Aviation Analysis on International Expansion Essay
Aviation Analysis on International Expansion
The challenges facing aviation-related international business include the rising fuel prices, the deficiency in skilled aviation staff, economic fluctuations, heavy losses, seasonal fluctuations, and the health concerns stemming from the H1N1 virus linked to aviation emissions (ICAO & Zinnov 2007). These obstacles have to be measured against the global possibilities of an expanded market, wider competition, and cost of production. Regional trade blocks are diplomatic agreements contracted by governments of a region to advance economic and political interests, protecting territory and setting up trade agreements (Regional Trade Blocs 2006).
As the TRE Aviation company seeks to expand an awareness of the trade bloc governing needs to be obtained. Although trade blocs are intended to restrict free passage, it still ensures a level of stability; therefore, an international company has to weigh the pros and cons and trade bloc guidelines which it will be mandatory for the aviation company to follow. Regional trade blocs control globalization and narrows global competitiveness; however internationalizing is still possible through compliance and business acumen.
The global aviation industry has been liberalized such that the rate of globalization has made keener the competition in markets which have been developed. Privatization has long been the answer to making aviation companies more profitable as governments sell off encumbered airlines to private owners. In order for TRE Aviation to be an economically viable company, it would demand large investment from privatized channels (Juan 2000 & Escobar 1999). Privatization does not have to be complete.
Portions of the company can be sold to shareholders who can boost the profitability of the aviation company. In turn, the gains would be able to enhance infrastructure and better efficiency. In order to grow as an efficient and relevant international company, aviation information technology must be balanced with forecasted revenue and the potential to strengthen profits. A plethora of aviation technology is available to enable customer comfort and facilitate the manufacture and functioning of aircraft hardware (Information Systems Technology).
Air cargo automation, airport security, flight operations, air traffic control, ticketing, radio networking, and baggage and cargo tracking are a few factors which belong to aviation technology. An international aviation company demands the corporation of an equally international and diverse workforce (Jansen). TRE Aviation has to be staffed by a heterogeneous group of individuals from different backgrounds, nationalities and experiences.
The outcomes would be an appreciative clientele who can relate to a variety of people and a multi-skilled, multi-national company providing a numerous options. In the aviation-related international business, culture shapes the thinking and attitudes of the company. The values and mission statements of the aviation company form the core of the organizational culture, the nationality of the personnel somewhat determines international culture, and professional culture defines the work ethic of the company (Helmreich 1999).
Having a good interrelationship with this trinity of cultures will foster an aviation company which is able to fulfill its duty to clients, corporations, and the countries served by TRE Aviation. International aviation policy is important as they also serve as guidelines in national and international treaties. Conducting business through aviation policy has bound countries. Laws such as the Air Services Agreements (ASA), Open Skies policy, and the US Airline Deregulation Act of 1978 monitor the compass of the internationalization of TRE Aviation.
Negotiation and decision-making principles have to be based on already established international agreements as they apply to aviation related businesses operating in an international environment. The Convention for the Regulation of Aerial Navigation (Paris Convention), the Chicago International Civil Aviation Conference (Chicago Conference), and the Bermuda agreements stand as negotiated international policies which govern the aviation industry (Hsu 2005). However, the nine freedoms of the air grant a certain level of leeway to setting TRE Aviation on the path to internationality (Rodrigue 2010).
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 26 September 2016
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