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AERO 3018 Aviation Strategic Management

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Questions:

Discussion 1:

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). 

Discussion 2:

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.

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