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NBAA Update #05-31
Monday, August 01, 2005

NBAA Update is the National Business Aviation Association's weekly e-mail newsletter, providing the latest operational, regulatory and political news for the business aviation community. Subscribe for free or review the archives at www.nbaa.org/update. Send your comments about NBAA Update to update@nbaa.org. Send address changes to membership@nbaa.org.


Business Aviation News & Issues
Congress Drops Aircraft Use Restrictions From Highway Bill; NBAA's 'Contact Congress' Campaign Vital to Effort
Last week, the House and Senate completed consideration of a highway spending bill (H.R. 3) that mostly addresses roadway improvements, but also contained a burdensome proposal to further limit tax deductibility of entertainment expenses for business aircraft from top executives to all employees traveling aboard employer-provided aircraft for entertainment reasons. NBAA strongly opposed the proposal, and advocated for its removal from the Highway Bill. In addition, hundreds of NBAA Members used the Association's "Contact Congress" resource to send letters to their members of Congress in opposition to the Highway Bill language. Thanks to those efforts, the proposal was removed from the Highway Bill. "One of the hallmarks of an effective Association is the ability of its Members to mobilize around an issue and communicate with their elected officials about their concerns," said NBAA President and CEO Ed Bolen. "That's exactly what happened in this instance, and I commend NBAA's Members for taking action at the grassroots level to stop a legislative proposal that would have been very onerous for business aircraft operators." To learn more about how you can contact your federal representatives about issues of concern to business aviation, contact NBAA's Dan Hubbard at dhubbard@nbaa.org, or visit:
http://www.nbaa.org/action

NBAA's Work on Highway Bill Will Continue; One Unreasonable Provision Remains
While the past week brought good news on the elimination of tax deductibility restrictions in the Highway Bill, the Association remains concerned about a separate proposal in the bill that changes the tax rate on jet fuel. The proposal would require payment of highway diesel fuel taxes, followed by application for a refund for the difference between the highway rate and the jet fuel taxes. The proposal was developed to discourage highway diesel fuel operators from using jet fuel to avoid the higher taxes on highway fuel, a prevalent practice, according to the IRS. NBAA believes that aviation users should not be subject to a time-consuming requirement intended for preventing alleged fuel diversion by non-aviation users, given that business aviation is not part of the supposed problem. "We're being penalized for a problem we didn't create," NBAA President and CEO Ed Bolen recently told a business aviation publication. Compounding the problem is that, as written, all jet fuel taxes collected at the higher rate would be deposited into the Highway Trust Fund and transferred to the Airport and Airway Trust Fund only after a refund of credit has been applied for. The outcome could potentially be a tax increase coupled with a decrease in revenue for the aviation trust fund. "This is a double whammy, and a bad idea," Bolen continued. "NBAA will explore the possibilities for finding relief from the provision." To learn more, contact NBAA's Mike Nichols at mnichols@nbaa.org.

GA Security Legislation Proposed by Rep. Sweeney Raises Concerns for NBAA
On July 21, Representative John Sweeney (R-20-NY) introduced legislation that would require significant modification to general aviation (GA) airport operations and transient and based aircraft at those airports. NBAA believes that many of the issues raised by Rep. Sweeney have been addressed by the general aviation airport and aircraft community. As an example, the GA community has partnered with the Transportation Security Administration (TSA) to develop General Aviation Security Guidelines, a tool to help GA airports asses and mitigate their exposure to risk, and a Flight School Security Awareness Training program, developed to sensitize flight school employees to potential threats. The GA community also has recommended other initiatives that the government has implemented, such as checking the FAA's pilot and aircraft databases against watch lists, requiring pilots to carry photo ID, reporting suspicious aircraft financial transactions and raising general security awareness at general aviation airports. In the coming weeks, NBAA staff will be meeting with Rep. Sweeney to discuss his proposal and outline the Association's concerns. NBAA will keep Members advised of the progress of our efforts. For more information, visit the TSA flight school training module at:
http://download.tsa.dhs.gov/fssa/training/index.html

NBAA Continues Work to Represent Business Aviation at Teterboro Airport
In response to recent calls for reductions in aircraft traffic at New Jersey's Teterboro Airport (TEB), NBAA's staff has been active in raising concerns about the proposed traffic curbs among federal and local stakeholders. In Washington last week, NBAA President and CEO Ed Bolen met with Rep. Steve Rothman (D-9-NJ), who has called for 25-percent reductions in traffic at TEB. While no definitive conclusions were reached, Rep. Rothman indicated his desire to continue discussions with NBAA on matters related to Teterboro Airport. NBAA staff members also were available at a meeting last week of the Teterboro Aircraft Noise Abatement Advisory Committee to answer questions about the proposed traffic restrictions and outline mobilization efforts to date. NBAA's meetings in Washington and New Jersey are the latest in a series of efforts the Association has undertaken to preserve full access to Teterboro Airport for business aircraft operators. Reports of other recent efforts by NBAA were published in the July 11, July 4 and June 27 issues of NBAA Update. Review past issues online at:
http://www.nbaa.org/update

While at EAA AirVenture Oshkosh Fly-In, Bolen Talks Business Aviation With Nationally Broadcast Radio Show
While attending the EAA AirVenture Oshkosh Fly-In last week, NBAA President and CEO Ed Bolen discussed the emerging very light jet (VLJ) market and other exciting developments in business aviation with Marketplace, a business-news radio show broadcast to millions of listeners on more than 300 public radio stations nationwide. "A lot of the excitement about the very light jet is the new people and the new companies it will bring into business aviation," Bolen told a Marketplace reporter. Along with his interview, Bolen met with FAA Administrator Marion Blakey, viewed some of the latest aircraft and aviation technologies and visited with fellow aviation enthusiasts. To hear an excerpt from Bolen's Marketplace interview, visit:
http://www.nbaa.org/news/audio/20050729

NBAA Comments on IRS Deduction Limitations Notice
Today, NBAA President and CEO Ed Bolen submitted comments to the IRS on Notice 2005-45, Deductions for Entertainment Use of Corporate Aircraft, strongly opposing the methodology developed by the IRS. Specifically, NBAA focused on three primary areas, advocating that the IRS: (1) replace the "occupied seat" methodology described in the notice with a "primary purpose" test, (2) provide that only variable costs be taken into account for the purpose of computing the amount of aircraft-related expenses potentially subject to disallowance and (3) exempt timeshare arrangements pursuant to which a specified individual pays the maximum amount allowed in section 91.501(d) of Subpart F of Part 91 as well as fair market value payments made by specified individuals to Part 135 operators. Additionally, NBAA expressed concern that the effects of the IRS methodology will be extremely damaging to the business aviation industry. To view NBAA's comments, visit:
http://www.nbaa.org/govt/jobs2004

SIFL Rates Not Yet Available
The U.S. Department of Transportation establishes the Standard Industry Fare Level (SIFL) rates twice a year. These rates are necessary when applying the IRS's aircraft valuation formula to compute the value of non-business transportation aboard employer-provided aircraft as required by the Internal Revenue Service Rules Section 1.61-21(g). Though the second half of calendar year 2005 is from July 1 to December 31, the DOT has not yet published the rates for this period. The SIFL rates are usually released approximately a month and a half after they are effective. Once NBAA receives these rates, they will be posted online and announced via NBAA Update. For more information about SIFL rates, visit NBAA's web site at:
http://www.nbaa.org/taxes

ABACE2005 Debuts Next Week in Shanghai
Next week marks the premier of the Asian Business Aviation Conference & Exhibition (ABACE), to be held August 9 through 11 at Shanghai New International Exhibition Center in China, with a Static Display at nearby Hongqiao Airport. ABACE2005 will showcase more than 50 exhibiting companies from around the world and display 11 aircraft in current production from several major business aircraft designers for direct questions and product comparisons. Informational sessions will address the safety culture of business aviation, safety management systems, business aviation security, airspace/air traffic infrastructure, airport handling and support, and industry requirements and supplier solutions. For more information, visit the official ABACE web site at:
http://www.abace.aero

www.information.aero

Regional News
FAA Concurs with NBAA Position on Class B Airspace in Minneapolis
An FAA notice of proposed rulemaking (NPRM) on November 24, 2003, proposed changes to the description of the Minneapolis, MN, Class B airspace area. At the time, NBAA and other aviation interests commented that the "southeast cut-out" of the proposed new Area E would result in aircraft not being contained in the Class B airspace when operating on the extended final approach course to Runway 35. NBAA suggested reducing the size of the "southeast cut-out" to ensure protection of IFR traffic operating to and from Minneapolis-St. Paul International Airport (MSP). The FAA concurred with NBAA comments and last Friday, July 29, issued a supplemental NPRM Docket No. FAA-2003-15471; Airspace Docket No. 03-AWA-6 proposing to modify the previously proposed description of the Minneapolis, MN, Class B airspace area. Specifically, this action proposes to add an additional area that is necessary to contain large turbine-powered aircraft within the Class B airspace area during aircraft operations to the new Runway 17/35 at MSP. The proposed modifications would enhance safety and improve the management of increased aircraft operations in the Minneapolis terminal area. Members wishing to add their own comments to the SNPRM have until September 12 to do so online at http://dms.dot.gov, referencing Docket #15471. For more information, contact NBAA's Bob Lamond at rlamond@nbaa.org.

Enhancements Coming to Ski Country and STMPs
In mid-July, the Special Traffic Management Program Enhancements Workgroup (STMPE WG), in which NBAA participates, met with the FAA to prepare for STMP enhancements and recommendations being introduced in the fall of 2005. The workgroup, which consists of an equitable mix of customer representatives from flight plan service providers, fractional companies, charter operators and traditional NBAA Member flight departments, focused on short- and long-term enhancements to the present STMP process. The meeting led to recommendations for enhancements to help address the recurring equity and efficiency issues often vocalized through customer feedback and suggestions. Direct questions or comments to NBAA's Bob Lamond at rlamond@nbaa.org. For more information regarding the meeting, including Ski Country STMP statistics and workgroup recommendations, visit:
http://www.nbaa.org/ops/airspace/ski_stmp.php

Avoid East Coast Departure Delays by Flying the Offshore Radar Routes
North and southbound traffic along the East Coast is affected in the summer by severe weather avoidance procedures (SWAP) and in the winter by "snowbird" volume issues. In these situations, departures delays between Northeast airports and Central and South Florida airports on inland routes often escalate to one hour or more. Customers who are RVSM-capable and over-water equipped and can operate above FL310 should consider filing or requesting the offshore radar routes from ATC to expedite departures along this corridor. For more information, contact NBAA's Jo Damato at jdamato@nbaa.org. View a presentation with more information on this topic at:
http://www.nbaa.org/ops/airspace/OffshoreRadarRoutes.ppt

LAS Studying Noise Compatibly at McCarran International
As a requirement for FAA funding, Nevada's Clark County recently launched an FAR Part 150 noise compatibility study aimed at reducing the impact of airport noise on the surrounding community. As part of this review, the county will make recommendations to reduce noise in non-compatible areas. These recommendations may affect operations for both commercial and business aviation. NBAA is following this effort and is interested in comments from LAS business aviation users – both based and transient. The study is available online at http://www.mccarrannoisestudy.com. Members are encouraged to submit comments or questions either via the site or through NBAA's Dan Burkhart at dburkhart@nbaa.org.

Fort Lauderdale and Dulles Customer Groups to Meet This Week
The Fort Lauderdale Airport (FLL) customer group is scheduled to meet at 1:00 p.m. in the Delta Airlines Station Briefing Room located in Terminal 2 on Wednesday, August 3. RSVPs are required to Michael Ogles at michael.ogles@faa.gov. The Dulles International Airport (IAD) customer group is scheduled to meet at 10:00 a.m. in the MWAA Conference Room in the Main Terminal on Friday, August 5. RSVP to Ron Haggerty at rhaggerty@earthlink.net. For more information, contact NBAA's Harry Houckes at hhouckes@nbaa.org.

South Florida Business Aviation Association Golf Tournament Is Sept. 23
The South Florida Business Aviation Association (SFBAA) board has set September 23 as the date for its annual golf tournament. This topic and others will be the focus of its next board meeting this Wednesday, August 3 in Boca Raton. Currently, one SFBAA board member position and the office of vice president are open, and the group seeks to fill those positions. For more information or to express interest in these positions, contact Don Roller at don.roller@ins-lua.com or NBAA's Harry Houckes at hhouckes@nbaa.org.

ABACE2005

NBAA News
Benchmark Data Now Available for NBAA Survey
In addition to previously published compensation data, compiled benchmark data now is available for the 2004 NBAA Compensation & Benchmark Survey. The results are based upon survey responses from 676 aviation departments that provided compensation and benchmark data. Online access to the compiled results of the survey is available at no cost to survey participants. Participants may purchase printed survey results for $50. NBAA Member Representatives who did not participate in the survey may purchase online access to survey results for $50 and printed copies for $100. Survey results are not available to non-Members. For more information, visit:
http://www.nbaa.org/surveys/cbs

NBAA Applauds Women in Corporate Aviation Scholarships
NBAA today joined Women in Corporate Aviation, International (WCA), in announcing three new scholarships for individuals pursuing careers in corporate/business aviation. The WCA scholarships provide access to instruction, training and other resources in support of career advancement and professional development for current and future aviation professionals. For more information, visit:
http://www.nbaa.org/news/pr/2005/20050801-044.php

NBAA Announces Recipients of UAA Janice K. Barden Aviation Scholarship
NBAA has awarded $5,000 in scholarship funds to five students who seek to advance their professional development in the business aviation industry. The winners of the 2004 NBAA UAA Janice K. Barden Aviation Scholarship are Benjamin Cole, Matthew Collier, Heather Lemmon, Gamaliel Neyor and Darren Schultz. Applications for the 2005 UAA Janice K. Barden Aviation Scholarship are due November 1. For more information, visit:
http://www.nbaa.org/news/pr/2005/20050801-043.php

Request for Proposals: CAM Program Marketing Plan
NBAA seeks proposals to assist in the successful marketing of the NBAA Certified Aviation Manager (CAM) Program. The proposals should outline a marketing plan designed to increase the number of candidates applying for and taking the NBAA CAM Exam. Proposals must be received by NBAA before the close of business on September 15. The proposals and all other correspondence regarding the project should be directed to NBAA's Jay Evans at (202) 783-9353 or jevans@nbaa.org. Learn more about the CAM Program at http://www.nbaa.org/cam. Download the RFP in PDF format at:
http://www.nbaa.org/rfp

NBAA2005

Upcoming NBAA Events
ABACE2005
August 9–11, Shanghai, China

Business Aviation Regional Forum
September 15, Denver, CO

9th Annual Chairman's Charity Classic Golf Tournament
November 13, New Orleans, LA

14th Annual Tax, Regulatory and Risk Management Conference
November 13–14, New Orleans, LA

Pre-Convention Seminars
November 13–14, New Orleans, LA

Certified Aviation Manager (CAM) Examination
November 14, New Orleans, LA

58th Annual Meeting & Convention
November 15–17, New Orleans, LA

Post-Convention Seminars
November 18–19, New Orleans, LA

Review the Full NBAA Events Calendar
http://www.nbaa.org/events

Review Future NBAA Convention Dates
http://www.nbaa.org/conventions/futuresites.htm

Certified Aviation Manager

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