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...