Chinese Competitor

After reading through an article from Aviation Week, I have speculations that the Chinese C919 will most likely not make its way over to the United States.  I do not see the need for the FAA to issue a certification to these foreign aircraft. As it is right now, “the Chinese market is big, so sales of perhaps 1,000 units remain plausible, in the opinion of program officials” (Perrett, 2013).  China has a larger population than the United States, and its almost double the size of our landmass. The C919 will do just fine operating solely in China because it is such a large country. 

In the case that the Chinese C919 does receive a certification by the FAA, the main challenge for the U.S. carries would be the price difference of the aircraft. Since China is capable of producing goods at such a cheaper rate than the United States, the C919 would be a much cheaper aircraft to purchase and utilize. At the same time though, the aircraft that the U.S. carries have been using have an established durability throughout many years of use. With a proven reliability, I see it very difficult for the U.S. carriers to veer away from the Boeing or Airbus aircraft.  As far as public perception goes, think of how heated things got when the U.S. automotive companies moved their factories out of the country. It would have the same affect if the U.S. carriers were purchasing Chinese aircraft.

COMAC is a “a state-owned limited liability company, which is formed with the approval of the State Council and jointly invested by State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, Shanghai Guo Sheng (Group) Co., Ltd., Aviation Industry Corporation of China (AVIC), Aluminum Corporation of China Limited (CHALCO), Baosteel Group Corporation, and Sinochem Corporation” (COMAC, n.d.). Commercial Aircraft Corporation of China (COMAC) “functions as the main vehicle in implementing large passenger aircraft programs in China” (COMAC, n.d.). Other than the C919, another aircraft is the ARJ 21. The ARJ21 is an advanced regional jet, which has 90 seats and has a standard range of roughly 2,225 km.  This is a smaller jet solely used for shorter routes from hub airports to other hub airports.

If the C919 were to receive a certification by the FAA, it would not stand a chance in the U.S. market with the well-known names of Airbus and Boeing. These companies have an established tracking record along with years of great service to the airlines. What would cause the U.S. carriers to veer away from the aircraft that they have used for so long? Therefore, I definitely do not see COMAC being any threat to either any of the U.S. airlines nor any airlines over in Europe.  The C919 would be great for China and solely for domestic flights, but the U.S. carriers don’t have a need for it.

Not much has been said from either Airbus or Boeing about the C919 because quite honestly they probably aren’t even worried about it. While COMAC is trying to produce an aircraft that will compete with the A320 or the 737; both Airbus and Boeing already have designs in place for more advanced aircraft.  Although the C919 will be brand new, it will not compete with whatever Boeing or Airbus release next.

References:

Commercial Aircraft Corporation of China, Ltd. (n.d.). Retrieved from http://english.comac.cc/

Perrett, B. (2013, December 16). C919 May Be Largely Limited To Chinese Market. Retrieved from http://aviationweek.com/awin/c919-may-be-largely-limited-chinese-market

Professionalism in the Regional Carriers

It has been obvious that the regional airlines have been struggling with the current pilot shortage. Recently they have been canceling flights due to this issue, and it is affecting the major airlines. There are two arguments though, is it the low income that is causing this shortage, or is it based upon the projected retirements and current number of new pilots trying to enter the industry? In an article posted on Yahoo news, it was stated that “Regional carriers pay pilots an annual average of $27,350, according to Paul Ryder, ALPA Resource Coordinator. That compares with an annual salary of $103,390 at large airlines, according to US Labor Department data” (Olinga, 2016). That is the average income for regional pilots, most make less than the average of $27,350. It makes sense why many pilots would avoid flying domestic, because the amount of money that is spent to get through all of the training exceeds $100,000- $200,000 (Olinga, 2016). Since the cost to get all the certifications in order to even fly domestically is so outrageous, it is deterring pilots away from the low salary jobs with the regional airlines. The amount of projected retirements is rapidly growing, and the current number of projected pilots has diminished. One of the main reasons why there is a lack of interest is solely due to the cost of training. It is stated perfectly that "Fewer pilots are willing to commit hundreds of thousands of dollars into their training and education for a career with such a limited return on investment, in what has historically been a very unstable industry” (Olinga, 2016). They are both stable arguments, and personally, I think they both play a roll in the current shortage. With the rate or projected retirements, and the increase of required hours to 1,500; many pilots are veering away from the domestic flights because of both training expenses and the lack of income with the regional airlines. I don’t think that it could be a one sided argument because they both coincide with each other.

The regional airlines should be concerned with the hiring pool, because there is a lack of interest due to the extremely high training costs to become a pilot. On top of the high rates of training, due to the Colgan air accident, the number of required hours was bumped up to 1,500. If the regionals want to stand a chance and increase their hiring pool, they must consider implementing a few things. For one, they should consider increasing the starting salary for Fist Officers, so pilots can pay of their substantial debt from flight school. Secondly, they could implement their own flight school where they hire pilots who have obtained their commercial certificate, and pay for the rest of their training. Another out of the ball park idea would be considering the implementation of monthly stipends like the military. Monthly stipends would consist of a base pay, depending on the location they of  living, which would help pay for part of their living expenses. Essentially the stipend would allow pilots pay off their school loans without the stress of paying off living expenses on top of their debt.  

Although ALPA represents most of the regional pilots, there is one organization that stands for the regional industry and management. That would be the Regional Airline Association (RAA), and their main goal is to “support network connecting regional airlines, industry business partners, and government regulators in bolstering the industry; as well as promoting regional airline interests in a changing business and policy environment” (RAA). 

In a working environment, especially in the world of aviation, professionalism is a characteristic that everyone should strive to demonstrate. Professionalism is simply accomplishing your tasks in a timely manner to standards well above the minimums, along with keeping yourself disciplined and having the right attitude towards your profession. After watching the documentary “Flying Cheap”, I noticed a few instances where employees and management were lacking professionalism. One of them was the management of Colgan, because they were treating their employees as if they didn’t have any value to the company. Not only that, but the FAA knew about some inside incidences that had happened at Colgan Air, but they blew it off because they had a “good relation” with the CEO of Colgan. Another example would be the one captain who had altered the weight and balance on one of the flights so they could take off. Even though they were over-weight, the captain lacked professionalism and put everyone’s life at risk. One thing to consider about the lack of professionalism that could be demonstrated by regional pilots is lack of pay, along with terrible working hours. Most regional pilots work long days with little rest in-between and on top of that, they barely make ends meet. If an employee is not getting paid enough for their skillset, then what motivation would they have to provide their best abilities to help the company strive? I definitely think first year pilot pay is a huge contributing factor to lack of professionalism that was seen in the “Flying Cheap” documentary.

From my own experiences, the best way to maintain professionalism is to find a job that you love doing, and something you can look forward to every day. On top of that, always strive to make self improvements because nothing is ever going to be perfect, especially in the world of aviation. By going above and beyond the minimum requirements, and taking pride in what you do, you will maintain professionalism.

References:

Olinga, L. (2016, March 7). Pilot shortage hits US regional airlines. Yahoo News. Retrieved from http://news.yahoo.com/pilot-shortage-hits-us-regional-airlines-042334238.html

RAA. (2016, February 26). Regional Airline Association Statement on Republic Airways            Bankruptcy - Regional Airline Association. Retrieved from http://www.raa.org/news/277230

Commercial Space

The idea of space tourism was brought up over a decade ago in 1996. It all started with a competition named “X Prize” and was later named the Ansari X Prize due to a substantial donation from the Ansari family in 2004 (Wall, 2014). Later, in 2006, Anousheh Ansari made history by becoming the first woman to ever travel to the International Space Station on a privately funded trip. Essentially, the Ansari challenge provoked teams throughout the world to compete in the ability to build a “manned vehicle capable of carrying three people to an altitude of 62 miles (100 kilometers) — the generally accepted boundary marking where outer space begins — and back twice within a two-week span” (Wall, 2014). One team in particular, out of the 25 that competed, set a record in 2004. This team was called Mojave Aerospace Ventures, headed by Burt Rutan and it received funding from Paul Allen who was the co-founder of Microsoft. Rutan and his team designed and built a “28-foot-long (8.5 meters) vehicle called SpaceShipOne, which was lofted to an altitude of about 50,000 feet (15,000 m) by a carrier plane and then released, using its onboard rocket engine to blast into suborbital space” (Wall, 2014). SpaceShipOne was the first manned aircraft to reach space at 62.5 on June 21, 2004. There have been many accomplishments throughout the past decade solely due to the competition of teams. The biggest hurdle is finding the money to build and maintain these manned vehicles along with the challenge of getting passengers to and from space safely.

Currently, the commercial space industry is governed by rules and regulations established by The Office of Commercial Space Transportation (AST) which was originally governed by the Department of Transportation until 1995. In 1995, the AST was transferred to the FAA and their main objective was to “regulate the U.S. commercial space transportation industry, to ensure compliance with international obligations of the United States, and to protect the public health and safety, safety of property, and national security and foreign policy interests of the United States” (14 C.F.R. § 460 (2016)). The rules and regulations for space flight are in the FAR under Title 14 part 460 for Human Space Flight Requirements. As far as crew qualifications, I do not see them as being over restrictive, given the circumstance that they are operating a complex space craft carrying passengers with the potential of causing damage or harm to others. Since this is a growing sector of aviation, there will be incidents along the way that will spark new regulations. As of now, some of the crew requirements entail the following:

“ 1. Possess and carry an FAA pilot certificate with an instrument rating. 2. Possess aeronautical knowledge, experience, and skills necessary to pilot and control the launch or reentry vehicle that will operate in the National Airspace System (NAS). Aeronautical experience may include hours in flight, ratings, and training. 3. Receive vehicle and mission-specific training for each phase of flight by using one or more of the following— A method or device that simulates the flight; An aircraft whose characteristics are similar to the vehicle or that has similar phases of flight to the vehicle; Flight testing; or An equivalent method of training approved by the FAA through the license or permit process. 4. Train in procedures that direct the vehicle away from the public in the event the flight crew abandons the vehicle during flight; and 5.  Train for each mode of control or propulsion, including any transition between modes, such that the pilot or remote operator is able to control the vehicle.” (14 C.F.R. § 460 (2016)).

The following regulations listed above are current as of March 11, 2016. Personally, I feel as if the posted regulations are appropriate in the scope of things. Take into consideration that these aircraft that are being operated are traveling to extremely high altitudes at very high speeds; therefore the training and requirements for the crew should be set to a higher standard to help ensure higher means of safety to the crew, passengers, and the public.

As of right now, I see space tourism only being accessible to high salary people. With ticket prices up to $250,000, it is very unlikely that an ordinary family or even individual would be able to front that type of money. When commercial aviation first started out, only the wealthy people were the ones flying. I think with more time and technology, the prices will drop substantially and it will eventually be more affordable for the general public. I personally think that it will stay as a one-time bucket list adventure. To develop an aircraft large enough that will reach those altitudes would be a whole another project. Think of it as the Concorde, they accomplished the speed of sound, but there were some other faults that needed to be fixed. It would be decades until we see commercial space flights, in my opinion.

References:

Wall, M. (2014). Space. How SpaceShipOne and X Prize Launched Commercial Spaceflight 10 Years Ago. Retrieved from http://www.space.com/27339-spaceshipone-xprize-launched-commercial-spaceflight.html

Human Space Flight Requirements, 14 C.F.R. § 460 (2016).

Global Airline Issues

For a while now, there have been three major foreign airline carriers that have been using United States subsidies. Since 2004, Qatar Airways, Etihad Airways and Emirates Airlines have been collecting subsidies. It is estimated that the Qatar and United Arab Emirate governments have received over 42 billion dollars in U.S. subsidies.  In 2001, the Open skies agreement was first signed by Qatar, and in 2002 the United Arab Emirates signed as well. The purpose of the Open Skies agreement is to “eliminate government interference in the commercial decisions of air carriers about routes, capacity, and pricing, freeing carriers to provide more affordable, convenient, and efficient air service for consumers" (Laing, 2015). It is seen by the United States that "these subsidies are a clear violation of Open Skies policy, which is based on the principle of fair competition in a marketplace free of government distortion"(Laing, 2015). Essentially, the subsidized supports that they have been receiving are loans from the government that are interest free. Also, this government support has no payback obligations along with, airport fee exemptions, free land, grants, and capital injections. This poses a serious threat to the U.S. airline companies because the Gulf region is definitely taking advantage of the support given. It’s been going on since 2001, and they have accumulated over 42 billion in subsidies. If this keeps up, the United States airlines will face a serious threat competition wise with the foreign airlines. So basically what needs to happen is that the playing field between the two needs to be evened out.

On top of the foreign airlines using U.S. subsidies, they have been getting their aircraft at below market interest rates, which the U.S. carriers are unable to get. Again, this is a huge disadvantage to the U.S. airlines in which they have to pay more money for wide body aircraft. A point that I found very interesting in an article by business wire was that “providing low-cost financing to foreign airlines, for example, the U.S. Export–Import Bank not only saves the state-owned carriers millions on each aircraft, the financing also enables these airlines to purchase state-of-the-art aircraft that are more fuel efficient and attractive to passengers”(Foreign State-Owned Airlines, 2015). The United States airline companies have been trying to upgrade their aircraft to compete with the foreing companies, but at the rates they are getting, it is extremely difficult for them to front the money to upgrade the interiors of their aircraft. There is no doubt that the foreign airlines have aircraft that look way more appealing than the U.S., but that is solely because they are getting them for such a discount. Consumer quality is much better with the Gulf airlines, so they will continue to steal customers from the U.S. airlines if these below market interest rates continue throughout the next few years.

I believe that it is safe to say that it is clearly an uneven playing field between the United States airlines and the Gulf airlines. If the U.S. has to pay top dollar for their aircraft, which limits them in how many alterations they can make for consumer satisfaction, then the Gulf should be held to the same standards. It is a competitive business, and in order to stay in business, they have to satisfy their customers. Now that these foreign airlines are getting Trans-Atlantic routes, they have been stealing business from the U.S. carriers. Nowadays, everything is about quality and price to the customer, and the foreign carriers are getting cheaper and more efficient aircraft. By having more efficient aircraft, they are able to have cheaper ticket prices, which is a huge attention getter with long distance flights. If the U.S wants to stand a chance, something needs to be done about the government subsidies that these foreign carriers are receiving.

Foreign State-Owned Airlines’ $162 Billion in Aircraft Orders Threaten U.S. Airline Industry and its Workers. (2013, November 17). Business Wire. Retrieved from http://www.businesswire.com/news/home/20131117005060/en/Foreign-State-Owned-Airlines’-162-Billion-Aircraft-Orders

Laing, K. (2015, March 12). Airlines: Foreign subsidies are destroying flight competition. The Hill. Retrieved from http://thehill.com/policy/transportation/235543-airlines-foreign-subsidies-destroying-flight-competition