Final Blog

           Over the past few weeks, we discussed a number of aviation related topics during class and in blog entries. The topic that peaked my interest the most is the topic of foreign airline competition to U.S carriers, specifically, competition to U.S carriers by some airlines in the Middle East.

            Before I go any further, I would like to mention that I am impartial when it comes to this topic, I do not side with one “group” over the other. I believe that U.S carriers have their own valid reasons to feel that certain carriers from the Middle East have an unfair competitive advantage, I also think that those carriers from the Middle East have valid reasons to think that they do not have an advantage over U.S carriers.

            Today, I would like to explore a few issues that surround this topic. The most current issue, in my opinion, is the electronic ban that was recently banned. I would like to explore the effects of this electronic ban. Also, I would like to explore the issue of unfair labor practices that surround Middle East carriers. Additionally, I would like to discuss how U.S carriers might be able to compete more with those carriers for revenue.

            Electronic Ban

            Last month (March 2017), the U.S government issued an electronic ban that affects ten airports in eight countries from the Middle East and Africa. Airports included are Dubai, Abu Dhabi, and Doha.  This ban prohibits laptop computers, tablets, and other electronic devices from passenger cabins on U.S-bound flights. Medical devices and cellular phones (or smart phones) are not affected by this ban. All other electronic devices must be packed with checked luggage.  Many airlines from the Middle East have been affected by this ban since they operate flights to the United State, including the “big 3” carriers of the Middle East (Emirates, Etihad, Qatar Airways). Since no carriers from the United States fly to the airports that are on the list, this electronic ban does not affect them. However, carriers from the Middle East had to restructure their operations in order to be in compliance with this ban (Lazo, 2017).

            It should be noted that a person could travel from an airport on the list of the electronic ban to the United States with a transit in Europe without being affected by this electronic ban. Additionally, a person could be simply transiting through an airport on the list to fly to the United States, and he or she would have to comply with the ban (Lazo, 2017).

            While the official reason for the ban is a security concern, many have questioned the reason why the Trump administration enacted this ban.  Some experts believe that the ban is useless because “if a bomb could escape detection in a carry-on, then it can escape detection in checked luggage as well” (Engel 2017). There are business implications on carriers from the Middle East because of this ban. Some of the passengers who travel on those carriers such as Emirates or Etihad are connecting to other parts of the world. Many business travelers are against checking in their laptops and would seek other airlines to get to their destinations (Engel 2017).

            Earlier today, Emirates has announced that it will be cutting flights to the United States and the airline cited that the electronic ban and visa restrictions are behind this decision. Because of the ban and visa restriction, demand on flights to and from the United States has weakened.  25 flights per week have been reduced over all (Slotkin, 2017).

            Unfair Labor Practices

            Some have argued that airlines some Middle Eastern carriers that fly to the United States have unfair and unethical labor practices. Unions that represent flight attendants and other employees that work for U.S carriers have asserted that the hiring practices of Emirates, Etihad, and Qatar Airways are “repugnant”. The three Middle Eastern airlines, according to those unions, require female employees to obtain permits before getting pregnant or getting married. These airlines also ban members from the LGBTQ communities from working for them (Strunsky, 2015).

            On a personal level, I do agree with the fact that the labor practices of these airlines are unethical, however, I feel that targeting them specifically just to smear them for the benefit of U.S carriers is unfair. If we as consumers are going to target the big three carriers of the Middle East for their unethical labor practices, then we have to target all other carriers that operate to the United States which could potentially have unfair labor practices as well.

            Could U.S Carriers Add More Flights?

            Because it was noted earlier that the U.S carriers were not affected by the electronic ban on flights from ten airports including Dubai, Doha, and Abu Dhabi, it was proven that U.S carriers do not fly to those countries where the competition is stemming from.

            I believe that U.S carriers should explore the idea of adding more flights to those cities. They do not have to be nonstop flights. Maybe they could explore the idea of using fifth freedom rights to add flights to those cities from other areas of the world. Even if those routes are not initially profitable, they could be used to show Middle Eastern carriers that “they are there” to compete and to protect their market.

References:

Lazo, L (2017). What You Need to Know About the Airline Electronics Ban.

The Washington Post Retrieved from: https://www.washingtonpost.com/news/dr-   gridlock/wp/2017/03/23/what-you-need-to-know-about-the-airline-electronics-ban/?utm_term=.d75902143195     

Engel, P (2017). Tech and Terrorist Experts Question Trump’s Airline Electronic   

             Ban: ‘It Absolutely Makes no Sense’. Business Insider. Retrieved From: 

http://www.businessinsider.com/experts-trump-airline-electronics-ban-2017-3

Slotkin, J. (2017). Emirates Airlines Cuts Flights To U.S, Citing Trump’s                       

Security Rules. National Public Radio. Retrieved from:   

 http://www.npr.org/sections/thetwo-way/2017/04/19/5247

18514/  emirates-airline-cuts-flights-to-u-s-citing-trumps-

security-rules

Strunsky, S. (2015). U.S Flight Attendant Unions Say Gulf Airlines

Have Sexist and Anti-Gay Employment Policies. True Jersey.

Retrieved from: http://www.nj.com/news/index.ssf

/2015/03/us_unions_say_arab_airlines_a re_sexist_and_anti-ga.html

Aviation Organizations

1.  Two organizations that I feel will be important to belong to when I am employed in the industry is the American Association of Airport Executives (AAAE) and the Association of California Airports (ACA).

2/3. AAAE was founded in 1928 and it is currently the largest association for airport executives. It represents thousands of airport management personnel around the country (from about 850 airports). Additionally, this association represents companies and organizations that support airports. This association also has representation in Washington D.C ("About AAAE" n.d).  By having representation in Washington D.C, the AAAE is supporting the political sector in the United States.

ACA represents public and privately owned airports in the state of California. Its main purpose is to foster, develop, and promote the air transportation system. Membership in the ACA is not limited to airport managers. Other personnel such as city managers and public work directors can also join this organization ("About ACA" n.d). It can be said that the ACA fosters other industries by allowing workers from other industries to join the ACA in order to foster growth for California airports.

3. Both associations are important for me because I see myself working in the airport management sector of the industry. I believe that both association foster growth for airports, which in turn would foster my career as an individual. Even if I don't end up working in the airport side of the industry (If I work for an airline), these associations would indirectly influence my career positively also. If airports are growing, it means that airlines are providing more services to these airports.
I specifically chose ACA because I see myself moving to California in the future (if the right opportunity exists).

References
About AAAE. American Association of Airport Executives. Retrieved from: http://www.aaae.org/aaae/AAAEMBR/About_AAAE/AAAEMemberResponsive/About_AAAE/About_AAAE.aspx?hkey=17fa23bc-bfe6-4589-9c8b-c362c1e7c303

About ACA. Association of California Airports. Retrieved from:http://www.calairports.com/about%20aca.html

Exploring Other Paths.

1. Corporate Eagle, according to their website, is Michigan's Largest provider fractional and managed business aviation. The company started operating in 1982. It primarily serves southeast Michigan. The company employs 57 people, 31 of them are pilots. Corporate Eagle has three different types of aircraft to serve its customers. These aircraft are the Dassault Falcon 2000, Raytheon Hawker 800 XP and Beechcraft Super King Air B200. On the Management side, the company employs several different managers, such as a safety manager, scheduling manager, and onboard services manager. There were no available career opportunities on the company's website at the time this blog entry was published. (link to company website: http://www.corporateeagle.com)

3. On management side, I could see many opportunities in General Aviation. I could definitely see opportunities in managing airports that cater primarily for GA. It could vary from airport management to airport planning. One could also focus on managing FBO's.

5. Two positions for management students could be:

• Terminal Planner for an airport consultation firm. Although this position might require more experience for a candidate than just a degree. https://jacobsendaniels.hiringthing.com/job/41318/terminal-planner
• Because of my past customer service experience, experience in sales, and cash handling experience, I can use the business side of my Aviation Management degree to become a personal banker upon graduation. https://jpmchase.taleo.net/careersection/2/jobdetail.ftl?lang=en&job=3206829&src=JB-13027

6. Although this assignment opened my eyes to other possible opportunities I might have in management, it did not change my plans. I have always been passionate about commercial aviation and the airline business. That is where I see my future at. I also eel confident that I can find a job elsewhere if needed such as in the banking industry.

Global Airlines

1.  According to the Air Transport Agreement , airlines from the United States and the United Arab Emirates are allowed the following ("Air Transport Agreement Between the Government " 2002):

• Airlines from each party are allowed to fly across the other's territory without landing ("Air Transport Agreement Between the Government " 2002). 
• Airlines are allowed to make stops in each other's territories for non-traffic purposes ("Air Transport Agreement Between the Government " 2002). 
• Each party is allowed to designate as many airlines as it wants to conduct international service between the two parties. The designation of flights must be approved through diplomatic channels ("Air Transport Agreement Between the Government " 2002). 

Although a specific airline is not mentioned in this agreement, two airlines that are accused of receiving government subsidies are Emirates and Etihad. Both airlines operate newer aircraft. They are very well known for their on board services. They are likened to Pan Am during the golden age of aviation. They resemble their home country (UAE) with their product and customer service (Zhang, 2015).

2. Although U.S carriers do not directly receive subsidies, there are many ways that one could say they are indirectly receiving subsidies (McGee, 2015):

• Delta bought a stake in China Eastern, which does receive government subsidies (McGee, 2015).
• The Essential Service program subsidizes airlines to fly to 163 rural communities around the country (McGee, 2015).
• After 9/11, the government bailed out airlines for the grounding of their flights. This was enacted through the Air Transportation Safety and Stabilization act (McGee, 2015). 

3. The major purpose of the Export-Import Bank is to help American businesses sell their products and services internationally. Certain U.S carriers allege that the Export-Import Bank is providing loans at lower interest rates to foreign carriers to buy Boeing aircraft. This in turn allows foreign carriers to operate at lower costs because they owe less in interest fees (Wiesman & Lipton, 2015).

4. The most recent issue regarding Norwegian Air Shuttle is that it is using unfair labor practices. Airlines in the United States allege that Norwegian Air Shuttle is trying to go around certain laws. They say that by being headquartered in Ireland, they do not have to follow the same safety laws and same labor laws. U.S carriers also allege that Norwegian is hiring crews from Asia for below-market wages. The Open Skies agreement between the U.S, European Union, and Norway states that the agreement cannot undermine labor standards or rights or principles. U.S carriers and their employee unions feel that the business practices of Norwegian Air Shuttle does in fact undermine those  labor standards, so they should not be allowed to operate flights to the U.S. The Department of Transportation, however, did not see that the practices of Norwegian Air Shuttle warranted the blockage of flights by the carrier (Jansen, 2016).

5. I feel that the global playing field of long haul carriers cannot be fair completely. Long haul carriers can be continuously regulated by different agreements and policies in order to make the playing field more fair. I feel that polices such as Open Skies are there to encourage a healthy travel industry. However, since each nation of the world has different laws and regulations, no amount of policies will make the playing field even. Additionally, one policy put in place may harm one sector of the economy while benefiting the other. For example, the Export-Import Bank have caused foreign carriers to receive lower interest rates than those offered to U.S carriers. However, this policy allowed Boeing (a major force in the U.S economy) to receive orders that might have gone to another manufacturer if the Export-Import Bank did not exist. 

References

Zhang, B (2016). A Nasty Rivalry Between US and Middle East Airlines Has Been All for Naught. Business Insider. 

Retrieved from: http://www.businessinsider.com/open-skies-american-delta-united-etihad-qatar-emirates-2016-6

(2002) Air Transport Agreement Between The Government of the United States of America and the Government of the United Arab Emirates. U.S Department of State. 

Retrieved from: https://www.state.gov/documents/organization/125743.pdf

McGee, B (2015). How Much do Taxpayers Support Airlines? USA Today.

Retrieved from: http://www.usatoday.com/story/travel/columnist/mcgee/2015/09/02/how-much-do-taxpayers-support-airlines/71568226/

Weisman, J & Lipton E (2015). Boeing and Delta Spend Millions in Fight Over Export-Import Bank's Existence. The New York Times.

Retrieved from: https://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html

Jansen, B (2016). DOT Approves Contested Norwegian Air Flights. USA Today. 

Retrieved from: http://www.usatoday.com/story/travel/flights/todayinthesky/2016/12/02/dot-approves-contested-norwegian-air-flights/94838292/

A Chinese competitor to Boeing?

1. Based on precedence, I do not believe that the C919 would become certified by the FAA anytime soon. COMAC's first aircraft, the ARJ-21 has yet to be certified by the FAA even though the aircraft has entered into commercial service. A shadow certification process has been undertaken by the FAA between 2010 and 2015 to assess the company. This lead many to believe that the FAA was intentionally hindering the process of certification because of economic and political reasons (Govindasamy & Miller, 2016).
If the company's first designed product has not been certified by the FAA, then I do not believe the C919 will be certified anytime soon. Maybe the FAA does not see COMAC as a viable company that will be able to maintain production of airworthy aircraft.
2. If the FAA does indeed certify the C919 and US carriers do order models of this aircraft, I see US carriers having difficulty in convincing the general public that these aircraft are safe. Even though most people do not have an idea of what aircraft they are traveling on, I see this becoming a media issue. I feel that the media will sensationalize the situation by insinuating that US carriers are operating subpar "Made in China" aircraft which might cause a public backlash.
As for finances, I feel that the current administration will not be very encouraging for US carriers to buy Chinese made aircraft. Because of added taxes, it may not be economically viable anymore for US carriers to buy a COMAC.
3. COMAC is a state owned limited liability company according to the company's website. Its mission is "to let China-made large aircraft fly in the blue sky". Currently, the manufacturer produces the ARJ-21 and is working on testing the C919 before it enters commercial service. There are no other aircraft in the works currently, although the company may design other aircraft later on ("Introduction" n.d).
4. No, I do not feel that other companies might enter the market as competitors to Boeing and Airbus if COMAC aircraft receive FAA certification. I feel that the long and tedious process for COMAC's FAA certification will discourage other manufacturers from pursuing the same thing. Not only that, the research and development of aircraft design is very costly. It will take a lot of money and investment for a company to start developing aircraft.
5. Although Boeing and Airbus have not directly responded to COMAC's C919. I think that the Airbus A320 NEO and the Boeing 737 MAX, which are both newer versions of the classic A320 and Boeing 737 series, serve as the main competition to the C919.

References

Govindasamy S. & Miller M. (2015). Exclusive: China-made Regional Jet Set for Delivery, but no        U.S Certification. Reuters. 
    Retrieved from:http://www.reuters.com/article/us-china-aircraft-arj21-exclusive-idUSKCN0SF2XN20151021

Introduction. COMAC.
   Retrieved from: http://english.comac.cc/aboutus/introduction/

Commercial Space Industry

1. Commercial space travel first started when Yuri Gagarin (a soviet cosmonaut) became the first human to be launched into space in 1961. Neil Armstrong became the first man to walk on the moon in 1969. In 1981, the U.S launched its first  space shuttle which was called Columbia. The International Space Station was established in 1998. Finally, in 2004, Sir Richard Branson launched Virgin Galactic and started accepting reservations for suborbital flights ("Exploration Timeline" n.d).
 Space travel has not been an entirely safe industry. There have been several notable incidents that caused the death of astronauts.  In 1986, Space Shuttle Challenger disintegrated after take off. Seven crew members were killed. Upon re-entry, Space Shuttle Columbia crashed over Texas while heading to the Kennedy Space Center in Florida. Seven crew members were also killed in this accident. During a test flight in 2014, SpaceShipTwo (being developed for Virgin Galactic) broke up inflight. One crew member was killed and another parachuted to safety ("Deaths Associated With US Space Programs" n.d).

2. According to the FAA, The Commercial Space Launch Act of 1984 "authorizes the Department of Transportation (DOT) and, through delegations, the Federal Aviation Administration's (FAA) Office of Commercial Space Transportation (AST), to oversee, authorize, and regulate both launches and reentries of launch and reentry vehicles, and the operation of launch and reentry sites when carried out by U.S. citizens or within the United States. The Act directs the FAA to exercise this responsibility consistent with public health and safety, safety of property, and the national security and foreign policy interests of the United States. The Act also directs the FAA to encourage, facilitate, and promote commercial space launches and reentries by the private sector, including those involving space flight participants." ("Office of Commercial Space Transportation" n.d). This most likely developed to regulate increased interest in space travel and just to show that the FAA is "involved". I do feel that the rules are lenient and I do not think that they need to be amended as of yet. Private space travel is its infancy and it is very costly to develop. Because it is so cost prohibitive, not many people are going to jump on it. This is unlike what occurred when aviation first started to boom in the early 1900s.  As of now, I do not think it would be a wise decision for the U.S government to invest more in commercial space travel; There are more important things that need attention and investment. Unless we are going to learn something that will help the world from commercial space travel, I do not think that the government should spend time, money, and effort into further regulations. 

3. I would not be surprised if space tourism did not greatly develop in the next 20 years. Space tourism is a very costly industry. The cost of a ticket on Virgin Galactic is $250,000. No exact timeline has been specified for when the first commercial space flight will occur. Because of this, I do not think that there will be enough demand to drive up competition and lower down costs. I feel that this will be a privilege for the extremely wealthy people of the world. There is no added benefit from space tourism. It will not decrease the travel time between two cities. It will not bring cities around the world closer together. Unlike commercial flight, space travel will be one-time bucket list adventure. We have not further developed supersonic commercial travel because of lack of demand. Therefore, I do not see space tourism more than a one-time fad. 

4. While there are many areas that require many qualifications for space tourism, I feel that anyone may be able to tap into the industry (If they are lucky enough). From a management perspective, I see space tourism developers requiring test subjects to assess the impact of space travel on the human body. Nasa has paid $18000 for test subjects to lie in a bed for 3 months while they do different experiments and research (Iwanicki, 2014). It may be similar in the development aspect of the space tourism industry. 

References:

Exploration Timeline. National Geographic. 
     Retrieved From: http://www.nationalgeographic.com/125/timelines/space-exploration/

Deaths Associated With US Space Programs. AirSafe.com
     Retrieved From: http://www.airsafe.com/events/space/astrofat.htm

Office of Commercial Space Transportation. Federal Aviation Administration.
    Retrieved From: https://www.faa.gov/about/office_org/headquarters_offices/ast/regulations/

Fly With Us. Virgin Galactic 
     Retrieved From: http://www.virgingalactic.com/human-spaceflight/fly-with-us/

Iwanicki, A (2014). Nasa is Paying mE $18000 to Lie in a Bed for Three Months. Vice
     Retrieved From: https://www.vice.com/en_us/article/nasa-patient-8179-100

The Current Status of UAVs

1.  Besides military usage, there are several ways in which drones or UAVs are used. The major use for UAVs is agriculture and public safety. Those industries account for 90% of civilian UAV usage according to a report that was done in 2013. Farmers use drones to fly over crops in order to keep track of produce, and to see if there are any diseased plants. They also use UAVs to scare off animals that might harm crops. UAVs could be outfitted with thermal imaging cameras for public safety missions (Scozaldra, 2015).
UAVs have also been replacing helicopters to cover high speed chases on TV. Additionally, they have also been used for arial photography.
According to the FAA, there is no license requirement for a UAV for fun. However, there are certain rules that must be followed. If the UAV is over 0.55 lbs., it must be registered with the FAA. No prior notification hast to be given to airports if they are flown more than 5 miles away. If the UAV is flown within 5 miles, then the ATC tower has to be notified. The UAV must always yield right of way to manned aircraft, and must be operated within visual line of sight of operator. UAVs cannot be heavier than 55 lbs. Public law 112-95 section 336 cover recreational or "fun" use of UAV operations. ("Getting Started" n.d)
For commercial operation of UAVs, a Remote Airman Certificate must be obtained. Certificate holder must be at least 16 years old and a TSA clearance must be obtained. UAVs may be used in class G airspace. Also, UAVs must be operated within visual line of sight. The UAV cannot be heavier than 55 lbs., and it may not be flown higher than 400 feet. UAV must only be operated during the day, they must not be flown over people, and they must not be operated from moving vehicles. 14 CFR PART 107 cover UAV commercial operations. ("Getting Started" n.d)

2. I definitely see UAVs integrating into the national airspace system. I believe that the FAA will be more involved in regulating the operations of UAVs. Currently, the popularity of UAVs is on the rise, and I feel that it will continue to rise. Since we always hear about UAV incidents on different media platforms, I believe that the FAA will eventually step in and start regulating operations more rigorously. I feel that the current UAV laws are too vague and not detailed enough. Because of their continued popularity and increase in use, the odds of an accident happening are increasing. Anyone can purchase a drone and use it recreationally, and sadly, there are many people out there who do not follow laws and regulations. I think that the FAA will eventually require certification for all UAV operations, not just commercial. Also, the methods and qualifications to earn a certification will be more detailed and more difficult than they currently are. The major problem I see of UAV integration is public confusion on what is allowed and what isn't. Because of their accessibility and affordability, the part of the population that will need certification is large, unlike pilots. Spreading the word is going to be difficult for the FAA.

3. Drones are increasingly being used in military operations by the United States. By 2013, the U.S had 8000 military drones. Between 2004 and 2013, U.S drones have killed between 1953 and 3279 people in Pakistan, according to the New American Foundation  since (Levs, 2013). It is estimated that 18% to 23% of those people are civilian. The major benefit for their integration is that military drones have saved the lives of military personnel. Targets are able to get hit without putting the lives of military personnel in danger, since they can operate the drones from remote spots. There have been no benefits to protect civilian lives by the use of UAVs according to studies done by two prestigious U.S universities. There has been no proof to their precision and accuracy (Levs, 2013).

4. I simply searched of "UAV" in indeed.com, and I found an aerial photographer job. It requires the employee to own a UAV along with a camera. The applier must have an FAA certificate for commercial operations as well. This job is a contract position. https://www.indeed.com/cmp/Dronegenuity-LLC/jobs/Aerial-Photographer-94b1446605418ea9?q=UAV

References

Szoldra, P (2105). Here's How Drones are Going to Completely Take Over the Skies. Business Insider. 
Retrieved From: Industrieshttp://www.businessinsider.com/drone-innovation-uses-2015-12/#there-are-many-other-uses-for-civilian-drones--an-industry-that-could-generate-upwards-of-82-billion-in-the-next-decade-10

Getting Started (n.d). Federal Aviation Administration.
Retrieved From: https://www.faa.gov/uas/getting_started/

Levs, J (2013). CNN Explains: U.S Drones. CNN.
Retrieved From: http://www.cnn.com/2013/02/07/politics/drones-cnn-explains/