Final post

At the beginning of the course of my Aviation 422 Senior seminar course I had the plan to find an internship in the aviation industry and complete my graduate degree in the spring semester of 2013. After applying to a few jobs and not receiving an internship, my career path has come to a crossroad. I have made the decision to broaden my search for jobs outside of Michigan upon finishing my degree. I have taken into consideration in looking at places I wouldn’t mind settling down in for example Houston or Austin TX. My other option is the military.  The military has been an option I have considered prior to committing to the aviation program at Eastern Michigan University. After talking it over with family I agreed with them that it was best to complete a Bachelors before making the decision to join and if I still had an interest after college then it would be a great option. Throughout the class we have gone over many topics that related to specialized industries in aviation. The topics that drew my attention the most were those considering China. With China’s growing population and simultaneously their growing aviation industry I think finding a job that is related to doing business in China would be great. Not only do I think that there is something there to make money and provide a means to living but there is also opportunity to be apart of something. Being part of the establishment of Chinas growing aviation industry would provide a gateway into one of the largest markets in the world throughout the next twenty years. With that being said the topic I found most interesting during this course was our Topic on leveling the global playing field. During this topic the research I did during the class was the topic I did the most research for this topic while I was comparing data between imports and exports from the U.S. to China. I was also able to see how large of a scale the aviation industry was stimulating our own economy and generated an opinion on how well China would do if they were able to produce their products on their own.

            During the course we had many guest speakers come and speak to our class from several different areas of the Industry. Although it was hard to me to choose between my top two speakers the guest speakers I enjoyed listening to the most were the speakers from ATC at DTW. The speakers came into class and gave us a crash course on how a tower operates and their day-to-day routines and their career paths that brought them to where they are.

Upon finishing my degree at Eastern MI. I plan on continuing professional development by learning the facet of the industry on which I can find a job in, provided I find a job in the industry. Although my career plans for my future are not set n stone there are still some goals in life that I have for myself I would like to achieve while I am still young. I enjoyed the diversity of professionals and areas of the aviation industry senior seminar provided to the students this semester and hope that over the years that more professionals will and share their experiences in the industry with students of the program.

Associations

Professional organizations are common among many Industries. They can provide the opportunity to network and become active in the field of individuals with common practices. Being part of an organization allows people to share information that can benefit one another while in an industry. It is important for students and individuals just starting out in their field to join organizations because they can provide scholarships for students, mentors for those interning, insight on how the industry works and how to navigate it, and professional development courses (Anderson 2013).

            There are various aviation organizations out there with different goals and backgrounds such as commercial, educational, governmental, military, nonprofit, media, international, recreational, and social organizations. Since the spectrum is so broad it is important to join an organization that identifies with your career goals. Two organizations that I could see a potential benefit from joining within the near future would be the American Association of Airport Executives (AAAE) and the Aircraft owners and Pilot association (AOPA).

            The AAAE is the largest professional organization for airport executives around the world (AAAE 2013). Their goal is to grow their organization in order to better serve airport executives by providing ever improving products, services, and Washington representation. Examples of the AAAE recent initiatives in recent years are the creation of the Transportation security Clearinghouse, a program in which AAE manages the processing of airport/airline employee background checks and provides Training services, and on-site training programs to address the needs of the airport industry. Joining AAAE provides benefit to its members that include a subscription to Airport Magazine and Airport Report today. Members also receive access to an information database that lists names, titles, phone/fax numbers and E-mail address of AAAE members for networking. Joining the AAAE would be beneficial to me because not only would I receive all the benefits of becoming a member it provides a easy way for a soon to be newly graduate to put their foot in the door and get out there.

            Another organization, which would be beneficial to me, would be the Aircraft Owners and Pilot Association (AOPA). Although I do not plan on being a professional pilot in my near future I do plan on flying with friends and finishing up my private and instrument ratings. AOPA’s Mission is to preserve the freedom to fly by advocating on behalf of it’s members, educating pilots non pilots and policymakers alike, among keeping general aviation accessible to all (AOPA 2013). AOPA provides its members a 12-month magazine subscription access to AOPA’s pilot information center access to AOPA Air safety Institute courses and seminars and discounts to member insurance and protection plans. AOPA is an important organization to me because it represents and advocates for safe practices in General Aviation. It also speaks up on behalf the general aviation community when congress tries to restrict GA. Recently the president proposed a budget in which a $100 per flight user fee would be put in place generating 7.4 billion in revenue a fee that AOPA voiced their opinion on claiming it would be disastrous to general aviation. Since then 223 bipartisan members of the House of Representatives have signed a letter asking the president to abandoned the idea (Aopa communications Staff, 2013). I believe being part of AOPA would allow me to network and stay in touch with the General Aviation side as I continue on my career path.

            Although I am currently not a member of any aviation organizations I have opened my eyes to see the benefits in which they provide in the industry.  The professional organizations I have mentioned both represent two different facets of the Aviation Industry but act very similar in the way in which they operate and advocate on the behalf of their members to Washington. I can say with confidence that I will be joining the AAAE within the next four months after researching this topic.

           

Sources

AAAE (n.d.) (2013). AAAE: A Rich History, A bright Future. Retrieved April 09 2013 from : http://www.aaae.org/about_aaae/a_rich_history_a_bright_future/

AAAE (n.d.) (2013).  Membership Information Benefits. Retrieved April 09 2013 from:http://www.aaae.org/membership/membership_application/06MemBrochure.pdf

Anderson L. (2013) 5 reasons to join a professional Organization. Retrieved April 9 2013 from:http://college.monster.com/training/articles/2131-5-reasons-professional-organizations-are-worth-joining

AOPA Communications Staff (n.d.) (2013) Association pledges to work  with congress, GA Community to oppose fees. Retrieved April 09, 2013 from: http://ww w.aopa.org/advocacy/articles/2013/130410aopa-warns-user-fee-proposal-could-cripple-ga.html?CMP=News:S1T

How do you make a small fortune in aviation?

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The Cliché “ How do you make a small fortune in aviation? Start with a very large fortune.” is a phrase that is directly related to aviation. Many people who have an interest in the industry may know that it is very costly to start up a business, hence to make a small profit one most start out spending a lot of money to get things rolling and if the nuts and bolts hold and your business plan is successful your business may churn out a small profit.

If we think back to 2008, there was major hype generated around Eclipse Aviation; who would later be bought out and become known as Eclipse Aerospace. They were a leading producer of a fleet of jets, known as VLJ’s (very light jets), which were promised to fly 1800nm, and cost fewer than 1 million dollars. The production of VLJ’s were said to make owning and operating a jet affordable to everyone. On November 25, 2008, Eclipse filed for Chapter 11 bankruptcy due to unprecedented economic challenges on Wall Street. The promises and commitments made by the company were wiped away (VLJ news 2013). Filing for bankruptcy may have been the best decision for the business but it also took a huge toll on its investors and customers. J. Mac McCllean, chief editor flyingmag, reported, “Eclipse 500 owners and order holders suffered losses well over 1 billion”. and that “shareholders lost hundreds of millions”. Talk about starting with a large fortune. Eclipse was eventually bought out and became Eclipse Aerospace were they continue to be the lead producer in VLJ’s today.

Like any successful start up business the key to becoming successful is be one of the first to get a piece of the pie. A company DayJet, a commercial American aviation operation, had the business plan to provide on demand jet travel at low cost to private fliers. Companies like Dayjet were going to simplify flying for frequent travelers and make it cost-effective with the use of their VLJ’s. On May 26, 2008 DayJet announced it was unable to raise 40 million in financing and that it would slow down its expansion. On October 19 the same year Dayjet had shut down operations abruptly later filing Chapter 7 bankruptcy liquidating the companies assets (Aviation Today 2008).

Although these companies cease to exist, losing money in the aviation industry is a daily occurrence. Airline carriers providing flights daily are struggling to stream profit today. In 2010 a one way flight from LAX to DTW costs Delta Airlines $13,880, from DTW to JFK the remaining flight segment costs $3,872 totaling $17,752 (Vandermey 2011). According Vandermey, in the third Quarter of 2010, ATA reported that a $506 ticket was pulling an average of $33 in profit.  $33 dollars may not seem like much but is way more than the airline had seen in the last decade!

Aviation isn’t all about losing money there are companies out there that have been successful in generating profit. According to Seth Stevenson, an editor for slate magazine, in 2012 South West Airlines reported its 39^th consecutive year of profitability. Stevenson reports that South west’s business model is the key factor for success of the company. South west operates domestically within the U.S. providing 3,000 flights per day and reporting $17.1 billion in total operating revenue in 2012 (SWAmedia 2013). What is unique to South Wests operations compared to other airlines is that the fleet of which they operate is only made up of one type of aircraft, the Boeing 737, while others may operate up to 10 different types of aircraft. Operating a fleet consisting of one type of aircraft allows Southwest’s employees to make simple changes in day-to-day operations without effecting all operations.

Another successful Aviation company I came across was Ascension Aircraft, an airplane sales and leasing company in Augusta Georgia consisting of four employees. Jamail Larkins, a graduate from Embry-Riddle, founded ascension Aircraft, in 2006. By 2008 the company generated over $7 million in revenue (Leiber 2009). The company sells and leases aircraft with fractional ownership with four-year contracts After the four years are up the aircrafts are then sold and the money is then divided amongst the owners based on ownership. In an interview Jamail’s advice to other entrepreneurs is “Take advantage of every available resource and learn from the lessons of other small business owners”.(Matisiak 2011) .Ascension Aircraft objective is to provide out-of-the box solutions to complicated problems.

Starting up a successful company in any industry is no simple task. When it comes to the Aviation industry factors such as the condition of the economy can make or break your company as seen with Eclipse and Dayjet. Although those companies were unsuccessful in their endeavors companies like South West and Ascension prove that even when the market is suffering for some it doesn’t mean that it is impossible for start ups or established business to turn a profit.

Sources:

Aviation Today (n.d.) (2013) DayJet Continues Slower Expansion Retrieved April 1, 2013, From: http://www.aviationtoday.com/vlj/categories/bga/22199.html#.UV p6NRkXfgV

McClellan J.M.(2009) What went wrong with Eclipse? Retrieved April 01, 2013 From: http://www.flyingmag.com/what-went-wrong-eclipse

Vandermey A. (2012) Where your airfare really goes. Ever wonder what’s behind rising price of an Airline ticket? The cost breakdown may surprise you. Retrieved April 01, 2013 From:http://money.cnn.com/magazines/fortune /storysupplement/ airline_costs/

Leiber N.(2009) America’s Best Young Entrepreneurs 2009. Retrieved April 01 2013 From: http://www.businessweek.com/stories/2009-10-06/americas-best-young-entrepreneurs-2009businessweek-business-news-stock-market-and-financial-advice

Matusiak A. (2011) Aviation Entrepreneurs Says American Jobs Act is “Critically Important” to Small firms. Retrieved April 01 2013 From:http://www.white house.gov/blog/2011/10/11/aviation-entrepreneur-says-american-jobs-act-critically-important-small-firms

SWA Media (n.d.) (2013) Southwest Coporate Fact Sheet. Retrieved April 01 , 2013 from:  http://swamedia.com/channels/Corporate-Fact-Sheet/pages/corporate-fact-sheet#2011stats

 VLJ new’s (n.d.) (2013) Eclipse seeks court Approval for Restructuring Retrieved April 01, 2013 from: http://www.vljnews.com/index.php/latest-news/eclipse-aviation-seeks-court-approval-for-restructuring.html