General Aviation in China

Hawker Beechcraft which is a company based out of Wichita Kansas filed for protection bankruptcy during May of 2012, with plans to sell the civilian Aviation company to Superior Aviation Beijing Co. for 1.8 billion dollars.  According to CBS news the sale had collapsed. this past Thursday and the U.S plane maker said the company now plans on emerging from bankruptcy as a slimmed down company within the first quarterly year of 2013.  CEO Robert "Steve" Miller said in his own words, "despite our best efforts, the proposed transaction with Superior could not be completed on terms acceptable to the company.  To protect themselves the company obtained 50 million dollar deposit that is fully non-fundable and property of the company.  The company plans on changing its name to Beechcraft and focus on most profitable products.

To get back on topic another U.S general aviation company that has ties with China is Cessna.  Cessna signed agreements in March with Aviation Industry Corp. of China (AVIC) along with the Chengdu government.  Cessna came to agreements with China because it expects it to become one of the top ten countries for business jet ownership by 2025.

China's rapid growth is due to all the aerial work and training and private flying that will be done within the next ten years.  Their general aviation aircraft will increase well over 10,000 by 2020 with a rapid growth rate of 22 percent.  They will need 1,997 general aviation aircraft's for aerial work, and 1,415 aircraft's for training and private flying.

The relationship between the U.S. general aviation manufacturers with the ties to China's rapid growth is by Cessna coming with agreement with the Chinese general aviation they would produce mid-size and light business jets, utility single engine turboprops and single engine piston aircraft and transfer them over to China where they would be sold.

With all this happening people who work for Cessna and produce those aircrafts for the Chinese general aviation will continue to be employed for the upcoming years.  With China rapid growth with general aviation and high demand for aircraft being produced I think they will continue to flourish.  As for the U.S. general aviation they should be fine if they could continue to remain in partnership with China in producing and selling aircraft's.

Com-air

This week's topic that's being discussed in class is about Com-air.  Com-air was established in March of 1977 and began its 25 year operation on April 1, 1977.  Com-air began its operations with three Piper Navajo planes and a two room office at the Cincinnati/Kentucky International airport. Com-air was founded by Patrick Sowers, Robert Tranter, David Mueller, and his father Raymond.  It later became a Delta connection carrier in 1984, and by October 22nd, 1999 Delta Air Lines had taken full ownership which cost them over two billion dollars.

Since Delta had taken over Com-air pilots had went on strike, flights were being delayed, and the company had to file for chapter eleven bankruptcy on September 2005.  Com-air was forced to cut down its costs by a million dollars annually by reducing their aircraft's, flights, and employees.  Delta had close to five hundred fifty passenger planes in 2008 and was forced to cut it down to 125 planes within two years.  Most of the flying will be the with the new jets (CRJ 900) that seat 76 passengers along with the Boeing 717 that will be leased from Southwest Airlines.

After searching with all the regional airlines for management positions, Pinnacle Airlines had some management positions open.  They're hiring an in-flight inspector, a senior quality inspector, and a quality control inspector.  I think within the next few years will grow in a positive way as the economy progresses.

Should Airfare Be A Luxury?

A lot has changed over the past forty years.  Nothing is like it used to be and everything seems to be more technological nowadays.  The average gallon of gas cost about $0.35 back in the 1970's and in today's economy a gallon of gas cost about $3.80.  One thing that though that has remained the same and has even become cheaper then what it used to be back in the 1970's is Airfare travel.  Ever since the Airline Deregulation Act of 1978 airfare has become two times cheaper then what it normally was and has changed the airline industry in many ways.

According to travel insider the Airline Deregulation Act as positively impacted the industry in six major ways.   Firstly being it has increased air travel having three times the people travel and twice as many flights as we had in the 1970's. Secondly it allowed the Airline industry to start a rewards program called the frequent flier which gives people who travel a lot extra perks and rewards within the carrier that they travel.  Thirdly which is probably the most important to all the people is that airfare pricing has dropped over the past forty years.  Fourth thing is hundreds of thousands of new jobs were being added within the airline.  Fifth thing is the airlines are motivating and developing of better planes.  Lastly is the Airlines are vastly safer and have reduced the accident departure rate by thirteen times of what it used to be.

With all this being said.  I really don't think that airfare prices should increase.  I think everybody should be able to travel and go on vacation where ever they please to.  Some people are able to travel on vacation more often then other families in today's society.  Growing up and coming from a middle class family I never had the pleasure of traveling by air like some people are able to today.  A lot has changed within the industry and it will only continue to grow and without these people traveling I wouldn't be employed at the airline like am today.  Without more people traveling nowadays other businesses like resorts, hotels, car rentals, taxi cab service, and restaurants wouldn't be in high demand as they are today.