Leveling the global aviation playing field

Leveling the Global Aviation Playing Field

 

 Industry has changed how people travel and interact with each other and do business. The global airline industry continues to face challenges from the deepening of the European debt crisis that is wiping out the positive impacts of lower fuel prices, increasing air traffic and improved freight market. The scenario is unlikely to change for the remainder of the year.

The U.S. airline industry finds itself increasingly burdened with higher taxes and fees. Today, the aviation industry leads all others in America with 17 unique taxes and fees from the federal government. Airlines for America (“A4A,” formerly the Air Transport Association of America) estimates a $300 ticket for a typical, domestic round-trip, is taxed about 20 % of the total ticket price. The federal tax rates paid by airlines are higher than federal “sin” taxes paid on alcohol, tobacco, and firearms. Federal aviation tax policy discourages the use of commercial air transportation and impedes the industry’s ability to grow and expand the U.S. economy. As taxes increase, airlines must either pass them along to consumers in the form of higher fares or expect to see their revenue decrease

 Oil prices impact the profitability of airlines as they are one of the largest costs in the industry. Also, airlines often move closely with growth in global GDP. According to the IMF, global GDP is expected to grow by 2%, which means that a rise in airline stocks is expected. This is because countries rely on one another for different products and services, and therefore a rise in global GDP means a rise in international trade, and a rise in the frequency of people moving across borders (2012).The Political issues in middle east is play a big role of the heightens of the oil price, although the price for oil has increased substantially over the years and brought stress on an already beleaguered industry, so if we want to level the playing field the organization has to find a way curb oil speculation.

Airlines also are labor intensive. Each major airline employs a virtual army of pilots, flight attendants, mechanics, baggage handlers, reservation agents, gate agents, security personnel, cooks, cleaners, managers, accountants, lawyers, etc. Computers have enabled airlines to automate many tasks, but there is no changing the fact that they are a service business, where customers require personal attention. More than one-third of the revenue generated each day by the airlines goes to pay its workforce. Labor costs per employee are among the highest of any industry.

 

Qineqt. (2012, September 17). Retrieved from  http://seekingalpha.com/article/872061-drivers-of-the-u-s-airline-industry.

http://www.alpa.org/publications/ALPA_White_Paper_Leveling_the_Playing_Field_June_2012/ALPA_White_Paper_Leveling_the_Playing_Field_June_2012.html#section1-1.

 

 

 

 

Pilot Shortage

One of the biggest problem probably we will face in the aviation industry is the pilot shortage. Pilots Shortage will be an issue for most of the airlines. One of the causes that lead to the pilot shortage is the Accidents. When flight 214 crashed in the past few months at the San Francisco airport, killing two people and injured a lot of people, everyone was asking How could that happened with the Boeing 777 and how could be piloted so carelessly that the pilot seemingly flew it into the seawall and caused the accident?!. Most of the really and good pilots are retiring, quitting, and there are a lot of unprofessional pilots in the industry. A pilot shortage is on the horizon, causing even more inexperienced pilots to be put in charge of airliners carrying hundreds of passengers. “There will be a massive pilot shortage over the next 2-3 years. They need 60,000 pilots and there are only 10,000 qualified to draw from. Everybody is pissed off and stressed out.”(Adams, 2013)

The second cause for pilot shortage is the new rule for FAA about the pilot certification and qualification requirements for air carrier operations FAR 61.160.  The FAA new requirements could make it hard on the airlines to find enough pilots, especially if the economy improves people will travel a lot that might lead to a shortage pilots in the airlines.  There are a lot of pilots is reaching the federally mandated retirement age of 65. They'll be walking out the door just as it gets harder for a new crop of pilots to walk in because of new rules plus is not easy to find qualified pilots to replace the retired pilots in this global challenge.

           The positive impeding of the pilot shortage it will drive salaries skyward. A lot of airlines will need pilots, so they will increase the salaries to encourage the new pilots to work for them. The equally critical factor in this equation is that the inordinate number of airline pilots that will be forced into retirement by the age 65 rule, will open many doors for new hire pilots. Furthermore, corporate aviation is booming and those jobs with companies such as Net Jets, Marquis Jet, etc. are becoming quite desirable for the professional pilot. Overseas pilot jobs, particularly in China, will be extremely plentiful. (Abbot, 2013) 

 

           The most required pilot is in Asia Pacific region, with a requirement for 192,300 new pilots over the next 20 years. China will generate the largest share of the region's demand, with a need for 77,400 pilots. Europe will require 99,700 pilots, North America 85,700, Latin America 48,600, the Middle East 40,000, Africa16,500, and the Commonwealth of Independent States 15,200. (Boeing, 2013)

References

Adams, M. (2013, July 10). Jetliner crash caused by airlines turning pilots into ‘computer geeks who can’t fly’ says commercial pilot. Prison Planet. Retrieved September 22, 2013, from http://www.prisonplanet.com/exclusive-san-francisco-jetliner-crash-caused-by-airlines-turning-pilots-into-computer-geeks-who-cant-fly-says-commercial-pilot.html

Jones, C. (2013, January 6). Pilot shortage looms for airlines. USA Today. Retrieved September 22, 2013, from http://www.usatoday.com/story/travel/flights/2013/01/06/pilots-shortage-could-start-this-year-analysts-warn/1566088/

Abbott, A. (2013, May 2). IMPENDING PILOT SHORTAGE: MYTH OR REALITY?

Boeing, . (2013). Pilot technician outlook. . Retrieved September 22, 2013, from http://www.boeing.com/boeing/commercial/cmo/pilot_technician_outlook.page

 

 

Personal Introduction

Hi everyone, I am a senior at Eastern Michigan University this is my last semester before graduation,  I am going for aviation management technology. I originally began studying aviation technology only then I started doing both the technology and the management, but my bachelor degree will be in management.

I go to school for full time plus I work full time job , my family own a gasoline station, so I am running it for them. One of the most things I enjoying in life is sport, I like to watch all kind of sports like basketball. Tennis, football, and soccer plus I am a good soccer player.

Originally I am from Iraq I came to United States in 2007 after I graduated from high school. I went Oakland community college for two years then I transferred to Eastern two years ago.

I always trying to keep myself busy with everything and enjoying my life as much as I can

I live in Farmington Hills with my family (my dad, mom, brother, and sister).

This is a brief introduction about myself