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NBAA Update #06-31
Monday, July 31, 2006

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 [email protected]. Send address changes to [email protected].


Business Aviation News & Issues
NBAA Joins Other GA Groups to Signal Unified Opposition to User Fees
On July 26, NBAA President and CEO Ed Bolen joined leaders from several other general aviation associations in a united front against the creation of new aviation user fees. Bolen and the other association leaders participated in a forum hosted by the Experimental Aircraft Association (EAA) during its annual AirVenture Convention in Oshkosh, WI. The forum focused on a proposal by the Air Transport Association (ATA) to shift $2 billion of the airlines' costs onto the general aviation segment through the implementation of user fees. The ATA is the lobbying association for the commercial airlines. To review related materials, including a press release, photos, audio files and other documents, visit:
http://www.nbaa.org/news/photos/20060726

Senate Panel Reviews Progress of ATC Modernization Effort
The Senate Aviation Subcommittee held a hearing on July 25 to gather testimony from FAA Administrator Marion Blakey and several other government witnesses about progress to modernize the nation's air traffic system. Representatives from NASA, the Government Accountability Office (GAO) and the DOT Office of Inspector General (IG) also participated on the panel. Blakey highlighted the "unprecedented" cooperation between federal departments/agencies in working to identify areas of cost savings and new technology opportunities. The FAA and NASA jointly oversee the work of the Joint Planning and Development Office (JPDO) in its congressional mandate to transform the national ATC system from a ground-based to satellite-based information system. Several senators raised concerns about the size and scope of the planned 20- to 25-year ATC modernization effort and the ability of the JPDO to oversee and deliver a cost-effective modernization program. There was consensus that the JPDO and the FAA need to develop better cost estimates for the Next Generation Air Transportation System (NGATS) plan and focus on a three- to five-year action plan. For more information, contact NBAA's Dick Doubrava at [email protected].

Part 135 Operational Control and Wet Lease Update
All Part 135 air carriers will be issued a new A008 operations specification (OpSpec) for operational control. NBAA met last week with the FAA to address continuing issues and concerns expressed by air carriers and aircraft owners, as a follow-up to the 10 FAA briefing sessions conducted across the country in recent months. The meeting was extremely successful, with the door open for further discussion with the FAA. NBAA strongly urges Part 135 air carriers to review the current A008 draft to determine their compliance with the OpSpec. The OpSpec and supporting materials are available online at:
http://web.nbaa.org/member/ops/part135/wetlease/

SEC Adopts Executive Compensation Rules
The Securities and Exchange Commission (SEC) voted last week to adopt changes to the rules requiring disclosure of executive and director compensation, related person transactions and other corporate governance matters. These changes affect disclosure in proxy statements, annual reports, registration statements and reporting of compensation arrangements. The SEC has not yet published the final rule to its web site. Reporting of perquisites, such as non-business use of employer-provided aircraft, may be affected by the rule change. For more information on the final rule, visit the SEC web site at http://www.sec.gov/news/press/2006/2006-123.htm. NBAA provided comments to the SEC supporting the current reporting mechanism, the aggregate incremental cost, as the correct methodology for reporting non-business use to shareholders and investors. NBAA's comments may be downloaded at:
http://www.nbaa.org/ops/taxes/2006_0410_NBAAComments_final.pdf

Part 125 Size Aircraft: Update on LODAs to Operate Under Part 91
In April of this year, NBAA met with the FAA on issues surrounding letters of deviation authority (LODAs) for Part 125-sized aircraft to operate under Part 91. Concern was expressed that some inspectors were not allowing renewal of LODAs and requiring operators to pursue Part 125 certification. The FAA recently issued Notice 8700.46, "Letters of Deviation Authority to Deviate From the Certification and Operations Specification Requirements of Part 125," which became effective July 5. The notice clearly allows deviations for private operations, yet institutes new restrictions, which is a cause of significant concern to NBAA. Of primary concern is the prohibition of operations described in Part 91, Subpart F, Section 91.501(b). For more information, download Notice 8700.46 at:
http://www.nbaa.org/ops/taxes/125LODANotice20060705.pdf

NBAA Convention Returns to Orlando This October
From October 17 to 19 in Orlando, FL, the NBAA 59th Annual Meeting & Convention (NBAA2006) will feature the products and services of more than 1,100 Exhibitors in nearly one million square feet of exhibit space at the Orange County Convention Center. In addition, more than 110 aircraft will be on display at Orlando Executive Airport (ORL), and a comprehensive schedule of Informational Sessions will address timely issues affecting the business aviation community. Registration, housing and travel arrangements all may be made in advance online. For more information, visit the official NBAA2006 web site at:
http://www.nbaa.org/2006

Does NBAA Have a Resource for Time-Share Agreements?
Yes, in NBAA's Aircraft Operating & Leasing Package. Time sharing is defined in 14 CFR 91.501 (c)(1) as an "arrangement whereby a person leases his airplane with flightcrew to another person, and no charge is made for the flights conducted under that arrangement other than those specified in paragraph (d) of this section." Operators are allowed to assess 10 "charges", listed in Paragraph (d), which amounts to roughly twice the cost of fuel for the flight. Full operating costs will not be recovered. Other limitations such as aircraft size, country of registration and company structure can complicate this type of arrangement. Operators should seek the advice of tax specialists and legal counsel when setting up a time-sharing agreement. More information about time sharing can be found in the NBAA Aircraft Operating & Leasing Package at:
http://www.nbaa.org/member/taxes/opleasing/OpLeasing.pdf

UK Altitude Deviations Continue to Escalate
The UK National Air Traffic Control Services (NATS) has taken steps to stem the increase of altitude deviations (those 300 feet or more from the assigned level). From 2003 through 2005, the number of deviations experienced went from 203 to 390 per year and as of July 2006, there have been 266 such occurrences. Between 2003 and 2006, private operators made up 5.3 percent of total UK operations but were credited with 14.2 percent of the errors. To address this issue, NATS has provided guidance and training for those operating in the UK. To review statistics and guidance material, U.S. operators planning to operate in the UK are encouraged to review the following NATS web site:
http://www.levelbust.com

Cutter Aviation

Regional News
GA Issues Conference to Feature NBAA Senior Executives as Speakers
Held from September 17 to 19 in Denver, CO and co-hosted by NBAA, the first-ever General Aviation Issues Conference will cover a range of notable issues affecting general aviation today. NBAA Senior Vice President, Government Affairs Lisa Piccione will participate with leaders from American Association of Airports Executives, National Air Transportation Association, General Aviation Manufacturers Association and Aircraft Owners and Pilots Association in a session titled "State of the General Aviation Industry, Washington Perspective." NBAA Vice President of Safety, Security & Regulation Doug Carr will participate on an industry panel about general aviation security. This event will create opportunities to discuss and debate critical challenges facing general aviation airports and industry, as well as provide a unique networking forum with prominent figures in the GA community. For more information or to register, visit:
http://www.aaae.org/products/meeting_details.html?Record_id=362

Launch of Air Georgia Plan Is Good News for Rural Georgia Airports
With an initial budget of $15 million, the Air Georgia funding initiative for rural Georgia airports is aimed at integrating airport infrastructure improvements into a plan for rural economic development. The goal of Air Georgia is to extend rural airport runways to at least 5,000 feet, placing every Georgian within a 30-minute drive of an airport capable of serving most general aviation aircraft flying for business purposes. The program will accelerate a number of airport projects, including runway extensions, installations of navigational aids, weather reporting stations and other projects deemed necessary to increase accessibility of Georgia's rural airports and communities. For more information, contact NBAA's Harry Houckes at [email protected].

Aspen Runway Closing for Two Months Next Spring
Colorado's Aspen/Pitkin County Airport (ASE) will be closed to all air traffic from approximately 11:00 a.m. on Monday, April 9, 2007, through approximately 7:00 p.m. on Thursday, June 7, 2007. This closure is necessary so that the existing runway pavement can be rehabilitated. The project also will include improvements to runway safety areas and emergency vehicle access roads within the airport perimeter. Preliminary improvements not requiring airport closures will begin in the fall of 2006. Additional airport closures of two days or less will be necessary in the fall of 2007. Visit http://www.aspenairport.com for updates, and check NOTAMs for the most current and official information. For more information, contact NBAA's Steve Hadley at [email protected].

Annual Transportation Summit to Be Held in Irving, TX, Aug. 8- 11
The 9th Annual Transportation Summit, a national meeting on transportation public policy, will address a variety of transportation issues affecting aviation, security, safety and financing. Speakers will include Senator Kay Bailey Hutchison (R-TX); congressmen such as John L. Mica (R-FL) and Jim Oberstar (D-MN); and other federal, state and local officials, including FAA and transportation officials. This event will be held from August 8 to 11 at the Westin Dallas/Fort Worth Airport in Irving, TX. For a summit schedule, visit http://www.texastransportationsummit.com/. For more information, contact NBAA's Steve Hadley at [email protected].

TXAA Adopts Collin County Aviation Coalition as Its First Chapter
The Texas Aviation Association (TXAA) board has accepted the Collin County Aviation Coalition (CCAC) as its first chapter. Based in Austin, TXAA has successfully worked with the CCAC, based at Collin County Regional Airport (TKI, formerly McKinney Airport), on several aviation issues in the past. The CCAC leadership feels the merger will expand the local base to include the North Texas Region and provide a statewide connection. The transition is planned around an event at the CCAC facility in McKinney on September 16 that will allow pilots from across the region to meet the TXAA leadership from Austin. New NBAA Southwest Regional Representative Steve Hadley serves on the TXAA board. For more information, contact Hadley at [email protected].

Introducing GLOBTRAN

NBAA News
NBAA Announces Recipients of 2006 Meritorious Service and Doswell Awards
The NBAA Board of Directors has selected Archie Trammell, a radar specialist, aviation journalist and lifelong safety advocate, as the recipient of the 2006 NBAA Award for Meritorious Service to Aviation. FlightSafety International veteran James S. Waugh will receive the 2006 NBAA John P. "Jack" Doswell Award. Trammell and Waugh each will receive their awards during NBAA's 59th Annual Meeting & Convention, to be held October 17 to 19, 2006, in Orlando, FL. For more information, visit:
http://www.nbaa.org/news/pr/2006/20060731-036.php

NBAA, EAA Partner to Strengthen AvKids Program
Last week, NBAA and EAA announced that the two organizations will partner to strengthen and expand the availability of the AvKids (Aviation for Kids) program. AvKids was designed by NBAA in 1999 to educate elementary school students about the benefits of business aviation and the career opportunities available in the business aviation industry. "NBAA and EAA both recognize the importance of providing educational opportunities for children to learn about general aviation, including business aviation," said NBAA President and CEO Ed Bolen. "This partnership will make AvKids a part of EAA's world-class Young Eagles program, strengthening AvKids for the students it is designed to reach." For more information, visit:
http://www.nbaa.org/news/pr/2006/20060728-035.php

Show Guide Advertising Insertion Orders Due. Aug. 4
The NBAA2006 Show Guide & Directory of Exhibiting Companies will be distributed to Attendees at the NBAA 59th Annual Meeting & Convention with their credentials. The Show Guide is helpful in familiarizing visitors with the happenings at the year's most important international business aviation event and provides many advertising opportunities. Advertisers in the 2006 NBAA Directory of Member Companies, Aircraft & Personnel are eligible to receive a 15-percent discount on their advertisement in the NBAA2006 Show Guide. Insertion orders are due by August 4, and artwork is due no later than August 18. For more information, visit:
http://www.nbaa.org/cs/amc/2006/advertise.php

Chairman's Charity Classic Registration Now Available
The NBAA 10th Annual Chairman's Charity Classic Golf Tournament has been set for Sunday, October 15 at the Walt Disney World Resort in Orlando, FL. The tournament will be held in conjunction with the NBAA 59th Annual Meeting & Convention. Opportunities for sponsorships are available, and proceeds from the event will benefit the NBAA Charities. For more information on sponsoring the event, or to sign up as a player, register online today at:
http://www.nbaa.org/2006/ccc

Registration Open for Tax, Regulatory and Risk Management Conference
Recent regulatory changes prescribed by the IRS, FAA and DOT are significantly affecting many flight departments, charter operators and air charter brokers. The NBAA 15th Annual Tax, Regulatory & Risk Management Conference – to be held October 15 and 16 in Orlando, FL, in conjunction with the NBAA 59th Annual Meeting & Convention – is designed to provide aircraft owners and flight department personnel and their accountants, attorneys and advisors a basis for understanding how various tax laws and aviation regulations apply to business aircraft operations. This event will address topics ranging from new FAA regulations to the IRS entertainment use deduction limitations, and provide ample time for questions and answers. The agenda and registration for this year's Conference are now available online. To register, visit:
http://www.nbaa.org/cs/taxconf/2006/index.php

Applications for Next CAM Exam Due Aug. 31
Through the certification process, NBAA and the Certified Aviation Manager (CAM) Governing Board seek to recognize excellence in the field of business aviation and raise the level of professionalism and quality of management within flight departments. The next CAM Exam will take place on Monday, October 16, in Orlando, FL, in conjunction with the NBAA 59th Annual Meeting & Convention. Applications for the exam should be submitted no later than Thursday, August 31. To learn more about the CAM Program or access the CAM Program Guide and Application, visit:
http://www.nbaa.org/cam

CompAir is now available online!

Upcoming NBAA Events
IS-BAO Implementation Workshop
August 24, 2006, White Plains, NY

Safety Standdown, Presented by Bombardier, NBAA and FAA
October 2–5, 2006, Wichita, KS

10th Annual Chairman's Charity Classic Golf Tournament
October 15, 2006, Orlando, FL

15th Annual Tax, Regulatory and Risk Management Conference
October 15–16, 2006, Orlando, FL

59th Annual Meeting & Convention (NBAA2006)
October 17–19, 2006, Orlando, FL

Business Aviation Regional Forum
November 16, 2006, Long Beach, CA

IS-BAO Implementation Workshop
November 17, 2006, Long Beach, CA

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

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

NBAA2006

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