Emissions Trading Scheme on Debate

About twenty-five years ago there was an uproar of the global warming as a threat to our existence as we are aware of it. Since then many more studies have been done to find research on ways to change the world to be environmentally friendly. In the last ten years alone we have seen the United States change to include windmills and solar panels. There have been rants, fundraisers, legalities and disputes over the environment. We recently discussed about the new developments from Boeing and Airbus and their attempts for an airplane composed of composite material. These are all examples of the developments emerged from the discovery of Global Warming.  The European Union (EU) is now trying to lead the world in a new attempt to lower the percentage of greenhouse gasses released into the atmosphere by instating the Emissions Trading Scheme (ETS) which will limit the amount of emissions on flight into, out of and within EU airspace and also tax those which exceed the limit. 2010 and 2011 served as a monitoring period for those affected in air travel. The tiered effect of emissions cap was outline in the article given out in class published by Air Line Pilot magazine.  Within the article it shows how there will be gradual decrease of allowable emission annually permitting the EU to meet their agreement of cutting emission at least 20%of 1990 levels by 2020.  The EU also made an agreement to increase emission reduction efforts to 30% by 2020. 

More than 20 countries are against the implementation of the EU ETS and its impact on each countries current operator, because ETS is inconsistent with international law. In December, the U.S. Department of Transportation requested U.S. and European carriers to present ETS data to the U.S. government in an a industry move believed by Aviation Daily to be a means of retaliation by the U.S. government. The Airlines for America (A4A) attempted to sue the EU for ETS by being a violation of international law.

The International Civil Aviation Organization's (ICAO) response to the EU ETS is quite political as they do not agree with the conclusion on previous disputes they elect to come draw-up a new proposal with the agreed upon framework of 2010 included. In regards to the overall emission problem they agree with the EU to which a solution is needed but not in the manner of the current ETS conclusion.

My response to the ETS is conflicted after reading more than a few articles and press releases from opposing sides to the battle. In my opinion I do understand a precedence of the emissions issue and I do even agree with taxing above a capped amount of emissions, but with that being said it brings about many concerns across the board. How will the airlines cut their emissions to stay within the restrictions? Will some international carriers have to reroute or worse cut routes to not face bankruptcy? Will short cuts become a problem within the parties involved?  ICAO strives to promote international cooperation between countries for the aviation transportation community. Since air travel is influential on the emission as a relatively small percentage I feel ICAO should proceed with finding a solution to mitigate the emission problems of global warming, but should take the EU out of the process completely. By creating the EU ETS there is undue stress within the industry, which should be handled, global instead of continentally. 

Professionalism in the Industry

1) Ever since Mrs. Wall introduced me to the company of Net Jets my second semester at Eastern it has held my attention, but it has been a toss up between Net Jets and FedEx.  For the purposes of this assignment I choose FedEx because they are a more stable company and if given the choices side to side of whom to fly for I would most likely head towards the logical financially reliable company.  Therefore, at the present time I would aim towards a pilot job with FedEx Express.

2) FedEx Express is a cargo airline owned by FedEx Corporation. The headquarters are located in Memphis Tennessee and considered the “Super Hub” because FedEx is the largest 121 freight commercial airline. They have hubs located all over the world providing a massive service as a widely popular name. FedEx uses contract feeders to deliver excellent services and stand behind their slogan “The World on Time.” FedEx has carried a good reputation among the aviation world with promising growth and development. As a pilot we all are familiar with seniority being everything and like any other company your slots depend on the years with the company.  With FedEx I would start off on the bottom of the totem pole with the crappy night flying and relatively low pay of around 60 dollars an hour and slowly working my way up through the years. The main complaint from FedEx pilots is the night flying since a predominant amount of transportation is done at night. Personally, night flying is my favorite type of flying so I do not reckon I will have a problem. 

3) FedEx like any company in aviation is striving to have optimal safety and production. The company currently has many orders in to retire their older planes to create a more fuel-efficient and user-friendly fleet.  With the user-friendly technologies a number of concerns are raised such as proper training within the aircraft and the standards and policies in which are implemented into such operations.  Another concern for FedEx would be fatigued pilots as they fly outside the main hours of operation the body is set up for. Luckily humans are adaptable to time change. Directly I would mitigate this concern by staying up to date with the information by attending seminars and self study as well as providing the information to those around me. By practicing the I’m safe checklist and faithfully and confidently relying the information to my employer I can better the lives of those around me.

4)

a) Professionalism, in class we discussed the drive to go above and beyond the means of the job. I do agree with the discussion, but professionalism has a degree of maturity tied to definition. Simply put professionalism is a combination of characteristics that can be learned and taught through experience which when captured shows through as a passion for your career by not by compromising self principles or values, by being caring and responsive but not invasive, conducting yourself in a mature manner, while striving to get the tasks done correctly in a reasonable time, and creating a humble creative productive environment while doing so. Individuals, which inherit the above qualities in my opinion, portray a sense of professionalism. Another aspect I strongly convey is keeping work and home separate when acting in a professional manner. Business is never pleasure and should remain separate. 

b) The Colgan Accident was directly related to the amount of professionalism Colgan lacked within their company and operations. Management failed to hold a professional standard was by not acting under the 121 regulation standards causing many latent failures. Colgan was falsifying pilot records, issuing incorrect training, operating under incorrect safety standards, creating an unhealthy corporate culture and promoting unqualified personnel. The Pilots (Captain and First Officer) on the other hand compromised their individual principles and values as a pilot for the company and therefore endangered the lives of 50 people. To read more about Flight 3407 visit please read the Wall Street Journal and Colgan's testimony against allegations. 

c) Earlier I mentioned how important it is to obtain the current knowledge of the industry and studies related to the industry. Even more important is conveying that information to others. The first step to safety is familiarity and the only way we can achieve that is by spreading the knowledge. Secondly, I would actively work to make sure not matter what position I am in my partner on the current mission does not feel inferior to overlook my decision or actions. On the flip side I would indirectly challenge my superior to realize if there is a slip up on procedure. 

Mergers: The Merged and Merging

Post 1978 Merger- Trans World Airlines merge with American Airlines.

Trans World Airlines was a long time running airline as one of the original big four in 1930 when Transcontinental Air Transport and Western Air Express merged to become Transcontinental & Western Air, Inc after “the Lindbergh Line” went into deep debt in 1928.  Transcontinental & Western Air, Inc (TWA) became a player in the private airmail routes the U.S. Post office was offering under the Postmaster General Walter Folger Brown. TWA became reliant on the mail subsidies when the great depression hit with uncertainty and incohesive management from both sides of the imbedded merge. Through World War I TWA made its mark flying the Army and eventually landed intercontinental experience and route. Becoming a direct competitor with the famous intercontinental Pan Am was a risky but created a good reputation. In 1950 the TWA acronym became official with the Trans World Airlines name change from “western.” In the 50’s TWA made some bad moves as Howard Hughes, the owner of the company (by shares), meddled in the benefits of having air travel at his fingertips. He missed the jet age by 3 years when Pan Am took the lead upgrading their fleet to Boeing 707. Hughes believed the direct competition laid within our country and stuck with Connies. By the time Hughes realized the jet age was here it was too, eventually putting his TWA stock into trust in 1960.  The Sixties were the booming era as TWA expanding to the Pacific and Atlantic worlds. Companies unable to compete via fares instead competed with the luxury. All the extremities to get the customer was the strategy of the airlines. The deregulation act of 1978 took TWA for a spin. At first the deregulation brought new airliners about, but eventually the big four were back at the forefront.  Trans World Airlines had a gradual descent into defeat as its competitors developed computerized reservation systems, frequent flier programs, wage scales, and inland international flight starts. Slowly TWA kept taking the beating, as hub “fortresses” became a strategic move and new more efficient planes. The slope finally became steep when TWA stock fell below the net worth of the airline.  In 1980 when Carl Icahn bought out most the stock he changed the companies philosophy. Forgetting how important the level of service is in the aviation industry Icahn hired low cost employees. By 1988 Icahn had loaded the company with debt up to its eyes. After making many poor choices of selling prime resources TWA filed for bankruptcy in 1992. Icahn fled the company allowing management committee of appointed employees take control. It took almost an entire decade for TWA to financially improve. Woefully once again, TWA filed for bankruptcy and in 2001 the 73-year-old company cease to exist when American Airlines bought all TWA possessions becoming the nations largest airline.

As you can see from the history lesson above TWA had a great run in the industry with its bumps in the roads for almost a century through its inception, mergers, vacuous owners, and even bankruptcy it stumbled and reaccredited its self to the public. Sadly there were many factors, which led to its gradual descent to the ground eventually ending in bankruptcy, which was inevitable with the amount of debt the company carried. Although if you back up you can see it mainly started with a greedy foolish owner with which was addicted to many various drugs throughout his climb and decent.  Then was passed on to not so great management where it took a spiral towards the ground. TWA is a classic example of how important good managerial set up is crucial to the longevity of a company. To learn more about TWA’s history I encourage you to make use of TWA Silver Wings and Centennial of Flight and their many links. Through the merge American made major cut backs causing half the TWA workers to become unemployed, cutting back on non stop service to 27 destinations, and using smaller planes. American gained with the merge Chicago, Dallas, and St. Louis as hub to the existing company. Many aviation consultants supported the American- TWA buyout, but soon after American bought TWA the nation was devastated with the 9-11 attacks. The aviation industry took immediate hit. We have all seen the outcomes of the terrorist attacks, the fall and now the industry is finally bouncing back more than 10 years later.  Within two years after the merge American had cut 80 percent of the TWA pilots and all of the flight attendants. Read more about the merge with USA Today. 

Current Merger- United Continental Holding, Inc. 

During the course of this next year United Airlines and Continental Air Lines will become one single operation. They are slowly working out the kinks of combining two sets of procedures into one concise set. When the merge is complete and they obtain their operating certificate from the FAA, United Continental Holdings, Inc. will officially be the nations largest air carrier.  Obviously we can see United made a good decision by taking over Continental to gain their assets to become the largest in the nation, but will stick over time as the competitors even out? As with all merges some things are lost, changed, or added.  Continental’s CEO Jeff Smisek was gung-ho about the merge after the announcement in 2010 expressed to Chron.com in the exact words “it’s a match made in heaven” as he stress to the reports the companies complete each other where the other is needed creating a perfect marriage. Unfortunately for 25 years Continental will say goodbye to its home in Houston to join United headquarters in Chicago. From the consumer perspective the merge is said to raise fares, but the consolidation will cut costs and boost sales. The fare increase will most likely be minimal and become undetectable to the general public. Continental has faced 2 former bankruptcies in its career and sees consolidation as a survival strategy. Will the consolidation of the majors into 3 companies really work? We will have to find out. The airlines started with the big four (five include Pan Am) we may be walking down the road again. The over used saying of “history repeats itself” is urging towards becoming true. 

Repercussions of American Airlines declaration of Bankruptcy

American Airlines in 2001 was the nations largest airline, but they have fallen to third in the last decade as its competitors merged and it stayed on the sidelines into bankruptcy. With this recent declaration there have been rumors of American Airlines possibly merging with Delta Air Lines, which is the second biggest air carrier at the present time.  Today, CNN announces that US Airways confirmed they have hired investments advisors to address the opportunity of bidding for American Airlines. The bankruptcy is crucial to the current American staff of 88,000. Tuesday there was a proposal to cut 13,000 employees to save 2 billion dollars in annual cost therefore possibly allowing American to recover from bankruptcy. There is also talk of liquidation of the company because it is said to be unattractive property according to two related and conflicting CNN articles (click here and here.) Sadly it seems American made a bad move by acquiring TWA in 2001. It was one of the first no-nos leading to this bankruptcy at hand. American acquired TWA during its stages of bankruptcy before TWA was able to restructure its cost configuration. Therefore American had to endure the expensive of former TWA’s old planes, which were not paid off nor up to the current efficiency standards of 2001. American tried to get ahead of the other Majors by working on consolidation early, but instead actually set themselves up for failure. Add the 9-11 attacks into the mix and we can conclude its not surprising American Airlines fell. From my standpoint it doesn't  seem like merging would be a good move for the company buying out American. Sadly, American doesn't have much to offer but old planes and debt. 

Mergers are a tricky business decision not only for the financials and major operations, but even the small simple decisions such as what brand of pretzels are we going to serve. Interestingly merge boards have to discuss everything which could be quite challenging, to say the least, as to preserve the best practices without alienating supporters of either.  I am intrigued to see the future of United Continental Holdings and who will pick up if any the crumbled left over of American Airlines. Reasonably, we can see how merger have a huge impact on the industry from both a pilot and managerial perspective. I have already discussed or made clear the bad choices of former company managers and their impact on the companies. Small mistakes can speak huge regrets and change the lives of thousands. On the pilot side of things the word furlough is not a foreign term. We are trained to accept the word with good intentions and uplifting thought for what is next. Constantly changing the plan is part of life and not uncommon to any aviator no matter what area of the entire aviation industry you are located within. The aviation industry may be principally a small community but it does remarkable things by the amount of people it influences over the vast geographical area it covers. There can be a lot of positives reflected on mergers but in the long run society will always focus on the negative. The United-Continental merger is estimated costing close to 3 billion dollars says the Los Angeles Times . That’s not just a chunk of spare change you go around wasting on financial deals. Then again even the simplest of relationships cost money and there are creating a relationship to “last a lifetime.” 

Commercial Aircraft Manufacturing Competitors

Write a brief statement about the B787 A380 B747-8 and the A350:

Boeing 787 was designed as a long-range, wide body, twin-engine commercial jet aircraft. Boeing quotes the B787 will lower operating cost, maintenance, and consume less fuel in comparison to the former commercial jets produced, such as its sister predecessor the 767. The 787 is the first airliner built out of light weight composite material dazzling the world with its building interest unlike any other design. By using the composite material (Carbon Fiber Reinforced Plastic) the entire basic operating weight is reduced creating a remarkable increase in efficiency.

The Boeing 787 is currently in production. The first Dreamliner was originally supposed to be delivered to All Nippon Airways (ANA) in 2008, but faced some unexpected delays and problems in the production with the new material. Now 3 years late the first 787 was put into motion for charter service by ANA on October 26, 2011 from Tokyo’s to Hong Kong in Japan. ANA has ordered 55 787’s to be put in service with 264 seats as they improve the aviation industry by buying new technology.  The Dreamliner Dream Tour is touring the world to show off its fancy and is currently in Dublin. According to a CNN article (click here) published in October of 2011 Boeing already has over 800 orders and at least 200 more prospective. You can learn more by visiting newairplane.com or Flight Global 

The Boeing 747-800 is the 4^th version in the Boeing 747 family. In comparison to former 747’s the 747-800 has a lengthened fuselage accommodating more passengers and improved efficiency. The reshaped “raked” wings allows for the increased weight and a higher fuel load.  The B-747 family has been a revolutionary aircraft since its first début in 1970 for largest passenger and payload capacity than the world has ever seen. There are two versions of the 747-8, the Intercontinental and Freighter for obvious reasons.  In December the FAA approved the 747-800 for certification. Currently the 36 orders for the aircraft are at work being prepared for shipment. The European Aviation Safety Agency is next to approve the aircraft opening up another continent of production possibilities. Obviously the 747-800 is a long-range wide body aircraft currently in production of both versions.

The Airbus 380 was designed as a competitor against the ever-faithful B 747-8. The A380 is the first double-decker airbus aircraft created. As a long-range, wide body aircraft, which is currently in production, it tries to compete with the B747-8.  In comparison, the A380 holds 525 passengers to the B747-8’s 467 passengers making the A380 the largest passenger carrying aircraft in the current market of airliners.  The A380 also tries to hold attention with a longer range by 300 nautical miles and almost a 10meter longer wingspan. As you can see the dimensions are strangely similar.  Read more about the comparisons at CNN Go.  

Currently in the developmental stages the Airbus 350 is a competitor of the B-787 as the first Airbus composite aircraft.  According to Airbus the A350 is 70% weight efficient by combining composite materials with titanium and aluminum alloys reducing the fuel consumption for long range and creating less maintenance. The A350 throws out the marketable factor by allowing options of seating capacity ranging from 250- 400 passengers in its wide body frame.

I’m sure it is not hard to see I am comparably bias towards the all American Boeing Aircraft, but even so I have to say the Airbus may take the lead in the commercial airline manufacturing industry. As a fan of hydraulic system in comparison to fly by wire electronics, as a pilot I would be more comfortable flying Boeing aircraft, but the Airbus’ electronics are taking off in popularity for its light weight compromise. Just by simple research of the already discussed aircraft above we can see Boeing is ahead of Airbus in designing and producing innovative technologies faster, but it seems Airbus is out doing Boeing in the end with improving those designs only slightly to have the advantage. Of course more Boeing orders have been made for those aircraft under review but taking into account Airbus is on a different timeline they are pretty consistent with each other.  Boeing and Airbus will always have their faithful customers they are constantly trying to sway to the other side. I am intrigued to see the impact these newer aircraft have on the industry.

Aviation Industry Corporation of China (AVIS) is the parent company for the attention gaining airliner-manufacturing company Commercial Aircraft Corporation of China (COMAC). COMAC is currently in development the C919 and the ARJ21. The C191 is a narrow body commercial airliner will air a début in 2016, while the ARJ 21 is a twin turbofan airliner. The C919 has gained all the current hustle and bustle only carrying the allowable 160 passengers. COMAC hopes to attack the China, India, and Asia Pacific area by 2029. High hopes for an extremely infant company. COMAC has high hopes for expansion, but I am wary as to if the company will be any competition for the current leaders Airbus and Boeing. Although I do find it somewhat ironic we could potentially have the ABC’s  (Airbus, Boeing and COMAC) of the airline manufacturing industry it’s rather unlikely in my opinion. You can read more about the optimistic competitor by reading the Smart Planet blog article. (Click here) 

Pilot Fatigue FAA New Rules

After the FAA released the new revised flight and duty rules on December 21^st many pilots took a big sigh of relief. It is clear to the public and aviation community the amendment will fabricate a shortage of pilots in all 121 operations.  There are a few key points the new rules change such as higher minimum rest periods, cumulative flight and duty time limits, new training requirements, and fit for duty releases. In my personal opinion, the greatest impact will lie within the flight time limits of previously 8 hours to the increased 10-hour rest requirement.  As a training dispatcher and commercial pilot I may have a skewed analytical view, but clearly anyone is capable of seeing how these small changes will shift the industry.

The recommended amount of sleep required for a healthy body is 8 hours according to The National Sleep Foundation. The previous rest requirements in place gave airline pilots a minimum of 8-hour rest period. All that means is that they are off the clock for 8 hours. Therefore, as soon as their tasks are complete on their last flight for the day that 8 hours starts. Let say a pilot arrives at the gate around 11:30 p.m. at our local Detroit Metro Airport. It takes an hour to empty and close down normal procedures. They are off the clock at 12:30 a.m., but are required to be back at the airport by 8:30 a.m. for there next flight. Said pilot arrives at their hotel around 1:00 a.m. to have a meal and hit the sack around 2:00 a.m.  The Pilot would have to be awake by 7:00 a.m. to shower, eat breakfast, and commute back to the airport. At most, after factoring the normal everyday functioning activities with this scenario said pilot is obtaining 5 hours of sleep. Now that is not healthy! In fact, as most individuals know, running on five hours of sleep consistently will not only cause a massive amount of sleep debt, but also have a noticeable decrease in the normal functions of an everyday human being.  To learn more about functions of sleep and contributing factors visit The National Institute of Health website.  

The FAA release states “a pilot must have an opportunity for 8 hours of uninterrupted sleep within the 10 hour rest period.” The new rules will allow each pilot the opportunity to obtain those 8 hours. Previously, there was no language referencing “uninterrupted” therefore the new rule guarantees the option for a full 8 hours.

Financially speaking, the new 10 hours minimum will require a change in previous procedures of the airlines. Generally, the same crew who flew a plane in and landed at 11pm will have the flight out of the destination at 6am.  To keep those same flight times available the airlines will have to schedule another crew to pick up those shifts. As you can see this will require an influx in crews if they wish to keep the same amount of business creating new training and wages. There may be a change in the schedule of flights as well as an increase in fares due to the incurred costs the airlines will be responsible for. The FAA states the new benefits will cost the industry around $300 million but the benefits of more safety and less accidents due to fatigue will is estimated between $247–$470 million.

Cargo Companies (Part 135 Operations) were excluded from the amendment of rest requirements due to insufficient cost benefits. After analyzing the situation I would have to agree with the FAA’s decision of exemption. The Cargo portion of the industry is an entirely different animal. There is not a set schedule for operations like the airliners and they work with inconsistent variables. To have the same set of rules is not logical for their operations.

 I however do agree with cargo pilots in the argument of changing the rest requirements to work with their specific operations. By not having a schedule the general vibe of the industry in comparison to the airlines is more relaxed. Cargo companies do not have the same business values as the airlines have with customer relations. Of course there is customer base, which have a more personal relation with the company than airlines with the general public. By working with the public the airlines undergo certain pressures such as frustrated customers due to increased fares, small seats, baggage fares, lost items, delays, cancellations, turbulence, and reputation. Cargo corporations are omitted from most of these pressures.  Furthermore, as we discussed in class the change would cause most of the cargo companies to go bankrupt, as they would have to double their crews to make up for the duty rules. This would cause undue stress on the already struggling economy causing a monopoly within the large cargo providers therefore defying our economic principles.

These factors alone bring me to the conclusion Airlines and Cargo Companies should not have the same regulation structure. It’s like running a zoo. You can have the overall structure of centralizing many species of animals in one place, but there is no way you would keep the cats (lions, tigers, panthers) in the same building as the reptiles. To reiterate my solution to the financial impact on cargo airlines and fatigue rules involves forming a different set of key points that is catered to the needs of the cargo companies. Such as with our example in class to expect a pilot to be fit for duty after being awake for 30 hours already is utterly vacuous and an accident waiting to happen. Something needs to change and it will take time before it is concluded.  

The Beginning

Growing up there is a large array of occupations and career paths to choose from. In the younger years, we generally dream of the being the role model we see in our immediate lives whether it range from a teacher to a fireman or maybe even your parents current job.  Many of us, close minded on all the various options out there, are constantly asked every year by new strangers and old relatives “What do you want to be when you grow up?” The true of the matter is many children, young adolescents, and even adults have not found their hidden interest which fuels the fire for the rest of their lives.  That single drive, which can make you invest in a future where the dreams are just slightly out of reach. The future you have in mind for years and take careful preparation for year after year as you sacrifice other simple pleasures to receive that bit of adrenaline. That small little bit of adrenaline that you hold on to and revisit when you are about to call it quits.  

Some of us find our ambition when we are younger and some a little older but its there waiting to be noticed. When I really thought about what I wanted to do with my life. What single action repeated over and over would never be dull or too mellow day after day? I was seeking an industry with the ability for vertical position movement to obtain a constant goal with none of the psychobabble and customer relations. My ambition surfaced in 8^th grade when I told my family I dreamt of traveling exploration and new experiences. My mother, being supportive always stood behind me when the others were discouraging against my visions of flying.  I was never one to follow the normal path.  Life should be exceptional and uncommon. There are million opportunities its up to you what you make of it. Coming from a family of trades, aviation was a foreign world to me. Without much direction I ended up at EMU to start my career and follow my bliss.

Finding the passion to feed your determination for years to come is an unexplainable sensation, which the aviation enthusiasts share across the board.

This is a place where we can share, converse, and network while discussing the new and old in the industry whether it is about the always-interesting CRM and ADM or the current change in the rest requirement for 121, but not 135 carriers this is a place we can connect.