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NBAA Update #06-36
Monday, September 04, 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 update@nbaa.org. Send address changes to membership@nbaa.org.


Business Aviation News & Issues
FAA Drops Landing Distance Assessment OpSpec to Pursue Future Rulemaking
Following in-depth discussions this summer with NBAA staff and other industry members, the FAA has issued a safety alert for operators (SAFO) regarding "Landing Performance Assessment at Time of Arrival" for turbojet aircraft. The SAFO is based on the FAA policy statement on this topic that was published on June 7, 2006, and applies to air carriers, including business aviation operating under Part 135, Part 91 Subpart K or Part 125. While not mandatory, the FAA strongly encourages operators to voluntarily comply with a new C382 Operations Specification (OpSpec), which is similar to the draft C082 that will no longer be mandatory this year. NBAA will continue to press FAA to obtain answers to questions that the industry posed this summer, and NBAA will participate in the rulemaking process. Read the SAFO at:
http://www.nbaa.org/ops/safety/SAFO06012.pdf

NBAA Schedules Landing Distance Assessment Discussion at Convention
Business aviation commercial operators affected by the landing distance SAFO/voluntary OpSpec and pending rulemaking initiative (affecting Part 135, Part 91 Subpart K and Part 125 operations) are encouraged to participate in a new discussion session scheduled for Wednesday, October 18, during the NBAA 59th Annual Meeting & Convention (NBAA2006) in Orlando, FL. This session will be an opportunity for operators to discuss the SAFO, ask implementation questions and share lessons learned while working to implement the voluntary OpSpec. Available information on FAA's progress towards a rulemaking initiative will be discussed by NBAA staff. To RSVP for this session and obtain the meeting details, e-mail NBAA's Mike Nichols at mnichols@nbaa.org. For more information about NBAA2006 or to register, visit:
http://www.nbaa.org/2006

Fuel Fraud Tax Update: Associations Work to Ease Burden and Increase AATF Transfers
Last year, a change to the tax law forced jet fuel sold to FBOs and other ultimate vendors to have the 24.4 cents/gallon highway diesel tax rate embedded, with the taxes paid deposited into the Highway Trust Fund. The ultimate vendor of the fuel registers with the IRS using Form 637 and claims a refund for the difference between the 24.4 cents/gallon diesel rate and 21.9 cents/gallon jet fuel rate. Once the refund is claimed, the fuel taxes transfer from the Highway Trust Fund to the Airports & Airways Trust Fund (AATF). This process has been complicated and confusing for many in the industry. The staffs of NBAA and NATA have worked together to address concerns and propose simplifications to the process to the FAA, IRS and Congress. NBAA encourages ultimate vendors that have not registered with the IRS to do so. For more information, contact NBAA's Mike Nichols at mnichols@nbaa.org.

FAA NOTAM for 2006 NBAA Convention
In anticipation of a large number of aircraft operating to and from the Orlando, FL, area in conjunction with the NBAA 59th Annual Meeting & Convention this October, the FAA is issuing procedures to enhance safety and minimize air traffic delays. The agency has submitted a 2006 NBAA Convention NOTAM for publishing in the September 28, 2006, NOTAM cycle. NBAA is providing that document for operators in advance for their reference. Direct questions to NBAA's Bob Lamond at rlamond@nbaa.org or Jo Damato at jdamato@nbaa.org. Download the Convention NOTAM in PDF format at:
http://www.nbaa.org/ops/airspace/restrictions/amc2006notam.pdf

FAA ATO Customer Satisfaction Survey Deadline Is Sept. 18
NBAA encourages Members to participate in a customer satisfaction survey regarding FAA Air Traffic Organization (ATO) services. The questionnaire responses will establish a customer satisfaction baseline for FAA ATO service delivery, enabling the FAA to improve planning and services for operators the future. The Department of the Treasury Federal Consulting Group developed and administered the survey for the FAA using the American Consumer Satisfaction Index (ASCI) methodology. The survey model is designed to assess three main areas: drivers of customer satisfaction, satisfaction itself and customer opinions, and desirable future behaviors. The deadline for this 15-minute survey is September 18, and individuals participate anonymously. Access the survey at:
http://www.cfigroup.net/FAAATOsurvey10

SIFL Rates Announced for Second Half of Calendar Year 2006
The U.S. Department of Transportation recently released Standard Industry Fare Level (SIFL) rates for the six-month period from July 1, 2006, to December 31, 2006. These data are necessary when applying the IRS's aircraft valuation formula to compute the value of non-business transportation aboard employer-provided aircraft and impute the income of the employee as required by the IRS Rules Section 1.61-21(g). Access the new SIFL rates and a link to NBAA's Personal Use Calculator at:
http://web.nbaa.org/member/ops/taxes/sifl/2006-7.php

Do SIFL Rates Apply With the Advent of the Jobs Act?
As a result of the American Jobs Creation Act of 2004, some personal flights classified as for recreation, amusement or entertainment may cause the company to lose business deductions, but that law and the subsequent IRS Notice 2005-45 do not negate the need to impute the value of personal use flights to the individual through the Standard Industry Fare Level (SIFL) method or the fair market value method. NBAA has several resources available to explain the tax law change and IRS guidance at:
http://www.nbaa.org/govt/jobs2004/

Upcoming IS-BAO Implementation Workshops
IS-BAO Implementation Workshops are conducted regularly for operators to provide an introduction to the International Standard for Business Aircraft Operations (IS-BAO), a set of recommended best practices designed to help flight departments worldwide achieve high levels of safety and professionalism. The IS-BAO Implementation Workshop is designed to assist operators who are implementing, or considering implementing, the IS-BAO. The next workshops will be held October 11 in Palmyra, NJ; November 7 in Hong Kong; and November 17 in Long Beach, CA. For more information, contact info@ibac.org. Those planning to attend the workshop should complete and submit an Operators IS-BAO Workshop Registration Form, available online at:
http://www.ibac.org/is-bao/Audit%20Workshop.htm

Cutter Aviation

Regional News
MBAA: Facts Trump Fiction at Hanscom
Hanscom Field (BED) is a key reliever airport for Boston's Logan International Airport, and is the choice destination for 95 percent of the business aircraft visiting downtown Boston and surrounding areas. The facility handles more than 175,000 operations per year, mostly general aviation. In 2002, the Massachusetts Business Aviation Association (MBAA) was given a seat on the Hanscom Field Advisory Committee (HFAC), a group created by state statute in 1980 to help the airport and community communicate. Learn how MBAA's participation on the HFAC has helped correct misinformation and defuse some emotional airport issues. The complete report, which is part of an ongoing series of NBAA airport reports, is available online at:
http://www.nbaa.org/ops/airports/bed/

NBAA Senior Executives to Speak at GA Issues Conference This Month
The first-ever General Aviation Issues Conference will be co- hosted by NBAA and other aviation organizations from September 17 to 19 at Centennial Airport (APA) in Denver, CO. The 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. NBAA Senior Vice President, Government Affairs Lisa Piccione will participate with other industry leaders in a session titled "Washington Perspective: State of the General Aviation Industry," and NBAA Vice President, Safety, Security & Regulation Doug Carr will participate in a session on GA security. Download the conference program in PDF format at http://www.nbaa.org/ops/airports/gaissues06.pdf. Register online at:
http://www.aaae.org/products/meeting_details.html?Record_id=362

South Florida to Fill Board Vacancies at Boca Raton Meeting, Sept. 8
South Florida Business Aviation Association (SFBAA) will hold its next meeting at 10:00 a.m. on September 8 at the Boca Raton Airport (BCT) Avitat facility (tel: 561-955-9556). The organization will plan future events and fill vacancies on its board of directors and several standing committees. RSVP to SFBAA's Don Roller at (561) 866-9202 or Don.Roller@ins-lua.com. For more information, contact NBAA's Harry Houckes at hhouckes@nbaa.org, or visit:
http://www.sfbaa.org

North Florida Networking Opportunity in Jacksonville, Sept. 14
The North Florida Business Aviation Association (NFBAA) will hold its fall meeting and networking opportunity from 5:30 to 7:30 p.m. on September 14. Refreshments will be provided at the event, sponsored by Raytheon Aircraft Company. The meeting will be held at the NFBAA facilities, located within the offices at the Executive Hangar, Jacksonville International Airport (JAX), 14000 Pecan Park Rd. South. RSVP to NFBAA at cfarmer@skyplustech.com. For more information, contact NFBAA's Pat Mulvihill at pmulvihill@aerospaceinvestments.com or NBAA's Harry Houckes at hhouckes@nbaa.org, or visit:
http://www.nfbaa.org

Introducing GLOBTRAN

NBAA News
NBAA Invites Members to Donate Charity Auction Items
During the NBAA 59th Annual Meeting & Convention, the Association will hold Silent and Live Auctions to benefit NBAA Charities, a charitable fund to provide support to worthy causes in the business aviation community. Attendees will bid on the Silent Auction items displayed at the Orange County Convention Center on October 17 and 18, and successful bidders will be awarded on October 19. The Live Auction will be held during the NBAA Gala at the Peabody Orlando Hotel on the evening of October 18. NBAA is mailing information to Members this month about how to participate in the Charity Auctions and to make auction donations. Companies making donations will be recognized in the program throughout the three days of the show. For more information or to download a donation form, visit:
http://www.nbaa.org/cs/amc/2006/auction/

Compensation Results Available for 2006 NBAA Survey
Compiled compensation data now are available for the 2006 NBAA Compensation & Benchmark Survey. Compiled operational benchmark data will be released at a later date. The results are based upon survey responses from 904 aviation departments that provided compensation data for 3,571 employees. Online access to the compiled results of the survey is available at no cost to survey participants. Participants may purchase hard copies of the survey results for $75. NBAA Member Representatives who did not participate in the survey may purchase online access to survey results for $75 and hard copies for $150. Survey results are not available to non-Members. For more information, visit:
http://www.nbaa.org/surveys/cbs

Subscribe to Monthly Newsletter Featuring NBAA Event News
NBAA Exhibitor Update is the Association's monthly e-mail newsletter featuring the latest news, announcements and deadlines for NBAA events, including NBAA's Annual Meeting & Convention, Seminars, Regional Forums and international shows in Europe, Latin America and Asia. This publication is of interest to NBAA Associate Members or anyone interested in learning about the progress and planning of NBAA's many events. Review the NBAA Exhibitor Update publication archives or subscribe for free online at:
http://www.nbaa.org/cs/exupdate/

NBAA Headquarters Closed for Labor Day Holiday
NBAA's Washington, DC Headquarters will be closed today, Monday, September 4, in observance of the Labor Day holiday, and will reopen on Tuesday.

Online MBA for Aviation Professionals

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

IS-BAO Implementation Workshop
October 11, 2006, Palmyra, NJ

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

Professional Development Program Course: Customer Service
October 15, 2006, Orlando, FL

Emergency Response Planning Workshop
October 15–16, 2006, Orlando, FL

Flight Operations Manual Workshop
October 15–16, 2006, Orlando, FL

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

IA Inspection Authorization Renewal Course
October 16, 2006, Orlando, FL

Professional Development Program Course: Aviation Safety
October 16, 2006, Orlando, FL

Managing Aircraft Icing for Corporate Flight Operations Seminar
October 16, 2006, Orlando, FL

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

Management Fundamentals for Flight Departments Workshop
October 20–21, 2006, Orlando, FL

IS-BAO Implementation Workshop
November 7, 2006, Hong Kong

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

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

Professional Development Program Course: Customer Service
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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