Global Airlines Extended

As we have discussed previously in this course, international carriers such as Qatar, Emirates and Etihad Airlines are dominating the international market. U.S airlines are claiming that they have an unfair advantage by receiving government subsidies. According to Delta Airlines Etihad, and Qatar Airways have received "42 billion dollars in subsidies from their home governments" (Weisman 2015). They also claim that they are using the subsidies to eliminate competition by lowering prices, and offering services such as showers, beds and full service bars at the company's expense. That's the reason why the CEO's of the American carriers are "pushing for American action against the Gulf carriers because they believe that they are receiving illegal subsidies from their respective governments, and violates the open sky agreement which promotes trade jobs and economic growth" (Oatis 2015). 

Recently the American carriers announced that they will be abandoning most of their flights to the Middle East. Delta announced that it will abandon its only flight from Atlanta to Dubai in February, while United announced that it will stop flying to Dubai in January. The American Cariers are claiming that competition from the gulf careers are causing them to abandon most flights to the middle east and India because they can't compete (Mouawad 2015). As of late U.S airlines are demanding that the Gulf carriers freeze their expansion into routes originating in the United States (Safo 2015). According to the New York Times "American Airlines have pressed the administration to freeze all new flights from their three foreign rivals-Emirates, Etihad, Qatar" (Mouawad 2015). 

According to the Hill "Based on earlier years of unprofitable operations, Delta and the other U.S. major network carriers have used huge NOL carry-forwards to eliminate tax liability on the record profits that they have earned more recently. Importantly, now that NOL carry-forwards are nearly exhausted and record profits continue to roll in, news accounts indicate that Delta is cleverly cooking up a tax avoidance scheme to limit its future U.S. tax liability" (Kevin 2015). Just for clarification "U.S. tax law permits corporations, even those that have discharged their debts and wiped out losses through Chapter 11 bankruptcy, to carry-forward net operating losses (NOL) to offset future earnings and thereby eliminate or reduce tax liability" (Kevin 2015).

To make matters worse Etihad is claiming that American, United and Delta Airlines have "received a combined total of 71.48 billion in government benefits over the last 15 years" (Fricke 2015). It's kind of hard to call for government action when you are doing the same thing that you are complaining about. While American carriers are complaining about 42 billion dollars in government subsidies given to Emirates and Qatar they have forgotten about the american aviation industry receiving "155 billion in direct spending from 1918 to 1998" (Shaal 2015). That is not including any government subsidies given in the last 17 years, or bailouts and bankruptcy proceedings. As you see there are always two sides to a story, I personally think that both American and Middle Eastern Airlines are guilty in receiving government subsidies. 

As the U.S airlines continues to dump millions of dollars in an attempt to slow the growth of the Gulf carriers, Qatar CEO Akbar Al Baker announced earlier this month "new routes to Philadelphia and Los Angeles starting Jan. 1, to Boston March 16, and to Atlanta June 1" (Trejos 2015). He didn't stop there, he also called out Delta's CEO Richard Anderson saying "I think that this is only baloney. It's nonsense," Al Baker said, of Anderson's complaints. "And it is just to protect his backside so he can swindle American passengers more and more, reduce capacity, and keep on increasing his market share" (Trejos 2015).

 Airlines such as Delta and United are complaining about foreign airlines such as Emirates benefiting from below market interest rates that are unavailable to them from the governments export credit agency. Even though it may sound unfair to american airlines, you must keep in mind that international airlines are using that money to buy Boeing aircraft instead of Airbus. Boeing officials believe that the Export-Import bank allows them to sell hundreds of airplanes and compete with the European market, and with out it they will lose billions of dollars in revenue. Boeing also believes without the low interest rates airlines such as Emirates would deal with European credit agencies to purchase jets from Airbus 
( Weisman 2015).

No I don't believe that the global playing field of long haul careers is fair, but it's fair enough for airlines to compete with one another. I also believe that people are forgetting that airlines don't play fair, and that applies to all airlines not just the gulf carriers. With that being said I think that it's a good thing that the Gulf carriers are expanding their airline's, simply because they are offering more flights to places such as Africa and Asia. Even though some airlines don't like the competition, customers are benefiting greatly from this, whether it's more flights available to them or simply reduced ticket prices. After writing this blog I discovered that American Airlines have been receiving subsidies since 1918, and once they started feeling the heat they wanted to call foul. I think it's a joke that people mention the open sky agreement when we all know that airlines don't play by the rules, they never did and never will, it's just the nature of the business.  

Fricke, P. (2015, May 15). Gulf Airline Blasts US For Aviation Subsidies. Retrieved October 26, 2015, from http://dailycaller.com/2015/05/15/gulf-airline-blasts-us-for-aviation-subsidies/

Mitchell, K. (2015, December 14). Delta Air Lines' campaign against Gulf carrier subsidies is built on house of cards. Retrieved December 18, 2015, from http://thehill.com/blogs/congress-blog/economy-budget/262967-delta-air-lines-campaign-against-gulf-carrier-subsidies-is

Mouawad, J. (2015, December 14). U.S. Airlines Face Uphill Struggle Against Mideast Rivals. Retrieved December 18, 2015, from http://www.nytimes.com/2015/12/15/business/us-airlines-face-uphill-struggle-against-mideast-rivals.html?_r=0

Safo, N. (2015, November 16). U.S. airlines battle Persian Gulf carriers. Retrieved December 18, 2015, from http://www.marketplace.org/2015/11/16/world/us-airlines-battle-persian-gulf-carriers

Oatis, J. (Ed.). (2015, September 17). U.S. airline CEOs to meet with Kerry on Gulf carriers. Retrieved September 27, 2015. from http://www.businessinsider.com/r-us-airline-ceos-to-meet-with-kerry-on-gulf-carriers-2015-9

Schaal, D. "WikiLeaks Disclosure Shows U.S. Airlines Received Billions in Subsidies." Skift. 9 Apr. 2015. Web. 27 Oct. 2015, http://skift.com/2015/04/09/wikileaks-disclosure-shows-u-s-airlines-received-billions-in-subsidies/

Trejos, N. (2015, December 9). Qatar Airways chief slams Delta CEO on 'baloney' claims. Retrieved December 18, 2015, from http://www.usatoday.com/story/travel/flights/todayinthesky/2015/12/09/qatar-airways-airbus-a350-doha-jfk/77052088

Weisman, J. "Boeing and Delta Spend Millions in Fight Over Export-Import Bank’s Existence." The New York Times. The New York Times, 6 Apr. 2015. Web. 27 Oct. 2015,  http://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html?_r=0

ATC Privatization

Privatizing ATC has been a hot topic for some years now, especially after the FAA has had "three decades of empty promises, failed programs and missed deadline" (Boyd 2015).  The question is will privatizing ATC be as effective as it is in other countries? Considering the fact that the United States ATC system is by far the largest and most complex in the world, so expecting to see the same results as Germany or France would be foolish. Even with that being said many airlines want change and that's mainly because they want to reduce their operating costs by cutting down on delays (Smith 2015).

As for the majority for GA pilots we are against the privatization of ATC, for a few reasons. Most importantly if ATC becomes privatized then someone has to pay for it since the federal government is no longer funding it, and that someone will be the users of the system. For example for those of you who has had the opportunity to fly to canada noticed a little bill a few weeks in the mail for using their ATC system known as a "user fee". And that's exactly what GA pilots don't want in a new ATC system.

I believe that the ATC system would be more efficient if it were privatized how ever, I also believe that it will come at the Expense of the user. I can only speak for myself but i certainly don't want to pay any more fees for flying. According to Airline representatives "establishing a federally chartered, nonprofit organization is the best solution to strengthen our nation’s first-rate safety record and allow America’s ATC system to operate more efficiently and with proper governance, funding, and accountability to the stakeholders who use the system—all while reducing costs for system users and delays for passengers" (Smith 2015). I do believe that it's time to change the old ATC system, for an improved and more efficient one. We are playing catch-up with many European countries such as the United Kingdom and France in terms of technology and efficiency. I think that the FAA should still supervise the operation while allowing a Private organization run it, that way the FAA still has an influence on the system, while allowing the ATC system to receive funding when needed. 

Boyd, M. (2015, October 6). Time To Privatize U.S Air Traffic Control. Retrieved December 5, 2015, from http://www.forbes.com/sites/mikeboyd/2015/10/06/time-to-privatize-air-traffic-control-the-right-way/

Smith, E. (2015, September 21). AIR TRAFFIC CONTROL PRIVATIZATION CHATTER FLIES AGAIN. Retrieved December 8, 2015, from http://associationsnow.com/2015/09/air-traffic-control-privatization-chatter-flies/

G.A Medical Reform

The bill proposes that GA pilots who possess or have possessed a medical certificate within the last 10 years doesn't have to renew it upon expiration, but simply visit their personal physician every 4 years while making note of it in their logbooks. According to AOPA "Pilots flying under the new rules will be allowed to operate aircraft that weight up to 6,000 pounds and have up to five passenger seats plus the pilot in command, at altitude below 18,000 feet, and speeds up to 250 knots" (Tennyson 2015).


Finding information regarding the third class medical reform status was difficult because the articles out there are several months old. According to AOPA the pilot's bill of rights 2 is currently a proposal and they are looking for more senators to support it, "Inhofe said that the senate bill is till shy of the magic number of 60 co-sponsors needed to bring legislation to a vote and action from AOPA members could swing the numbers enough to keep the bill on the table" (Tulis 2015).

One aspect of the medical reform that would benefit the aviation community is that it will allow pilots that have lost their medical certificate to legally fly again, which means an increase in demand for small airplanes and that means more business for flight schools and other FBOs. On the other hand allowing pilots who are currently seen as unfit to fly is not a great idea, especially during the summer when the volume of air traffic increases drastically. The more pilots flying the higher the chances of an accident occurring especially if they are limited physically in any way. 


I don't think that a reform is necessary, especial when you consider the fact that a first class medical doesn't expire for 60 calendar months if the holder is under forty years old, even If the holder is over forty then he has 24 calendar month until it expires, which is still a lot of time honestly. A few articles that I read kept mentioning that if the bill is passed it would save GA pilots and the aviation industry millions of dollars. Which is maybe true but as a pilot the last expense i worry about is the renewal of my medical certificate, flying is a very expensive hobby and if people can't afford to keep a current medical then they shouldn't be flying at all. 

Tennyson, E. (2015, November 18). Closer than ever. Retrieved November 30, 2015, from http://www.aopa.org/News-and-Video/All-News/2015/November/18/Closer-than-ever

Tulis, D. (2015, July 24). Urgent action needed to support medical reform; ALPA actively opposed. Retrieved November 30, 2015, from http://www.aopa.org/News-and-Video/All-News/2015/July/24/Urgent-action-needed-on-medical-reform-legislation

Made In China

Earlier this month Commercial Aircraft Corporation of  China "COMAC" rolled out it's first mid size airliner. COMAC was founded in 2008 and is owned by the Chinese government. The C919 is the second jet aircraft  made by COMAC, the first was a regional jet called the ARJ21. The C919 isn't certified by the Federal Aviation Administration "FAA", even the previous airliner produced by COMAC the ARJ21 still did not receive an FAA certificate (Govindasamay 2015). However I do believe that the C919 will eventually get certified by the FAA even though it might take years of testing before that happens.

 Even if COMAC managed to get it's C919 certified by the FAA there is no way for it to compete with Airbus and Boeing in the international market. At least not in the foreseeable future, however china's goal is to provide It's own airlines with the new jets in order to support a strong aviation sector. I believe that the C919 will eventual dominate China's market, but I don't see it as a competitor for Boeing's 737 or Airbus's A320. Boeing has been dominating the aviation industry for decades, and in the last 40 years it has produced some of the most iconic airliners in the world such as  the 747, 737 and 777. Airbus also has a long history in aviation, founded in 1967 and produced its first airliner in 1972.  Airbus is enjoying an increase in demand and popularity thanks to the A330 and A380. While Boeing and Airbus continue to flourish in an expanding industry, companies like COMAC will not find the same success due to the lack of trust and their lack of experience. COMAC has to earn the Airline's trust and support, and most important convince the flying public that it's airplane is safe to fly.

If the C919 received an FAA certificate there would be no change in terms of companies entering the market to compete with Boeing and Airbus. Manufacturing an airplane takes years of research, thousands of employees and large sums of resources. In short, manufacturing an airliner in no easy task, especially if it's designed to compete with Boeing and Airbus products. A huge factor that is often over looked is the reputation of the company and the years of experience it has in terms of aircraft design and development. Being founded in 2008 is not something you want to sell to the public, I would probably wait a few more years before launching another airliner.

Boeing and Airbus hasn't said anything directly about COMAC's C919 but both companies have been  producing lighter and more efficient jet aircraft. It could be in response to the C919 claim of reducing fuel consumption by 20%, or just the fact that some airlines are fighting to stay afloat and need a reliable yet efficient aircraft while other just want to reduce their cost of operation and maximize their profit.

Govindasamay, S. (2015, October 21). Exclusive: China-made regional jet set for delivery, but no U.S. certification. Retrieved November 8, 2015, from http://www.reuters.com/article/2015/10/21/us-china-aircraft-arj21-exclusive-idUSKCN0SF2XN20151021#S60zhCe5ru23jFg7.97

  

Jiang, S. (2015, November 2). China takes on Boeing, Airbus with new passenger jet - CNN.com. Retrieved November 8, 2015, from http://www.cnn.com/2015/11/02/asia/china-new-c919-passenger-jet/

COMAC. (2015). Company Profile_Commercial Aircraft Corporation of China, Ltd. Retrieved November 8, 2015, from http://english.comac.cc/aboutus/introduction/ 

Orginizations of the Aviation Industry

After scrolling through hundreds of aviation organizations, it became clear to me that AOPA and ALPA are the two largest and most effective associations today. Aircraft Owners and Pilots Association (AOPA) is the largest general aviation association in the world. AOPA strives to promote safety through education and training while providing many services to their members such as legal representations, pilot protection services, and insurance for both pilot and airplane. AOPA also offers safety seminars, webinars and much more safety oriented services. I have utilized AOPA features many times in the past to assist in learning new concepts such as Instrument approaches, hazardous weather avoidance and many other subject areas. AOPA offers tons of online courses, safety videos, quizzes, safety publications and much more. All of the services are free for members to utilize whenever they please. (AOPA 2015) 

Air line Pilots Association International (ALPA) is the world's largest airline pilot organization, containing more than 52,000 pilots from 31 different airlines in the United States and Canada. ALPA mission is to provide "airline safety, security, and pilot assistance; representation; and advocacy". ALPA offers many benefits to it's members, most importantly contract negotiations, advocacy and support. ALPA was founded in 1931 and has been around since the beginning of commercial travel. Being one of the oldest pilot organizations ALPA has been instrumental in pushing for change in the aviation industry calling for safety and security while advocating for their pilots rights and safety. (ALPA 2015)

ALPA is affiliated with the International Civil Aviation Organization (ICAO), International Federation of Air line Pilot's Associations (IFALPA) and the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). ALPA prides itself in working closely with all of these organization to promote safety and the interests of it's pilots. AOPA consists of 74 chapters or affiliates, with the United Arab Emirates becoming it's 70th affiliate (AOPA 2015). With the 28th AOPA world assembly approaching in 2016, AOPA will be working with the ICAIO to promote General Aviation (GA) and to discuss the growth of the GA in foreign countries such as China,India.

I believe that it's important to belong to organizations such as ALPA and AOPA because they offer many valuable tools and resources to their members at no extra costs. One of the greatest benefits offered by these two organization is the legal representation, and support. The best part of these organizations is that there are many membership options and the cost is relatively inexpensive. AOPA offers many membership choices ranging from $35 a year for student pilots up to $179 for their premier plus package. They also offer life time membership options for a one time payment of $999 or $1,999 for Premier Life membership. Other than resources and safety seminars, organizations such as AOPA and ALPA are great for networking and meeting aviation professionals. You also get the opportunity to build friendships, gain experience and knowledge while being involved in the industry (Organizations 2012). 

ALPA. (2015). ADVANCING AVIATION SAFETY AND SECURITY SINCE 1931. Retrieved November 1, 2015, from http://www.alpa.org/en/about-alpa/what-we-do 

About AOPA. (2015). Retrieved November 1, 2015, from http://www.aopa.org/About-AOPA

 
   Professional Organizations. (2012). Retrieved November 1, 2015, from     http://www.nctaviationcareers.com/content/professional-organizations-0

International Airlines

International carriers such as Qatar, Emirates and Etihad Airlines are dominating the international market. U.S airlines are claiming that they have an unfair advantage by receiving government subsidies. According to Delta Airlines Etihad, and Qatar Airways have received "42 billion dollars in subsidies from their home governments" (Weisman 2015). They also claim that they are using the subsidies to eliminate competition by lowering prices, and offering services such as showers, beds and full service bars at the company's expense. That's the reason why the CEO’s of the American carriers are pushing for American action against the Gulf carriers because they believe that they are receiving illegal subsidies from their respective governments, and violates the open sky agreement which promotes trade jobs and economic growth (Oatis 2015). 

According to Etihad Airways, American, United and Delta Airlines have "received a combined total of 71.48 billion in government benefits over the last 15 years" (Fricke 2015). It's kind of hard to call for government action when you are doing the same thing that you are complaining about. While American carriers are complaining about 42 billion dollars in government subsidies given to Emirates and Qatar they have forgotten about the american aviation industry receiving "155 billion in direct spending from 1918 to 1998" (Shaal 2015). That is not including any government subsidies given in the last 17 years, or bailouts and bankruptcy proceedings. As you see there are always two sides to a story, I personally think that both American and Middle Eastern Airlines are guilty in receiving government subsidies.

U.S Airlines such as Delta and United are complaining about foreign airlines such as Emirates benefiting from below market interest rates that are unavailable to them from the governments export credit agency. Even though it may sound unfair to american airlines, you  must keep in mind that international airlines are using that money to buy Boeing aircraft instead of Airbus.  Boeing officials believe that the Export-Import bank allows them to sell hundreds of airplanes and compete with the European market, and with out it they will lose billions of dollars in revenue. Boeing also believes without the low interest rates airlines such as Emirates would deal with European credit agencies to purchase jets from Airbus ( Weisman 2015).

No i don't believe that the global playing field of long haul careers is fair. Thats because airlines don't play fair, and that applies to all airlines not just the gulf carriers. Writing this blog I discovered that American Airlines have been receiving subsidies since 1918, and once they started feeling the heat they wanted to call foul. I think its a joke that people mention the open sky agreement when we all know that airlines don't play by the rules, they never did and never will, it's just the nature of the business.  

Oatis, J. (Ed.). (2015, September 17). U.S. airline CEOs to meet with Kerry on Gulf carriers. Retrieved September 27, 2015. from http://www.businessinsider.com/r-us-airline-ceos-to-meet-with-kerry-on-gulf-carriers-2015-9

Fricke, P. (2015, May 15). Gulf Airline Blasts US For Aviation Subsidies. Retrieved October 26, 2015, from http://dailycaller.com/2015/05/15/gulf-airline-blasts-us-for-aviation-subsidies/

Schaal, D. "WikiLeaks Disclosure Shows U.S. Airlines Received Billions in Subsidies." Skift. 9 Apr. 2015. Web. 27 Oct. 2015, http://skift.com/2015/04/09/wikileaks-disclosure-shows-u-s-airlines-received-billions-in-subsidies/

 Weisman, J. "Boeing and Delta Spend Millions in Fight Over Export-Import Bank’s Existence." The New York Times. The New York Times, 6 Apr. 2015. Web. 27 Oct. 2015,  http://www.nytimes.com/2015/04/07/business/boeing-delta-air-lines-export-import-bank.html?_r=0

Flying Cargo

The new regulations regarding pilot fatigue and mandatory rest periods have had a huge impact on the airline industry. After the Colgan accident the FAA finally addressed the growing problem of pilot fatigue and minimal rest periods. The FAA calls for mandatory rest periods between flight duty periods so that flight crews are not operating while they are fatigued. The FAA recognizes the fact that excessive fatigue greatly increases the chance of pilot error, so they passed the new regulations with a goal of  limiting the likely hood of that occurring. The new regulations includes:

• Limiting or restricting the maximum Flight Duty Period (FDP), 
• Limits the FDP to 8 or 9 hours depending on the time of day.
• 10 hour rest period between duty period.
• Flight crews must notify the air carrier if he/she is not fit for duty. 
• Schedules must be 95%consistent with the FDP.
• Part 121 carriers are required to provide annual fatigue related education and training. 

Prior to the new regulations, airlines were required to give a minimum of 8 hour rest period between flight duty.
FAA excluded all cargo operations from the regulation because their "compliance cost significantly exceed the quantifiable social benefit" (FAA). Other than the excessive cost of implementing the new rules, I think cargo companies are not included in the new regulations simply because the only people on the plane is the flight crew. Cargo pilots don't have to worry about the safety of passengers their only concern is to bring the plane back in one piece.

I believe that cargo companies should be included in the new rules, simply because they were created to reduce the amount of accidents due to fatigue and inadequate rest. Considering that  "more than half of cargo operations are conducted at night" (Lacagnina). Flight crews experience the most fatigue, due to the fact that "daytime sleep is inferior to night time sleep" (Lacagnina).

If cargo companies were included in the new regulations, it wouldn't of changed a thing for me. I plan on flying for one of the gulf carriers after graduation. For most pilots I think that they would of probably considered flying for a cargo company instead of a regional airline. The conditions are rough for first year cargo pilots, so i understand why new pilots prefer the airlines.


Trejos, N. (2014, January 3). New pilot fatigue rules go into effect this weekend. Retrieved October 17, 2015, from http://www.usatoday.com/story/todayinthesky/2014/01/03/pilot-fatigue-mandatory-rest-new-faa-rules/4304417/

FAA. (n.d.). Flight Crew Duty and Rest Requirement. Retrieved October 19, 2015, from https://www.faa.gov/regulations_policies/rulemaking/recently_published/media/2120-AJ58-FinalRule.pdf

Lacagnina, M. (n.d.). Balancing Cargo Safety. Retrieved October 19, 2015, from http://www.flightsafety.org/asw/nov06/asw_nov06_p28-33.pdf?dl=1