What is General Aviation - Assignment Example

General Aviation Name Class Unit Chapter 1 2. The history of Wichita as the home of many light aircraft can be traced back to Jake Moellendick who participated in gamble of aviation. In 1919, he agreed to put up $15,000 to barnstormers who wanted to three planes to replace worn-out Curtiss Jennies. Burke, Moellendick and Laird started a partnership in Wichita on airplane building business. The company was moved from Chicago to Wichita. Their first plane rolled out of hangar in 1920. After the company broke out, there was formation of Travel Air Manufacturing Company by Beech, Stearman Brothers and Cessna in Wichita. Beech, Cessna and Stearman later separated forming three separate companies. This became the beginning of Wichita aviation industry. In 1932, Beech developed a luxurious 200mph five place cabin biplane known as Staggering bringing it into prominence. Cessna gained prominence in 1935 with the development of C-34 a high wing four place cabin monoplane. By 1939, Cessna also developed T-50. During war Cessna developed 401, AT-17 Bobcat and UC-78. After war, Cessna developed 120/140 series and 190/195 series. Others are 310 of 1953, 318 (1954) and T-37 twin jet trainer. Piper’s club was developed out of glider aircraft. 3. Even during the World War 2, aviation manufacturers were aware of the desire by ordinary citizens to fly. This made them prepare for the post-war period with optimism. Surveys, polls, questionnaires and marketing studies by government and industry showed high market potential for the light aircraft after war. There was prediction for demand of 200,000 light aircraft annually based on the department of commerce predictions. Industry experts concurred that within 5 years after war; there would be at least 1.3 million private pilots and about 400,000 private airplanes by 1950. There were also major articles from magazines and journals which reported on positive market conditions for aircraft manufacturers. All these, made the aviation industry optimistic on market potential and hence acted quickly to meet the anticipated demand. Some of the reasons why the sales did not live up to expectations are; Lack of adequate ground support facilities which people could land that were near resorts or vacation areas. The airplanes were more costly than expected by people especially when compared to automobiles. Less expensive models were considered not good for cross country transportation and there were complaints that they were pre-war models. They were noisy, uncomfortable and cramped hence unreliable for planned vacations and trips on mountains or beach. Large number of VA students dropping out of flying. War veterans used to flying high performance planes were unsatisfied with low powered light aircrafts. Availability of war surplus airplanes at bargain prices. Cold war. 6. Three major events that occurred in the 1970s are airport and Airways Development Act, fuel crisis and Terminal Control Area (TCA). There was formation of strong and effective lobbying and public relation organisation by aviation manufacturers known as General Aviation Manufacturers Association (GAMA). There was an oil embargo in 1973. First five years of the 1980s were rough for the industry. The air controllers went on strike in 1981 and quotas on number of IFR general flights into the ATC centre were introduced through general Aviation reservation (GAR) system. The main factors leading to decline in general aviation aircraft sales are; Costs-high interest rates of late 1970s and early 1980s, high acquisition costs, increasing operating costs due to fuel, maintenance, hangar charges and insurance making it expensive for occasional flier. Airline deregulation- through airline deregulation of 1978, there was an increase in service and better connections, fares were reduced by air carriers leading to low desirability for general aviation carrier. Product liability claims- led to more concentration on high priced line of turbine equipments. Taxes-elimination of the 10% investment credit (ITC) through 1986 tax reforms leading to a decline in sales. Foreign aircraft manufacturers Cessna stopped production of single engine training aircraft due to declining sales of the single engine piston aircrafts, reducing flight training schools and fewer formal training programs. The sales for the larger business air raft remained steady especially the turbine aircrafts. This made the light aircraft manufacturers to concentrate more on turbine aircrafts. 8. The general aviation industry was revitalized through several ways. Manufacturers came up with new production processes, new technology, and new materials on the single engine piston craft. This was aimed at improving quality, safety and reduces the cost to customer. To increase the number of pilots, incentives were developed, training costs reduced and safety enhanced. Time and cost of learning were reduced. The General Aviation Revitalization Act (GARA) of 1994 imposed a statue of repose for 18 years. This limited the product liability suits for the aircrafts that had fewer than 20 passenger seats and were not engaged in scheduled passenger carrying operations. Fractional ownership has helped in offering customers efficient use of time through fast point to point travel and doing business while travelling. This has helped to revitalize the industry through increasing the traditional flight departments since 1993. This is due to some users starting own flight departments. Chapter 2 1. General aviation is a term used to refer to all civil aviation apart from the certified airlines. General aviation represents about 96% of all active aircraft registered in the United States. The 14 FAA primary use categories are; public use, corporate, business, personal, instructional, aerial application, aerial observational, aerial other, sightseeing, external load, air tours, air taxi, medical and other. Based on GA survey, there was an estimated 219, 464 active general aviation aircraft in United States in 1999. During this period, single engine piston aircraft continued to dominate the fleet. The single engine piston aircraft accounted for an approximate 70% of the total fleet. 3. Personal flying is not only for the wealthy individuals who want to use the aircraft for leisure. This is due to fact that personal flying includes anyone who uses a plane for recreational purposes. Professionals who may not be necessarily wealth may use the aircrafts to for recreational purposes while at the same time conducting their business. Also, private pilots use their aircrafts to visit relatives, vacation and attending special events apart from their jobs. Aerial application is use of aircraft for the work which involves food production, timber, fibres production, protection and protection. This involves aircrafts involved in distribution of chemicals and seeds in agriculture or reforestation. Aerial observation involves airplanes engaged in aerial mapping, surveillance, photography, fish spotting, hunting, ranching, mineral exploration, criminal pursuit search and rescue and traffic advisory. Airplanes are used by metropolitan police departments to apprehend criminals. Aerial other includes aircrafts which are used for fire-fighting, insect control and weather modification. Planes used to create Irrigation rain in arid areas and snow for ski resorts falls in this group. Sightseeing is conducted under the FAR part 91 while air tours are conducted under the FAR part 135. The largest number of sightseeing flights is made using lighter than air aircraft. Most of the air tours are carried out through rotor craft and lighter than air aircraft. Air taxi serves as on demand passenger and all cargo operators and covers all aircraft operating under FAR part 135. The main advantage of chartering an airplane is flexibility. Several uses of aircraft for carrying external loads and medical flying are; hoisting heavy loads, hauling logs in remote locations, transporting heavy drilling equipments. The medical category carries people or donors for organ transplant, evacuating critically injured people and transporting critical sick. Other flying refers to any aircraft which is not included under the other categories such as aircraft used in testing, research and development, air racing , aerial advertising and towing gliders. 4. In the United States, there are 5,145 publicly owned airports. The scheduled air carriers serve less than 4% of the nation 19,000 landing facilities. There are 13,974 private use airports. General aviation plays a vital part in the economy through offering transportation network. Through their 220,000 aircrafts which is 96% of the total active aircraft in US, the role of general aviation in providing air transport is great. General aviation brings benefits and values of air transportation to the entire US general aviation airports attract investors. This makes them vital for business and industry growth in the community. Lastly, they stimulate economic growth. This is through employment, provides taxes, improves tourism and determines the value of real estate around. The growth in number of private pilots is vital for continued health of the general aviation industry. This is due to fact that personal flying caries a lot of passengers for vacation, visiting friends / relatives or for business. Most of pilots flying for military airlines or corporate aviation start training at general aviation. This makes it vital to have a growth in number of private pilots for general aviation industry. Chapter 3 1. “Fixed base operators” FBO were coined for the barnstormers who became successful aviation business people and established their airport facilities to base their aviation service operations. Line service is considered to be the main business for FBO. This is due to fact that it includes the main services carried out by FBO where a plane can land, refuel, clean its wind shield, check its oil and have minor engine adjustments. The services are selling fuel, oil, providing storage and general aircraft services. Maintenance and repair includes periodic inspections and maintenance. This includes specialized service done routinely on the avionics and instruments on the plane. Complete maintenance, overhaul and rebuilding power plants and airframes offered at well-equipped repair stations. Full complement of equipment: repairing, testing, calibrating, installing and replacing different avionics components. Some of the services provided under the aircraft sales are; sale of new aircrafts, sale of old aircrafts, flight training, aircraft rental and long term lease. Charter and rental business involves renting the plane for use in a specified time. The FBO offers renting and chartering service where the client pays to use the plane in a given period. Under the corporate flight service, the owner or FBO supplies the aircraft and the FBO provides flight, maintenance and administrative personnel. FBO is responsible for flight operations, maintenance and administrative matters. The client is billed monthly for services and an agreed management fee. Specialized flight services offered by the commercial flight services are aerial advertising, aerial photography, fish spotting, mosquito control, pipeline and power surveillance and fire-fighting. 2. Non-income services are services offered for the convenience and wellbeing of the customers. The main importance is enhancing customer friendliness of the aviation business. In the United States, it is estimated to have between 4,000 to 4,500 FBOs based on NATA. FBOs are categorized as; major fixed base operators, medium sized fixed base operators, small fixed base operators and special fixed base operators. Most of the small fixed base operators are started by small operators without business training. They are not well equipped to manage in a business-like basis. Most of small firms operate on cash drawer system making them highly venerable in modern business environment. Special fixed base operators are involved in extremely specialized aviation operations which are found in the public airport. These operations do not qualify as fixed base operations but are involved with aviation. This includes engine manufacturers and remanufacturers, avionics specialists, propellers specialists and flight training specialists. In the 1990s, FBO changed a lot. The number of FBO dropped to 5,000 from a high of more than 10,000. The industry moved towards self-fuelling for the corporate. The costs incurred by the FBOs also rose in the 1990s and there was regulatory conformity. Describe five specific changes that are forecast to change the way FBOs conduct their business In future over 50 % of the maintenance income will come from long term contracts between aircraft operator and aircraft maintenance facility. Consolidation of individual and independent flight departments at specific airports will lead to reduced overhead, enhanced airport utilization and reduced costs. Some of FBO will become business centres. This is through offering conference rooms, foods, video conferencing, voice mail and fax services among other for transient business aircraft passengers. Consolidation in the FBO industry is expected to continue Some of the FBO will stop dispensing aircraft fuels- this is especially at the airports with multiple FBOs where maintaining multiple fuel tanks and attendants is impractical. 5. Many independent FBOs have joined a chain due to benefits associated with the most significant being cost saving from marketing and identity and the associated economies of scale associated with chain. For the smaller FBOs, the cost benefit relationship is not viable. Some reasons for remaining independent are; A desire to operate an independent business with control for marketing, management and operations. Operating an FBO with a good reputation due to their services and support and strong brand image and identity Established and already profitable FBO that can gain little or no benefit through joining a chain. Having an FBO in a strong geographical location, destination marketplace which cannot benefit from chain exposure. Advantages of joining a chain Name recognition Image enhancement Value for advertising money spent Consistent service levels and product quality Standardized training Potential to attract high quality workers Disadvantages Loss of some business control compared to operating independently In some cases, not every member benefits equally Small operators suffers based on cost benefit analysis Chapter 4 1. Characteristics of successful FBOs Successful FBOS are good in developing strong organisation cultures that are able to reflect the values and practices of their managers and owners. Well managed FBOS are creative in structuring and organizing hence has reduced reaction time. They are able to gain quick action because they are capable of maintaining organizational fluidity They are able to promote and support entrepreneurship and capitalism in the organisation They are able to manage and balance concern for people and production They use positive reinforcement where people are encouraged to attain their full potential They have quality conscientiousness Well managed FBOs are able to maintain awareness in industry technological advancement, trends and concepts. Pay their dues to community, trade associations and customers Market oriented. Build on trust rather than suspicion Can literally manage by report. Planning is the most vital function in establishing and maintaining business. This is due to its role in problem solving, decision making, speculating the future, setting objectives, considering alternatives and making choices. There are different types of plans; Long term plans-set by management to come up with overall company direction. Operational plans-designing day to day work Single use plans- formulated for specific situations Standing plans- set up for repeated use for a long period of time examples are company policies. Step to step approach to planning Assessing the current state of affairs both internal and external Setting date for activation of plan Forecasting the future state of affairs List the specific objectives that are reasonable and attainable Develop methods for attaining objectives Work out the details by using the five W’s (Who, What, Where, When and why) Commit the details to paper Set up control system to monitor the plan operations and make adjustments for deviations As the plan unfolds, make the necessary changes to compensate any deviation 3. Staffing process includes all activities which include recruitment, selection and training of employees. The most recruitment sources includes; advertising through classified and display advertisements in radio, newspapers, websites and aviation publications and websites. Advertising through window signs, posted announcements and other point of need methods. Recommendations/referrals from employees, friends among others. Employment agencies Agencies offering temporary help Schools and universities: technical, business and vocational. Dropped applications Purpose of interviewing is to elicit information and supplement facts provided by the application letters, gain useful insights on the prospective employee appearance, personality, and behaviour. Advantages of having well trained employees are; Better employees morale Increased sales Less waste Lower turnover rates Increased productivity Reduced operational costs Speedier employee development Sections and items under employee handbook Welcome message Company history Employee work What employee needs to know? Working hours Time clock Rest periods Absence from work Reporting absence Employment record Pay period Shift premiums Use of telephones Benefits Vacations Holidays Group insurance benefits Training program Saving plan Bonus plan Profit sharing plan Special services for employee Credit union Education plans Medical dispensary Annual outing Softball team Employee purchases Steps to take in establishing training program Make a need assessment Set the objectives to be accomplished through training Determine the curriculum Select the types of training that is able to serve the best purpose for the company Select the training methods Set up the timetable and schedule for the program Select the instructors to be used Watch the costs Employee turnover is a major problem due to fact that losing good employee hurts the business both financially and psychologically. There are costs in locating, interviewing, hiring and training workers to attain full potential. There are costs incurred to replace the lost employees and also immediate costs of losing an employee. 5. Six steps in decision making are: Diagnosing the problem Gathering information Generating alternative solutions Selecting the best alternatives Translating the decision to action Process of controlling includes analysis, setting standards, monitoring, securing feedback and finally taking corrective action. Control functions in personnel area are performance evaluation while in the financial area are ratios which can be used in investigating variety of problems. In marketing it involves monitoring advertisement channels, evaluating outcomes and improving. In parts inventory, it involves coming up with parts standards, monitoring incoming parts gaining feedback from users, research and development and continuous improvement. Just like oil that lubricates various gears and cogs, communication in the free enterprise system ensures smooth running. This is by locating, contacting and persuading customers to make purchases, hiring, training directing employees and managing departments. Communication ensures that machines are well manned and operated. In firm internal organisation, communication begins with verbal or written messages which are passed from top to bottom levels. The feedback moves from bottom to top hence completing the system. The effectiveness of internal system also depends on unimpeded horizontal communication that exists at each individual level. Reference Alexander T. Wells, 2003, General Aviation Marketing and Management, E.d. 2nd Edition Krieger Pub Co. Read More