Monday, April 13, 2015


As a pilot there are many organizations that will be beneficial to my career. These organizations will range from the diverse to the focused. Some of these organizations will help me with networking and career building while others will act as an advocate on my or my company’s behalf. As it stands now I believe that there are 2 main organizations that will help me in my career. The first organization is Airplane Owners and Pilot Association (AOPA) and the second organization is National business Aviation Association (NBAA).

AOPA is an organization that advocates on behalf of the general aviation community. Their focus is to keep flying accessible to the general public. They achieve this goal by educating policy makers on how policies are beneficial to general aviation pilots, aircraft manufactures and businesses. One of the main focuses of AOPA over the last couple of years is the 3rd class medical reform. AOPA has had a legislative affairs team in Washington every year speaking on behalf of the general aviation community in order to help our government better understand the facts and benefits of the medical reform (Tennyson, 2015). They also provide education to pilots and non-pilots. This education is focused on safety and helping pilots interact with the FAA. While this organization is not primarily business oriented; they will help me early on in my carrier as a CFI. As a CFI I will be training the current and future pilots of general aviation. These pilots along with myself will benefit from the many tools that AOPA provides.

As I further my career and become a corporate pilot the NBAA will provide me with the most benefit. Their mission statement is “To foster an environment that allows business aviation to thrive in the United States and around the world.”(NBAA, N.D.). In many ways, they do this in the same way AOPA achieves their goal. They promote policies that are beneficial to business aviation. They also provide resources to those businesses who are seeking to obtain or already have an aviation department. For example, with the help of the NBAA, the FAA extended the 7897G exemption. This exemption “permits operators of piston aircraft, small airplanes and helicopters to use certain cost-sharing options contained within Part 91 Subpart F of the Federal Aviation Regulations” (Trautvetter, 2015). The NBAA also “helps business aviation professionals ascend in their careers through valuable professional development opportunities, including cutting-edge seminars, certification and professional development programs, and peer-to-peer networking” (NBAA, N.D.).

As you can see these organization will help provide the tools that I can use to further my career in aviation. They are constantly updating their education programs and are on the cutting edge of their focused section of the industry. By maintaining a membership and keeping up-to-date on their information and current projects I will be prepared to take on challenges within my career as well as staying informed within the aviation community.

 

 

 

About NBAA. (n.d.). Retrieved April 14, 2015, from http://www.nbaa.org/about/

 

Education. (n.d.). Retrieved April 14, 2015, from http://www.aopa.org/Education

 

Mission and History of AOPA. (n.d.). Retrieved April 14, 2015, from http://www.aopa.org/About-AOPA/Governance/Mission-and-History-of-AOPA

 

Professional Development. (n.d.). Retrieved April 14, 2015, from http://www.nbaa.org/prodev/

 

Tennyson, E. (2015, March 25). Baker meets with key legislators on GA issues. Retrieved April 14, 2015, from http://www.aopa.org/News-and-Video/All-News/2015/March/25/Baker-meets-with-key-legislators-on-GA-issues

 

Trautvetter, C. (2015, March 30). NBAA Small Aircraft Exemption Extended Another Year. Retrieved April 14, 2015, from https://www.ainonline.com/aviation-news/business-aviation/2015-03-30/nbaa-small-aircraft-exemption-extended-another-year

 

Tuesday, March 31, 2015


The common saying in aviation is “to make a million dollars in aviation you first need to start out with 2 million”. Although this has proven to be true, there are companies out there that have started with limited funds and have risen to the top. For example probably the best example is South West. Southwest, “Started in 1971 with just three planes, Southwest now flies more than 100 million passengers a year on a fleet of 680 planes and employs 45,000 people”(El-Erian, 2012). When South West was first formed, the US government still regulated the airline industry.  South West avoided the rules of government regulation because they initially only operated within the state of Texas. This means they did not have to bid for routes. South West also did not receive any government subsidies. During this time it was thought that the only way a passenger airline could survive and turn a profit was by receiving such subsidies, but the little airline known as the Love airline proved them wrong. Love airline was example the government needed to deregulate the industry.

            During the period following deregulation there were many newcomers to the aviation industry. Most of these new airlines didn’t last long or were swallowed up by the bigger airlines in merges. “Pan Am the airline that led America into the jet age in the 1950s” couldn’t compete anymore with the new structure of cost cutting and low fares and in 1991 therefore, they filed for bankruptcy (Dallos, 1991). So how did this tiny airline from Texas survive against all odds? Was their success considered a fluke or did they just have the secret recipe for success?

            South West succeeded “By keeping the important things simple and implementing them consistently, Southwest manages to succeed in an industry better known for losses and bankruptcies than sustained profitability”(El-Erian, 2012). They maintain a fleet of Boeing 737. With this type of aircraft there is less training for your flight crews. Also every maintenance technicians knows how to fix every plan. It seems like the management over at South West took the old saying “Keep it simple stupid” to heart. Maybe the best trick in Southwest’s bag is fuel hedging. Backing in 2008 “with oil hovering about around $100 a barrel, South West has come out on top. For 2008, it has locked in the price for about 70% of its jet fuel based on oil priced at $51 per barrel. For 2009, it has locked in 55% of its jet fuel based on that same price.”(Masson,N.D.) Then, is South West the only carrier that can compete with other large corporations since all the others have failed?

            The answer is no. There just so happens to be another smaller, but growing carrier that also flies Boeing 737s. This Airline is Sun Country and for those who are unfamiliar they are based in Minneapolis flying to select cities all over North and South America. Their success didn’t come easy.  It all started “In 1982, a group of pilots and flight attendants from the defunct Braniff International banded together to form their own airline with the help of businessmen in the Twin Cities of Minneapolis/St. Paul, MN.”(Sun Country). They started with one 727 flying primarily charter operations for MTL vacation flying from Minnesota to Las Vegas. Within six weeks the company turned a profit and within 8 paid back their initial startup loan. By the late 90s Sun Country was knocking on Northwest’s door as it competed for the seasonal summer vacation travel market. In 2008 Sun Country was in bankruptcy court at the hands of their owner Tom Petters, after the F.B.I. found out he had been allegedly "siphoning" over $3 billion. With a 5 million dollar loan in bankruptcy court the little airline fought its way out of debt and turned around their finances. By 2011 “reported profits of $13 million last year after combined losses of nearly $60 million in 2007 and 2008. The airline posted a profit of $1.4 million in 2009”(Phelps, 2011). Now under the new owners Cambria the airline strives not to be the cheapest, but the best airline for its customers. They are once again providing amenities to their passengers that have long been slashed due to the price wars. With their new business model and their attention to details they are the 4th largest volume carrier in Minneapolis.

            So as you can see the aviation industry isn’t just full of failure and heart break. There are companies that find success. All you need is a positive work ethic and the right business model, which seems to be keep things simple and take care of your customer base. If you can keep those to philosophies in mind and can get the financial backing it is possible to make a small fortune in the aviation industry.

References

(2015). Retrieved from https://www.suncountry.com/page/1/our-company.jsp

Dallos, R. (1991, January 1). Pan Am, a 50-Year Leader in Aviation, Goes Bankrupt : Economy: Carrier cites fuel costs, downturn and Flight 103 bombing. It says travelers will not be affected. - latimes. Retrieved from http://articles.latimes.com/1991-01-09/news/mn-7223_1_fuel-costs

El-Erian, M. (2014, June 14). The Secret to Southwest's Success - Bloomberg View. Retrieved from http://www.bloombergview.com/articles/2014-06-13/the-secret-to-southwest-s-success

Masson, M. (n.d.). Southwest's fuel gamble: Hedges keeps fares in check - ABC News. Retrieved from http://abcnews.go.com/Travel/story?id=5918252

Phelps, D. (2011, July 21). Cambria deal gives new life to Sun Country | Star Tribune. Retrieved from http://www.startribune.com/business/125906638.html

Phelps, D. (2013, September 23). Five years later: Tom Petters' Ponzi scheme | Star Tribune. Retrieved from http://www.startribune.com/business/224430151.html

Platt, A. (2014, October 31). Retrieved from https://www.minnpost.com/twin-cities-business/2014/10/after-15-years-turbulence-sun-country-finding-clear-air

sun country airlines history. (n.d.). Retrieved from www.braniffpages.com/syhistory.html

 

 

Monday, March 16, 2015


The United States airline industry is facing competition from the foreign market, particularly from the Gulf region and Asia. This competition that the United States is currently experiencing is more substantial than in the past. This is primarily due to government subsides, cheaper labor, cheaper equipment costs and little to no taxation of foreign airline by their governments.

Foreign airlines excel with their government subsidies. According to the Economist  “a group of airlines disclosed details of “obvious and massive” Gulf-carrier subsidies totaling $42bn since 2004”(Economist, 2015). As you can see foreign governments are pumping billions of dollars into their countries airlines so they will succeed. To add insult to injury “The U.S. airline industry faces higher taxes than the three Gulf majors. The aviation industry has 17 unique federal taxes and fees. Airlines-for-America estimates that about 20% of a $300 ticket for a typical, domestic round-trip itinerary with a single connection in both directions is composed of taxes. The federal tax rates paid by airlines are higher than federal taxes paid on alcohol, tobacco, and firearms, which were originally intended to discourage use”(Ropazo, 2014 ). Therefore, the US carriers are at a big disadvantage over the foreign carriers due to taxes. This could easily be changed with lower taxes on airlines and a possible government subsidy.

Even though foreign carriers succeed with their own subsidies, our government is aiding their efforts. The Import Export Bank “is the official export credit agency of the United States” (EX_IM, 2015). The mission of the Import Export bank is to assist in financing the export of goods and services from the United States to international markets (EX_IM, 2015). This bank has been financing foreign carrier purchases; particularly United State’s manufactured aircrafts such as Boeing. In fact, “The U.S. Government Accountability Office said in a 2014 report that 28 percent of Ex-Im’s total exposure is solely wide-body aircraft. That constitutes nearly $32 billion worth of subsidies from U.S. tax revenues providing foreign competitors an unfair advantage as U.S. companies are ineligible for such discounted financing”(Crane, 2014). Therefore, with foreign carriers stocking up on new wide body Boeing aircraft (which are financed through Ex-Im bank) they are actually saving an estimated amount of 20 million dollars per aircraft throughout its useful life. While this does aid our own manufacturing industry, it is hurting our airlines.

Finally, it is hard for airlines in the United States to compete with foreign labor; this is a commonality within many other industries. There are certain parts of the world where the cost of living is considerably less than living within the United States. The airlines in those areas of the world can pay their pilots, management and maintenance crew less than what the United States carriers have to pay. Foreign airlines have taken advantage of their savings. These airlines in turn provide their customers with lower ticket prices and more amenities on their flights. This is a problem that the United States carriers and our government cannot fix. You cannot ask a pilot or technician to take less money due to the high price it costs them to get their certifications. Norwegian Air is a perfect example of this incongruity.  There is a Norwegian airline that is based in Ireland that employs Thailand based crews through a Singaporean pilot company. They have based their company in Ireland because “Ireland has weaker labor laws that will allow the airline to keep labor costs low by outsourcing its crew to Asia”(Zillman, 2014).

With all that is mentioned above it is easy to see why US carriers are struggling in the international market. Our government need to make policies that help our U.S. based airlines and not hurt them. If they don’t make changes now the US airlines will soon become domestic only airlines.

Judson, C. (2014, September 8). Guest: How the Export-Import Bank hurts U.S. airlines. Retrieved March 17, 2015, from http://www.seattletimes.com/opinion/guest-how-the-export-import-bank-hurts-us-airlines/

Feeling the heat. (2015, March 6). Retrieved March 17, 2015, from http://www.economist.com/blogs/gulliver/2015/03/airline-subsidies-gulf

Rapoza, K. (2014, April 1). Why UAE And Qatar Have The 'World's Best' Airlines. Retrieved March 17, 2015, from http://www.forbes.com/sites/kenrapoza/2014/04/01/why-uae-and-qatar-have-the-worlds-best-airlines/2/

The Facts about Ex-Im Bank. (n.d.). Retrieved March 17, 2015, from http://www.exim.gov/newsandevents/the-facts-about-ex-im-bank.cfm

Zillman, C. (2014, May 8). Pilots battle against ‘Walmart-ing’ of airline industry. Retrieved March 17, 2015, from http://fortune.com/2014/05/08/pilots-battle-against-walmart-ing-of-airline-industry/

 

 

 

 

Sunday, March 1, 2015

UAV Blog


Recently, UAVs have been frequently mentioned in the news and not just in the context for military application. UAVs have also become popular in the civilian world. According to Corrall (2013) the most popular civilian applications are Hurricane Hunting, 3D mapping, Wildlife Protection, Agriculture and Search and Rescue. The FAA is looking into regulating the use of UAVs due to an increase in civilian use. As of now the only regulation that the FAA has is carried under model aircraft, which does not permit commercial use of UAVs. On February 15, 2015 the FAA issued a NPRM for comments on new proposed regulation for small UAVs (NPRM, 2015). Since UAVs are being used for a variety of reasons, it is only logical that some kind of regulation is implemented in order to protect other users in the National Airspace System.

Before legal regulation of UAVs in the National Airspace System is implemented many factors will need to be defined. The public and current users of the NAS will need to feel comfortable that the operators of these UAVs will act in a safe matter.  I believe this is the strongest argument for UAVs to not be allowed in our airspace. If these small UAVs were to collide with an aircraft there is a possibility for a fatality. Therefore the problem at hand is that these operators are safely controlling their UAVs on the ground and the only negative consequence for these operators is the potential to lose their UAVs. They do not consider the lives that are at risk if the UAV were to collide with an aircraft. Hence the reason for the strong initiative fighting against the use of UAVs in the NAS. One may question how an operator can see their UAV and be certain that they are flying their aircraft 500 plus feet away from other aircrafts. Also will the operators be familiar with VRF flight rules and how can they be confident with monitoring their aircrafts through a video feed?

The Military has had great success with the implementation of UAVs. “In 2005, tactical and theater level unmanned aircraft (UA) alone, had flown over 100,000 flight hours in support of Operation ENDURING FREEDOM (OEF) and Operation IRAQI FREEDOM (OIF)”(The UAV, 2015). UAVs serve the military in many different roles including Target and Decoy, Reconnaissance, Combat and Research and Development. Their success is related to long duty times and their ability to maintain safety for pilots. Another reason UAVs are popular is that they save the government a considerable amount of money. “Auditors estimate the Air Force would save at least $500,000 per pilot if it revamped its training programs”(Hoffman, 2009). The UAV has become an important part of the United States arsenal. Their success so far has solidified their future in the military. In addition, the cost savings allows the government to expand the production of UAVs.

            Although the UAV market is primarily militarily, there are employment opportunities for civilians. These jobs are mostly civilian contractors working for the military in either an operator role or an instructor role. The qualifications for a career in the UAV market requires a non-specific four year college degree and a FAA private pilot’s certificate. The following are two examples of jobs a civilian can obtain in the UAV industry:  

UAV Operator


UAV Trainer

 


References

Carroll, J. (2013, June 7). Five ways UAVs are being used by civilians. Retrieved March 1, 2015, from http://www.vision-systems.com/articles/2013/06/five-ways-uavs-are-being-used-by-civilians.html

Hoffman, M. (2009, March 1). UAV pilot career field could save $1.5B. Retrieved March 1, 2015, from http://archive.airforcetimes.com/article/20090301/NEWS/903010326/UAV-pilot-career-field-could-save-1-5B

Northrop Grumman AVO / UAV Operator Job in Sierra Vista, AZ. (2015, March 1). Retrieved March 1, 2015, from http://www.glassdoor.com/job-listing/avo-uav-operator-JV_IC1133980_KO0,16_IE488.htm?jl=1231038694&utm_source=CNNMoney&utm_medium

Small UAS Notice of Proposed Rulemaking (NPRM). (2015, February 23). Retrieved March 1, 2015, from https://www.faa.gov/uas/nprm/

Textron Shadow Flight Crew NET RESET SUT GOCO UAV Trainer Job in Dugway, UT. (n.d.). Retrieved March 1, 2015, from http://www.glassdoor.com/job-listing/shadow-flight-crew-net-reset-sut-goco-uav-trainer-JV_IC1128275_KO0,49_IE654.htm?jl=1329934163&utm_source=CNNMoney&utm_

The UAV - The Future Of The Sky. (n.d.). Retrieved March 1, 2015, from http://www.theuav.com/

Saturday, February 28, 2015

Corporate Aviation


There are basically two type of aviation business for personal travel the first being corporate and the second being commercial. Each has it own advantages and disadvantages for the traveler and for the pilot employed by the company. Most people are familiar with the first one we will discuss; the commercial airline. Commercial airlines are an airline that has a specific route and schedule they fly. Anyone can buy a ticket and get to their destination. This causes a problem for some businesses because they rarely fly into the smaller regional airports. These smaller airports are typically in the vicinity of where the companies send their employees. Also a passenger may have to use a full day just to get to a city that may only be a 4 hour flight away due to the travel time to the airport, the waiting time for their flight, and maybe a layover added. This loss of time really affects the company since having a key employee out all day effects their productivity. Lastly most companies need to send their employees to a destination without very much lead time. This increases the cost of ticket and if business trips are canceled the company loses out on the cost of the ticket. In most cases both problems effect the bottom line of the company.

            Corporate aviation on the other hand is an as needed service. Your company owns the plane and has the pilots either on their payroll or they have hired a management company who supplies the pilots. This means the plane is ready to go when you are ready. There isn’t a worry about purchasing tickets last minute or trying to schedule a trip so that your employee is sitting around in an airport for the majority of the day without getting work done. This also means if you need to cancel flights then you don’t lose out on that money that was spent on a commercial airline ticket. The major advantage of the corporate flight department is that you can get your employees to the correct town 90% of the time. “Business aviation serves ten times the number of communities (more than 5,000 airports) served by commercial airlines (about 500 airports). This means business aviation can allow companies to locate plants or facilities in small towns or rural communities with little or no commercial airline service. With nearly 100 communities having lost airline service” (No Plane No gain, 2015). Therefore, they won’t have to fly into a major hub, then have to rent a car and drive for hours to their intended destination. “Business aviation allows for efficient, flexible, safe, secure and cost-effective access to destinations across the country and around the world. Because employees can meet, plan and work with each other aboard business aircraft, productivity enroute is greatly enhanced” (NBAA,2015). This means less travel time and more productivity for your employee. These differences are the basic argument for why a company can realize an increase in profitability by utilizing a corporate aviation department.

            As a pilot there are the same basics opportunities in both realms of aviation. Both corporate aviation and commercial aviation utilize pilots and copilots. Although there are a lot more opportunities out there in the commercial aviation field than there are in the in the corporate field. There is a drawback,  91 corporate aviation department can set their own minimums for their pilots with the basic requirement being either a single engine commercial license or a multi-engine commercial license. Their pilots are not required by the FAA to carry an ATP. This is a positive attribute since most pilots can acquire a job in the right seat of a corporate plane sooner than a regional airline. With that being said competition is high for the fewer slots that are available. There is also a higher starting salary within thecorporate aviation field than there is with regional airlines. This also is a benefit to the pilots although the trade of is a lower pay scale at the end of your career if you choose to stay in corporate aviation. Lastly the chances that you are home at night and not away from your family for long periods of time are also better for the corporate pilot.

Corporate Eagle is a great example of corporate aviation company. Although they are not the traditional aviation department they are what are gradually replacing company owned aviation departments. Corporate eagle is an aviation management company. Their role is to provide management, maintenance and pilot services for corporations that own their own aircraft. In this role they are saving those companies money by not having to have an aviation department on their payroll full time. The pilots at Corporate Eagle fly a number of different company’s jets. Their fleet consists of Company fleet consists of “13 aircraft (3 x King Air B200, 3 x Hawker 700, 4 x 800XP, and 3 x Falcon 2000) with operations based at KPTK”. (Warner, 2014) Although they primarily act as a management company corporate eagle does hold a part 135 operators certificate.  This means that they can run charter services. This also means companies can opt to have corporate eagle hire out their jets to offset the maintenance and storage costs, which further saves the owners money. The hiring requirements for pilots are a commercial multi certificate with a IFR rating, a CFI, CFII and MEI with 1500 hours is preferred. This is a starting point they have hired pilots with less hours.

 

Business Aircraft Uses. (2015, January 1). Retrieved February 28, 2015, from http://www.nbaa.org/business-aviation/uses/

Business Leaders on Business Aviation | No Plane No Gain. (2015, January 1). Retrieved February 28, 2015, from http://www.noplanenogain.org/Advocacy_Tools.htm?m=47&s=407#.VPIcMZV0yP8

Warner, S. (2014, September 15). Job Post: Corporate Eagle - First Officer/Second-In-Command. Retrieved February 28, 2015, from http://aviation.wmich.edu/jobs-scholarships-and-internship-postings/bid/355164/Job-Post-Corporate-Eagle-First-Officer-Second-In-Command

Sunday, February 8, 2015

NTSB "Most Wanted" list for 2015


The issues identified by the NTSB have proven to become a significant problem in recent times for the aviation industry. According to the FAA “Loss of control – mainly stalls – accounts for the most GA fatal accidents”.(FAA,2014)  This threat is considered to be more self-imposed. The reason behind this threat deals with the lack of professionalism of a general aviation pilot.  Considering the weather in Michigan, the average private pilot mostly flies a few times a month; therefore during the winter months the general aviation pilot does not typically fly. Even when the private pilots do fly they are most likely not practicing maneuvers such as stalls and unusual attitudes. Practicing these maneuvers would help them avoid a potentially hazardous situation before they lose control. Then you have the pilots who lack professionalism under any circumstance. For example, there was a recent accident in Colorado where the pilot of a Cessna 150 lost control because he was taking a selfie.  According to an NTSB investigator “The evidence suggests that Singh got distracted, disoriented, stalled the plane and crashed” and goes on to say "During the climb-out portion of flight, the pilot uses his cellphone to take a self-photograph. The camera's flash was activated and illuminated the cockpit area," NTSB investigators reported about one of Singh's flights a few minutes before the crash (Hughes,2015).  "During the climb-out phase, the pilot was seen making keyboard entries to his cell phone and additional keyboard entries on a portion of flight consistent with the downwind leg" (Hughes,2015). A key suggestion brought forth by the NTSB is to manage distractions so that they will not interfere with the pilots situational awareness this would have defiantly prevented the Colorado accident.

The NTSB also cited the following accidents “on August 9, 2013, in East Haven, Connecticut, while attempting a circling approach in and out of clouds during gusty wind conditions, a Rockwell International 690B entered an inadvertent aerodynamic stall/spin and crashed into a house, resulting in the deaths of two children in the house. In another example, on December 12, 2013, near Collbran, Colorado, while maneuvering at low altitude looking for lost cattle, a Piper PA 24-250 entered an inadvertent aerodynamic stall/spin and impacted terrain, resulting in three fatalities onboard the airplane. And, on December 29, 2012, near Lakeside, California, while the non-instrument-rated pilot was climbing an experimental amateur-built Lancair IV-P through cloud layers, the airplane entered an inadvertent aerodynamic stall/spin and completed seven 360-degree revolutions before impacting the ground, resulting in three fatalities onboard the airplane”(NTSB, 2015). All of the above accidents seem like they could have been easily prevented by an increase in recurrent training. The NTSB lists this as well as utilizing good aeronautical decision making techniques both in flight and during the preflight planning.

The NTSB has also cited an increase need for procedural compliance for the commercial aviation sector. This too is a leading cause of accidents in recent times. The cause of the crashes for both the Asian Airlines Flight 214 and the UPS cargo jet crash at the Birmingham, Alabama airport August 2013 were determined to be due to the lack of procedural compliance. The NTSB wants to improve this procedural compliance by insuring good procedures that improve pilot safety. The NTSB has laid out the following guidelines to accomplish this goal:

·         Appropriate training ensures that commercial aviation professionals understand the procedures, how to implement them, and how they contribute to safe operations. Improved stall training, dual engine loss training and gusty crosswind training are some examples.

·         The FAA also should require pilot training programs that emphasize monitoring skills and workload management, and establish best practices for conducting single and multiple emergency and abnormal situations training.

·         Air carriers should also strengthen assertiveness training for first officers and initial operating experience training for Part 135 pilots.

Below are some of the causes of the July 2013 crash of Asiana Airlines flight 214 in San Francisco, CA(Curtis, 2014)

·         The flight crew’s nonstandard communication and coordination regarding the use of the auto throttle and autopilot systems,

·         Inadequate training on the planning and executing of visual approaches;

·         Inadequate supervision of the pilot flying by the instructor pilot

If the suggestion of the NTSB were to be implemented before the time of the flight these causes would be nonexistent. The training, communication and emergency procedures would have insured a safe flight to its destination in San Francisco. Some will say it was due to pilot error and the event would have happened anyways, but if the pilot was better trained and prepared before getting into the cockpit the crew would have never put them in a situation that would have led to the accident.

All of these are good solutions to the problem, but I think the key solution is to instill in all the pilots and operators that safety has to be a priority. I know safety comes at a cost and the bottom line for any company is the most important, however when they are losing aircrafts and lives you cannot just think about the money. In the UPS accident, UPS said, “it has changed procedures regarding stabilized approaches, automation, pilots’ decisions to go around when an approach is shaky, and altitude call-outs on descent. “This accident underscores the shared responsibility that companies and pilots have to ensure proper rest and to report to work fit for duty,” spokesman Mike Mangeot” (Bachman, 2014). Mr. Mangeot explains this situation well; it all comes down to the responsibility of the pilots and the companies to work together to insure safety.

Curtis, T. (2014, June 25). The AirSafe.com News. Retrieved February 8, 2015, from http://www.airsafenews.com/2014/06/ntsb-report-on-july-2013-crash-of.html

Fact Sheet – General Aviation Safety. (2014, July 30). Retrieved February 8, 2015, from http://www.faa.gov/news/fact_sheets/news_story.cfm?newsId=16774

Hughes, T. (2015, February 4). NTSB: Selfies led to fatal Colo. plane crash. Retrieved February 8, 2015, from http://www.usatoday.com/story/news/nation/2015/02/03/ntsb-selfies-disoriented-pilot-causing-crash/22785475/

Prevent Loss of Control in Flight in General Aviation. (2015, January 1). Retrieved February 8, 2015, from http://www.ntsb.gov/safety/mwl/Pages/mwl7

Strengthen Procedural Compliance. (2015, January 1). Retrieved February 8, 2015, from http://www.ntsb.gov/safety/mwl/Pages/mwl1

UPS Air Crash Was Caused by Crew Errors, Not Fatigue, NTSB Says. (2013, September 9). Retrieved February 8, 2015, from http://www.bloomberg.com/bw/articles/2014-09-09/ups-air-crash-caused-by-crew-errors-not-fatigue-ntsb-says

 

Sunday, January 25, 2015


The Pilot Shortage in the United States is a heavily debated issue.  This debate not only takes place between key players in the aviation industry but also between analysts outside of the aviation industry. While most analysts may argue that this most recent boom in hiring can be attributed to many different factors there are some who still believe that this increase in hiring is just the industry’s way to return to a normal stable work force. Over the past decade or so the travel and aviation industry has struggled and has laid off thousands of pilots and employees.  One of these events was the September 11, 2001 terrorist attacks on the World Trade Center in New York. These attacks increased Americans fear of Flying and reduced the customers for the airlines causing them to cut flights and jobs for thousands of pilots.

            With all the obstacles that the airline industry has overcome in the past decade there are more huddles that have developed. The Federal Aviation Administration has recent rewritten the regulations regarding commercial pilots. These regulation put greater restriction on how long a pilot can fly for and how many hours they can be on duty. This reduction in the pilot’s allowable working hours requires the airline to hire more pilots to cover the scheduled flights they have in place. The Federal Aviation Administration has also raised the requirement for the number of hours a pilot must obtain to be able to obtain an ATP. This has increased the training time a pilot must go through by almost three fold. Not only does this delay the hiring of those piloting into the commercial airline but in also increase the cost of training of those pilots. With the reduction of wages that the pilots took to keep jobs during this slump the return on investment is just not there to entice young adults into a career in the aviation industry. Lastly the average age of airline pilots is soaring this is a problem since there is a mandatory retiring age of 65 years old for airline pilots. This tied with the reduced pool of pilots in training adds up to a severe pilot shortage.

            After 9/11 the major air carriers were grounded this coupled with the nation’s increased fear of flying due to the possibility of more attacks created a major economic impact. Gabi Loagan stated that the total initial economic impact was a “6 percent reduction in passenger volume across the board, with a 9 percent reduction in the nation's busiest airports, totaling a nearly $1 billion loss for the airline industry” in her article in USA today. (Logan) She goes on to say “As a result of the massive financial losses due to lack of passenger demand, canceled flights and increased expenditures for security, even airlines that did not have prior financial issues were forced to renegotiate labor contracts and lay off high numbers of employees, such as the 7,000 employees laid off by American Airlines.” (Logan) Most opponents of the pilot shortage debate will simply say that the increase of hiring that we are seeing now is just the aviation industry finally rebounding. They also say that these pilots that were initially laid off are still out there and are the one being rehired today. This is simply not the case “a record 738 million airline passengers flew in 2005, up 10 percent from the previous record set in 2000. The first seven months of this year have seen 324 million passengers, off only 1.5 percent from the year-ago pace, and miles flown is actually up a bit.”(Isidore, 2006) As you can see the attacks on September 11 devastated the airline industry causing a massive lose in revenue and a large percentage of the workforce laid off but the aviation industry bounced back and returned to pre 9/11 status in a matter of a few years.

            The recession is another factor that caused the airlines to lose revenue over the past few years.  Tim Winship reported in a 2010 article that “As a group, five of the nine largest U.S. airlines posted 2009 losses totaling almost $4 billion. American, which lost $1.5 billion in 2009 and $2.1 billion the year before.” (Winship, 2010) Although most will again say that we are still rebounding from this recession it is simple not the case.  Martin wrote that in 2013 “The profits come on $199.7 billion in operating revenues for the nation's top 26 airlines, compared with $156 billion for 2012, according to the federal Bureau of Transportation Statistic”.( Martin,2014) Also the major airline did not lay off a large sum or pilots like they did during the downturn after the 9/11 attacks. Most of the cut pilot positions were simple from retired pilots. These profit margin numbers are also greater than the pre 2001 numbers so we can see the airline industry is actually growing.

            There are a few facts that the opposition cannot dispute. The airlines in the United States are hiring and are hiring at a faster rate than ever before.  “American has said it expects to need to hire 1,500 new pilots over the next five years to make up for retirements, training demands and its fleet renewal” states Carey and Nicas in a recent article examining the shortage. (2014) As we know this hiring can be attributed one of the major factors we are seeing today is retirements. During the last decade the airlines have not been acquiring new pilots. Since this was the case there have not been large numbers seeking training due to the lack of jobs. This has reduced the number of pilots to take the place of those pilots reaching the mandatory retirement age. To compound this problem the FAA just increased the mandatory minimum of flight hours required to be a pilot in command of a scheduled airline to 1,500 hours from the previous no required minimum. This new regulation has just increased the training time for a pilot by three fold in order for them to take the place of the retiring pilots that are in the air right now. So with the mass of retiring pilots and the increased training time which will delay the current pilots in training from taking those seats it is hard to say that we will not see a pilot shortage. Its also easy to see why Justin Bachman of Bloomberg reported that “One of the largest regionals, Republic Airways Holdings (RJET), plans to stop flying 27 of its 41 Embraer (ERJ) 50-seat jets because of the pilot shortage”(2014).

            Finally one of the main reason there is a pilot shortage is the low wages for entry level positions in the airline industry. Most starting pilots make on average $21,000.00 a year.  This is not a lot when you considered the high cost of training. Matthew C. Klein a writer for Bloomberg explains “ Although many commercial airline pilots get their experience and training in the military, those who don’t have to pay as much as $100,000 to get the required education and flying time -- an investment that can't be justified when the wages for new workers are so low” (2014).  One thing is for sure that I will graduation Eastern Michigan University with a total educational debt of over $120,000.00 which does not include the cost of living for the 4 years of school and flight training. After my graduation I will have three choices available to me become a flight instructor and earn 15 dollars an hour while  gaining my last 650 hours required to get a first officer job at a regional airline. That doesn’t seem like a bad choice but when you figure I will start out making $21,000.00 a year as a first officer and it will take 4-10 year or so to break the $75,000.00 mark it is not a very enticing choice. My other option is to fly for a cargo company which I would make $30,000.00 or so then take a pay cut to work at a regional airline or stay at a cargo carrier and top out at the $60,0000.00 range for my salary. Or lastly take a job at a corporate jet company and start out with a salary of $75,000 to $100,000 and end up with a final salary in the middle to upper six figure range. The final option is the best and most viable option since my educational debt will need to be paid sooner rather than later. These options only increase the pilot shortage even more with more and more new pilots staying away from the airlines to seek higher paying job elsewhere.

            No matter how you look at the situation there is only one clear answer. We are currently experiencing a pilot shortage that will only get worse in the next few years. With the cost of training increasing along with the required hours to be able to fly airliners more and more young adults are either seeking careers outside of the aviation industry or at least outside of the airlines. This coupled with the increasing amount of retiring pilots and the lack of qualified pilots due to years of the industry not hiring has all added up to a major pilot shortage here in the United States.

 

Additional questions

The RAA Regional Airline Association (RAA) and Airline Pilots Association (ALPA) act as the unions for the Regional airline industry. Although ALPA focuses its efforts on pilots RAA represent the rest of the industry.  

1.      Professionalism striving to be at the to of your profession in and out of the work place. It not only includes your skills but also how you act and how to interact with others  in and out of the workplace.

2.      The Captain repeatedly failed check rides. By not studying the pilot failed to hone his skills. There was also a lack of professionalism on management’s side by not sufficiently preparing or requiring their pilots to be proficient in their skill. Management should have seen that there was something amiss when someone repeatedly fails examinations but they continued to overlook it and let him represent the company.

3.      See above essay

4.      There are many ways I can expand my professionalism. First by attending conferences and seminars so that I may further my knowledge of the aviation industry. Secondly I will always keep my skills sharp not only in the aircraft I fly everyday but by continuing to get additional rates and training that are not required by my job.

References

Bachman, J. (2014, February 11). Pilot Shortage: Regional Airlines Are Cutting Flights - Businessweek. Retrieved July 13, 2014, from http://www.businessweek.com/articles/2014-02-11/yes-theres-a-pilot-shortage-salaries-start-at-21-000

Carey, S., & Nicas, J. (2014, February 3). Airline-Pilot Shortage Arrives Ahead of Schedule - WSJ. Retrieved July 13, 2014, from http://online.wsj.com/news/articles/SB10001424052702304851104579361320202756500

Isidore, C. (2006, September 8). Airlines would have changed, with or without 9/11 attacks - Sep. 8, 2006. Retrieved August 10, 2014, from http://money.cnn.com/2006/09/08/news/companies/airlines_sept11/index.htm

Kline, M. (2014, February 12). Pilot Shortage Is an Airline Fairy Tale - Bloomberg View. Retrieved July 13, 2014, from http://www.bloombergview.com/articles/2014-02-12/pilot-shortage-is-an-airline-fairy-tale

Logan, G. (n.d.). The Effects of 9/11 on the Airline Industry | USA Today. Retrieved August 10, 2014, from http://traveltips.usatoday.com/effects-911-airline-industry-63890.html

Martin, H. (2014, May 5). Airline profits soar to $12.7 billion - LA Times. Retrieved August 10, 2014, from http://www.latimes.com/business/la-fi-mo-airline-profits-skyrocket-20140505-story.html

Winship, T. (2010, April 30). The Recession Hit the Airlines Hard, and Passengers Harder: Travelers Suffer from Profitability Drive - ABC News. Retrieved August 10, 2014, from http://abcnews.go.com/Travel/recession-hit-airlines-hardand-passengers-harder-travelers-suffer/story?id=10497972