasibility and description of the anticipated outcomes.

Proposed Plan: – Objectives and Methods

This project has an objective to develop the railway network of the Kingdom of Saudi Arabia with other GCC nations. This mainly focuses on the fact that as the Muslims living in the neighboring Islamic nations face great troubles to come to Saudi Arabia to do Hajj, through this highly advanced rail network, it will be far easier and convenient for them to travel to this holy country for doing hajj.

However, apart from pilgrims, this rail network will also serve regular travelers or holidaymakers of KSA and the other GCC nations throughout the year.

Moreover, this advanced rail network will also be used for business purposes, for example to transport oil between GCC nations or for transportation of other bulky raw materials. Therefore, the entire rail network will have a number of different routes along with numerous trains.

It is quite natural that the feature of the passenger trains and the trains for the cargo and bulk materials will have to be quite different. However, all trains will have to be extremely fast, technologically advanced, fuel efficient, luxurious, aesthetically pleasing, and swift.

The high- speed passenger trains, for example, will have superb facilities like discussion chambers (which will have facility to hold sixty visitors at a time), satellite communication, internet, laptops, laser printer, fax, etc.

There will also be divine -library of Islamic books, places for having Salat (it is notable that the places for having Salat will be different for men and women), television for broadcasting national channels of Saudi Arabia, consolation –centre, steam- bathe / shower, exercise rooms, exceptional compartment for bodily handicap people, encumbered small cupboard in every coach, numerous phones, and plasma-TV.

The passengers will be able to experience the premium and the greatest train journeys of the world; it is noteworthy that all the passenger trains will be Double Decker with electric stairways; moreover, these trains will have numerous restaurants with high and halal foods.

However, setting this railway network will require an approval from the governmental authorities supervising rail sector; afterwards, it will be wise to plan the locations and routes and start the construction works; later on, it will be time to recruit workers and train them.

In addition to this, the company will follow certain methods and objectives to carry out the operations after establishment; these are formulated in the chart below. It shows that the business has objectives to constantly improve its customer service, safety, and asset management besides of establishing a high performance culture and better planning; a framework (methods) for managing the business is also shown.

Conversely, it is important to state that when it will be time to launch the rail service, strong and varied advertising programs will be undertaken for acknowledging people. Apart from of integrated marketing campaigns, programs like special promotional packages and discounts will be available for the passengers for the first six months.

Timetable

This is relatively a large and complicated project, which needs a long-time to finish initial paper works, get permission, and start business in new routes. At the same time, it should require a long-time for the communication and create agreement with the key investors and suppliers; therefore, the entrepreneurs need to perform many functions simultaneously.

However, the business-plan of railway transportation project need place to the board of directors in board meeting for approval of this project and then it would be possible for the initiators to move for getting permission of government authorities, contracting with foreign investors and local oil exporters and arranging bank loan.

However, it can assume that bank will take loan-time to scrutinize the documents and approve the project, but we hope bank will give loan considering the benefits of the railway service for long-term economic growth.

At the same time, the entrepreneurs have to spend a long-time to get from the kingdom’s government along with other authorities and recruit efficient employees, purchase lands from the owners, and sign agreement to collect raw materials from the suppliers.

In addition, it is difficult task for the junior entrepreneurs to arrange large fund for the business; therefore, they need to impress large companies like Saudi Basic Industries Corporation (SABIC), Saudi Arabian Oil Company (Saudi Aramco), Mass Transit Railway (MTR), Bombardier Transportation Inc, or other local and foreign companies to invest for their projects.

Table 1: Timetable. Source: Self generated.

Materials and Equipment

As it is a large project, it will require a huge amount of different materials and equipment for construction, like steel rails, cast and forged, steel wire mesh, steel wire, barbed wire, iron wire mesh, stainless steel wire mesh, and steel sheets.

In addition, the project building also requires anchors, geotextiles, bolts, other electrical equipment, other heat insulation materials, multifunctional materials, fencing, trellis and gates, spade and shovel, truck accessories, and so on.

However, the high- speed trains will not be made at Saudi Arabia, as the train manufacturers here are not so modern scientifically; therefore, all trains are better to buy from Bombardier Transportation, a rail equipment division of Canadian firm Bombardier Inc, which has headquarters in Berlin – this company produces extremely fast, technologically advanced, fuel efficient, luxurious, and aesthetically pleasing trains. It is notable that Bombardier Inc is the best train producer internationally

Personnel

Once the business has established, many workers will be recruited; this includes engineers, ICT specialists, company bureaucrats, HR manager, accounts and finance manager, research and development team, manager for marketing department, customer service team, individual freelance contractors, day laborers (for regular repair works), brake operators, conductors, yardmasters, drivers, sentries, sweeping laborers, and so on.

Available Facilities

Both the passenger and the cargo trains will be very speedy, scientifically sophisticated, energy efficient, well- organized, and visually elegant.

The passenger trains will have a range of facilities; for example, it will have a separate area where the pilgrims will be able to enlighten themselves with religious books during their leisure.

In addition, it will be having facilities like conference rooms, broadband with high bandwidth, computers, telephones, area for Namaz, deluxe washrooms, TVs, separate place for physically disabled people who are not able to travel like normal people, electric staircases, detached lockers, and halal food courts serving traditional and delicious Saudi Arabian dishes.

Needed Facilities

This large and complex project requires vast range of facilities, like machineries, equipment, explosives (like dynamite), designation, steel supplies, copper ore supplies, iron in bulk, coal, stone in bulk, as well as supply of hi-tech trains.

Most importantly, other necessary facilities that are required in a massive amount includes hard work not just from the entrepreneurs, but also from the engineers, government, workers, designers, collaborative companies, several contractors, day labors, explosive expert team, supplier of high- speed transports, and so on.

It is important to state that different facilities are needed from different service providers, that is, the engineers of the rail track, government, collaborative companies, contractors, explosive expert team, and supplier of trains, as shown in the table below:

Table 2: Needed Facilities from different service providers of the railway. Source: Self generated.

Table 3: Cost and Budget. Source: Self generated.

Expected Results

The pilgrims and other foreign travelers from all the neighboring countries as well as the local residents will discover that it is much useful and wise to take a trip in such a rail service, which is pleasant, protected, very rapid, relaxing, and pleasing to the eye.

This means that this rail service will be having countless customers on a regular basis. As a result, the profits will be highly impressive on a regular basis.

In addition, as the numbers of foreign pilgrims are increasing gradually, this means that year on year, the amount of revenues of the company will keep on increasing steadily giving the business a chance to grow more rapidly, and open up services on new routes as a part of the business expansion strategy.

With the retained profit, the company would also try to invest more on its cargo facilities in order to transport crude oil from the other prospective- countries, which will help it to increase the profits further.

It is essential to note that besides of helping the business to boost profits, the activities of the company would also keep significant contributions over the economy of the country. Such huge amount of revenues would mean that Saudi Arabia would be having a further raise in the gross domestic product.

As a result, the index of per capita income will rise further; this will show that the other economic indicators, like standards of living, for example, are developing. Such positive economic indicators would in turn improve the reputation of the country in front of the world’s superpower nations, showing a strengthening economic position.

This business will also keep a positive contribution to the society by providing a great number of job opportunities locally; therefore, the rate of unemployment would lower down as well.

Feasibility

The rail network will be serving regular travelers both nationally and internationally. As discussed earlier, this project has an objective to develop the railway network of Saudi Arabia with other GCC nations mainly focusing on the fact that as the Muslims living in the neighboring Islamic nations face great troubles to come to Saudi Arabia to do Hajj, this highly advanced rail network will make everything easier for them.

Considering the fact that most of the foreign travelers will find it more convenient to travel in a train that is nice, safe, high- speed, and comfortable, it seems quite natural that there would be a huge number of customers annually; the following table shows that how the numbers of foreign pilgrims are increasing gradually:

Table 4: Numbers of foreign pilgrims annually. Source: Self generated.

Conclusion

If this railway project remains successful, it would be a great achievement as students of Prince Mohammad Bin Fahd University.

This plan is beneficial because it is not just profitable for the entrepreneurs of the business, but the huge revenues will mean a great contribution for the further development of economic indicators like gross domestic product, per capita income, and living standards.

In addition, it would assist the society by creating many employment opportunities for the residents of Saudi Arabia, lowering down the rate of unemployment.

Reference List

AME Info. (2008). Saudi rail projects begin to move ahead. Web.

Carey, G. (2011). Saudis Build Railway to Ease Oil Dependence. Web.

Library of Congress. (2006). Country Profile of Saudi Arabia. Web.

Reuters. (2010). Saudi Arabia opens Chinese-built hajj pilgrimage train. Web.

Rapid growth of population in Kelowna city has become both a challenge and an opportunity to develop a smart transit plan for the region to make transport efficient. The city of Kelowna in Okanagan is the highest growing City in British Columbia, the population is expected to increase by 50 percent in the next two decades.

This growth has called for the improvement of the transport system in the city of Kelowna to accommodate the growing population by implementing the Smart Transit Plan that is planned to come into effect by 2035. Students will be the main benefiters of the federal and provincial project that will be funded at a cost of $2.3.

Even though the City and Kelowna transit have previously revised the bus routes, the demand for transport services is still high especially from the growing number of students and other passengers in the city who use the transport system on a daily basis (Welch and Sauder para. 3).

Kelowna transit system provides conventional transit services and also provides transport for the disabled. The service, known as HandyDART, has 4900 registered users. The UBCO students and staff are the main markets for Kelowna Regional Transit System and because their population is growing rapidly, the improvement of the transit system will provide appropriate transit services.

Even though there have been many queues in bus stops and delays in time due to the increased population of students, Kelowna transit system has done a good job for it has been transporting students to the campus after making changes in the transit system to accommodate the students by introducing the students UPass. This pass enables students to have unlimited access to transport services in a period of one year for only $90. Improvement of the Kelowna Transit system will further improve transport services for these students.

The aims of improving the transport system are to improve efficiency, accessibility, and effectiveness on the roads to meet the rising demand of transport by the equally increasing number of students and to reduce community trafficking that occurs when bus stops are congested. Another aim is to match transit services to land use and demand.

The improvement should be done by expanding off-peak services and improving on time and the number of buses. This will make these services more efficient as it will meet the people’s transport needs. If the Smart Transit Plan is incorporated, it will result in to an efficient transport system able to serve the growing population.

Weaknesses of the Kelowna Transit System

Even though the Kelowna transit system has introduced the student’s Upass, only 5900 students are using it and the number is very low yet the services have already been paid. Another weakness is that the transit system has not been able to accommodate the rising demand of transport due to the rapid growth of population in the city.

The Smart Transit Plan that has been proposed will take some time to be implemented and this will significantly affect the transport system because current demand for transport is already too high (IBI Group 15).

Despite reworking the bus routes, the rapid growth of students is still straining the bus system for it is unable to meet their transport demands. Bus stops are always packed with long queues for the buses are not enough, besides, bus stops are sometimes skipped due to lack of sitting space for passengers in the buses.

Consequently, there is always a delay for people reaching their destinations on time while many people are made to stand in the buses because they are late for school or work yet there are no more seats in the buses. In addition, some students end up fighting for seats or are left stranded as there are no buses to take them back to their residential areas.

Benefits of the Kelowna Transit System

Despite the vast challenges, the Kelowna transport system has done its best by providing daily services and by accommodating and transporting the increasing population. Kelowna transit services are efficient and effective and a study done on different types of transit services proved that its performance levels are better compared to the others.

The introduction of the Upass has increased bus ridership in campus and helped some students to have unlimited access to transport at affordable rates. Furthermore, the transit service serves the whole city and provides coverage all over the city and beyond.

The construction of a new bus shelter by the Kelowna Regional Transit partners will provide passengers with shelter from the sun, snow and rain and will also enhance transport services in and out of the UBCO campus (City of Kelowna para. 5). This is just one of the many improvements that will result out of the proposed improvements of the transit system.

Conclusion

The future of the Kelowna transit system looks bright owing to the several improvements that will be undertaken on the system, some of which are already underway. Once completed, the transit system will have the capacity to provide services to all of Kelowna’s 150,000 residents and relieve them of the current pressures resulting from a strained system.

Apart from increasing passenger space, the new system will be more efficient and safe due to the installation of traffic management centres along highways. The improvements will also result into less environmental degradation since more people will choose public transport over.

Works Cited

City of Kelowna. Transit Initiatives Get Rolling in Kelowna. 2010. Web.

IBI Group 2005, Central Okanagan Smart Transit Plan: Final Report. Web.

Welch, Cameron and Sauder, Kit. “The past, present, and future of Kelowna public transit.” The Phoenix News, 2011. Web.

Introduction

The transport sector plays a critical role in the development of a sustainable economy of the United Kingdom.

Policy stakeholders have argued that while it is critical for the sector to draw significant benefits to the growth of the economy, sector policy reforms must address the overall frameworks for total reduction in emissions of carbon (Department of Transport 9-11).

In addition, policy formulators have suggested that a well-functioning transport sector must assure the country of a sustainable environment and quality life that complements the growth of the economy.

This paper explores the recent policy framework that seeks to reengineer the road transport mode in the United Kingdom using The Future of Transport: a network for 2030″ White Paper as the core of the policy.

Discussion

Research indicates that carbon emissions in the UK have been on increase with the road segment accounting for over 60% of the total emissions.

A survey of the United Kingdom’s transport sector reforms indicates that policy frameworks have shifted from demand responsive approach toward a managerial approach that meets the current road capacity (Department of Transport 9-11).

The introduction of these new policy directions have altered measures underpinning the implementation of emission-free environmental condition (Transport Issues n. p).

Analyses suggest that these measures have included support for vehicle fuel economy, cleaner fuels, and efforts to cut down traffic on roads, encouraging public transport, and cycling.

While the primary objection has targeted a reduction of the congestion, improved accessibility, reduction of negative impacts, and social inclusion, evidence indicates that these policy measures have a cumulative influence on UK’s future economic growth.

These intentions were first advanced by the Conservative administration provisions of 1995. These changes were later succeeded by the labor administration policies pursued in 1998 Transport white Paper (Transport Issues n. p).

Although policy adjustments have attempted to reduce pollution due to car emissions, the reduction of high car use remains unabated.

According to Professor Sir Nick Stern, a policy formulation cannot be an either or choice, but rather must remain succinct and clear to address the key issues underlying the nation’s problems.

Studies show that these recent policy adjustments have been linked with the skyrocketing fuel and oil prices since the early 2000 (Department of Transport 9-11).

The UK’s transport department argues that UK needs to get the pricing policies right to cover the degradation of the environment and congestion costs, to encourage technological innovation, and facilitate behavior change among citizens.

The goal of the recent frameworks has been to address the overwhelming need for a reduced emission of carbon dioxide and other greenhouse gases.

According to this policy, the UK identifies three basic elements for minimization of costs of advancing toward a low-carbon economy and maintaining achievable levels of emissions (Potter and Parkhurst 171-178).

These elements include investment in low-carbon technology, reducing barriers to action, and establishing a carbon-priced tax system that seeks to scale down carbon emissions through reduced usage.

The policy approaches spell out the social costs that people must pay or forego on their actions. This will make individuals to make substantive decisions on the how to use the available energy sources.

The development of innovative carbon-free technologies has, and continues to be an essential and urgent component, which is why the private sector has stepped up its efforts to boost research and development and technology.

However, government regulations through policies and controls will be necessary tools to force the pace of a shift toward the right direction (Transport Issues n. p).

The trend of rapid growth in the road transport sub-sector between 1950’s and the mid 1990’s was characterized by a rapid growth in the overall demand that saw a decline in the demand and use of alternative better options, including bus, cycle, and rail (Department of Transport 9-11).

However, many observers contend that since late 1990 are eminent changes have taken place to attain potentially helpful levels of managing carbon emissions.

Although it is notable that road transport continues to grow, evidence shows that this inherent growth has since slowed down after the adoption of the said policy frameworks.

The growth in the transport sector has been slow relative to the gross domestic product (Transport Issues n. p). The efficient transport systems representing the shift as a result o policy changes has had a considerable effect on the GDP (Potter and Parkhurst 171-178).

Research shows that marginal improvement in the movement of goods and services has had a positive influence on UK’s gross domestic product. Changes in these policies indicate a rapid shift in the future of transport sector in UK.

For instance, after the introduction of a white paper on “The Road to Prosperity,” the rail transport has grown substantially compared to road transport since the mid-1990s.

Though rail transport is a minority mode of transport, analysts forecast that the future of UK’s economy driven by a carbon-free transport lies in the rail transport (Transport Issues n. p).

There is an anticipated shift in the mode of common usage by the public by the end of 2015. While UK envisages a low-carbon technology that will see the country achieve its millennium environmental conservation goals, it is expected that a dramatic shift in the technology will amount to an overhaul of the UK’s economy.

These improvements will expand the labor market catchments, facilitate job matching and support business to business interactions (B2B interactions).

An efficient and cost effective transport system hosts such benefits as reduced business timings that seek to fill the gap created by congestions and traffic problems (Noland 15).

The recent literature finds a strong correlation between new road capacity and stimulation of travels. The response of policy changes is an indication of the economic signals generated from the part of travelers to try and avoid increased cost of movement brought about by costly road transportation mode.

The policy directive to maintain the current road capacity other than expanding the capacity to respond to the increased demand causes a shift in the frequency of usage of an individual mode relative to the other (Potter and Parkhurst 171-178).

This indicator points at the irreversible trend that will make rail mode as the sustainable solution (Noland 15).

Conclusion

The future of transport and subsequent change in patterns depend on the manner and scope of current provisions of the transport policies.

The changes that have introduced tradable tax and carbon taxes to achieve a reduced carbon economy spell a lot of economic implication than it is expected.

The assessment of the policy suggests that the while the policy promotes road pricing where taxes are levied on the length of travel has a significant role on reducing the overall carbon emissions, the policy has far-reaching effect on the economy (Potter and Parkhurst 171-178).

A shift toward a carbon-free transport economy that supports pedestrian transport and cycling may see the government lose on the huge tax returns emanating from increased taxation (Potter and Parkhurst 171-178).

Contrary to the general feeling that the shift in transport modes from the road sector will help minimize the environmental and congestion costs, considerable evidence suggest that the opportunity cost of using alternative transport modes on roads is less compared to when the status qou is maintained (Noland 20).

That is, the marginal tax returns on additional carbon usage are significant to the economy compared to the cost avoided in an fuel-alternative mode of transport.

Works Cited

Department of Transport. “Towards a Sustainable Transport System: Supporting Economic Growth in a Low Carbon World.” (2007). Print.

Noland, Robert B. “Transport Policy and Assessment Procedures in the United Kingdom: Lessons for the Federal District of Mexico City.” (2004). Print.

Potter, Stephen and Parkhurst, Graham. Transport policy and transport tax reform. Money and Management, 25.3 (2005): 171–178. Print.

Transport Issues. History of UK Transport Policy. 2007. Web.

The paper by Lim dubbed ‘the status of transportation demand management in Greater Vancouver and energy implications’ provides a clear and well-organized strategy to be employed towards improving the transportation system in the Greater Vancouver region.

The author has presented the problems of the deterioration in the transport system as the resources become limited in order to show the need for improvements in the near future in order to secure the needs of the future generations. Transport demand management was proposed as the best strategy (tool) to employ in order to provide the needed change in the transport system in Vancouver.

The author did well to assess the current regional transportation performance. This way the readers could understand the way in which the transport system is utilized by the residents. He looked at the number of times the private vehicles plied the routes. He also did the same for public transit and for those who went by foot or bicycle. Using previous studies, the author was also able to tell that the overall automobile occupancy (persons per vehicle) had dropped over time.

This statistic only implies that the number of vehicles were on the increase since each vehicle is being used to carry less number of people than before. With such changes, the performance during the peak periods has been altered since it has greatly diminished. This is in terms of trip length, trip speed and trip time. The author identified this as one of the reasons for the need for a new transport system in Vancouver.

One of the strengths of the paper is in the way the author presents transportation demand management (TDM) as a solution to many of the issues facing the transportation system in Vancouver. Firstly, he provided a definition of transport demand management as a means of influencing the quantity, composition and time of the demand for transport. This required the planning and implementation of certain programs.

The paper proposes that this would help reverse some of the trends and try to encourage the citizens to be less dependent on the automobile. This should be done through focusing on the demand for energy. The people should also be encouraged to be more efficient and to be conscious about the environment.

An area that is also covered well is the area on the environmental impacts caused due to poor planning in transportation. With more vehicles on the road, there is increased congestion and consequently more air pollution due to transportation.

Another problem is the energy consumption. A large percentage of the transportation needs is due to transport needs. Due to the ever-increasing numbers of automobiles, the demand for more energy is increasing and so does the effects to the environment. Therefore, the author identified one of the priorities as a means of maintaining a healthy environment.

There is also a misconception about the issue of demand and supply. The suppliers have addressed the issue of high demand by requesting for the development of more infrastructures. This only causes negative environmental impacts and also negatively impacts the land uses.

The proposed strategy (TDM) is one of the strengths of the paper since it helps promote some behavior changes in individuals that would help curb some of the issues including environmental degradation due to pollution.

It discouraged people from being dependent on automobiles. In addition to fostering changes in behavior, the strategy proposed helps in restructuring the infrastructure in order to encourage more cyclists and those walking. The aspect of land-use planning is also vital for the viability of the environment.

The author employed certain methods while considering the TDM strategy. Firstly, he used existing data sources extensively. This was necessary in order to compare some of the previous successes of the strategy and measure its effectiveness in the current project (in the case of Vancouver). Another method employed was the reviewing of the existing opinion research on similar ventures (improving efficiency in transportation).

The author also conducted new opinion surveys in order to get the opinions of the commuters themselves. The author was able to gather useful information from the focus groups and public opinion surveys. The diversity of the methods used in the paper suggests the accuracy of the information presented by the author (strength).

The approach used by the author was to consider previous research findings and to conduct research himself in order to get results that are more accurate. The accuracy of the information is also assured because of the disciplinary background of the author as a civil engineer and his diverse experience.

This paper is well organized and has been presented clearly. The information on the efficiency of transportation in terms of trip time, trip speed and trip length adds to our understanding of issues surrounding transportation geography. It provides information on how the transportation system could be made more effective in order to properly manage the energy demands.

I would recommend this paper as a course reading for future students due to the vastness of the information presented by the author. The information on the importance of transport demand management in reducing the negative effects to the environment is also vital since the issue of global warming must be confronted head-on.

Introduction

Transportation modes are the ways that are used in the transportation of people and freight. When deciding on which modes of transport to invest in, an emphasis needs to be put on the long-term consequences, for example, on the environment.

Often, there are rarely neither hard nor fast distinctions between the available modes of transportation. All modes of transport, from personal motor vehicles to airlines have provisions for cargo storage, as well as passenger spaces.

This chapter concentrates its focus on passenger modes, as well as the matters that relate to the movement in the direction of greater sustenance. It goes on to explore the variety of modes, their differences and diversities, which exist, even in the same mode.

It also emphasizes the way modes interact with, or affect issues like infrastructure, land use, social, cultural and economic dimensions, the environment, functional characteristics and travel characteristics (Schiller, Brun, & Kenworthy, 2010).

Discussion

There are two important concepts on modes that need to inform the discussion and analysis of this study. The first is the multi modal concept, which is the ability of one to choose among several possible modes when on a trip.

The second is the intermodal concept, where there is an ability to connect between modes, say, riding of a bicycle in a bus or making transfers between bus and rail. These concepts increase travel options and offer an allowance for people to combine modes for more complicated forms of travel to reduce the need for auto mobility.

In-town modes mainly serve to get people to work, shopping, schools and recreation. They include walking, which encompasses walking assistance by use of devices like wheelchairs, cycling public transportation or transit and personal motor vehicles. Walking has its important factors. One is that walking tracks can accommodate a large capacity of pedestrians.

Another important factor is that it is ideal and functional for short trips which are common. The costs and infrastructural needs for walking are also minimal. There is an allowance for every pedestrian to walk at their own ideal velocity and over a range of their choice.

In addition to these, the environmental, safety and health considerations are positive. Bicycling is close to walking in many aspects, except there has been some controversy on the habitat damage levels that are created by off road or off trail mountain cycling.

For urban centers, public transportation or transit could be extremely space, time and energy efficient. When it is well monitored and done, it could alleviate the need for private motoring for all or most of the urban trips. Transit performance is affected a great deal by its RoW (right of way) conditions. High standard of RoW mean high speed and capacity.

The three basic types of RoW are A, B, and C in a descending level of efficiency. Capacity in public transport is varied, depending on the size and crowding acceptance of the region. The other factors, which are trip types, infrastructure needs and costs, velocity and range, and environmental, health and safety considerations vary, depending on a number of factors. This trend is reflected in PMVs (Schiller, Brun, & Kenworthy, 2010).

Conclusion

An overview of numerous considerations to be put in mind when deciding on the modes of transportation has been addressed in this chapter. Issues of policies, cultural preferences and economics play a major part in these considerations.

Reference

Schiller, P.L., Brun, E. & Kenworthy, J. R. (2010). An introduction to sustainable transportation: policy, planning and implementation. London: Earthscan.

Executive Summary

This research seeks to investigate issues surrounding deregulation of the air transport industry in the Middle East. Restrictions in the distribution of traffic rights have caused a key barrier to the entry and development of new carriers functioning intra-regional routes. The open skies policies of the UAE and the carriers’ triumph have granted the catalyst for new low cost carriers to surface.

The UAE, Oman and Kuwait and have currently opened their skies to low cost carriers fully. Jordan and Syria may, as well, do the same as the low-fare services profits both the nation and its residents. Both GCC and ACAC are working extremely hard towards deregulation. This is likely to prompt an open skies policy amid these nations.

Introduction

Air transport system, in the Middle East, continues to be heavily regulated, with considerable restrictions on the traffic rights allocation. Traffic rights’ negotiation takes place inside a bilateral scheme.

Restrictions in the distribution of traffic rights have caused a key barrier to the entry and development of new carriers functioning intra-regional routes. This paper is a research on fundamental aspects surrounding deregulation of air transport industry in the Middle East.

Literature Review

Growth and Development Plans for Airports in the Middle East

In the last 10 years, global tourism has been the main source of air transport growth in the Middle East region (Panariello 2007). Tourist arrivals in the region almost tripled, from 14 million to over 35 million arrivals, between 1995 and 2004 (AACO 2007). Thus, tourism is a main force of growth in the area, as demonstrated in figure 1.

Last year, Airports Council International, forecasted an international economic growth, which may be anticipated to push the aviation industry to its past course of remarkable growth.

An additional Dh106billion in a range of segments of this area is under the contemplation of industry specialists in Middle East (Aircargo Update 2012). So as, to execute the fourth stage of Dubai Airport extension, the Airport has publicized plans to propel, in Dh28.4 billion, to meet anticipated growth needs. Regardless of highly revealed afflictions, Dubai’s airport is currently world’s fourth biggest as air passenger travel increased in the last five years.

At the moment, the cargo size has augmented fivefold. Dubai solely handled more freight than all the other GCC airports merged, in 2010 (Sambidge 2011).

This lofty growth can be supported by a number of aspects including tourism, government expenditure, inexpensive airlines, deregulation, and airplane orders. Again, open bilateral accords and large augments in fleet capacity are propelling development, chiefly in Qatar and the UAE.

These state carriers have developed into international names and are helpful in increasing capacities at their local airports apart from adding vastly to economic development, in the region.

It may be envisaged that, in 2015, Doha, Abu Dhabi and Dubai airports will cover a joint annual capacity of 190 million travelers (Aircargo Update 2012). From 2002-2010, Passenger travels in the GCC have developed at a CAGR of 10%, which is considerably higher than the international traffic growth in the similar phase.

UAE, especially, has insistently followed this model for the past ten years. Thus, it swiftly climbed up in global rankings. At present, Dubai is among the world’s leading airports. On the other hand, Qatar and Abu Dhabi aim to achieve a hub position for the area. Nevertheless, the story is not only one of international aspirations, but providing to presented demand adequately.

Present capacity operation in the GCC (passengers/capacity) rests above 115%. Bahrain owns the sternest case of under-capacity, budging double its competence in 2010. The UAE is the lone GCC nation working with some reserve, as it has experienced massive airport growth in latest years.

Capacity consumption is at 84% because of the ending of Dubai Airport extensions, which increased capacity from 22 million to 60 million travelers annually, with an anticipation of additional raise to 90 million in 2020.

Kuwait, Dubai, and Qatar hold at least a single airport scheme on the anvil. Oman boasts two main airport extensions in Salalah and Muscat (Aircargo Update 2012). Saudi Arabia has begun to develop Jeddah and Medina airports. Bahrain, also, has started the increase of its current terminal.

Growth of Airlines in the region

Growth objectives, for Middle East, are enormous. At present, Middle East has almost 504 aircrafts, and extra 260 aircrafts are becoming organized.

Qatar Airways, Emirates Airlines and Etihad Airways guide the pack and comprise the majority of the new aircrafts organized. In the subsequent five years, they may be projected to boost capacity at above 15% per year, which is well prior to orders and holds the risk of strong rivalry, further propelling down aircraft operation and overall performance competence.

Hence, investment schemes pretense solemn risks of harmful rivalry and unanticipated overcapacity that the area should tackle. Tourism development only is unlikely to offer a solution in the interim since a considerable extent of airlines in the area fight for similar global traffic, since catchment areas overlie with some correspondence in the local tourism contributions as shown in figure 2.

In 2011, the Middle East airlines led the globe for expansion in demand, with a 7.7 percent boost over the preceding year, 2010 (Sambidge 2011).

According to the International Air Transport Association (IATA), carriers in the area recorded the strongest expansion in order against a capacity boost reduction in air cargo levels, in October 211, demonstrating a 3.1 percent increase against a 4.7 percent decline. Internationally, traffic demonstrated a 3.6 percent increase, in 2011, over the previous year.

Growth of LCC in the region

Air Arabia became the earliest budget carrier, in Middle East, operating past Sharjah International, in 2003. In 2007, it could carry 2.7 million travelers in the Middle East and to nearby states by means of A320s. Air Arabia broke even in its initial year of business and has continued to be profitable from then.

Nevertheless, regulatory limitations by other nations in the Middle East have made the carrier to function with extremely low frequencies, three- 4 times per week. So as, to balance this it has had to enlarge its operations to supply 40 centers in 20 nations – with the omission of Kuwait, Alexandria(Egypt) and Bahrain that become run double every day as these nations cover open skies.

The open skies pact in Kuwait enabled Jazerra Airways, a Kuwaiti low cost carrier, to begin action in late 2005 and battle with Kuwait Airways. After two years of work, this carrier had transported over one million travelers to 22 capitals.

Jazeera Airways caught 11% of Kuwait’s market by the last part of 2007 (Sobie 2008). Jazerra Airways, in harmony with the plans followed by low cost carriers in the free markets of Europe, formed a second center in Dubai. The UAE, Oman and Kuwait and have currently opened their skies to low cost carriers fully. Jordan and Syria may, as well, do the same as the low-fare services profits both the nation and its residents (Sobie 2007).

Bahrain Air is the fifth low cost carrier in the area. By 2008, Bahrain had already arrested 7% of the Bahraini economy, crafting it the second prime carrier behind Gulf Air (Bahrain International Airport 2009).

New entrant, FlyDubai, might, as well, transform low cost carrier activities in Middle East. FlyDubai is an auxiliary of Emirates. Flag carriers, in the Middle East, focus well on the threat caused by the budget airlines.

FlyDubai and Saudi Arabian Airlines are both researching on the alternative of instituting their personal low cost subsidiaries. Also, Qatar Airways has initiated a budget carrier.

GCC/ME Country Profiles, Political, Economic, Social, Technological and Environment

United Arab Emirates profile

The United Arab Emirates (UAE) constitutes seven countries including Dubai, Umm al Qaiwain, Abu Dhabi, Fujairah, Ajman, Sharjah, and Ras al Khaimah.

Political and Legal

The head of Abu Dhabi, Sheikh Khalifa, governs UAE. The UAE administration supports the free trade open culture and promotes globalization and FDI. The court structure is yet to be established, because its rulings are not constantly enforceable owing to the immense alien population.

Economy

The citizens of the UAE usually enjoy a high standard of lifeblood due to oil wealth. The UAE population comprises three million citizens and over half of them are in the labor force.

Social-Cultural

The UAE is remarkably liberal as it accommodates other customs and beliefs. The multicultural environment of the state allows, for many aliens, to go there functioning in well-paying posts.

Technology

The UAE area constitutes a large population of extremely young experts who are well conversant with technology. The IT sector concerns hotel, tourism, IT and computer segments.

Environment

There has been anxiety amid the UAE and Iran due to the conflicted Gulf islands. The US regards the UAE as a partner in its battle towards terrorism.

Saudi Arabia Profile

Saudi Arabia has developed from a small desert realm to one of the richest countries s in the area, due to enormous oil resources. However, its rulers experience the delicate duty of reacting to demands for reform while fighting a growing issue of radical violence.

Politics

The dynasty of Al Saud has dominion over the region. Political parties get prohibited, and the antagonism becomes planned from overseas. Rebellious Islamists have instigated a number of lethal attacks.

Economy

Saudi Arabia a leading oil producer and holds the biggest hydrocarbon resources.

Social- Cultural

The country is the cradle of Muslim religion. Thus, it has a powerful religious self-identity. However, swiftly growing unemployment is a chief concern for the country.

Environment

The ruling family endeavors to maintain stability in the area and crack down on radical elements. Saudi Arabia allowed the entry of US troops in the nation following Iraq’s attack on Kuwait, during 1990. Saudi Arabia is the warden of the origin of Islam.

Technological

The country is leading in science and technology in the region.

Qatar Profile

Qatar, a previous pearl-fishing hub and formerly one of the poorest Gulf nations, is currently among the richest states in the area.

The Country remained under the dominion of Thani family for about 150 years. Until 1971, it remained a British protectorate.

Politics

Sheikh Hamad, the ruling monarch, promotes superior political openness. In 2005, constitution supporting partial democratic reforms took effect. The fresh, basic law supported a legislature that would contain 30 chosen members and 15 others selected by the emir.

Economy

Qatar is among the wealthiest states in the area, owing to oil.

Social

Qatar is a Muslim country, though it supports diversities.

Technology

Technology in the state is extensive. Through Al Jazeera, Qatari satellite TV station, Qatari has emerged as a significant broadcaster in (Arab Aviation Business 2006).

Environment

Qatar is ahead in regional control. Qatar’s TV station caused anger to a number of its neighbouring countries.

Oman Profile

Oman is among the most conservative states in the Gulf area. Up to the 1970s, it remained isolated. Residing in the south-east area of the Arabian Peninsula, it has a tactically significant spot at the entrance of the Gulf.

Politics

Sultan Qaboos held control in 1970 and governs by decree. Recently, he has changed to raise popular involvement in decision making.

Economy

The country is reliant on oil. A diversification force involves tourism. The rule of Omanisation seeks to substitute expatriate employees with locals.

Social-Cultural

The majority of Omanis pursue the Ibadi cult of Islam, which is the remaining appearance of Kharijism.

Technological

The country embraces modern technology, especially in the area of transport and communication.

Environment

Omani has, to this point, been secured as the militant Islamist aggression that has beset a number of its neighbors. It is a helpful Arab friend to Washington, because of its solid associations with Iran.

Bahrain profile

Bahrain was at one time perceived, by the earliest Sumerians, as an island heaven to which the intelligent and the courageous got taken to take pleasure in eternal life. It was among the earliest nations, in the Gulf, to realize oil and build a plant.

Politics

The nation gets governed by the Khalifah family. Bahrain is currently a constitutional kingdom with a designated legislative congress.

Economy

The country is a banking and financial services hub. Its affluent economy is less reliant on oil than other Gulf States.

Social-Cultural

The country discriminates citizens while offering jobs and services and, in 2011, a demonstration became held about the same. Demonstrators assembled at the centre of Manama, where a number of them got killed in fights with security forces.

Technological

The country embraces modern technology, especially in the area of communication.

Environment

Bahrain is a retreat for tourists from the area, who take the lead of its tranquil social environment. It is a close partner of the US, and a home to the American navy’s fifth convoy.

Bahrain accommodates US Navy’s Fifth convoy. Bahraini-Qatari relations often get strained.

Kuwait profile

Kuwait is a minute, oil-rich state located at the zenith of the Gulf, bordered by large or strong neighbors including Iraq, Saudi Arabia and Iran.

Politics

The designated parliament has frequently disagreed with the ruling family. Hence, the state experiences frequent violence from aggressive Muslims.

Economy

The country is a leading producer in oil.

Social-Cultural

The society of Kuwait is male-dominated. The country holds the Islamic belief.

Technological

Most residents of Kuwait are technologically-knowledgeable.

Environment

Kuwait became attacked and taken by Iraq in 1990. In 2003, it played as a catalyst for the attack of Iraq.

Air Transport Development in the Last 10 Years and Future Scenario for the Next 10-15 Years

The airline business has been in an economic crisis for a large phase of the last 10 years. However, as from 2008, the industry continues to recover. Several world regions are guiding the return to development and will likely appear as financial powerhouses.

The recession was cruel, but the recuperation is much faster than anticipated. Foreseers mirror this strength with an aggregate annual expansion rate of 5.2% for air transport in the following fifteen years (Aircargo Update 2012).

The tendency to substitute worn out fleets and trim surplus capacity that was apparent in Europe and North America, in the previous few years, is currently dispersing to other regions.

Airlines in China, the Middle East, Latin America and Asia are on watch as they find out the latent of regional towering to enlarge their networks, and attain elevated heights of competence.

For a huge part, these markets became unharmed by the regional jet uprising and have been the spheres of huge-capacity aircrafts. By 2030, the quantity of new 61 to 120-seat planes to be obtained by airlines in Asia and China may be predicted to equal that of carriers in Europe (Teffaha 2008).

In 2020, Qatar, Emirates and Etihad will boast the capacity to hold almost 200 million travelers: four times their present ability (Sobie 2008; Teffaha 2008).).

The Abu Dhabi, Doha and Dubai airports, will attain a yearly capacity of 190 million travelers by 2015 (Teffaha 2008). Dubai’s latest airport will have the capacity of 70 million travelers. This is enormous bearing in mind that the population comprises just a few million, together with guest personnel.

In its latest projection, Boeing envisaged that Middle Eastern airlines would necessitate 2,340 aircraft before 2029, with a sum cost of $390 billion as the local industry develops (Aircargo Update 2012). Airbus, as well, predicts that, before 2028, the Middle East fleet might have increased three times.

Furthermore, Boeing approximates that the local aviation industry will rise at 7.1 per cent annually for the subsequent 20 years. Thus, one may say expansion in the Middle East gets anticipated going on at a swift clip, giving a substantial reason for additional optimism in the coming years.

How Long will it be Before Deregulation Comes to the Middle East?

Deregulation will come to the Middle East soon, may be in two years time. This is because both GCC and ACAC are working extremely hard towards this realization. Table 1 demonstrates that Lebanon, UAE, Palestine, Jordan, Syria and Yemen have currently endorsed the ACAC liberalization agreement.

GCC states are in the course of building an integrated economic with the objective of forming a single market (Sobie 2008). This is likely to prompt an open skies policy amid these nations. Again, a liberalization procedure that holds 16 member states under the patronage of ACAC is ongoing.

This process directly replicates the proposal of the EUs third parcel, which changed Europe’s bilateral agreements amid member nations into an open skies policy. Hence, GCC integration may mark the start of deregulation in the Middle East.

Role of International organizations and AACO, in particular, in Deregulating the Middle East

The role of AACO is to support collaboration, quality and secure standards amid the Arab airlines (AACO 2007). In this month, AACO dared the Arab Civil Aviation Council’s (ACAC) regarding their suggested free-trade area. This is because AACO became concerned that deregulation could form a wedge amid state flag carriers and their administration owners (World Airline News 2012).

AACO does not back ACAC’s decision, requiring the institution of a free-trade zone enclosing trade in commodities, excluding services. Abdul Wahab, the Secretary-General AACO, feels that air transport deregulation ought not to be connected to political actions, but should be disputed on its individual merit (World Airline News 2012).

This came in response to ACACs’, which includes the area aviation ministers, desire to start air transport liberalization, so as, to attain complete deregulation and decline in cross-border charges.

A different concern facing AACO entails technical actions as it considers the acquirement of market intelligence services (World Airline News 2012). AACO is exploring on how to obtain data from computer reservations structures, which will allow members to examine data for utilization in marketing.

Methodology

Research Design

Workers in Air transport industry in the Middle East shall be selected, to take part in an interview, where they shall be required to give their views concerning their perceptions on the state and development of air transport industry in the Middle East.

Data Collection and Analysis.

The interview shall be conducted amid all air transport industries in the Middle East. The outcome will be analyzed, without prejudice or modification whatsoever. The outcome will be presented to all companies in the Middle East and AACO.

Results

Saudi had agreed to a contract to invest about Dh27 billion on the latest airport scheme. The Salalah and Muscat airports, in Oman, are getting increased, at a sum cost of Dh1.2 billion, to cater for 48-10 million travelers, yearly.

Kuwait has invested about Dh172 million in airport development project, even as Qatar is aspiring to increase to its aerospace division at an expenditure of Dh4 billion. Dubai Airport has developed enormously. Qatar and Abu Dhabi have, as well, started to grow tremendously.

In states, where there are few enormous schemes, airports currently experience clogging. GCC Pax and freight development of about 10% are extremely inspiring particularly for a decade which faced two main crises. Dubai holds double the cargo size of any new GCC airport.

Discussion

Airport plans in Middle East are flamboyant. A number of countries, for instance, the United Arab Emirates, wish for a top share of global link traffic. They desire to extend international air freight and air commuter market to the Middle East.

Such targets challenge airports to broaden their air transport facilities and demand highly refined and competent ground transportation. Open bilateral accords and large augments in fleet capacity are propelling development, chiefly in Qatar and the UAE.

Abu Dhabi, Dubai and Qatar, are doing well. Oman, as well, has had lofty passenger expansion, undoubtedly, reaping the remuneration of its tourism plan. Saudi Arabia has the slightest development by far, although from a considerably higher foundation.

Regardless of the acute fiscal catastrophe, Passenger travel, at Dubai, has now surpassed Saudi Arabia. This demonstrates that the industry of air travel in Dubai is both booming and extremely tough. The open skies policies of the UAE and the carriers’ triumph have granted the catalyst for new low cost carriers to surface.

Low cost carriers, in the Middle East, seem to be propelling shifts to deregulate in the region. The GCC nations are planning to create an integrated market. This market will offer equal chances for all GCC residents including the privilege to work in all GCC states and move liberally amid the states.

Such integration is comparable to what happened to the European Union, and it might prompt an open skies policy to be created amid the six GCC states. Although this is tentative, it may turn out to be a distinct probability.

Deregulation among the GCC nations will prompt further competition and elevated rates of intra-Middle East traffic development. The risk of overcapacity is especially significant for the area, since government support and funding of airlines would imply that regular market forces will be incapable to decrease the market’s surplus capacity, in the future.

Conclusions

In conclusion, a number of countries, for instance, the United Arab Emirates, wish for a top share of global link traffic. They desire to extend international air freight and air commuter market to the Middle East. Such targets challenge airports to broaden their air transport facilities and demand highly refined and competent ground transportation.

Presently, the Middle East maintains to allocate enormous investments for expanding the current airports and constructing fresh ones, at a cost of 119 billion. At present, Middle East has almost 504 aircrafts, and extra 260 aircrafts are becoming organized.

Qatar Airways, Emirates Airlines and Etihad Airways guide the pack and comprise the majority of the new aircrafts organized. In the subsequent five years, they may be projected to boost capacity at above 15% per year, which is well prior to orders and holds the risk of strong rivalry, further propelling down aircraft operation and overall performance competence.

The open skies policies of the UAE and the carriers’ triumph have granted the catalyst for new low cost carriers to surface. The UAE, Oman and Kuwait and have currently opened their skies to low cost carriers fully. Jordan and Syria may, as well, do the same as the low-fare services profits both the nation and its residents.

New entrant, FlyDubai, might, as well, transform low cost carrier activities in Middle East. FlyDubai is an auxiliary of Emirates. Flag carriers, in the Middle East, focus well on the threat caused by the budget airlines. Low cost carriers, in the Middle East, seem to be propelling shifts to deregulate in the region.

The Abu Dhabi, Doha and Dubai airports may attain a yearly capacity of 190 million travelers by 2015. Dubai’s latest airport will have the capacity of 70 million travelers. Boeing envisages that Middle Eastern airlines may necessitate 2,340 aircraft before 2029, with a sum cost of $390 billion as the local industry develops. Airbus, as well, predicts that, before 2028, the Middle East fleet might have increased three times.

The activities of GCC are likely to prompt an open skies policy amid these nations. Deregulation among the GCC nations will prompt further competition and elevated rates of intra-Middle East traffic development.

Again, a liberalization procedure that holds 16 member states under the patronage of ACAC is ongoing. This process directly replicates the proposal of the EUs third parcel, which changed Europe’s bilateral agreements amid member nations into an open skies policy. Hence, deregulation may come to the Middle East soon, may be in two years time. This is because both GCC and ACAC are working extremely hard towards this realization.

Recommendations

To contain the growth of airlines, the prime airline sectors in the area should augment their fleet size. All nations in the Middle East should adopt open bilateral accords, similar to Qatar and the UAE.

As of the volatile growth in passenger travel, there is a need for large scale extensions of existing amenities in all Middle East air transport sectors. The GCC states should augment investment in the improvement and extension of airports to meet prevailing demand and attain future strategic objectives.

References

1. AACO 2007, Arab airlines traffic data. Web.
2. Aircargo Update 2012, Ambitious Middle East to Invest 119bn on airport expansion. Web.
3. Aviation Business 2006, Jazeera’s era, ITP Publication Dubai UAE, pp. 24-26.
4. Bahrain International Airport 2009, Bahrain International Airport. Web.
5. Panariello, A 2007, Regional highlights, Airline Business, pp.62-63.
6. Sambidge, A 2011, Middle East airlines lead global growth in October. Web.
7. Sobie, B 2007, Arabian pioneers, Airline Business, pp.46.
8. Sobie, B. 2008, Dubai opts to take low-cost plunge, Airline Business, pp. 24.
9. Teffaha, A 2008, Pan-Arab liberalization, Airline Business, pp.66.
10. World Airline News 2012, Arab carriers resist deregulation move for the Middle East. Web.