SpaceX

SpaceX is a privately owned company that designs, builds and launches rockets and spacecrafts.  It was founded in 2002 by Elon Musk (co-founder of PayPal) to change space transportation and eventually make it possible for humans to live on other planets.  The company has introduced its Falcon rockets and Dragon spacecraft.  In 2010, SpaceX made history by sending its Dragon spacecraft into low-earth orbit and becoming the first commercial company to do so.  In May 2012, SpaceX became the first commercial operator to attach its Dragon spacecraft to the International Space Station (ISS).  By the end of this year, SpaceX will take over responsibilities of carrying cargo to the ISS, and eventually transport astronauts into space.  In total, the company has over $4 billion in contracts and more than 40 launches slated.  Long term, SpaceX is working to build reusable vehicles as it revolutionizes space exploration.  The company has grown to over 1,800 employees and is headquartered in Hawthorne, California. 

Its significance to the aviation industry is unmatched.  SpaceX has led and changed the way we will explore space, now and into the future.  Because of its success and future intentions, the United States will no longer have to rely on Soyuz rockets from Russia.  To send Americans into space, it currently costs $51 million per astronaut, rising to $55.9 million in 2013, and $62.7 million in 2014.  In addition to the cost, astronauts have to spend at least two years in Russia, learning the language and engineering.

As SpaceX continues to grow, we will see other private sectors joining in on the space race.  The United States has already built a spaceport to host private enterprise.  Spaceport America is located in New Mexico, and will accommodate vertical and horizontal space launch vehicles.    

Within 5 years, SpaceX plans to launch Falcon Heavy, the most powerful rocket in the world.  Falcon Heavy will be able to carry payloads weighing over 53 metric tons, more than twice the current performance. 

Will SpaceX impact my career?  I have always dreamed of going to space, and I think with the privatization of space exploration, that dream may be closer to a reality.  We have already seen Virgin Galactic hire pilots and astronauts for its operations out of New Mexico.  SpaceX may soon follow suit.  There may be a need for test pilots, zero-g training and transportation.  The possibilities are limitless.  Only time will tell, but I believe that space travel will become a more common experience for years to come. 

The Aviation Boom in China

In this week’s discussion, we are talking about the rise of general aviation in China.  While the number of pilots and airplanes seems to be dwindling in the United States, quite the opposite is happening in China. 

US general aviation manufacturer Cessna has ties with China.  According to USA Today, the aircraft maker signed agreements in March, 2012 to build business jets in China.  The relationship developed over the very robust growth of China’s growing economy and diverse geography.  The plan includes mid-sized jets, utility single-engine turboprops and single-engine piston aircraft.  The new two-seater Skycatcher is built in China. 

What are the reasons for the rapid growth in the Chinese general aviation industry?  The following three factors have greatly contributed to general aviation development in China:

• Demand for aerial work
• Private sector involvement
• Civil aviation development and growth

In contrast, general aviation aircraft is very costly to use in China due to airspace access, flight approval procedures, and operation charges such as airport charges.  All of these contribute to low profitability. 

The relationship between US manufacturers and China is strengthened by the demand for aviation needs in China.  For example, the Cessna aircraft will be manufactured in the US, and sent to China, to undergo final assembly and then be sold in China. 

What does this mean for career opportunities in the US general aviation sector?  In the case with Cessna, there will be job opportunities due to the fact that aircraft parts are being manufactured here in the United States.   Flight schools will benefit as well.  Asian students are enrolling in schools across the country to become pilots.  Hundreds earn certificates in the US, and then travel back to their home country to pursue jobs in aviation.  However, in the end, I believe this has the potential to hurt the general aviation sector in the United States, because China will continue to grow and flourish. 

The Demise of Comair

In this week’s discussion, we are talking about regional airlines.  Regional’s have been around for many years, and are often the talk of speculation.  Known for low wages, short flights, and merges, we have seen many of these come and go.  Most recently, Comair was the latest regional to seize operations. 

According to Wikipedia, Comair was established in March, 1977 and started operations in April of 1977.  It was founded in Cincinnati by Patrick Sowers, Robert Tranter, David Mueller and his father Raymond.  They started scheduled services with two Piper aircraft, and were independently owned until Delta bought the company on October 22, 1999.  In July of 2012, Delta announced that Comair would cease all operations on September 29, 2012.

Why did this happen?  There are many reasons that could have attributed to the downfall:

• Christmas 2004, cancelled all of its flights stranding over 30,000 people.  Snowfall and scheduling software were to blame.  
• Filed for bankruptcy in September, 2005.  Stated that they would cut costs by reducing aircraft, flights and employees.  
• Had the lowest on-time flight percentage of all major U.S. carriers during late 2006.
• At JFK, poor staffing and poor terminal resulted in low DOT ratings.
• In 2008, tied with American Airlines for the lowest on-time performance.  Only 70% of its flights arriving on time.
• In 2009, Delta announced that they would be reducing Comair’s staff by nearly half.
• In 2010, Comair announced that they would reduce their fleet and workforce.  Layoffs were to begin in September, starting with the pilots.

Despite bankruptcies and mergers, regional airlines are still growing.  This table shows some interesting employment statistics, with most hiring more than the previous year (notice how much Comair decreased over the years).  In retrospect, many major airlines are attempting to utilize their own fleet instead of relying on regional carriers.  We may or may not see a decrease in regional operations.

One regional that is currently hiring is ExpressJet.  They are the largest regional airline in the world, with over 4,500 active pilots.  The starting salary for a First Officer position is $23.00 an hour, with a monthly guarantee of 75 hours.  That calculates to $20,700 a year before taxes.