Global Airlines - Is it a Fair?

Two airlines that have been found to receive government subsidies are Qatar and Emirates. Both airlines are within violation of the Open Skies policy. The Open Skies policy is an agreement in place to promote travel, increase economic growth and promote job opportunities by eliminating government interference on routes, capacity, and price. Qatar has violated this policy by receiving government aid with over $16 billion in the last decade alone. Qatar’s CEO Akbar Al Baker has publicly denied any government interference with the airline but its financial statements have proven this to be false. Emirates has shown to have received at least $5 billion in subsidies since 2004 (Partnership for Open and Fair Skies, 2015). Last year they made a profit of $1.6 billion of which $700 million was given to shareholders and $300 million in bonuses for its employees.

Though not in the exact same way as the Gulf airlines the U.S. government has been providing subsidies to American aviation companies as well. A government document shows that $155 billion has been received by U.S. airlines between 1919 and 1998. Of the $155 billion spent, $140 was spent by the trust fund that supports FAA spending. Historical data from the FAA also shows that since 1971 passengers and airlines have contributed $247 billion to the trust fund with $10 billion being contributed annually today. Unlike the Gulf airlines the U.S. airlines pay into what they are given to by the government. The Gulf carriers argue that many countries subsidize their commercial airline industries, especially start-ups but they are not exactly parallel events. U.S. airlines started with mail being carried by airlines and being required to carry passengers to lead to a reduction in the need for air mail subsidies. Airlines were provided with more subsidies in the second half of the century. The Gulf carriers are relatively new. Emirates was founded in 1985, Qatar in 1993, and Etihad in 2003. Instead of letting the market expand their airlines over time the Gulf governments spent billions of dollars rapidly to provide the three airlines with the most expensive aircraft and gigantic new airports (Reed, 2015).

Another controversial issue with foreign carriers is their purchasing of aircraft at lower interest rates than U.S. carriers. The Export-Import Bank, the federal creditor of the United States, is accused of reducing the investment required to purchase new aircraft for foreign carriers. The subsidized aircraft are then put onto routes that directly compete with U.S. carriers. U.S. carriers not receiving the same deal and the Bank’s activity in the wide body aircraft sector has resulted in job loss for American airlines (Keep America Flying). Boeing is currently the biggest beneficiary of the bank and according to the Government Accountability Office represents about 28 percent of agency’s financial exposure.  The Bank providing subsidies to foreign airlines to buy Boeing aircraft has cost the U.S. airline industry 7500 jobs and $684,000 each year (Lee, 2015).

I feel that a level playing field with foreign carriers could be achieved but the problem is that it requires everyone to play by the same rules. Governments often get too involved with commercial business especially regarding the airlines and there are different beliefs on what is acceptable or not. In order to have a level playing field the international aviation industry has to come to a conclusion on what defines a level playing field and follow the same procedures. The international business community is not fair and I don’t think it ever will be. 

Keep America Flying. (n.d.). Retrieved from Air Line Pilots Association, International: http://www.alpa.org/~/media/ALPA/Files/pdfs/news-events/white-papers/keep-america-flying.pdf?la=en

Lee, M. Y. (2015, April 10). Does the Export-Import Bank ‘prop’ foreign corporations to compete unfairly with the U.S.? Retrieved from The Washington Post: https://www.washingtonpost.com/news/fact-checker/wp/2015/04/10/does-the-export-import-bank-prop-foreign-corporations-to-compete-unfairly-with-the-u-s/

Partnership for Open and Fair Skies. (2015, January 28). Retrieved from Open and Fair Skies: http://www.openandfairskies.com/wp-content/themes/custom/media/White.Paper.pdf

Reed, T. (2015, April 14). U.S. Airlines Have Paid the Government $250 Billion -- Amazingly, Some Claim They Are Subsidized. Retrieved from Forbes: http://www.forbes.com/sites/tedreed/2015/04/14/u-s-airlines-have-paid-the-government-250-billion-amazingly-some-claim-they-are-subsidized/3/

The Cargo Industry and Duty Regulations

The new ruling comes as a result of the Colgan Air Flight 3407 accident on February 12, 2009. About 5 nautical miles short of buffalo-Niagara airport the pilot lost control of the Bombardier DHC-8-400 and it crashed killing everyone onboard including one person on the ground. Not only did the accident put focus on aspects of pilot qualifications and air carrier training requirements but the amount of hours that pilots were being encouraged to work were also examined.

The new rules take into consideration the time of day a pilot’s duty begins and adjusts the requirements accordingly. Some important changes implemented in the new ruling are that pilots must be well rested before beginning their duty in addition to stating that they are fit for duty before beginning flight. If a pilot feels he or she is not fit to fly the air carrier must be notified. The previous FAR was vague in regard to pilot fatigue and limitations for pilots and as was seen in the Flying Cheaper documentary some pilots could be encouraged to fly while being fatigued.

Under the new rule there is a restriction on a pilot’s flight duty period (FDP) which begins when a pilot is to report for the day and ends when the aircraft is parked after the last flight. Minimum rest is 10 hours, two more than the old rules, beginning when the crew is released in order to ensure that at least 8 hours of sleep is received. In the past minimum rest was 9 hours reducible to 8 but did not factor in a sleep opportunity. (ALPA’s FTDT Comparison: New FAR vs. Existing Rules, 2011)

Cargo carrier operators are exempt from the new rulings simply because of money. The FAA does not require cargo operations to be held accountable for the new part 117 rules due to the compliance costs exceeding the societal benefits. Cargo carriers may voluntarily comply with the new rules but it is not mandatory on the other hand passenger carrier benefits did outweigh the costs. They carry more people and the DOT values the cost of a human life to be about $6.2 million. (Compart, 2012) Considering that in fatal crashes hundreds of people can be killed it is easy to see why the airlines are held to a higher safety standard.

Personally I do not feel that cargo carriers should be left out of the provision. Even though cargo pilots are not carrying people the pilots themselves should be enough reason for compliance. Not only that but you have many people on the ground that could be injured. It would be terribly devastating if there was an accident in a congested area like O’Hare, La Guardia, or Detroit Metro. Even though cargo carriers can voluntarily adhere to the rules there is no reason to expect them to comply especially when it saves them time and money. I do like the fact that there are a few pilots and politicians that support making cargo carriers comply with the new rules. Recently a lawsuit was filed against the FAA by the Independent Pilot Association, the union representing UPS pilots, to compel cargo carriers to comply. “Carving us out is akin to telling bus drivers you have fatigue requirements, [but] truck drivers, you’re just hauling freight, so it doesn’t matter,” argues Bill Soer, a Federal Express pilot and chairman of the president’s committee for cargo at ALPA. About 15% of flights in the U.S. are operated by cargo carriers, he says, so “if we’re out there flying tired, did you really make the entire system any safer?”

If cargo carriers would be included in the new rules they would have many of the same problems as the airlines. The most troublesome aspect that I can imagine at the moment is dealing with the rearrangement of pilot schedules. There is also the problem of coming up with a training program that educates trainees on fatigue, the effects of fatigue on pilots, and fatigue countermeasures. The good thing is that since the airlines already have to comply with the new rules there will be examples to build off so hopefully integrating won’t be too costly in time.

References:

ALPA’s FTDT Comparison: New FAR vs. Existing Rules. (2011, December 23). Retrieved from ALPA: http://www3.alpa.org/portals/alpa/fastread/2011/FastReadNewsflash_20111223.htm

Compart, A. (2012, April 17). ALPA Champions Cargo Carrier Fatigue Bill. Retrieved from Aviation Week Network: http://aviationweek.com/commercial-aviation/alpa-champions-cargo-carrier-fatigue-bill

Flying Cheaper

     To deal with high costs and shortages of pilots many regional airlines are cutting costs by hiring pilots whose qualifications meet the bare minimum accepted by the FAA.  A while ago being a regional airline pilot was an attractive career choice and regional airlines had the option to pick from a pool of highly qualified candidates but now they have to settle for lower standards and sacrifice safety for cost. Many pilots are forced to work long hours for very little pay and can work up to 16 hours straight with only 4 to 5 hours of sleep. (Airlines Hiring "Very Substandard" Pilots, 2009) It is easy to see why many qualified piots refuse to work for regionals and opt to find work elsewhere with conditions the way they are.

     I think that in the short-term pilot shortage in the regional airlines are mainly due to low pay and long work hours. Those are two significant factors but the long-term effects of the pilot shortages can also be attributed to the retirement of many of our airline pilots as well as a new FAA ruling that increased the requirements to fly for an air carrier from 250 to 1500. Regional airlines have been stating that the ruling is responsible for pilot shortages in the industry and has caused them to cancel flights but airline pilots say that if their pay was increased the airlines would have no problem finding qualified pilots. (Jansen, 2015)

     Due to the FAA’s ATP certificate requirements airlines will find that future applicants will be more qualified than in the past but very few in numbers. According to a study conducted by researchers 8.53% of potential airline pilots are no longer considering a career as an airline pilot due to the requirements and an additional 32.54% who are reconsidering long term careers as airline pilots. The shortage is expected to be 35,000 but the industry can mitigate this by focusing on attracting new pilots to the field. Some ideas being considered are re-attracting qualified pilots who have no intention of pursuing an airline career. They make up around 47% of pilot instructors. The industry should also focus on creating a clear path for aspiring pilots from training to airline positions. Flight costs, another huge problem, could be mitigated with scholarships and grants to increase the number of pilots entering the profession. (Higgins, et al., 2013)

There are thousands of organizations around the US that serve the interest of many aspects of the industry. The American Association of Airport Executive represents airport management at commercial and general aviation airports. The Aircraft Mechanics Fraternal Association is another organization that represents the mechanics of the industry. AMFA is an independent union that is committed to improve the wages, conditions, and benefits of its members. Finally, probably one of the more well-known organizations is the National Business Aircraft Association. Since its foundation in 1947 the NBAA has been critical in allowing general aviation to thrive by protecting the interests of its members and recognizing the need to keep up with advances in technology.

1) To me professionalism is the way people conduct themselves around their peers and coworkers. It is acting with maturity and having an attitude that makes you want to get the job done.

2) The first instance of lacking professionalism was the airlines pushing fatigued pilots to fly even when it was not safe to do so by falsifying the pilot’s records. Fatigue drastically reduces a pilot’s ability to perform to standard due to decreased reaction times and the tendency to make bad decisions. The effects of sleep deprivation are similar to the effects of alcohol. Four hours of not sleeping is similar to having 4 to 5 beers while a whole day of not sleeping is similar to a blood alcohol level of 0.8. (FATIGUE – as bad as being drunk, n.d.) If a pilot goes to his or her management to complain about being deprived of sleep the professional thing to do would be to prevent that pilot from flying instead of risking safety to make money. The next case of un-professionalism that I remember is the captain telling the first officer to falsify the weight manifest by marking three adults as children so that they would not be overweight.

3) Low pay and compensation was a huge factor in the lack of professionalism in both cases. The pilots were barely making enough to live and were only paid for the flights that they completed. That caused a situation where some pilots and management were willing to compromise safety to complete a flight.

4) Once I am employed my number one plan is to go back to school. I believe continuing to learn is important throughout life especially when being in a leadership position. Another way I will remain professional is to admit when I do not know something and admit my mistakes. It won't be expected that I will be perfect but it is a goal that I will be expected to strive for. When I do make mistakes it will be best if I learn from them, accept feedback and continue trying.

References

Airlines Hiring "Very Substandard" Pilots. (2009, June 9). Retrieved from CBS News:http://www.cbsnews.com/news/airlines-hiring-very-substandard-pilots/

FATIGUE – as bad as being drunk. (n.d.). Retrieved from Flight Duty Times: http://www.flightdutytimes.eu/?page_id=191

Higgins, J., Lovelace , K., Bjerke , E., Lounsberry , N., Lutte , R., Friedenzohn , D., . . . Craig, P. (2013). An Investigation of the United States Airline Pilot Labor Supply . Retrieved from North Shore Community College: https://www.northshore.edu/cms/file/academics/programs/avd/web_resources/airline-labor-supply.pdf

Jansen, B. (2015, August 27). Airline fears of pilot shortage spark Congress fight over required training. Retrieved from USA Today: http://www.usatoday.com/story/news/2015/08/27/pilot-shortage-faa-1500-hours-required-colgan-crash-alpa/32008451/

UAVs

     Since becoming much cheaper and more open to the average person unmanned aerial vehicles have become increasingly more popular in the business industry. In addition to delivering packages drones might possibly be delivering food or even beer to customers around the US. One company, Darwin Aerospace, has built a UAV called the Burrito Bomber that uses GPS from the customer’s phone, drops off their meal, and then flies itself back home. Mark Zuckerberg has plans to use drones to deliver basic Internet access across the world with Internet.org. “Aquila”, a solar powered drone, will be able to fly for three months at a time without landing. The drone will avoid weather and other aircraft by operating between 60,000ft and 90,000ft. Facebook will be the first company with drones flying at that altitude and has a team working with policymakers to set guidelines for the project. (Hern, 2015) Federal and state governments have been using drones for a while to aide in search-and-rescue missions where sending in a pilot would be too dangerous. Another application of drones is for use in scientific research. David Bird, a professor of wildlife biology at McGill University, uses a drone to collect data on the number of polar bears and birds in the area. These are just some of the current uses of drones. (Dussault, 2014)

The FAA was tasked by Congress to come up with a plan to integrate UAVs into US airspace back in 2012 Since the FAA has missed its deadline for creating drone regulations operators are stuck in a  regulatory gray zone until spring. Many operators are trying to get a Section 333 exemption that lets them fly before regulations are put into place. The Section 333 Exemption will be given on a case by case basis and will allow certain unmanned aircraft to perform commercial operations. As of 9/30/2015 1,742 petitions have been granted and 399 have been closed. (Section, 2015)

Some proposed regulations are:

•          Drones used by businesses must be under 55lbs
•          Operator must have a visual on the vehicle
•          Unmanned aircraft have to be flown during daylight hours

The full Notice of Proposed Rulemaking can be found here.

     I think that it is inevitable that UAVs will be a large part of our airspace in the near future. As of now there is already great potential on so many professions because drones are light weight, easy to fly, cheaper than manned aircraft, and are less liability. It will be up to the FAA, private citizens, and commercial businesses to agree upon a set of regulations and continue to revise those regulations as UAVs continue to advance.

Some problems that will need to be solved are:

•          How will drones be regulated or traced back to the owner?
•          Who is authorized to shoot down a drone?
•          Drones being used on private property
•          Drone use within city limits and around high buildings
•          Operation of drones in highly populated areas
•          Accident liability

Another big problem that many citizens are already having is the use of drones to spy on others. The fear does not only come from the government spying on others but also citizens spying on their neighbors and organizations spying on people. For example some in the agriculture community are concerned about activist groups like People for the Ethical Treatment of Animals using drones to harass farmers. PETA announced that they will use drones to spot poachers and monitor wildlife violations. (Dillard, 2013)

     There has been much debate on the use of drone in the US military strategy. There are many reasons why the government has been putting more reliance on the use of drones:

•          They can fly into heavy fire,
•          Drones don’t have to go through training
•          There is no risk of life being lost

With the increased use of drones many questions have been raised over the ethical use of drone warfare. On the surface drones seem like a good idea because it minimizes the risks of losing our own troops as well as minimizing the emotional effect of family members losing someone due to war. Many believe that new technology combined with less than three million people serving in the military is making Americans more detached from war potentially making it easier to go to war and stay at war longer. The use of drones in future military operations is still up for debate. Some experts believe that we will never get to a time where drones outnumber humans on the battlefield. Others believe that the majority of combat forces won’t be made up of humans. The only thing that is certain is that we are moving towards a military with fewer manned systems and more automated systems.

Currently there are many job postings on websites like Glassdoor and the company General Atomics Aeronautical Systems also has many job opportunities in flight and management. Besides jobs that are currently listed there will be plenty more job openings in the near future. There will be a need for people to manufacture, fly, manage, and repair UAVs in many career fields. The University of North Dakota has had a bachelor's degree course in unmanned aircraft systems since 2008 and reports that most of the first 61 graduates have gone off to work for companies such as Northrup Grumman, Lockheed Martin, and Boeing. (Rooney, 2014)

 Sources:

Dillard, J. (2013, May 7). Can Activist Groups Use Drones to Spy on Farmers? Retrieved October 5, 2015.

Dussault, J. (2014, March 14). 7 commercial uses for drones - Boston.com. Retrieved October 5, 2015.

Hern, A. (2015, July 30).Facebook launches Aquila solar-powered drone for internet access. Retrieved October5, 2015.

Rooney, B. (2014, November 26). Drone pilot wanted: Starting salary $100,000. Retrieved October 5, 2015.

Section 333. (2015, August 21). Retrieved October 5, 2015.