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Emirates Sky Cargo Essay

Emirates SkyCargo is based in Dubai and it began its operations in 1985 and is one of the divisions of the Emirates Airline and Group. It is one of the leading air freight cargos and carriers in the United Arab Emirates. Emirates SkyCargo offers the best cargo solutions in terms of quality and efficiency and flies in over 100 destinations across the globe. The company’s priority is to ensure customer satisfaction and to achieve this, it has embraced technological advancements to improve on its cargo logistics system so as to enhance its operations and provide their clients with tools that they can track their consignments.

On top of this, it has the latest airplanes such as the Boeing and the Airbus. Emirates SkyCargo also follows the international cargo quality management standards (MGMT 420) in their operations thus ensuring that their customers can trust the airline to handle and deliver their property in safe environs. By providing quality services, Emirates SkyCargo has won several awards. It was named the best airline to the Middle East for the 20th year. It has also won an award being the best air Cargo Carrier, the best Airline to Africa in 2007 and the best cargo

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airline in the Far East and in the Indian Subcontinent (Al-Abed, 2006) among many awards.

? Managerial Aspects o Corporate culture/philosophy Emirates Sky Cargo’s philosophy is the commitment of the employees as well as the top managers to ensure that they provide quality services and that they perfect their services through understanding the needs of the people so that they can improve on the areas that do not meet the customers’ expectations. The leaders ensure that team work is enhanced among the employees, the organization is in good terms with its partners and that they are committed to ensuring that they help the community by improving the lives of the people. o Organizational chart

For businesses to perform well they need to work with competent people who are able to take their companies to the next higher levels. Emirates SkyCargo is no exception as it has a variety of experienced staff working in various units who ensure that the company is propelled in the right direction. Emirates SkyCargo is a subsidiary of the Emirates Airlines and Group Company therefore the appointments for the people to head the top offices are made by the group and airline board. Being a large corporate organization, Emirates SkyCargo follows a formal multinational organizational structure.

Positions are given in a hierarchical manner. The top managers are the ones who govern and control all the activities in the workplace as well as manage the other employees. There is a board of directors, a CEO, vice chairman, executive directors, regional directors, technical directors as well as managers. Sheikh Ahmed bin Saeed Al Maktoum is the Chairman as well as the Chief Executive Officer (CEO) and is assisted by the executive Vice-Chairman of the Emirates Airline and Group Maurice Flanagan. Ram Menen is the senior Vice President of Emirates SkyCargo.

The positions are given according to the various departments in place and the needs of the company so as to ensure that every important thing has someone in charge to ensure that it is run well; for example, the president and chief operation officer Yng Ming. The board of directors and the managers also play a vital role in decision making. Mission Statement o Missions Statement Emirates SkyCargo’s mission is to offer the best of services to its worldwide clientele and to focus on constantly improving their standards so as they are in line with the global changing needs so that they can also gain in the process.

They achieve this by supporting business logistics within the airline industry and refine their services. ? Resources For any business to prosper, they must be willing to invest in good products and services that will enable them to complete their tasks so that they can reap from where they have sown. Emirates SkyCargo through the Emirates group has invested funds in the purchase of the necessary equipment as well as hiring staff so that they can meet their set targets and goals.

o Key facilities and equipment The company has a fleet of aircrafts mainly the Boeing 777 and the airbus A380 & 310. It also uses the cargo facility of the passenger fleet especially in dealing with light weight. They have the best of facilities on the ground that is run using the latest technology in the industry. The operations are conducted at the Cargo Mega Terminal which was opened in 2008 thus creating a spacious facility that can handle the increasing number of consignment to the port.

This has also made it easier to handle the different types of cargo in one central location. The automated handling systems and improved tracking and computerized systems linking the different divisions and units have made it easier for the personnel to conduct their activities faster and easily. In addition, it has made it easier for business people as well as sender and recipients to track their commodities faster (Emirates SkyCargo). The storage facilities have also been improved thus making the facility more reliable and appealing to the clients.

The storage facilities are designed such that they deal with specific needs of the cargo for instance, when transporting animals, the temperatures are regulated among other things so that they are comfortable and also perishables are given extra care. Training the personnel is very important as they are a key factor in ensuring the provision of quality services. Certain regulatory and inspection institutions have branches located at the facility; for example, the Ministries of Information, Agriculture and Fisheries and Environment, Dubai Police, Dubai Customs and the Department of Aviation.

This has saved on time that would have been used to go to the actual offices and wait in long queues. o Main airports served Emirates Sky Cargo conducts its operations from Dubai International Airport and because of its expanding network as well as partners and clients; it flies to and from many airports in over 100 destinations across the globe. The major airports served by Emirates SkyCargo include; Pudong International Airport in Shanghai, China which is a fast growing city is producing various commodities for export.

Moreover, China has opened three weekly flights thus boosting its activities, Rajiv Gandhi International in India is another airport that deals with Emirates SkyCargo, the Amsterdam Airport in Netherlands, Guarulhos International Airport in Sao Paulo, Brazil is another major destination as it transports most of the consignment from the South American States to the Middle Eastern countries. Domodedovo International airport in Moscow, Russia is a destination where the company benefits from the regular importation of flowers by Russia from Africa, medicinal products from India and meat from Australia they will arrive within 24 hours.

Australia is another frequent destination and the airports that are dealt with are Toll Dnata International Freight Terminal in Brisbane, Melbourne and Sydney and also through the Perth international Airport. o Number and type of aircraft Emirates SkyCargo deals with the latest Boeing and Airbus aircrafts and currently has a fleet of 129 aircrafts. This year; 2009, the company is planning to increase the number of aircrafts by 17% so that they can cater with the growing business. To this effect, the company is going to bring in two new air freighters Boeing 777 within the coming year.

On top of this, 18 passenger aircrafts will be widened so that they can carry cargo. This initiative is geared towards catering for the increasing routes and flight schedules. The company has targeted to increase its cargo capacity by 700 tonnes and has projected that they will increase the weekly cargo capacity by 17% in the Middle East,15 % to Africa, 10 % in Europe and those to Australia will increase by 4% (Eye for Transport, 2008). With this new increase in flights, it will be able to open up new operations in destinations like Lagos, Nigeria and Durban, South Africa. ? Operations

Successful ways of operating have ensured the success of Emirates SkyCargo and that is why it is the best in the industry especially in the Middle East region and this is reflected in the over 100 international awards in a span of 24 years since it began its operations. o Operational philosophies The main operational philosophy that the company has is ensuring that their customers receive the best of services using the best techniques in modern logistics management. On top of this, they work with experts in the field and rely on them for advice so that they can improve themselves (Emirates SkyCargo, 2009).

To make sure that the company achieves its goals, the top mangers lead by example such that they act and instill the necessary ethical principles of the company as well as the industry to the employees. Thy have invested money in training the personnel on handling the various equipments in place especially the new technologies and through the constant interaction of the staff and the employees, they workers are performing well at their various duties. Emirates SkyCargo philosophy is to ensure that there is fair competition in the industry.

That is why their services are affordable and they engage in constant talks with other air freight cargos within the region so that they can see the areas that need to be improved on. Such initiative builds better corporate relationships such that encourage people to learn from each other as well as provide a proper platform where disputes can be handled in rational ways. This has made the organization more respectable as it values the ideas presented by other organizations and individuals such that they in turn treat them well.

In the provision of better services, the Emirates SkyCargo has embraced the improvements in information technology and that is why it has introduced the most advanced IT system; the new generation cargo system, in its operations. Though acquiring this was expensive, it will be a worthy investment as it will enable them to enhance their competitive advantage over other players in the industry. Moreover, it the rapidly changing business environment, flexibility and speed are important in the success of a business.

The system is engaging its customers, management and partners in the company’s procedures and is both environmentally and user friendly (AME info, 2009). The IT department is thus doing a good job in innovation and invention which are among the principles the organization strives to attain. o Markets served The markets that Emirates SkyCargo are distributed across all the continents and they include: Australia, they fly to four cities Perth, Brisbane, Melbourne and Sydney, this is because they link the country to the Middle Eastern countries thus enabling effective international trade to occur.

The Australian cities produce fresh vegetables and a variety of fruits and industrial parts that are needed by European as well as the Middle East countries to facilitate trade and the companies operations, flights are slowly being increased to facilitate trade and business growth. India is another growing market and since it conducts trade with different countries and reachable by are from Dubai, it has become one of the places that Emirates SkyCargo relies on. Passenger destinations such as Frankfurt, Hong Kong, Dhaka in Bangladesh and Istanbul are regions where freights are frequent.

European Cities such as Amsterdam and Liege also conduct frequent cargo transactions with other countries and they rely on Emirates SkyCargo to facilitate their transportation activities. New York City in the United States is also a growing market that the cargo airline deals with. o Types of cargo There are different types of cargo are handled at the airline. Bulky, heavy and light cargos are handled. This can be in the form agricultural produce such as textiles or technological parts and equipment.

There are limitations on the amount of cargo that a specific aircraft can handle and all this needs to be observed to ensure the safety of people as well as goods. For instance, the Boeing 747 can handle approximately 120 tonnes. “In the financial year 2004-05, Emirates Sky Cargo set a new record by carrying approximately 840 000 tonnes thus increasing the divisions revenues by about 43% from the previous year. Since then, it has continued to expand tapping into new regions (Al-Abed, 2006). ” Dangerous goods are transported.

Dangerous here does not mean that they can necessarily cause harm but refers to those goods that need extra care since they most probably need to be handled delicately so that they reach the final destination just as they were sent by the sender. They may include goods such as live animals which may include kangaroos, dogs and some air transportable wild animals. Perishable goods are another category and this constitutes mostly agricultural products including food and horticultural produce like flowers.

Other forms of cargo are valuables products such as confidential documents and jewelry and vulnerables such as mobile phones. The staff is trained on the way they should handle these products in accordance with the IATA and international standards regulations. “They ensure that the products are closely monitored and that they are stored safely. In addition to this, postal mail is also transported but in accordance to the local and international standards (Emirates SkyCargo). ” Emirates SkyCargo mail system is in place to ensure that the mail sent reaches its destination.

Courier products in form boxes and documents are also dealt with in the courier section. o Operational Limitations As much as the business is successful, it has several challenges that slow done operations. One of the limitations is that with the implementation of the new technologies, some workers find it difficult to cope with the changes as the systems have to be continually improved and this confuses them such that they end up taking long to know how they are applied in their work. This usually takes up a lot of time which would have been used in productive activities that will yield the company profits.

Technological hitches can affect the entire system because it is interconnected and this disrupts services for the entire period up to the time when the system is adjusted. Another limitation is that the company has spent a lot of money in expansion processes and they have not adequately rewarded the employees who do most of the work. In addition, at times it feels as if they have concentrated more on the expansion and not on the business. Another limitation arises through their interaction with many countries.

This is because they have to adhere to the specific countries aviation, trade and transportation regulations and sometimes some take long or is complex. They may then rush to sign the deals only to find later that there are some specifications that do not go well with them hence creating a problem that needs to be addressed. Another problem is in the handling of many commodities. When there are a lot of cargos to handle, this can cause delays once in a while and sometimes there arises storage issues during the business peak periods. ? Business Relationships

Business relationships are very important for businesses that want to grow especially in the international market. o Principle customers Emirates SkyCargo principle customers include business corporations that are dealing with the documents, industrial companies and manufacturers, banks in different countries when they are sending bank drafts to other businesses or banks in other countries, individuals sending certain goods, postal organizations sending letters and parcels to other countries and the government when they are ordering supplies from other regions so that they can equip themselves.

o Partners, alliances or pacts Emirates SkyCargo has formed various strategic partners so that they can develop new business opportunities as well as enhance strengthen their name in the global market. It has a network of interline partners in the various destinations where they land and take off. Some of the partners include Brazil. Brazilian exports transported by air to Arab countries have increased by approximately 60% since Emirates SkyCargo entered the market.

This showed that Brazil was a potential market and both countries could gain from the various business operations. That is why Gollog; the Brazilian air cargo company, and Emirates Sky Cargo have signed a partnership deal such that Emirates SkyCargo will transport cargo operated by two companies under it transportes Aereos and Linhas. Emirates SkyCargo is also looking for a suitable partner in Hong Kong so that they can handle local deliveries.

“They already have a company that handles ground operations; Jardines Air Cargo Services Ltd, and a warehouse (Shippers Today). ” This will diversify its operations in the region and ease cargo handling. Emirates SkyChain is another partner as they assist them in managerial issues and help in forecasting and planning the business operations. o Code-sharing and joint ventures Emirates SkyCargo has a joint venture with China West Airport so that they can cost share on the responsibilities as well as the cost in handling cargo on the ground.

There is a group Joint venture with Dnata; part of Emirates Group and PWC logistics so that they can share the same code with Air Malta. ? Future Plans The future of Emirates SkyCargo is bright as they look to make sure that they are linked to the rest of the world. They are also planning on making it their goal to Conclusion Emirates SkyCargo is doing well because it has experts in all fields of the aviation industry as well as in the cargo handling industry working for them.

The company in its efforts to enhance proper service delivery to its customers, they have used the latest technologies and they are taking the customers preferences seriously because they use the feedback to create better designs to meet their needs. In enhancing ensuring that they become a multinational cooperation as well as promote international trade, they have formed strategic partners all over the world who are helping them achieve their mission and vision.

The combination of good leadership and proper infrastructure has therefore enabled them to offer quality air cargo services in terms of flexibility and reliability. References Al-Abed I. et al. (2006). United Arab Emirates Yearbook: Annual, Trident Press Ltd, 2006 p. 209 AME Info.

Emirates SkyCargo unveils plans for the world’s most advanced IT system United Arab Emirates: Wednesday, December 17 – 2003. Retrieved on March 28, 2009 http://www. ameinfo. com/32500. html Emirates SkyCargo expands capacity by 17% Feb. 2009 http://www.eyefortransport. com/content/emirates-skycargo-expands-capacity-17 Retrieved on March 28, 2009

Emirates SkyCargo retrieved on March 28, 2009 http://www. skycargo. com/ourservices/mail/mail. asp# Eye for transport. Gollog and Emirates SkyCargo sign partnership agreement July 2008 http://www. eyefortransport. com/content/gollog-and-emirates-skycargo-sign-partnership-agreement. Retrieved on March 28, 2009 Shippers Today. Emirates SkyCargo’s remarkable growth http://info. hktdc. com/shippers/vol26_6/vol26_6_airfr02. htm retrieved on March 28, 2009

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