UTILIZATION OF HAJI FLIGHT TO EXPORT PRODUCTS OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs)

Abstract

Asia is one of faster growing regions within the global air transport market since the 1990s, air cargo volume in the region have increased dramatically. In response to this trend, many Asian countries have opened new airport or expanded existing air cargo facilities to accommodate more cargo and to be developed as a regional air logistics hub. The paper presents an export development analysis of micro,small and medium entreprises (MSMEs) in East Java Province. The issues are expected to be discussed are : MSMEs products export and air cargo handling of Hajj Flight. Utilization of Hajj Flight will greatly help reduce the burden of the cost of freight /MSMEs exports. The paper will attempt to briefly look at present export trend and consciously guide exports into the awareness of great opportunities around them. Similarly, the paper will show the cargo handling roles and procedures in order to exports to appreciate the impact of air transport in their business. Exporting is a process of earning profits by selling products services in foreign markets. To identify current situation and facing problem of SMEs cargo, several factors such as cost, infrastructure, customs, and air transport policies, are reviewed. The analysis includes various role players such as forwarders, airlines, customs office, airport authorities, and government. Air transport is a vital component of many international logistics networks, essential to manage and control the flow of goods, information and other resources like products, services, and people, from the source of production to the market place. It is difficult or nearly impossible to accomplish any international trading global export process, international repositioning of manufacturing products, without a professional logistical supports. In involves the integration of information transportation, inventory, warehousing material handling and packaging. The operating responsibility of logistics is the geographical repositioning of raw materials or products, work in process, and finished goods where required at the lowest cost possible. Larger cargo airlines tend to use new or recently built aircraft to carry their freight. 2 Juanda International Airport is the international airport which services Surabaya City. PT (Persero) Angkasa Pura I is one of body state owned Enterprises (Badan Usaha Milik Negara) of Communication Department, which is active in managing and enterprising airport service in Indonesia. The company missions is to carry out the management of airport exploiting and its surroundings well and innovatively. The airport can serve 6 million passengers and 120000 cargo tons every year, one of airport revenues are arises from cargo area and industrial rentals. The expansions of such revenues to maximize their value to the airport is a principal task of airport management. Management at Juanda International Airport Surabaya , is aggressively promoting the airport’s cargo business and undertaking and building campaign to handle of cargo . The cargo sector is viewed as an important component of their economy, and international cargo handling are include separate terminal, warehousing, and other related facilities, and by all stakeholders. The support expected to come from business associations, colleges, related agencies in the area government in East Java. More over, government policy is encourage the development of micro, small and medium enterprises (MSMEs).In this study using analytical methods of evaluation of the facilities of air cargo handling, warehouse with the requirements that must be used, as the international Airport or Hajj flight. Operation procedure of air cargo, it also to be known and analyzed. Data used is primary and secondary data. Primary data obtained field surveys, while secondary data obtained from various publication sources.