The Place of Air Transportation in Distribution

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THERE IS A SINGULAR WORD in this expressive English language of ours that has a particular fascination for anyone engaged in your profession of financial analysis. The word-an adjective in some cases, a noun in others-describes something that does not really exist, yet is possible, and is in the making for the future. The word takes into consideration latent powers, Not only does it describe conditions that may develop in the future; it even attempts to measure the intensity of those conditions as they develop. In physics, the word expresses the energy which a piece of matter has because of its position, such as a weight raised to a height, a coiled spring, or the like. By now, of course, you know that I am referring to potential. In financial circles, potential is simply the measure of the ability of a business to serve a useful purpose. It is a measure of a product plus the ingenuity of management to put that product to use. For example, the potential of Old Bossy, the cow, is not limited to the fact she gives only milk. Her potential arises from our ability to produce butter, cheese, ice cream, industrial glue, pies and cakes and hundreds of other useful things from her basic product. Similarly, we should not confuse the potential of the airfreight industry with the notion that it is solely a collection of instruments for shipping small packages in a hurry on an emergency basis. To evaluate the potential of airfreight accurately, we must examine four factors that are creating a new business atmosphere around us and consider their impact upon this eleven-year old industry. (Airfreight has progressed far from the birthing and infant stage-has not yet attained its full maturity-but has flexed its muscles to feel the confidence arising from its own strength. Certainly, it emulates the adolescent in its enthusiasm and will to win.) Four factors we should consider are these: