Leveling Global Aviation
It is clear from the various articles that have been
published, that Boeing is creating a buzz by pointing out the up and coming
shortage in the amount of pilots that will be trained to fly all of the planes
Boeing is looking to sell through 2023. To understand why pointing this out
benefits Boeing you first need to read between the lines. Why create a buzz
that concentrates on a “pilot shortage?” Why point out the obvious increase in
Countries other than the US as the major purchasers?
One reason is if China, India and Europe make up the bulk of
who is providing Boeing with these new orders, then why would Boeing stimulated
articles in United States newspapers concentrate so heavily on the shortage.
Yes, we are a competitive nation, and always have been, and the thought of
China growing their air fleet could stimulate purchases from United States
based passenger airlines, as well as cargo shippers in order to stay competitive.
But, it also gets people thinking about how to put together creative funding to
train the pilots needed to feed the plane purchasing. Creative funding by
collectively uniting private airlines to help provide adequate, and affordable
pilot training, possibly coupled with funding from the federal government in
the form of grants or low interest loans. Why not try to manipulate the world’s
leading service and technical nation and economy into funding a pilot producing
tank which would continue to support future sales for Boeing without ever having
to contribute a dollar to the process.
The second question is why are these countries buying so
many aircraft over the next ten years? Also what has changed in the world
markets that the US does not lead in that buying frenzy? To understand that you need to compare who the
US exports to most frequently, what we export, and from where those exports
originate, against countries like China and India. The US exports most to
Canada and Mexico. And, the largest commodities exported are food and
automotive parts. Since all of our Automotive manufacturers are in Michigan,
which is at the doorstep of Canada who is the largest purchaser of those parts.
Trucking, combined with rail due to the efforts of J.B Hunt, a logistic genius,
helps to make up the 72.5% of all export moves done from the United States.
Shipping by water takes 5.2% and Air 15.4% leaving exporting by pipeline at
6.9%. With 72.5% exporting done by truck and rail it tells us that the United
States has one of the most complex and connected rail systems in the world. China
has failed to reach a deal on their railway link for years and the rail systems
in India and the Arab nations virtually non-existent. Since these traditionally
under developed countries have begun to become players in the export business
in recent years, and their markets continue to grow, they need additional aircraft
to support that growth. That fact due mainly to Chinas largest purchaser of the
exports being the United States which is a 10,000 to over 11,000 mile trip
depending on the origination city and India’s largest purchaser of exports
being the Arab United Nation which is also over 1400 miles per trip. The obvious
reason for personal aircraft purchases in those countries would be as more of
these exports are made and bought, the workers can afford to travel.
As previously mentioned, Boeing, as many companies often do,
will pitch one customer against the other to stimulate sales. By pointing out
to United States based airline companies that their major competitor is buying
and growing their fleet with new, fuel efficient aircraft will stimulate U.S.
airlines to replace their aging, less fuel efficient fleets.
Works Cited
Burnson, P. (May 1, 2011). Top 20 U.S. ports: where’s the
money? Retrieved from
International Trade Administration. (February 11,2009) U.S.
export fact sheet. Retrieved from
International Trade Administration. (February 8, 2013). U.S. export fact sheet. Retrieved from
NG, J. (August 23, 2013). Chinese airlines lure pilots with
double the pay of U.S. captains. Retrieved
CAPA. (August 30,2013). CAPA global aviation industry
outlook 2013 - pursuing certainty in an
aviation-industry-outlook-2013---pursuing-certainty-in-an-uncertain-world---part-2-104436
The logistics and transportation industry in the United
States. Retrieved from
http://selectusa.commerce.gov/industry-snapshots/logistics-and-transportation-industry-united-states
You bring up and interesting point of view that I had never thought about before. From Boeing's perspective, it would make perfect sense to attempt to make the U.S. feel inferior to some of these other rapidly growing nations in order to generate sales. However, with profit margins as slim as they are for U.S. airlines, would they really be able to play into this strategy and increase orders domestically for new aircraft? Interesting topic!
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