This project discovers the opportunities and challenges for the American aviation industry in international markets, through on-site case-study methods. The research hypothesis is this: “If there is better alignment with innovative international cooperation, then the American aviation industry’s success rates will be improved.” The project provides practical application, and it builds an optimal development model for addressing current problems facing the aviation industry in the United States. In order to make the research more focused and feasible, the researchers chose the New Bedford Airport and aviation markets in China as sites for the case studies. Our research emphasizes methods of market innovation and expansion of the aviation industry in the United States based on marketing prospect theory. Research results are mainly from on-site original research with the latest industry data (2012-2013). The research methods include: on-site case study (including 4 main Chinese cities-Beijing, Shanghai, Tianjin, Guangzhou, and 15 main Chinese flight departments, airline companies and aviation universities); an observation research method (for observing the operations at comparable airports in both America and China); an ASEB-SWOT (strengths, weaknesses, opportunities, threats) marketing matrix analysis; qualitative and quantitative research; and both statistical modeling and optimal model development. The research indicates that innovative international cooperation can create a win-win scenario, which will certainly improve the American aviation industry’s success rates. Based on the on-site observation method research in China, as well as interviews with Chinese aviation scholars and experts, we found out that international cooperation may benefit from the huge potential markets in China but also that we should be aware of the “airline dilemma of China.” Nowadays, regional airports in United States are faced with more challenges and pressure. Jonathan Bailey, external affairs director at Manchester Airports Group, said recently that he saw “no future” for the smallest airports, blaming high tax, regulatory and security costs. New Bedford Airport, as a regional airport in Massachusetts, is also facing this very same problem. This paper explores the special niche of the New Bedford Airport, by analyzing its macro environment, industry circumstances and the competitive environment. Because of beneficial geographical conditions and sound economic fundamentals, New Bedford Regional Airport has an advantageous position for making innovative service plans – pertaining to cargo shipment, general aviation, corporate jet services, and flight instruction – in order to form a more diversified development model. This case study also builds up a marketing model that will be beneficial for other small regional airports, since it will help them open up their markets and overcome pressures from major airports. In addition, the New Bedford Airport and Bridgewater State University (BSU) aviation-training program are cooperative partners, and the BSU aviation program is planning to build a future international training program with China. Thus, the findings here will be useful to the BSU international pilot training program. Also, the project provides a cooperation model that will contribute to research on the American and Chinese airline industries and to cooperative pilot-training programs between China and the United States. In this ever-changing world, not moving means moving backward. Innovative international cooperation can create a winwin scenario and will certainly improve American aviation industry’s success rates.