Qatar airways managed to break into the international air travel market. While they have newer aircraft and provide in many cases better services than US airlines the issue they have overlooked is the brand loyalty and strength US carriers have. As larger trustworthy airlines it is hard to step into this market with something new and encourage consumers to take the leap to something new. The other aspect is the coalition that US carrier have. With Qatar's expansion US carriers are trying to make new Open Sky agreements with the US government to make it more difficult for outside carriers (Zhang, 2015).
The aviation company I chose was Parker Aerospace. The company is a United States company and they are expanding to the Middle East. The company stated:
“Operators will be able to choose a locally owned repair station that can provide the OEM-quality capabilities that operators expect from Parker Aerospace without having to send their components outside the region. Parker Aerospace has been successful in placing this type of MRO&U capability where aircraft are operating, while also fulfilling strategic goals such as enhancing the local workforce, which is a major element of Saudi Vision 2030.” ("Business Wire," 2016).
I believe the company has thought about this move in great detail, however with the history between the Middle East and the United States this could be a risky move. If the countries get into another large conflict it could hurt the business. Also I believe the trust between an American based company and the Middle East government could be a possible problem as well.
This is not new to anyone that the Qatar Airways have created a record in the aviation market. This particular airline brought out innovations and strategies that are attractive enough to pull many customers. They however proved to be better than the US airlines because they provide better service to the customers and they provided some new experiences to their customers which would turn out to be a new exploration for the travelers. There is a coalition of the US carriers. The effort taken by the US carriers to make Open Sky agreements in order to make it more difficult for the outside carriers is a negative step. This is however not a practical idea. From all the above point this can be mentioned that the US must be flexible in terms of their service and in terms of taking any decision. The US carriers must give access to the outside carriers. This flexibility would allow the airline to break into the international market and the better service would make the airlines popular and it would be preferred choice of the people (O'Connell & Bueno, 2016).
The aviation company named Parker Aerospace is planning to expand in the Middle East. The planning of the company is well structured and their strategy would help the company to manage the risk and expand the business. There is a bad history about the relation between the United States and Saudi Arabia. The company has thought about this effort in great detail. This could however improve the relation between the US and Middle East. The relation between the two countries could have been improved because of this step. The improvement in the business relation could improve the relation between the two countries. Therefore, this planned and systematic action could head towards a positive outcome (Alolah et al., 2014).
Alolah, T., Stewart, R. A., Panuwatwanich, K., & Mohamed, S. (2014). Determining the causal relationships among balanced scorecard perspectives on school safety performance: Case of Saudi Arabia. Accident Analysis & Prevention, 68, 57-74.
O'Connell, J. F., & Bueno, O. E. (2016). A study into the hub performance Emirates, Etihad Airways and Qatar Airways and their competitive position against the major European hubbing airlines. Journal of Air Transport Management.