Sunday, March 19, 2017

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.

Friday, March 10, 2017

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/

Saturday, March 4, 2017

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/