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AABI I/E Forum Educators Response to Panel 1 February 26, 2015 Auburn, AL

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Introducing Our Panelists Dr. Paul Craig, MTSU Dr. Paul Craig, MTSU Dr. I. Richmond Nettey, Kent State Dr. I. Richmond Nettey, Kent State Dr. Guy Smith, ERAU Dr. Guy Smith, ERAU Dr. Tom Carney, Purdue Dr. Tom Carney, Purdue

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Panel 1 Industry Speakers and Topics 1.David Sneed, Corporate Planning, Delta Airlines Airline Business Strategies 2.Gregg Davis, GM-Schedule Optimization, Delta Airlines Network Operations 3.Kourosh Hadi, Director Airplane Product Development, Boeing Designing the market position of the airplane Differentiating the airplane to the airline and the passenger

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Panel 1 Charge Preparing Aviation Management Graduates for Professional Employment With Airlines & OEMs

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Background for Panel 1 Aviation Management graduates seeking employment with airlines and OEMs need a background in marketing, revenue and cost management, finance, logistics, and a number of soft skills. The panel 1 industry experts discussed the entry-level understanding desired of new employees so that they may become productive early in their careers. Airlines manage business strategies so as to maximize returns from operations and ancillary investments, while minimizing and controlling costs.

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Background for Panel 1 OEMs provide a large and increasingly diverse and granular array of equipment options. B-to-B marketing targets equipment options in ways to attract airline buyers, exploit niche capabilities, emphasize passenger and freight market attractiveness, capture emergent enabling technologies, and address OEM and airline resource limitations. OEMs also attempt to directly address the customers customer (passengers) creating unique features to avoid equipment as a commodity.

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The Panel 1 Charge Panel 1 was targeted for Aviation Management programs to provide familiarity to university faculty & students. Our first distinguished airline panelist, David Sneed, was charged with describing business strategies, cost and revenue drivers, and asset management. Mr. Sneed was also asked to discuss methodologies and tools applied to cost and revenue management, long-term planning, and corporate initiatives.

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The Panel 1 Charge Our second distinguished airline panelist, Gregg Davis, was asked to describe strategies and tactics applied to managing & optimizing equipment and schedule applications. This is in recognition that airline finance & logistics skills are required to optimize revenue and cost in managing fleet and asset acquisition, network planning, and managing cost drivers such as labor, fuel costs, weather, and other disruptions.

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The Panel 1 Charge Our third presentation of the session was provided by our distinguished OEM panelist, Kourosh Hadi Mr. Hadi was asked to provide an overview of product development, aircraft sizing and range capability determination, and new technologies adoption to enhance product performance and attractiveness to the airline customer, and the customers customer.

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We recognize and thank our Industry Presenters, for their very interesting and informative presentations!

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Our task today as Educators, is to complete the dance: Review the salient points of what we heard in July Consider and suggest possible impact of the new information on the Criteria

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I am honored to call on my Colleagues to present their reviews

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I/E Forum Panel 1 Response from Educators Airline Business Strategies David Sneed presentation July 2014 Nashville, Tennessee

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Part 1 Very helpful for Educators

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Part 2 Very helpful for Students

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Airline Business Strategies, Network Operations and Airline Marketing THURSDAY, 26 TH FEBRUARY 2015 AUBURN UNIVERSITY HOTEL & CONF. CTR Dr. I. Richmond Nettey Associate Dean, College of A E, S and T (2007 ) President, University Aviation Association (1997-1998) Trustee, Aviation Accreditation Board International (2004-2007)

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Panel 1: Preparing Aviation Management Graduates for Professional Employment With Airlines & Original Equipment Manufacturers (OEMs)

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PANEL I CHARGE: AIRLINE AND OEM PANELISTS PRESENTATION I Aviation Management grads seeking jobs with airlines & OEMs need backgrounds in; marketing, revenue and cost management, finance, logistics, and a number of soft skills.

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PANEL I CHARGE: AIRLINE AND OEM PANELISTS PRESENTATION II Airline & OEM Panelists: Entry-level Expectation of New Employees They are productive early in their careers.

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Taking Flight: Network Planning Overview Gregg Davis, General Manager, Schedule Optimization, Delta.

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PRESENTATION OVERVIEW I.GAP DEFINITION II.GAP BRIDGING III.FUTURE CHALLENGES

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I. GAP DEFINITION

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GAP DEFINITION I January 2015

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GAP DEFINITION II Evolving Marketplace Requirements. Stage I: Full Employment Era Specialization Stage II: Economic Downturn Constant Learning Stage III: Current Era Indispensable Employee Doing a good job is not enough, you must now do so well that your employer cannot afford to lose you (Fraser, 2004) It is impossible to know everything for success at work so Networking is needed to harness the collective knowledge and wisdom of colleagues

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II. GAP BRIDGING

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GAP BRIDGING TEAM BASED MODEL I

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II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications GAP BRIDGING TEAM BASED MODEL II

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II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications 1. Faculty Sabbaticals with Industry - three- or six- month programs - up to one year program - continuous parallel programs - or continuous serial programs 2. Industry Executive Exchange Programs - guest professorships in aviation management - mentorship of project-based student teams GAP BRIDGING PARTNERSHIP WITH AIRLINES & OEMS I

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II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications 3. Airline & OEM Talent Investment and Acquisition - multi-year internship programs or coop education programs for aviation management students Sophomore year to graduation First-year grad school to graduation BRIDGING THE GAP PARTNERSHIP WITH AIRLINES & OEMS II

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II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications 4. Airline & OEM Bridge Programs Aviation Management - post-graduation transition programs in aviation management for aviation management grads. - rotation through functional areas or specialization - mentorships in functional areas and overall mentor GAP BRIDGING PARTNERSHIP WITH AIRLINES & OEMS III

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II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications II. COLLABORATIVE APPROACH Collaborate with at least one other person on your first peer reviewed article or proposal Divided workload Shore up your weak areas Mutual motivation and encouragement Avoidance of exhaustion and disillusionment Establishes platform for multiple publications 5. Airline, OEM & University Aviation Programs Partnership for Professional Development in Aviation Management Airline & OEM ROTC Model Programs Qualified students receive full scholarships Students participate in experiential learning Program graduates receive a full fledged college education and work with sponsoring airline for set period of time and move on, or establish a career with the sponsoring airline Airlines hire well educated and trained staff GAP BRIDGING PARTNERSHIP WITH AIRLINES & OEMS IV

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FUTURE CHALLENGES

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Technology Obsolescence Employees, Processes, etc. Redundancy Displacement by Innovation, Systems, Automation, etc. Global and Market Forces Systemic Shocks Destructive Competition Unfavorable Regulatory Action FUTURE CHALLENGES

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"Aviation is proof, that given the will, we have the capacity to achieve the impossible." ~ Captain Edward "Eddie" Rickenbacker.

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The End Thank You Dr. I. Richmond Nettey Associate Dean, CAEST Kent State University

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Designing an Airplane for Market Position and Differentiating to Airline & Passenger Kourosh Hadi Director, Airplane Product Development Boeing Commercial Airplanes July 17, 2014 Dr. Guy M Smith AABI I/E Forum Educator Response 2015

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Agenda What we heard (July 17, 2014) Kourosh Hadi Director, Airplane Product Development Boeing Commercial Airplanes What we have now What we might need

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What we Heard from Director Kourosh Hadi

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1) Market Outlook

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2) Value Creation

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2) Value Creation Contd.

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3)Key Technology Enablers

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4) Current and Future Airplane Studies 1 2 3

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4

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What we have (Graduate) PhD in Aviation User-Centered Design in Aviation MBAA in Aviation Strategic Marketing Management in Aviation Business Capstone Course (Opportunity) MS in Engineering Management Engineering Economic Analysis MS in Management Production and Procurement in the Aviation and Aerospace Industry (Specialization)

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B.S. in Aviation Business Administration Strategic Management (Opportunity) B.S. in Engineering Technology Engineering Technology Capstone (Opportunity) B.S. in Technical Management Management of Production and Operations B.S. in Transportation Transportation and the Environment What we have (Under-Graduate)

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Aviation/Aerospace (Under-Graduate) What we have Aviation/Aerospace (Graduate)

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What we need Advanced Ducted Propellers or ADPs

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What we need

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Efficient Descent Advisor (EDA), which enables Continuous Descent Approaches, a concept that allows aircraft to fly a continuous, gliding descent at low engine power, thereby minimizing fuel consumption, environmental emissions, and noise pollution.

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What we need

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Atmospheric Impact e.g., Contrails, Chemtrails (Cloud seeding with silver iodide crystals) Climate change and global warming Carbon Dioxide footprint

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What we need Green Fuel (Alternate fuels) Expect fuel economy also to be improved by:economy - Fuller plane occupancy - Better air traffic control - Flying slightly more slowly - Steeper landing paths - Increased # of turboprops for shorter distances

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What are Your Questions and Comments?

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Thanks for your thoughtful participation! There are two types of collegiate aviation programs: those that are AABI accredited, and those that will be.