1) The European Union Emissions Trading Scheme is the European Union's plan to cap and reduce greenhouse gas emissions over time. The concept of the scheme is that each member country submits a total yearly analysis of greenhouse gas emissions to the EU. Each member country is then assigned a limit for total yearly emissions. Factories producing greenhouse gasses must apply for permits which cap the yearly amount of carbon emissions that the specific plant can produce. At the end of the year if a company is under their yearly limit, they can sell off their surplus emissions allowances to another company which has gone over its limit, making a profit for themselves. If a company which has gone over its limit cannot find another company to trade with, they face heavy fines. The EU profits from the initial sale of the permits, and no additional allowances are sold, allowing the "currency" to hold its value and keep emissions rates at a constant. Over time, emissions caps are lowered, in an attempt to cause a shift to greener alternatives.
ETS was first implemented in 2005, but is just now being applied to aviation (it started January 1). If the EU gets their way, airlines will be allowed 82% of their carbon emissions, based on 2010 data, for free according to Forbes. They must purchase the remaining 15% at rates anywhere from 8.56-12 Euro per tonne. The total amount of emissions allowed, however, is a 3% decrease from the 2010 measurements, explaining the missing 3%. In 2013, caps will fall to 95% of their 2010 numbers, and free allowances will fall to 80%. I would like to note that the emissions are calculated from the point of origin, not within the European Union. This has caused outrage from governments and airlines worldwide. The regulation will cost the industry an estimated $23.8 billion up to 2020.
2) The US is upset about ETS because lawmakers claim that it violates the Chicago convention, as well as the Open Skies Agreement between the US and EU. EU courts have determined, however, that it is perfectly legal under both of these agreements. The US government is upset at this added expense to an already fragile and struggling industry. Secretary of State Hillary Clinton has urged the European Union to cooperate with the industry and foreign governments instead of working against them. Senator John Thune of South Dakota proposed a bill which would prohibit US airlines from complying with the ETS, if the DOT deems it to be in the best public interest. The government says that they are addressing the carbon emissions problems themselves in a different manner from that of the EU, like NextGen or financial incentives. Outside of the US, China has banned its carriers from complying with the regulation unless granted permission.
3) According to Air Transport World, the ICAO has agreed to adopt a working paper encouraging the European Union to exclude non-European carriers operating flights to or from Europe from ETS. This is perhaps a result of increasing pressure from ICAO non-European member states. Like the US, the ICAO has also encouraged the EU to work with the international aviation community in addressing the emissions problem. They also stated the ICAO's dedication and its role in reducing aircraft emissions. This document shows that significant global opposition to EU ETS is growing.
4) I believe that EU ETS is ridiculous. Applying such an expensive program to an industry already operating with such tight profit margins and that is struggling so much is mind boggling. This regulation will halt any airline expansion to or within Europe entirely and effect the European and global economy negatively. I do not agree with the EU ETS in the first place, let alone when it is applied to aviation. I believe that the airlines have already been doing a great job of reducing their emissions on their own by upgrading their fleets, running flights tighter, and taking other measures. The fuel prices and economy alone are already a great incentive for them to reduce fuel burn, ETS is just a burden. In addition, I think there are better ways to reduce emissions, such as financial incentives and more direct and efficient routing, as the US Government and the ICAO also believe. The added cost will leave the airlines without the cash to upgrade their fleet and actually reduce emissions, and trouble them further in meeting the even further reduction in emissions standards coming in the future. I also believe that the European Union is greatly stepping outside of their jurisdiction by charging airlines for carbon emissions based on the entire duration of their flight outside of European Airspace. And ultimately, this will hurt the consumer, raising ticket prices even further.
5) I think that the ICAO should promote new air traffic systems worldwide like NextGen to provide more direct routing, reduce taxi times, reduce holding, and allow a more optimal cruising altitude for each flight. The ICAO could require member countries to meet certain carbon emissions certification standards when certifying new aircraft. I think that the ICAO could also provide some sort of a special airline rating for airlines that make extra efforts to reduce emissions. The ICAO could allow a participating airline to put a special decal on their airplane to advertise the rating. This would benefit the airline simply by enhancing their public image, causing more consumers to book with the more environmentally friendly airline. Voluntary safety programs based on this premises have already proven to work in the industry.
Saturday, February 18, 2012
Friday, February 10, 2012
The Importance of Professionalism in Aviation
1) After spending some time at a large passenger airline, I would like to fly for FedEx as a captain. FedEx pays well and is a great airline to fly for once your seniority grows a bit. It also is about as secure as a job comes in the airline industry, with no pilot layoffs in the company's 30 year history.
2) FedEx is a cargo airline based in Memphis Tennessee. It is a subsidiary of FedEx Corporation and it operates from numerous hubs around the world. FedEx is the world's largest cargo airline. The airline began to thrive in the late 1970s and early 80s with the coming of deregulation. The job that I would like to work up to at FedEx is a wide body captain. The airline flies mostly at night, and in your early years it will be almost impossible to see the light of day when working, but I have read that it is possible to get a majority of day flights and to be home almost every night once your seniority has grown.
3) When the question of safety concerns on this job is raised, the first thing that comes to mind is pilot fatigue. Will the extensive night operations create a hazardous situation on board the aircraft? Or will I simply be able to get used to being awake and alert when the human body is supposed to be resting? Pilot fatigue is much harder to combat in the cargo industry than in the passenger industry due to the night operations and often uncertain schedules. The new crew rest regulations are not mandatory to the cargo carriers and are probably not going to be adopted by most cargo carriers. Another safety concern I have is the decrease in safety during night operations in general. Without the sun to allow us to accurately perceive the landscape that we are flying over (and hopefully not into), flight becomes more dangerous. As a pilot I will be more susceptible to illusions and spacial disorientation. One FedEx accident (flight 1478) occurred when a 727 clipped the tree line on approach to Tallahassee, resulting in destruction of the aircraft. One of the contributing factors to the accident was pilot fatigue, and I am willing to say that a night time illusion also played a part. A final concern is what some of the cargo on board might contain. It would not be difficult for a terrorist to put some sort of an explosive in an envelope and ship it overnight aboard a FedEx aircraft.
The only way that I believe I can mitigate these fatigue issues is to be as well rested as possible. This means not getting distracted by things going on during the afternoon before a night of flying. I would need to have a dark, quiet room to sleep in and sort of assist my body in forgetting that it is day time. I am sure many cargo pilots do this or at least attempt to do this already. I think that early in my time with the airline when I am on standby, occasional naps throughout an on-call day would help to mitigate fatigue late at night. Another way to help decrease this risk is with lots of caffeine during a flight period. As far as night illusions go, the best any pilot can do is to be aware of them and continuously keep them in mind throughout a night flight.
4)
*1) To me, professionalism is acting in a mature, business-like manner, abiding by regulations and company procedures, creating a good line of communication of flight related information between flight crew members, and treating co-workers and customers respectfully. Professionalism also includes doing nothing that you believe may degrade safety.
*2) A lack of professionalism was demonstrated in "Flying Cheap" in numerous different ways. The documentary touched on the first officer's illness on the day of the crash. She had a cold, and her and the captain of flight 3407 were discussing it as we heard on the CVR. She was also quite fatigued, having commuted earlier that day from Seattle and rested on a chair in the crew lounge. Both flying in a state of fatigue and with a cold show that the first officer had little concern for the safety of the passengers. These two factors can hugely impare/change cognitive ability and motivation in the cockpit. This attitude begins with management, however. It was said in the documentary that management would strongly "suggest" that the pilot still execute the flight if the pilot were to call in sick or claim fatigue.
A second example of a lack of professionalism was seen in one first officer's story. His aircraft was overweight and his captain told him to alter the load manifest to indicate that fewer adults and more children were on board. When he refused to do so, the captain did it himself. After the first officer shared this information with the FAA and the captain's certificate was revoked, airline management went as far as to protest the case in court and defend the captain. The only professional person here was the first officer. As we can see, the corporate attitude sets the tone for the rest of the operations of the company. In this case, their only goal was to complete all flights and get paid, and a compromise of safety seemed almost welcomed if it meant getting the job done.
*3) The first way that I plan to maintain or even expand on my level of professionalism when flying for FedEx is to always keep my morals in mind. I believe that I have strong morals, and I would never want to do something unsafe to others or unethical. I would always need to remember the enormous responsibility that I would have as a captain of the aircraft. Even though there are no paying passengers on board, there are still people on the ground all over the world, and an accident is likely to hurt or kill somebody. Any unsafe actions also put millions of dollars in aircraft and cargo at risk. In addition to this, I would create an open and comfortable environment for communication in the cockpit. I want my first officer to feel comfortable giving suggestions that may lead to a better outcome. Two heads are better than one when in the proper environment. My desire would never be to intimidate a first officer or to be the sole mind in the thought process.
2) FedEx is a cargo airline based in Memphis Tennessee. It is a subsidiary of FedEx Corporation and it operates from numerous hubs around the world. FedEx is the world's largest cargo airline. The airline began to thrive in the late 1970s and early 80s with the coming of deregulation. The job that I would like to work up to at FedEx is a wide body captain. The airline flies mostly at night, and in your early years it will be almost impossible to see the light of day when working, but I have read that it is possible to get a majority of day flights and to be home almost every night once your seniority has grown.
3) When the question of safety concerns on this job is raised, the first thing that comes to mind is pilot fatigue. Will the extensive night operations create a hazardous situation on board the aircraft? Or will I simply be able to get used to being awake and alert when the human body is supposed to be resting? Pilot fatigue is much harder to combat in the cargo industry than in the passenger industry due to the night operations and often uncertain schedules. The new crew rest regulations are not mandatory to the cargo carriers and are probably not going to be adopted by most cargo carriers. Another safety concern I have is the decrease in safety during night operations in general. Without the sun to allow us to accurately perceive the landscape that we are flying over (and hopefully not into), flight becomes more dangerous. As a pilot I will be more susceptible to illusions and spacial disorientation. One FedEx accident (flight 1478) occurred when a 727 clipped the tree line on approach to Tallahassee, resulting in destruction of the aircraft. One of the contributing factors to the accident was pilot fatigue, and I am willing to say that a night time illusion also played a part. A final concern is what some of the cargo on board might contain. It would not be difficult for a terrorist to put some sort of an explosive in an envelope and ship it overnight aboard a FedEx aircraft.
The only way that I believe I can mitigate these fatigue issues is to be as well rested as possible. This means not getting distracted by things going on during the afternoon before a night of flying. I would need to have a dark, quiet room to sleep in and sort of assist my body in forgetting that it is day time. I am sure many cargo pilots do this or at least attempt to do this already. I think that early in my time with the airline when I am on standby, occasional naps throughout an on-call day would help to mitigate fatigue late at night. Another way to help decrease this risk is with lots of caffeine during a flight period. As far as night illusions go, the best any pilot can do is to be aware of them and continuously keep them in mind throughout a night flight.
4)
*1) To me, professionalism is acting in a mature, business-like manner, abiding by regulations and company procedures, creating a good line of communication of flight related information between flight crew members, and treating co-workers and customers respectfully. Professionalism also includes doing nothing that you believe may degrade safety.
*2) A lack of professionalism was demonstrated in "Flying Cheap" in numerous different ways. The documentary touched on the first officer's illness on the day of the crash. She had a cold, and her and the captain of flight 3407 were discussing it as we heard on the CVR. She was also quite fatigued, having commuted earlier that day from Seattle and rested on a chair in the crew lounge. Both flying in a state of fatigue and with a cold show that the first officer had little concern for the safety of the passengers. These two factors can hugely impare/change cognitive ability and motivation in the cockpit. This attitude begins with management, however. It was said in the documentary that management would strongly "suggest" that the pilot still execute the flight if the pilot were to call in sick or claim fatigue.
A second example of a lack of professionalism was seen in one first officer's story. His aircraft was overweight and his captain told him to alter the load manifest to indicate that fewer adults and more children were on board. When he refused to do so, the captain did it himself. After the first officer shared this information with the FAA and the captain's certificate was revoked, airline management went as far as to protest the case in court and defend the captain. The only professional person here was the first officer. As we can see, the corporate attitude sets the tone for the rest of the operations of the company. In this case, their only goal was to complete all flights and get paid, and a compromise of safety seemed almost welcomed if it meant getting the job done.
*3) The first way that I plan to maintain or even expand on my level of professionalism when flying for FedEx is to always keep my morals in mind. I believe that I have strong morals, and I would never want to do something unsafe to others or unethical. I would always need to remember the enormous responsibility that I would have as a captain of the aircraft. Even though there are no paying passengers on board, there are still people on the ground all over the world, and an accident is likely to hurt or kill somebody. Any unsafe actions also put millions of dollars in aircraft and cargo at risk. In addition to this, I would create an open and comfortable environment for communication in the cockpit. I want my first officer to feel comfortable giving suggestions that may lead to a better outcome. Two heads are better than one when in the proper environment. My desire would never be to intimidate a first officer or to be the sole mind in the thought process.
Thursday, February 2, 2012
The Trend of Airline Merging
1) In April of 2001, American Airlines acquired Trans World Airlines, which operated its last flight on December 1, 2001. TWA was an airline that had been plagued by financial problems stemming from bad ownership since Howard Hughes became the majority stock holder in the 1930s. The nail in the coffin was the Carl Icahn era of ownership. Carl Icahn purchased the majority of stock in the airline in 1985. Icahn was a creditor of TWA, and was owed $190 million by the airline when they filed for bankruptcy in 1992. He made a deal before he left in 1993 that would get to him the money he was owed. He arranged a contract between Karabu Corp. (owned by Icahn) and TWA. Karabu would get a 45 percent discount on TWA ticket purchases, and was guaranteed a certain proportion of seats through 2003. Karabu then sold the tickets on LowestFare.com to consumers. The deal made millions for Icahn, but left TWA $540 million further in debt. Far in debt, TWA agreed to a merger with American Airlines, thinking it would be the best move to keep their employees working. More about this deal can be read at stlmag.com.
American Airlines promised to keep TWA's primary hub in St. Louis operating at its 2001 level. However, shortly after the acquisition, American began cutting back operations at St. Louis drastically and laid off half of the former TWA workers within two years, as a 2003 USA Today article states. Many TWA routes were cut. At the time of the publication of this article, all TWA flight attendants had lost their jobs, and 80% of the pilots had lost their jobs. American attributes the job cuts to the terrorist attacks of 2001, a SARS epidemic, St. Louis' close proximity to Chicago O'Hare airport, and a war. Laid off workers claimed that American made false promises to workers in order to get approval for the deal from Congress, and then quickly changed face. The trouble with the merger is that all of TWA's employees went to the bottom of the seniority list, below all American employees, which made it easy to lay them off first.
2) United and Continental Airlines announced in May of 2010 that they would join together to form United Continental Holdings. The two had been in negotiation a merger two years earlier. Not liking United's financial outlook, Continental backed out of the deal. After the following two years had passed however, negotiations began again and a fast merger agreement came together. The merger created the largest airline in the world, surpassing Delta. Both airlines were struggling financially due to the recession, and merged with the expectation that creating one airline would save a large amount of money in operating costs. United and Continental were a good match because most of their routes domestically and internationally did not overlap, similar to Northwest and Delta's merger. United had large international operations to Asia, while Continental had large international operations to Latin America. On November 30, 2011, United Continental was granted FAA permission to operate under one operating certificate. Parties from the two airlines agreed to operate under the Continental certificate.
Last summer, United announced that 100 to 200 furloughed United pilots would be offered jobs at Continental Airlines, and would eventually fly for United again once the two airlines began operating on the same certificate- Dallas News. This had already given the merger a positive outcome. The first of the growing pains that the newly formed airline faced was how to form a new pilot seniority list. Unlike Northwest and Delta, United and Continental had not come to an agreement on this topic before the acquisition took place. All flight attendants are currently on a combined seniority list. There were other smaller, seemingly laughable issues, like whether or not to continue the broadcast of ATC communication on United's ATC channel for the passengers (they did), class configurations domestically and internationally (will be standardized this year), and whether or not to continue serving Continental's famous Angus cheeseburgers on flights. Also as part of the merger, the Department of Justice required United Continental to lease 18 slots at Newark airport to Southwest Airlines as part of an anti-trust agreement. The two companies also decided on equal branding and representation, keeping the United name but using the Continental globe. The Continental airlines CEO took control of the newly formed airline, and equal representation from each airline exists on the company's board.
3) As stated by the New York Times, American Airlines filed for chapter 11 bankruptcy in an effort to shed its debt burden and to cut labor costs. American Airlines was the last major airline to file for bankruptcy. The company has been having trouble competing with the growing low-cost airlines and has seen a large decrease in revenue, causing them to borrow money from creditors. AMR Corp. filed having $5 billion of cash. In the short term, American will continue to operate normally, and passengers are being told not to worry. American Airlines ordered 460 new 737s and A320s earlier this year in an effort to cut fuel costs and rejuvenate their fleet. According to Yahoo Finance, American plans on cutting 15% of their workforce, or about 13,000 jobs in an effort to further cut costs.
U.S. Airways and Delta are reportedly interested in acquiring American Airlines. A merger with U.S. Airways would strengthen American's weak domestic network. This would in turn increase traffic through American's hubs to transatlantic and Latin American destinations. Wary passengers are choosing not to travel with American which is creating a decrease in traffic through their hubs. A merger with U.S. Airways would strengthen consumer confidence and boost this traffic. In addition, the merger would allow the new airline to pay back creditors more easily than American could do alone (Bloomberg). Delta Air Lines is also reported to have interest in a merger with American, but will not confirm. The merger would once again create the world's largest airline for Delta. It would leave no corner of the globe uncovered by the mega-airline. I think that Delta's acquisition of American is far less likely than a U.S. Airways acquisition. There is far more fact-based value in a merger with U.S. Airways than with Delta, and the dust from Delta's merger with Northwest has just settled. I do believe that a merger with U.S. Airways is likely. Given the modern day trend with airline merging, I give American a 50/50 chance of making it out alone. I do believe that they will do everything they can to avoid a merger with another airline.
4) I foresee a decrease in job opportunities as a pilot resulting from these mergers. A merger happens because at least one airline is in a bad financial situation, which causes layoffs to pilots and route trimming. When one airline merges with another, usually at least some routes that overlap and flights will be cut. I would forecast a lower amount of hiring with one larger airline as opposed to two or three smaller airlines. It would take fewer pilots to run the larger airline with fewer total flights than if the two were still independent. Another reason for less flights is decreased competition between airlines.
American Airlines promised to keep TWA's primary hub in St. Louis operating at its 2001 level. However, shortly after the acquisition, American began cutting back operations at St. Louis drastically and laid off half of the former TWA workers within two years, as a 2003 USA Today article states. Many TWA routes were cut. At the time of the publication of this article, all TWA flight attendants had lost their jobs, and 80% of the pilots had lost their jobs. American attributes the job cuts to the terrorist attacks of 2001, a SARS epidemic, St. Louis' close proximity to Chicago O'Hare airport, and a war. Laid off workers claimed that American made false promises to workers in order to get approval for the deal from Congress, and then quickly changed face. The trouble with the merger is that all of TWA's employees went to the bottom of the seniority list, below all American employees, which made it easy to lay them off first.
2) United and Continental Airlines announced in May of 2010 that they would join together to form United Continental Holdings. The two had been in negotiation a merger two years earlier. Not liking United's financial outlook, Continental backed out of the deal. After the following two years had passed however, negotiations began again and a fast merger agreement came together. The merger created the largest airline in the world, surpassing Delta. Both airlines were struggling financially due to the recession, and merged with the expectation that creating one airline would save a large amount of money in operating costs. United and Continental were a good match because most of their routes domestically and internationally did not overlap, similar to Northwest and Delta's merger. United had large international operations to Asia, while Continental had large international operations to Latin America. On November 30, 2011, United Continental was granted FAA permission to operate under one operating certificate. Parties from the two airlines agreed to operate under the Continental certificate.
Last summer, United announced that 100 to 200 furloughed United pilots would be offered jobs at Continental Airlines, and would eventually fly for United again once the two airlines began operating on the same certificate- Dallas News. This had already given the merger a positive outcome. The first of the growing pains that the newly formed airline faced was how to form a new pilot seniority list. Unlike Northwest and Delta, United and Continental had not come to an agreement on this topic before the acquisition took place. All flight attendants are currently on a combined seniority list. There were other smaller, seemingly laughable issues, like whether or not to continue the broadcast of ATC communication on United's ATC channel for the passengers (they did), class configurations domestically and internationally (will be standardized this year), and whether or not to continue serving Continental's famous Angus cheeseburgers on flights. Also as part of the merger, the Department of Justice required United Continental to lease 18 slots at Newark airport to Southwest Airlines as part of an anti-trust agreement. The two companies also decided on equal branding and representation, keeping the United name but using the Continental globe. The Continental airlines CEO took control of the newly formed airline, and equal representation from each airline exists on the company's board.
3) As stated by the New York Times, American Airlines filed for chapter 11 bankruptcy in an effort to shed its debt burden and to cut labor costs. American Airlines was the last major airline to file for bankruptcy. The company has been having trouble competing with the growing low-cost airlines and has seen a large decrease in revenue, causing them to borrow money from creditors. AMR Corp. filed having $5 billion of cash. In the short term, American will continue to operate normally, and passengers are being told not to worry. American Airlines ordered 460 new 737s and A320s earlier this year in an effort to cut fuel costs and rejuvenate their fleet. According to Yahoo Finance, American plans on cutting 15% of their workforce, or about 13,000 jobs in an effort to further cut costs.
U.S. Airways and Delta are reportedly interested in acquiring American Airlines. A merger with U.S. Airways would strengthen American's weak domestic network. This would in turn increase traffic through American's hubs to transatlantic and Latin American destinations. Wary passengers are choosing not to travel with American which is creating a decrease in traffic through their hubs. A merger with U.S. Airways would strengthen consumer confidence and boost this traffic. In addition, the merger would allow the new airline to pay back creditors more easily than American could do alone (Bloomberg). Delta Air Lines is also reported to have interest in a merger with American, but will not confirm. The merger would once again create the world's largest airline for Delta. It would leave no corner of the globe uncovered by the mega-airline. I think that Delta's acquisition of American is far less likely than a U.S. Airways acquisition. There is far more fact-based value in a merger with U.S. Airways than with Delta, and the dust from Delta's merger with Northwest has just settled. I do believe that a merger with U.S. Airways is likely. Given the modern day trend with airline merging, I give American a 50/50 chance of making it out alone. I do believe that they will do everything they can to avoid a merger with another airline.
4) I foresee a decrease in job opportunities as a pilot resulting from these mergers. A merger happens because at least one airline is in a bad financial situation, which causes layoffs to pilots and route trimming. When one airline merges with another, usually at least some routes that overlap and flights will be cut. I would forecast a lower amount of hiring with one larger airline as opposed to two or three smaller airlines. It would take fewer pilots to run the larger airline with fewer total flights than if the two were still independent. Another reason for less flights is decreased competition between airlines.
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