Career Path Update

This class has been extremely beneficial in learning more about the various aspects of the aviation industry.  While I do have a  better idea of the different careers in the aviation industry I still maintain the end goal of working in the Human Resources department at Delta.  I will accomplish this by earning a MBA with a HR concentration from Eastern Michigan University.  The step beyond that will ultimately depend on the condition of the industry.  It is possible for there to be an entry level posting at Delta right away but more likely I will have to work my way there gaining experiences at other companies until I reach my goal.

EU ETS Update

It has been a little over a month since I wrote about the EU ETS.  There have been a number of developments since then.  The list of countries opposing the ETS has grown.  The recent add-ons include China.  In addition even more airlines have announced plans for retaliation such as revoking landing rights and ceasing negotiations for additional routes.  In a recent meeting involving 30 countries outside the EU, it was decided that each country will act individually and act as they see fit.   Consequences may lead to a trade war.

for more information please see: http://www.flierscorner.com/europe-emissions-trading-scheme-meets-with-opposition/?utm_source=rss&utm_medium=rss&utm_campaign=europe-emissions-trading-scheme-meets-with-opposition

EU ETS

EU ETS is the European Union Emissions Trading Scheme.  It was launched in 2005 and aims to limit greenhouse gasses.  It requires all businesses to report their emissions.  Each company is given a certain amount of allowable emissions.  If at the end of the reporting period they have surpassed their quota, they will be fined heavily.  As aircraft flying into Europe are subject to this, there is likely to be some financial repercussions.  Data found here: http://www.carbontrust.co.uk/policy-legislation/energy-intensive-industries/pages/euets.aspx.

Currently US Congress is taking steps to pass legislation to exempt U S airlines from this legislation and to put the EU on notice about their displeasure with this legislation.  Read more here.  The US and many other countries are upset over this legislation and view it as a violation of sovereignty.  ICAO however is taking a different stance that may appease both the EU and the opposing countries.  ICAO is advocating for a global policy to ensure all companies are treated equally and no companies are penalized for original location.

Personally, I agree with ICAO.  There needs to be  a standard policy.  The policy is good in intention but unfairly penalizes non EU companies.  An adaptation of the EU's current policy will permit the end goal to be accomplished on a grand scale and ensure there is less blatant targeting.

Professionalism in Aviation

So, This week I am going to write about where I plan to end up in the aviation industry.  At this point in time, my end career goal is to be a Human Resourced Manager at Delta Airlines.  The basics of this job include, working out of Atlanta, assisting with managing benefits, hiring and disciplinary proceedings for Delta employees.   There are definitely safety/liability concerns with this job particularly from the hiring and disciplinary standpoint.  If there are errors made by pilots or other employees that go without proper handling or situations are reported to the HR department, the airline is now liable.


Professionalism is critical in the aviation industry and helps prevent dangerous situations.  To me professionalism is taking an interest in their chosen field and treating their chosen career in a business like fashion.  This includes acting in accordance with the company policies and legal regulations and having respect for the position.  Looking like a professional, being punctual and using professional language all play a role in respecting the position.


After watching the documentary Flying Cheap, It was suggested that a lack of professionalism was a big factor in the cause of this accident.  While there are several ways a lack of professionalism was shown, I have chosen to address two.  Part of respecting the job is making sure you are fit for work.  Being under the weather and exhausted when you show up for with is not professional.  In fact it went to far as she was recorded discussing her fatigue on the CVR!  The second example is the story where the captain was discussing call in fatigued.  The manager came on the phone when he was calling in fatigued pressuring him to take the flight anyway, he even offered to change the paperwork to shorten the duty day so he could legally go home that night.  Part of professionalism is abiding by the regulations.  Clearly this is a violation.


As professionalism is so important in this industry, It is my goal to go above and beyond the requirements of my job to ensure that I am an asset to my employer and the industry.  Two ways I plan to do this are by reading aviation news every week to stay current with the ever changing industry and by attending conferences to meet and network with others within the industry.

Mergers

The airline industry is a finicky creature.  There are constantly companies starting up, shutting down, growing, shrinking and merging.  This week I will focus on the last in that category and discuss mergers.  During my discussion of mergers, I will look at the Trans World Airlines merger with American Airlines.  I will also look at the current merger between AirTran and Southwest.  Finally I will discuss the future of American Airlines and how mergers will affect the future of aviation managers.


In April of 2001 Trans World Airlines was acquired by AMR Corp.  AMR corp is the parent company of American Airlines.  American Airlines purchased the failing airline in a complicated $500 million deal.  According to BBC, $300 million of that purchase was for the acquisition of a majority of TWA's assets.  the additional $200 million was to be pumped into TWA's base in St. Louis.  The new company is called American Airlines.  As a consequence of the merger, TWA no longer exists as TWA.  Also STL jet routes have severely decreased and Some of TWA's bases have been closed down.  As a result of this merger, TWA/American flights accounted for over 25% of North American air service.


Currently Southwest and AirTran are merging.  The two companies are expecting a single operating certificate to be issued in the first quarter of this year.  The two companies will operate under the name Southwest Airlines.  There is little to no overlap of the two airlines.  This acquisition of AirTran allows Southwest to break into the market in LGA and DCA.  The biggest benefit is the extended service to the East coast.  There have been no furloughs announced however, according to http://www.lowfaresfarther.com/what-it-means/employees, There will be more information after an SOC is issued.  


The future of American Airlines is murky at best.  In 2001 American Airlines was the largest carrier in North America.  Their acquisition of TWA really set them back.  The liabilities and debt that TWA brought with them really set the company up for a downward spiral.  There have been some rumors of a merger with Delta.  I honestly do not think Delta will take on the faltering airline.  US Airways is seriously considering a merger.  I honestly think it is aimed at trying to put them on equal footing with United, Delta and Southwest.  I think that without a merger or massive cuts, this company will not recover.  Even with the massive cuts, I do not think they would be able to return to their former number one status.


Mergers affect every little part of the business.  From snacks to seniority, it is management's job to make sure companies are joined seamlessly.  While mergers mean more work and job security initially, eventually it means that there will be less jobs.  There will no longer be a need for 2 HR departments, 2 flight ops departments, 2 catering departments, 2 purchasing departments, etc...  

Airbus, Boeing and Comac

Boeing and Airbus are the major players in the aircraft manufacturing community.  Both have produced a number of aircraft models in recent years.  Below are some very simple profiles of some of the more recent aircraft.

 B787- Long range, mid-size, wide body and seats 210-290 passengers.  It is currently in service.  The big thing that separated this one from its predecessors is its fuel efficiency.    Boeing claims it used 20% less fuel than other aircraft.  It is also the first major airliner to utilize composite materials for most of its construction.  Read more about the Boeing 787 on their website.
A380- Long range, double deck, wide body and seats 525-853.  It is currently in service.  It is a large aircraft and has more floor space than the 747.  It was designed to break the monopoly Boeing had on the large aircraft market.  Read more here.
B747-8- Long range, wide body, and seats 467-581 passengers.  It was originally supposed to start deliver in October 2011 but was delayed.  As a result of this delay, aircraft should begin delivery in 2012.  It is the newest generation of the B747 family and is designed to fit a need in the community for an aircraft tat seats in the 400-500 range.  Read more here.
A350-Long range, wide body, and will seat 270-350 passengers.  It is currently in development.  It is modeled after the A330.  It is expected to be more fuel efficient than the B787 and enter service in 2014.  Read more here.


Based on the current aircraft in the market and the status of the industry, It is my opinion that Boeing will take the lead in commercial jet manufacturing.  I believe the industry is moving toward more frequent fights carrying fewer passengers.  Boeing has a fuel efficient aircraft already on the market (not 2 years away) and has really targeted their production to smaller more efficient jets. 


Comac is another manufacturer currently trying to make their debut in China.  They are currently developing an aircraft due in 2016 called the C919.  I do not think Comac will ever be a direct competitor with Boeing and Airbus.  A big part of the aviation community is the public perception.  Products coming from China do not have the best track record when it comes to safety.  Also, When it comes right down to it, the aircraft currently produced and in development seat fewer aircraft than those produced by Airbus and Boeing.

Pilot Fatigue

On December 21st, 2011 the FAA issues a new rule regarding pilot fatigue.  There are a number of changes that will require a great deal of restructuring to be put into place (to read the highlights read here).  Out of the major requirements listed I believe the new flight duty period restrictions will increase safety the most.
The previous regulation did not include time on reserve as part of the duty requirements.  Reserve duty typically requires a crew member to be ready for a trip in a moment's notice.  This means a person could be on reserve duty  and go about their day like normal, be up for 16 hours, be getting ready for bed and then get a  call after they have been up all day.  Once they receive this call, their duty day then starts, meaning they could be facing another 9-14 hours of work before they have a chance to sleep.  I believe this aspect will increase safety significantly as the average adult needs 7-9 hours of sleep to be operating at the safest level.  In addition, shortened amounts of sleep have been linked to increased risk of car accidents, increased health problems and decreased attention span (learn more here).
While this has the potential to increase safety drastically, the financial impact of this legislation will be significant as more crew members will need to be cycled through the on call schedule and additional managers will be need to be hired to track the total number of hours a crew member had been on call/flying and take into account the duration of the trip that needs to occur.
This rule does not apply to cargo carriers at this time as a financial analysis has shown that it would be financially impossible to implement these requirements.  I believe that there needs to be some sort of fatigue relation put into place for cargo carriers, but they cannot be as strict as these.  In my opinion, limiting the number of hours an employee can be on call would be a great place to start.  I also believe another good place to start would be for the FAA to require cargo companies to write a fatigue mitigation policy into their operating procedures.