Summary of The Financial and Other Implications of Overseas Trade for A Company

That Might Be Operating in Your Air Freight Sector

Russia’s global air transport networks are a significant facilitator of trade altogether in

services and goods. Overseas trade affords customers and company’s access to access to a wide-

ranging assortment of commodities at Impressive prices. For Russia’s businesses, foreign trade

delivers a global marketplace to function together with accessibility intermediary resources and

inputs like parts and raw materials. Nonetheless, the overseas deal brings with it similarly

abundant benefits and challenges primarily to companies in the air freight sector. These

implications are broad and categorized into financial, market, transport and logistics among

others (Shepherd, Shingal, and Raj, 2016, pp.10).

Volga-Dnepr Group is an air freight company based in Russia and operates Globally.

Though the company has diversified into various other services, it started with cargo charter

flights stands as its significant function. Volga-Dnepr Group has engaged in overseas trade for

over 25 years, and currently, it operates the An-124-100 and IL-76TD-90VD which are the most

massive modernized freighters in the world (Itskovich, Chernov, Fainburg, and Fainburg, 2017,

pp.30). Running an air freight company in a global context entails a robust business structure as

well as an active supply management chain. Volga-Dnepr Group has exceptional set-up

competences and structures supplemented by the unique expertise and knowledge and expertise

their workforce employees to address the financial, market, logistical and technical challenges

entailed in the overseas trade (Williams, 2017, pp.3). Consequently, Volga-Dnepr Group has

garnered its position as the unquestionable leaders in the air freight sector for transportation of

oversized, non-standard and weighty loads (Mangan, Lalwani and Lalwani, 2016, pp.10).
 The present dynamic global market creates unique challenges to the overseas freight

market. The accelerating economic predicament in the Euro-zone, natural disasters, vivid

governmental vicissitudes in Middle-Eastern region and the instability of international prices of

oil expressively impacted air freight companies operating in the overseas including Volga-Dnepr

Group (Williams, 2016, pp.131). These factors made air-freight operators to focus on decreasing

the operation cost and resources to augment and sustain efficiency in their businesses. Over the

last decade, Volga-Dnepr Group has managed to attain a confident and stable position. This

generally attributed to the company’s shareholders and management review of a strategy targeted

for development and equivocating the challenges coupled with the overseas trade of airfreight

industry.

In dealing with the extreme competition in the international airfreight trade, Volga-Dnepr

Group adopted a strategy to augment the company to be an assimilator in the oversized and

heavy cargo sector and also developing a subsidiary Volga-Dnepr Techniques to exploit the

repair and maintenance of aero-technic gap in the overseas freight sector. Another challenge of

overseas trade is that of high operating costs due to the maintenance and repair of their Volga-

Dnepr aircraft (Forsyth, 2017, pp.181). To address this matter, Volga-Dnepr Group, shifted from

its organic-growth model through implementing and deploying M&A projects. The initial step

for the project was the acquisition of Atran-airfreight firm that engaged in small volume

airfreight. The integration of the Atran-airfreight firm enabled Volga-Dnepr to exploit and grow

in the small-airfreight sector efficiently. Additionally, the company managed to generate a

structure for feeder traffic as well as intensifying the small freight aviation industry, to create a

network of feeder traffic and to expand the assortment of functions and services presented to

consumers.
 The overseas air freight is coupled up with the issues of transport and logistics. In dealing

with this matter, Volga-Dnepr employed its establish division Technics. The firm built a large

warehouse Moscow’s Domodedovo Airfield that incorporated a customs post. Additionally, the

company introduced novel systems and technologies purchased additional equipment and

expanded its qualified workforce at the world-wide airport. Rendering Budd, L. and Ison (2017)

Volga-Dnepr’s yearly report the to the year results, the average downtime 21% decreased its

aircraft at stations (Budd, L. and Ison 2017, 35). The company also began to exploit additional

markets like scheduling freight flights into the United States. As a result, the established

Eurasian course of the company was augmented by the auspicious expansion in North American.

Currently, Volga-Dnepr overseas clients comprise of foremost industrial, logistics and

transportation businesses globally. Volga-Dnepr has also managed to exploit and delve into other

services in demand such as providing worldwide humanitarian support and international relations

missions (Budd, L. and Ison 2017, 35). The overseas trade will continue to experiences

challenges due to the dynamic global economy. On the other hand, in the future, the enduring

inclinations in the direction of superior globalization are likely to afford air freight companies

like Volga-Dnepr with opportunities to function and operate in an ever more comprehensive feat

and scale. Russia needs to needs to fine-tune the hastily fluctuating and mutating global setting to

utilize its competencies. These trends will present opportunities both for the UK as a whole and

for individuals and businesses, but will also bring challenges, such as tackling climate change

and increased competition.

 References

Budd, L. And Ison, S., 2017. The Role of Dedicated Freighter Aircraft in The Provision of

Global Airfreight Services. Journal of Air Transport Management, 61, pp.34-40.

Forsyth, P., 2017. Global Industry. Economics of Globalisation, pp.181.

Itskovich, A.A., Chernov, A.O., Fainburg, G.D. And Fainburg, I.A., 2017. Increasing The

Aircraft Airworthiness Maintenance Eficiency Based On the Project Management

Methodology. Naučnyj Vestnik Mgtu Ga, 20(1), pp.26-35.

Mangan, J., Lalwani, C. And Lalwani, C.L., 2016. Global Logistics and Supply Chain

Management. John Wiley & Sons pp.10.

Shepherd, B., Shingal, A. And Raj, A., 2016. Value of Air Cargo: Air Transport And Global

Value Chains. Montreal: The International Air Transport Association (Iata), pp10.

Williams, A., 2016. The Growing Strategic Importance of Air Cargo Services. In Contemporary

Issues Shaping China’s Civil Aviation Policy pp. 131. Routledge.

Williams, G., 2017. The airline industry and the impact of deregulation. Routledge.pp.3