Sunday, March 19, 2017

Exploring Other Paths: Management

Contour Aviation is a charter airline based in Smyrna, Tennessee. It operates on-demand charter services for passengers and freight in the southern United States, as well as a full-service fixed-base operation and is a Federal Aviation Administration certificated repair station. The current jobs offered in their website:
·      Full Time and Part Time Customer Service Representatives.
·      Hawker 400 Captain.
·      Hawker 400 First Officer.
·      Aircraft Maintenance Technician.
·      Maintenance Crew Chief.

I think to be an operations Manager a good job opportunity in the general aviation sector. The Operations Manager oversees an airline account to ensure that the operation is meeting and exceeding the customer’s expectations.

I found a job in Boeing as Customer Service and Sales Representative. Which is basically ensuring customer satisfaction by answering the day-to-day customer inquiries, transactional requests, and general customer service needs.

Also, I found a job as a QUALITY ASSURANCE MANAGER in several companies. The management students have a general business minor which allows working more business-related jobs such as Marketing Manager or Project Manager.

Actually, this assignment has not changed my plans but as searching for jobs and reading the jobs' requirements it seems that all of the jobs needs from two to five years experience in the aviation industry. However, I got more interested in Air Traffic Controllers jobs but I will not try to be one. It requires too much concentration and there is no room to make a mistake because sometimes it will cost souls onboard. 




















References






Saturday, March 11, 2017

Global Airlines: Is it a Fair Playing Field?

The USA-UAE open skies agreement was created in the year 2002. This agreement aimed at encouraging a global aviation system based on competition among carriers in the industry with minimal government regulation and interference (AFS, 2017).  It also aimed at facilitating the expansion of global air transport opportunities, allowing airlines to provide traveling and shipping public numerous service alternatives at reduced costs and desiring to ensure a high degree of safety and security in global air transport, and reaffirming their great concern about actions against the security of flights (AFS, 2017). The agreement comprised twelve articles that include definitions, grant of rights, designation and Authorization, revocation of authorization, application of laws, safety, Aviation security, commercial opportunities, customs duties and charges, user charges, fair competition, and pricing. The two airlines include Etihad and Emirates Airways. The U. S aviation industry alleges that both airlines received more than fifty million dollars (50M USD) as subsidies from the United Arab Emirates and Qatar governments.

There are allegations that the three U.S giant carriers namely American Airlines, Delta Air Lines, and United Airlines once received subsidies during the early 2000s due to bankruptcy and subsidized fuel costs (Snoj, 2015). For instance, Delta Airlines received 84.8 million loan guarantees from the Export-Bank in 2012 and significant fuel tax breaks. Based on the alleged 2009 WikiLeaks report, the Federal government funded various aviation participants including airports, the FAA, and various airlines.

The major challenge, in this case, is the increased demand for aircraft. The UAE carriers order planes in bulk which might result in reduced overall costs compared to the American Airlines (Snoj, 2015). Furthermore, increased demand for airplanes also increases their costs making most American airlines to spend additional resources in acquiring the planes. Consequently, the American Airlines purchase planes at higher costs compared to the UAE carriers.  

Norwegian International Airlines (NAI) has some controversies in its operations that threaten the United States’ aviation industry. The Norwegian Air is based in Dublin instead of Norway. Critics argue that NAI’s operations in Dublin enable the airline to take advantage of Ireland’s employment regulations that are less stringent compared to the Norway’s regulations. Consequently, they argue that NAI can employ lower-cost pilots and cabin crew members from Asia to operate the trans-Atlantic routes. Some aviation experts consider the NAI policy as a strategy of dodging laws and taxes. These alleged issues have brought a lot of pressure after the U.S Transport Department established an open skies agreement with the airline. The aviation participants view the move of granting NAI the permit to operate in the USA as a betrayal to the America’s aviation employees. They further argue that the move threatens a generation of US airline jobs and communicates a negative image of America worldwide. NAI violates the labor protections by evading Norwegian taxes and planning to hire crews based on Asian contracts. As such, Trump’s administration might cancel the agreement to protect the American aviation industry from exploitation.

I believe the playing field is fair. It is the responsibility of airlines to improve their operations and services as a strategy for attracting more travelers. It is evident that all governments usually establish open skies agreement with the aim of building their economy. For instance, the three UAE carriers are the major clients of the Boeing manufacturing firm, and they also create suitable and job opportunities business ties between UAE and America. Consequently, the United States gains a lot from such agreements, and it is very difficult to cancel all the open skies agreements due to unfair competition. It is advisable for airlines to develop alliances or establish additional sources of finances to expand their operations to compete with the foreign carriers.  













References
AFS, (2017). The U.S- U.A.E Open Skies Agreement. Retrieved from
Snoj, T. (2015). Open Skies Indeed. Retrieved from



        
     


Friday, March 3, 2017

Is The C919 Chinese Aircraft Competitor to Boeing and Airbus?


          There is no doubt the C919 will receive FAA certification if it fulfills the body’s requirements. FAA has no valid reason to deny the Chinese-based aircraft certification once it meets the set standards and requirements. There are indications that the Chinese airlines are doing everything possible to meet the FAA standards shortly. Perrett (2015) noted that although the China has a reputation for producing defective products, this could be their chance for redemption. The FAA certification could add to the credibility of the C919 aircraft.


            I foresee no challenges in future to the US carriers. Consumers tend to be cautious with Chinese products, so I do not believe US carriers will experience loss of business. According to Toh (2015), due to the defects are seen on Chinese products, consumers are likely to stick to the US airlines. Moreover, the US airlines have already positioned themselves well in the minds of travelers. They have built their reputation and trust among the passengers. Despite the prestige and effort that China has poured on the C919, it is not likely to attract significant foreign purchases due to the negative reputation of China-based products. The entry of the C919 into the market is not likely to change the perception of the general public even if it penetrates the market at relatively lower cost.


            The relationship between COMAC, the government, and the Chinese airlines is good as numerous Chinese airlines have already ordered for the C919. COMAC reported recently that it had received over twenty orders from customers for over five hundred aircraft, most of which are from Chinese carriers. Toh (2015) observed that the C919 aircraft is one of the major projects launched by the communist party (ruling party) to transform the country into a technologically profitable country. Since major airlines in China are owned by the state, the communist party can potentially order them to purchase the C919. The good relationship between the manufacturer and the government creates a favorable environment for the C919 to sell more. Besides, with the intervention of the government, the C919 is likely to receive the FAA certification easily as the American and Chinese governments have renewed their relations in the recent past.


            Since COMAC is a Chinese-based company, there is little chance that it will be a competitor to Airbus due to reputation. However, there will be inter-competition among the Chinese airline companies based on cost and efficiency. Airbus and Boeing enjoy massive competitive and comparative advantage over the C919. Moreover, Boeing and Airbus have been in the international market for relatively long, so they have a larger market share compared to the new entrants.


            According to Perrett (2015), Boeing and Airbus reacted to the C919 rollout by increasing their production rate to sixty aircraft per month. They projected that the production of the C919 is unlikely to be over five aircraft per month or sixty per year by 2018. To Boeing and Airbus, this is not a threat as it will take COMAC over ten years to hit this rate. Moreover, by the time COMAC will be manufacturing sixty aircraft per month, Boeing and Airbus will be aiming at successor airplanes. Furthermore, Boeing and Airbus have already re-engineered their planes so as to block the C919 from gaining economic advantages. It could take relatively long time before the new entrants realize significant profits due to the market challenges they are likely to face.












References
Toh, M. (January 01, 2015). China's ambitions rest on COMAC C919: Roll-out of first flight-test example of indigenous narrow body marks milestone on long march to certification and delivery. Flight International, 10-16.

Perrett, B. (January 01, 2015). Nearing roll-out: The C919 should be unveiled this year, but a 2018 delivery looks unlikely. Aviation Week & Space Technology, 8-21.