Wednesday, April 28, 2010

Airlines Continue to Amaze Me!

I got caught up in the iceland volcano saga in Europe, which appears to have "blown over" rather quickly this week. However, it has made me think about a couple of things;

1. How Reliant We Are On Mobility
The iceland volcano just showed us how important transportation systems are to getting relocated to where you need to be for work or pleasure. We take for granted that there are thousands of flights per day that get not only people relocated to where they need to be, but get things where they are needed. We are so globally dependant on each other, if planes don't fly and trucks don't drive, everything falls apart. All the fresh vege and dairy products made for the markets in Europe during the volcanic ash disaster had to all be thrown away. Talk about a waste of resources! If transport systems go down, despite how much CO2 they might be responsible for, there is an incredible waste of resources somewhere else....... Food for thought.

2. JALs Pull Out Effect
As we see JAL restructure everything they do due to 20 years of complete mis-management, the ripple down effect on others is quite stricking. JAL just announced more closure of routes here; http://www.japantoday.com/category/business/view/jal-to-cut-45-more-overseas-domestic-routes. As an example, JAL will be pulling out their subsidiary "J-AIR" from Nagoya Airport as per an announcement last week. The ripple down effect here; this decision will basically shut down the prefectural operations of the Nagoya Airport. Half of Nagoya Airports services just got cancelled; this has a huge effect on the economics of the airport and related suppliers.

The above just really highlighted to me how reliant an economy is on the airlines, and in fact how reliant our relocation industry is on airlines and transportation systems. We all need to understand just what mayhem occurs when people and freight can't move.

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