NOVEMBER / DECEMBER 2015
Every Breath You Take
That Unpleasant Smell Might Be Hazardous to Your Health
When You Can’t
Just Fly Home
In An Emergency, You Need a Plan
TAXATION WITH REPRESENTATION FOR THE RECORD TAKE ME TO THE PILOT RISE OF THE MACHINES A Business Aviation Media, Inc. Publication
W W W . B I Z AVA D V I S O R . C O M
rolls-royce.com
CorporateCare®a global liquid asset
Aircraft enrolled on CorporateCare have higher asset values and liquidity as well as access to a truly global service network. So while you are enjoying engine reliability, supported by the resources and engineering expertise of the OEM, you’ll know you are helping to maximize your asset’s value and liquidity for the future. For more on CorporateCare, contact Steve Friedrich, Vice President – Sales and Marketing, at +1 (703) 834-1700, or email corporate.care@rolls-royce.com.
Trusted to deliver excellence.
N o v e m b e r/ D e c e m b e r 2 015
8
6
06
08
• Volume 2 / I s sue 6
10
F E AT U R E S Every Breath You Take
That unpleasant smell might be hazardous to your health by J U D ITH T. L . AN D E RSON , MS c , C IH
For the Record
14
When You Can’t Just Fly Home
16
Taxation with Representation
Reliable recordkeeping reduces risks
by G EORG E K LE ROS
10
Rise of the Machines
05
Can UAS and your airplane fly together safely?
by R I C H AR D H . H E IS T, PH . D.
12
Take Me to the Pilot
by G EORG E K Y THR EOTIS
Know your options when hiring supplemental crew
18
14
In an emergency, you need a plan
by C HR IS TOPH E R S I D FOR D , M D
NBAA is working for you by S COT T O ’ BR IE N
D E PA R T M E N T S Publisher’s Message “Six in the Green” by G IL WOLIN
Washington Report
Disrupting ATC Modernization by DAVI D COLLOG AN
18
The Business of Business Aviation The Information You Need, From Experts You Can Trust Aircraft owners and charterers now have a resource to help you make the most effective use of your investments in business aviation. Business Aviation Advisor provides the information you need, without technical jargon, on the business of owning and flying business aircraft – from operations to acquisition, to management and finance.
Business Aviation Advisor: the Business of Business Aviation
Subscribe to our digital edition at www.bizavadvisor.com/subscribe
w w w. B i z AvA d v i s o r. c o m
No v e m b e r/ D e c e m b e r 2 015 B U S I N E S S AV I AT I O N A DV I S O R 3
WINGMAN OPERATOR
wyvernltd.com
PUBLISHER’S MESSAGE ■ PUBLISHER Gil Wolin gwolin@bizavadvisor.com CRE ATIVE DIRECTOR Raymond F. Ringston rringston@bizavadvisor.com MANAGING EDITOR G.R. Shapiro gshapiro@bizavadvisor.com EDITORIAL ASSISTANT Michael B. Murphy mmurphy@bizavadvisor.com WASHINGTON EDITOR David Collogan dlcollogan@gmail.com CONTRIBUTORS Judith T.L. Anderson, MSc, CIH Association of Flight Attendants-CWA, AFL-CIO judith@cwa-union.org Richard H. Heist, Ph.D. Embry-Riddle Aeronautical University richard.heist@erau.edu George Kleros Jet Support Services, Inc. gkleros@jetsupport.com George Kythreotis Jet Professionals george.kythreotis@jet-professionals.com Scott O’Brien National Business Aviation Association sobrien@nbaa.org Christopher Sidford, MD Emergency Black Bag csidford@emergencyblackbag.com BUSINESS MANAGER JoAnn O’Keefe jokeefe@bizavadvisor.com BUSINESS AVIATION MEDIA , INC . PO Box 5512 • Wayland, MA 01778 Tel: (800) 655-8496 • Fax: (508) 499-2172 info@bizavadvisor.com www.bizavadvisor.com Editorial contributions should be addressed to: Business Aviation Advisor, PO Box 5512, Wayland, MA 01778, and must be accompanied by return postage. Publisher assumes no responsibility for safety of artwork, photographs, or manuscripts. Permissions: Material in this publication may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of the publisher. The views and opinions expressed in Business Aviation Advisor are those of the authors and advertisers, and do not necessarily reflect the policy or position of Business Aviation Media, Inc. Articles presented in this publication are for general information and educational purposes and do not constitute legal or financial advice. Postmaster: Please send address changes to: Business Aviation Media, Inc., PO Box 5512 • Wayland, MA 01778, USA ©Copyright 2015 by Business Aviation Media, Inc. All rights reserved Printed in the USA
“Six in the Green” When on final approach to landing, the co-pilot monitors the instrument panel and will at some point turn to the captain and report, “Three in the green.” Translation: three green lights have illuminated, indicating that the nose gear and two main gear are extended and locked and thus it’s safe to put the aircraft down on the runway. I’ve often written this column from wherever my frequent travels take me: sales trips and conferences, a family cruise, and from the annual National Business Aviation Association convention. NBAA2015, which takes place Nov. 17-19 in Las Vegas, will be the 43rd I’ve attended. A world-class event, it will bring together 46,000 aviation colleagues and friends from around the globe, including aircraft and avionics manufacturers, FBOs and other service providers, and finance and insurance suppliers, among others – including many of you. But travel is not without risk, a fact of which I am at the moment acutely aware. You see, this time I’m writing to you from the ICU of our local hospital, where I was admitted after an infection suddenly worsened and laid me low. Not to worry, I’m making steady headway on the path to full recovery. Moreover, the attending nurses are caring and competent and have a wonderful human touch. And, as with your aircraft, all my “systems” – blood pressure, pulse, oxygen, temperature, meds, and fluids – are being carefully and constantly monitored electronically. If any go in the wrong direction, the computer beeps loudly, the medical team responds instantly, and the proper adjustments are made. Turns out, an ICU operates much like a flight deck, but with crash carts and needles at the ready instead of checklists and a fire ax. You think a mishap or malady can’t happen to you – until it does. When and if illness or injury should befall you during your travels, heading out immediately aboard your aircraft often is not your safest option. In this issue, Dr. Christopher Sidford tells why you need to plan ahead – and what to do when medical emergencies occur in “When You Can’t Just Fly Home Again.” In our cover story, “Every Breath You Take,” Industrial Hygienist Judith Anderson explains why that unpleasant smell in your cabin may be not only irritating, but actually hazardous to your health. She describes what you can do to help protect you, your crew, and your passengers from cabin air pollution. And Richard H. Heist of Embry-Riddle Aeronautical University describes the potential risk to your aircraft and your own safety posed by the rapidly growing fleet – there are hundreds of thousands of them out there already – of remotely-piloted Unmanned Aircraft Systems in “Rise of the Machines.” The issue’s focus on health and well-being was intended from its conception to help protect all. But considering my unexpected circumstances, the theme resonates especially with me. Right now, all my vital signs are showing improvement – I’m “six in the green” – and hope you are too! Let’s toast to good health at NBAA2015. Thanks for reading,
Gil Wolin — Publisher gwolin@bizavadvisor.com No v e m b e r/ D e c e m b e r 2 015 B U S I N E S S AV I AT I O N A DV I S O R 5
■ AIRCRAFT SAFETY
Every Breath You Take BY JUDITH T.L. ANDERSON, MSc, CIH Association of Flight Attendants-CWA, AFL-CIO / judith@cwa-union.org
H
ave you ever been aboard your aircraft, and wondered whether your passenger might have forgotten to bathe? Chances are good that body odor is not to blame for the unpleasant cabin odor. Rather, “dirty socks” is the most common descriptor in aircraft maintenance manuals for the smell of engine oil fumes that can be pumped into the cabin and flight deck through the vents above your head. Because of the way that turbine aircraft are designed and operated, oil fumes can and sometimes do contaminate the cabin ventilation air supply, whether because of a failed or imperfect engine oil seal, a ruptured line, or an over-filled oil or hydraulic fluid reservoir. And that poses several health risks to you, your passengers, and flight crew. Filtering the air you breathe in flight is challenging, because it enters the aircraft through engine intakes, moving at speeds up to 500 mph, and is then bled off into the cabin. The first stage 6 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
engine compressor accelerates the air even further – there’s no paper or fabric filter that could withstand that pressure. Consequently, all turbine aircraft use centrifugal water (cyclonic) filtration systems, spinning the incoming air and particulates with water condensation, which is then expelled from the aircraft. While this system catches most large particulate matter, it will not catch either fumes or smaller particles. Ensuring a clean ventilation system requires more filtration down stream. Most engine oils and fluids today are synthetics, complex chemical mixtures expertly designed to lubricate moving parts and reduce wear. They are specifically formulated to withstand the conditions in an operating aircraft engine. But these synthetics are not intended for human consumption. Concerns about the safety and health implications of breathing these fumes inflight has been mounting since the 1950s, when these “fume events” began to be documented on nearly every type of aircraft, including business jets. The presence of malodorous oil fumes coming from the air w w w. B i z AvA d v i s o r. c o m
SHUTTERSTOCK
That Unpleasant Smell Might Be Hazardous to Your Health
supply vents needs to be addressed prior to departure. This is because the oils contain 2-5% organophosphate toxins, and the fumes likely will contain carbon monoxide, both of which are beyond the cyclonic filtration system’s capabilities. And unfortunately, the only sensors currently onboard are the noses of every person on the aircraft. The risk of experiencing acute symptoms caused by breathing oil fumes is generally recognized, given the various irritant compounds such as formaldehyde and acrolein, plus carbon monoxide, in such fumes. Those symptoms initially include irritated eyes and sinuses, later followed by dizziness, disorientation, headache, fatigue, and slowed reflexes from extended exposure, none of which are conducive to conducting business or meeting family upon arrival. Additionally, a still-applicable 2004 Airworthiness Directive by the Federal Aviation Administration (FAA) described inflight exposure to oil fumes as an “unsafe condition,” because inhaling oil fumes can “impair the operational skills and abilities of pilots.”
obvious electrical source, your maintenance crew also should troubleshoot the bleed air system. Hydraulic fluid fumes also can contaminate the air supply. They too are toxic, but not as toxic, and their distinctive acrid odor makes them easier to recognize. Use Oxygen – If you have reason to believe you are breathing oil or hydraulic fumes while in flight, then you, your passengers, and flight crew should start breathing oxygen through the drop-down masks over each seat. If the pilots can’t isolate the source, they should land the aircraft as soon as safe and practicable. Prevent Rather Than Remediate – Before you fly, direct your aviation manager to be sure that your maintenance technician has defined and implemented procedures to prevent over-filling of the engine oil and other fluid reservoirs, and that he or she inspects aging parts more frequently than recommended. Those cabin smells often are a result of failing oil seals in the engine compressor module, allowing oil to leak into the compressor air path, thus contaminating the air bled into the
2 3
FILTERING THE AIR YOU BREATHE IN FLIGHT IS CHALLENGING, AS IT ENTERS THE AIRCRAFT THROUGH ENGINE INTAKES, MOVING AT SPEEDS UP TO 500 MPH These same flight safety concerns have been echoed by many accident investigators, in addition to industry safely organizations. Long-term neurological symptoms also have been documented globally after onboard exposure to oil fumes. Because the onset of symptoms – such as chronic deficits in memory, speech, concentration, and balance – typically can be delayed by one to two weeks post-exposure, you may not think to associate your failing memory with the foul smell in the cabin two weeks earlier. So what can you do to help protect you, your crew, and your passengers from the potentially serious impact of exposure to oil fumes onboard? The answer to this question is fourfold. If You Smell Something, Say Something – Pay close attention to your immediate environment. Learn what you can ignore and what you can’t. More often than not, oil in your cabin air supply will smell bad but will not be visible, so don’t wait for smoke or haze to get your attention. Oil fumes sometimes are described as smelling “oily”, but more typically they are described as the aforementioned “dirty socks,” “smelly feet,” “musty, moldy or foul odor,” or “wet dog.” If you smell something unusual and unpleasant on the ground, direct your crew to stop departure procedures and quickly ascertain the apparent source. Are the fumes coming from the air supply vents? If there’s either an obvious source in the cabin, or an obvious source outside the cabin (like a deicing operation), then it’s not likely to be oil. And while odor is subjective, it does provide some useful insights. Be aware that oil fumes can smell electrical, so if there’s no
1
w w w. B i z AvA d v i s o r. c o m
cabin. Evidence of such failure may be an oil film just behind the fan in the first stage compressor. Frequent examinations of the engine inlet will enable technicians to identify and replace bad seals before you experience problems with your cabin air. Use Your Influence – Reducing or avoiding oil fumes ultimately will depend upon as-yet-undeveloped engineering solutions – like sensors, filters, and less toxic oils. For example, sensors in the bleed air stream could provide an early warning of relevant contamination and enable pilots to more efficiently locate and isolate the source of the contaminants. Less toxic aviation oils already have been under production for years in France, but need market and regulatory pressure to find acceptance and regulatory approval in the U.S. and elsewhere. Promote the need for engineering solutions to ensure clean supply air with 10,000 other corporate and individual aircraft owners and operators in the National Business Aviation Association, (www.NBAA.org), a 68-year-old business aviation advocacy group based in Washington, D.C. Until manufacturers develop better filtration systems, or newer and less toxic lubricants and fluids, it’s up to you and your flight crew – and your noses – to monitor potentially hazardous cabin air pollution, and so, to fly safely. BAA
4
JUDITH ANDERSON is an Industrial Hygienist on staff with
a major flight attendant union (AFA-CWA, AFL-CIO) since 1999. She researches health issues in the aircraft cabin, including oil fumes, pesticides, contaminated employee uniforms, and radiation.
No v e m b e r/ D e c e m b e r 2 015 B U S I N E S S AV I AT I O N A DV I S O R 7
■ AIRCRAFT MAINTENANCE
For the Record Reliable Recordkeeping Reduces Risks BY GEORGE KLEROS Jet Support Services, Inc. / gkleros@jetsupport.com
W
8 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
Case of Incident or Accident – Whether inflight or on the ground, these records will be thoroughly examined by the aviation authority and the adjuster for the hull insurance carrier. ■■ Insurance – If there are any questionable or missing inspection entries, or if a critical life limit component is overdue, the insurer has the right to deny the claim as the aircraft is not considered airworthy at the time of the incident. ■■ Hourly Cost Maintenance Program – If your aircraft is covered under an engine or airframe extended warranty program, the contract will require that records be monitored carefully for accuracy, and that the aircraft is legally airworthy. ■■ Selling the Aircraft – Prior to sale, the flight log will be reviewed to determine accuracy of the time recorded, and to understand where the aircraft flies or frequently parks. A thorough inspection will check the weight and balance records and verify that equipment installed matches the records. The maintenance records are compared to the inspection requirements, and ADs and service bulletins for compliance. Any gaps are a red flag that the aircraft is poorly managed or that the seller may be hiding something. Your Director of Maintenance or Chief Pilot knows how important good recordkeeping is to the well-being of your aircraft operation, and will keep the records up-to-date, stored in a fireproof cabinet, and ready for your inspection whenever you ask. BAA ■■ In
GEORGE KLEROS , Senior VP, Strategic Event
Management, & Fleet Support at Jet Support Services, Inc., has 30+ years experience in aviation maintenance, management, and field support services for business jets. He serves on several industry association boards.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
hile your flight logs and aircraft maintenance records likely are in the capable hands of your flight crew, you should understand the importance of these records, and the risks you take – legal, financial, and safety – if they are incomplete, inaccurate, or missing. The Flight Log Most aircraft have a recording device embedded in an electronic control unit, or a simple electronic “Hobbs” meter, which measures the time the aircraft is in use, with engines running. However, the declared legal aircraft total time and landings are recorded in the flight log by the pilot, using the honor system. When the aircraft is delivered new with an airworthiness certificate, it receives a flight log, either paper or electronic. The pilot records every destination leg flown point to point, capturing hours and landing on each leg. Some flight logs record mechanical discrepancies and corrective maintenance actions as well. The Maintenance Records Every aircraft is built to certain requirements established by its country of origin’s governing aviation authority, such as the FAA or the European Aviation Safety Agency (EASA). Once all the requirements are met, the aviation authority issues a type certificate (TC) specifically for that model, which allows it to go into production. Every aircraft then must be built to the same blueprint and requirement to be in compliance with the TC. In order to maintain airworthiness, the aircraft must conform to the original TC at all times after production, proven via inspections, service checks and established life limits on critical safety of flight parts. The aircraft owner is responsible for maintaining and retaining these records until the next inspection or check, or until the part is replaced. The aviation authority also issues Airworthiness Directives (ADs or AD notes). The aircraft is not legally airworthy unless it complies with all ADs issued to it. These ADs are similar to service bulletins for cars, which notify the owner of a hazard or safety condition that must be monitored or corrected. Every inspection, time remaining or life-limited component, and AD must be recorded by time and date accomplished, and any recurring inspection requirement noted. Why are these records important? ■■ To Ensure Public Safety – FAA and EASA inspectors perform random periodic surveillance, by reviewing records for all aviation operations. Any violation, such as a missing inspection or an AD not complied with or overflown, can result in a heavy fine or even grounding of the aircraft.
Looking for a true private aircraft operating Lease with no residuaL vaLue risk?
An operating lease is a popular financing tool that can provide you with the benefits of a private aircraft without the traditional risks of aircraft ownership. There are several different options, but in each case you do not take ownership of the aircraft, but have the full use of it as if you did. Plus instead of a large down payment, you put down a more modest security deposit and return the aircraft at the end of the lease term to Global Jet Capital. You can choose to: · Enter into a sale and leaseback arrangement for your current aircraft · Identify a new or pre-owned aircraft for us to purchase · Assign your purchase contracts to us for your new, on-order aircraft
Balance Sheet Assets:
Loan
Liabilities:
Lease
Allocation of Capital
No Residual Value Risk
Predictable Costs
Off Balance Sheet
If you’re thinking about a true operating lease, give us a call at +1 (844) 436-8200. We’ll get you in the air.
globaljetcapital.com
LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT
Easily adjust to changing needs
■ AIRCRAFT SAFETY
Rise of the Machines Can UAS and Your Airplane Fly Together Safely? BY RICHARD H. HEIST, PH.D. Embry-Riddle Aeronautical University / richard.heist@erau.edu
T
10 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
■■ Commercial pilots are reporting sightings of nearby UAS
when on approach.
■■ As UAS devices become capable of operation at higher
altitudes (significantly greater than 400 ft.), without appropriate deterrents, the potential for damage to business aircraft will continue to increase. And that will put your flights at risk for a midair collision. So, what needs to be done? If adopted, the rules proposed by the FAA last February would be a significant improvement. But they may not be sufficiently stringent. For example, the National Agricultural Aviation Association (NAAA) strongly recommends the requirement of onboard tracking technology, such as ADS-B Out. (See “For the Safety of Our Skies,” BAA March/April 2015), strobe lighting, and high visibility contrast markings, to help with “see and avoid.” It also recommends increased operator preparedness, training, and requiring a secondary UAS observer. Even if incomplete, the FAA’s proposed rules need to be implemented. An open dialog between the FAA and those recommending safety improvements and additions to those rules is a good next step. Clear rules and procedures, consistently enforced, are key to minimizing the possibility of UAS/manned aviation accidents and maximizing the huge potential of those UAS. But until all users of UAS believe that violating these rules will have consequences, you, your crew, and your passengers remain at risk. You can lobby Congress now to encourage the FAA to meet its mandate sooner rather than later. BAA RICHARD H. HEIST is Senior VP for Academic Affairs
and Research at Embry-Riddle Aeronautical University. A professor of engineering, he has held senior leadership roles at the university, and holds a private pilot license.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
hey can be smaller than a child’s tricycle, or as large as a compact car; they can resemble a small four-bladed helicopter, or a windowless low-wing piston aircraft. “They” are remotely-piloted Unmanned Aircraft Systems (UAS), popularly known as “drones,” and they are creating a revolution that could have a dramatic impact on safety within the U.S. National Air Space (NAS) and worldwide. Estimates for drone operations during the next two decades sound like science fiction. In a 2013 U.S. Air Force report, public sector drone use was estimated at 55,000 by 2035, up from roughly 2,000 today, and jumping to a staggering 175,000 unmanned systems by 2055. The U.S. Department of Defense estimates it will be operating 18,000 drones by 2035, up from 8,000 today, with more than half of all military aircraft flying with UAS technology. The U.S. commercial and public sectors are awaiting new rules for their commercial operations. In 2012, Congress mandated the Federal Aviation Administration (FAA) to develop a plan to integrate civil drones safely into U.S. airspace and to establish operational and certification requirements for public use by 2015. It looks like that plan is still years away. While the U.S. leads the world in drone technology development, other countries have granted commercial permits to more than 1,000 drone operators for safety inspections of private infrastructure such as railroad tracks, commercial agriculture, aerial surveying, and photography. There is growing pressure in the U.S. to expand the use of UAS, so as to take advantage of the new technology. Current rules allow public entities to apply for an FAA Certificate of Authorization (COA) to operate UAS, and organizations can apply for an exemption to allow commercial use. While model aircraft operators do not require a COA or the exemption, they must satisfy all existing regulations, and be operated only for recreational use. With increasing usage comes increasing chances of accidents, as well as other problems: ■■ The number of COAs and special exemptions continues to increase, but so does the number of unregistered users. ■■ In the five-year period beginning in the fall of 2009, more than 270 accidents and incidents were reported, and were due primarily to lost communication and lost command-and-control links. Fortunately, most did not involve manned aircraft. ■■ But several recent incidents in which manned light aircraft and helicopters were struck by, or had to take evasive action from, a UAS were reported.
MAKING IT SIMPLE
STRIVING TO MAKE THE ENTIRE CABIN DESIGN PROCESS SIMPLE, EFFICIENT, AND TO THE HIGHEST STANDARD. Whether refurbishing an existing cabin or designing a new aircraft interior, our expert team will tailor your aircraft completion to your unique style and operational requirements, and then follow up with detailed project management. Freestream has completed the final delivery, interior and exterior design and full project oversight of over 12 G650’s. Our experience in delivering this aircraft type has enabled our clients to have an easy delivery experience on an aircraft new to their fleet.
SARAH A. MESPELT Vice President of Design T (1) 912.433.5933 sarah@freestream.com
www.freestream.com/cabin-designs
■ FLIGHT OPERATIONS
Take Me to the Pilot Know Your Options When Hiring Supplemental Crew BY GEORGE KYTHREOTIS Jet Professionals / george.kythreotis@jet-professionals.com
Y
12 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
that pilot should meet three important criteria: ■■ Technical skills – Type ratings, hours, and current medical needed to satisfy both your own and your insurance company’s requirement that your aircraft will be flown safely. ■■ Suitability – Personality and “culture fit” with your permanent crew. You want your entire flight crew to get along, so look for skill and reliability, plus compatibility. ■■ Likeability – Your own “gut reaction” to the candidate, as well as the reaction of your frequent passengers: your executives and perhaps your family. A brief personal interview often will give you more useful information than a battery of behavioral tests. Whichever option you choose, either you, your HR department, or a reputable staffing company will: ■■ Identify, screen, and interview candidates. ■■ Review their documents – You’ll want to see successful completion at an FAA authorized training facility, validated training records, total flight time in a specific aircraft type (normally 200+ hours’ time in a type of airframe), medical certificates, applicable licenses, and FAA forms. ■■ Oversee behavioral assessments, compliance checks, applicant scheduling, administrative management, and post-hiring supervision. Hiring a contract pilot who is properly trained and vetted, and who meshes well with you, your permanent crew, and your company culture, means that you have an asset on board, not a liability. Protect yourself, your crew, your passengers, and your aircraft by making the proper choice. BAA GEORGE K Y THREOTIS is VP and General Manager of Jet
Professionals, a wholly owned subsidiary of Jet Aviation, a General Dynamics company. Before joining the company in 2000, he held multiple senior positions in human resources and operations.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
our aircraft is always on call, ready to fly you and your executives any time, any place. You likely have a permanent crew of two to five pilots at the ready. And even though most of your trips may be scheduled, a last-minute opportunity or change in plans sometimes requires spur-of-the-moment travel, and your pilots may not be sufficiently rested. (See “Good Nights Equal Good Flights”, BAA, April/May 2015). Plus, mandated twice-yearly, two-week recurrent training, sick time, short- or long-term disability, maternity/paternity leave, or vacation time may leave you with a pilot shortage. So for 24/7/365 coverage, you’ll want a bank of “on-call” substitute pilots, trained and ready to serve you at a moment’s notice. What are your options to find such qualified, experienced contract pilots, better known as “supplemental crew”? Whether you run an independent Part 91 flight department, or are a client of a large or smaller regional aviation management company, you have two options: hiring an independent contract pilot, or hiring a contract pilot who is an employee of an aviation staffing company. There are both similarities and differences between them, and benefits and drawbacks to each: ■■ Availability – With either option, the arrangement is “at will” by both parties: that is, should you not be satisfied, you simply don’t engage the pilot again. But the opposite also is true: an independent may not always be available; however, the staffing company will provide another pilot. ■■ Insurance coverage – Your insurance company may not offer coverage for – or may impose an extra premium to cover – an independent contractor, while the staffing company provides insurance coverage. ■■ Liability – While you always should consult your own attorney, generally, you may not be liable for any negligence caused by the independent contractor. Conversely, you would be responsible for injuries to the independent incurred on your aircraft or in your office, whereas an employee of a staffing company would be covered by its liability and workers’ compensation insurance. ■■ Taxes and benefits – When you hire a temporary contract pilot, you are not required to withhold taxes, pay Social Security, or any benefits: these will be paid by the individual (if independent), or by the staffing company. How should you select a qualified pilot? You can find a contract pilot either through a reputable aviation staffing company (the National Business Aviation Association has such a list), or through a personal referral. While either may be a good option,
DEDICATED TO HELPING BUSINESS ACHIEVE ITS HIGHEST GOALS.
C R O S S I N G T H E AT L A N T I C W A S E A S Y
C O M PA R E D T O N AV I G AT I N G C O N G R E S S . When “Lucky” Lindy made his transatlantic crossing, he didn’t have to deal with an ocean of congressional wrangling (maybe that’s why they called him “Lucky”). The prevailing winds blew in his favor. But today, those winds have changed. Flying for business is more scrutinized than ever. Luckily, there’s NBAA. We’ve made a home on the Hill, so that our members can make a living in the sky. Because business aviation enables economic growth. And at NBAA, we enable business aviation.
Join us at nbaa.org/join.
■ AIRCRAFT SAFETY
When You Can’t Just Fly Home In An Emergency, You Need a Plan ■■ Learn first aid and CPR. Be sure your flight crew is trained in
Emergency Black Bag /csidford@emergencyblackbag.com
F
lying on your own aircraft saves time, and provides optimal security and flexibility. When plans change or go awry, your aircraft stands ready to transport you to that next destination, or back home. But if illness or injury strikes, heading out immediately often is not your safest option. What can you do now to recognize, prevent, and prepare for those contingencies? Before You Depart: ■■ Secure evacuation insurance. With aircraft standing by, many owners assume they don’t need this coverage. But using your own aircraft may not be the safest option, as explained below. ■■ Get a complete health evaluation. In addition to your routine annual physical by your primary doctor, if you are traveling to an exotic destination, it’s advisable to get an evaluation well in advance of your trip by a travel medicine specialist. ■■ Travel with a short and accurate summary of your medical records. This should include any chronic conditions or allergies, as well as the generic names of your medications. ■■ Get immunized. The U.S. Centers for Disease Control and Prevention (CDC) offers general guidelines for immunizations based on your destination and planned activities. Some immunizations require six weeks between doses, so plan ahead. ■■ Engage expert medical help to identify the key health risks at your destination, such as infectious diseases, water quality, or dangerous animals and insects. Expanding on CDC guidelines, your specific immunizations and prophylactic medications will vary, depending on your age, medical conditions, and factors such as the time of year, altitude, and even your choice of hotel (an infectious disease might be more prevalent in one area of a city than another). ■■ Pack medications. Bring all the medicines you will need during your trip, including extra in case of travel delays. In some locales, both prescription and over-the-counter medicines may be counterfeit or substandard. In others, your routine medications may be illegal (see “Getting In the Zone: Managing Medications When You Travel,” BAA, April 2014).
14 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
emergency procedures. Unfortunately, such training may be absent even in the world’s best hotels and resorts. Consider if an AED makes sense for your aircraft. ■■ Bring a first aid kit, with both basic and destination-specific supplies, and know how to use them. ■■ Locate the nearest competent medical facilities, specifically emergency care, and a comprehensive trauma center. ■■ Unless a member of your crew not only speaks the local language, but is expert in medical translation, look into hiring such a specialist. If You Are Injured or Feel Unwell: ■■ Seek an expert medical evaluation before you board. That “minor stomach bug” you picked up could hit your pilot in four hours – or it could be the first sign of something serious. That broken rib could cause a punctured lung – a potentially fatal injury, especially at altitude. ■■ The best solution is not always to “get back home” at any cost. Many parts of the world offer superb care, which might be closer than you think. ■■ Call the local medical facility before you arrive. Ideally, this call will be made by your travel medicine specialist, who can brief the staff on what you might need. ■■ Use the safest mode of travel. Your aircraft likely is not equipped to offer appropriate medical care by an accompanying doctor and/or nurse, nor is it able to transport you safely in a medical crisis. Unless you own an older model Learjet with clamshell doors, a stretcher cannot even make the turn into the cabin without tipping the patient to one side! Needing a stretcher is one good indication that alternate emergency evacuation transport is required. Your aircraft keeps you on schedule and ahead of the competition. Planning ahead helps ensure that you stay in shape to enjoy those advantages. BAA CHRISTOPHER SIDFORD, MD , founder of Black Bag
Global Emergency Medicine, is a former U.S. Navy officer who has taught and practiced emergency medicine for 20+ years, from Boston and San Diego to the Arctic Circle.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
BY CHRISTOPHER SIDFORD, MD
How Is Your Aircraft’s Maintenance Condition Affecting Its Value? The Aircraft Graybook Asset Quality Manual Try the new, web-based maintenance equity guide FREE for a limited time
assetinsightinc.com/tools/graybook
Find Out – Using Asset Insight’s Web-Based, Cost-Effective Services The Only “Credit Score” for Your Aircraft’s Asset Value This simple-to-understand, industry standard, grading scale measures the single greatest factor affecting your aircraft’s asset value – its maintenance condition. The better your aircraft’s maintenance status, the higher its Asset Insight Index.
Avoid surprises – learn: ▲ The value of your aircraft’s Maintenance Equity ▲ How your aircraft’s Maintenance Equity compares to the fleet average ▲ The value of your aircraft’s Hourly Cost Maintenance Program coverage ▲ What aircraft Major Sectors are adding to, or detracting from, its value ▲ How to justify your aircraft’s value versus similar assets listed “for sale” ▲ Your aircraft’s scheduled maintenance expense over the next 60 months ▲ When a low aircraft purchase price may not represent good value
Call (540) 905-4555 info@assetinsightinc.com Manage your aircraft as you do your other Financial Assets.
www.assetinsightinc.com
■ INDUSTRY UPDATE
Taxation With Representation NBAA Is Working for You BY SCOTT O’BRIEN National Business Aviation Association / sobrien@nbaa.org
F
16 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
capital assets to realize the depreciation benefits of an eligible asset more quickly. Bonus depreciation delivers long-term stimulus to industries like general aviation, which provides high-skill, high-paying jobs for more than 1.2 million Americans, and generates $150 billion in economic activity annually in the U.S. Current legislation allowing 50 percent bonus depreciation expired on Jan. 1, 2015, and bills have been introduced in the House and Senate to either make 50 percent bonus depreciation permanent or extend it for another two years. NBAA strongly supports both efforts, and recently joined more than 2,000 organizations in urging Congress to take action on bonus depreciation and other expiring tax extenders. Providing Educational Resources to Members Through seminars and website resources, NBAA works to provide its members with the latest information on tax policy issues. For example, the State Aviation Tax Report details the aviationspecific tax rules and regulations in each of the 50 states. The report is updated by NBAA’s Tax Committee on a yearly basis. On Nov. 15 and 16 in Las Vegas, NBAA will host its Tax, Regulatory and Risk Management Conference, which provides two days of education focused on how effective tax and regulatory planning drives successful aircraft transactions and leads to efficient business aircraft operations. The association is proud to have Business Aviation Advisor as its media partner for this event. BAA SCOT T O’BRIEN , Senior Manager, Finance & Tax Policy,
NBAA, manages the organization’s interactions with regulatory agencies, including the IRS, Treasury Dept., and SEC. The staff liaison to NBAA’s Tax Committee, he is a licensed pilot.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
rom the FAA to the IRS, business aviation is a highly regulated industry. Aircraft owners constantly must be on the lookout for new rules and regulations that can have an impact on your carefully planned ownership and operating structures. Understanding federal and state tax policies, and being prepared for potential audits should be a critical part of your operating strategy. The National Business Aviation Association (NBAA), based in Washington, D.C., represents the more than 10,000 companies and individuals who rely on general aviation aircraft to help make their businesses more efficient, productive, and successful, and to advocate for fair and equitable tax treatment for the industry. Here are three ways NBAA is working for you: Seeking Regulatory Solutions to Tax Challenges Through a Tax Committee made up of 30 highly regarded aviation attorneys, CPAs, and advisors, NBAA works to identify tax challenges for business aviation. For example, the association succeeded in securing inclusion of two issues on the IRS and Treasury Department’s Priority Guidance Plan, which identifies and prioritizes federal tax policies. The first item urges the IRS and Treasury to develop guidance on the application of federal excise taxes to aircraft management fees, which continues to be a complex and confusing issue for the industry. The second requests guidance to address the “leasing company trap,” which unfairly penalizes aircraft owners who lease an aircraft to related parties for legitimate business reasons. NBAA regularly meets with these agencies on both matters, and progress is being made toward addressing these concerns. Advancing Tax Policies on Capitol Hill In addition to advancing positive tax policies at the regulatory level, the association is actively engaged on Capitol Hill. Recently, NBAA secured introduction of legislation that makes clear that management services provided to assist aircraft owners in the operation of their aircraft are not subject to the ticket tax imposed on commercial air transportation. Introduced by Rep. Pat Tiberi (R-12-OH), House Bill 3608 would exempt from the ticket tax component of federal excise tax, any amounts paid by the aircraft owner for maintenance and support of his/her aircraft by a management services company, such as for crew scheduling and dispatch, flight planning services, insurance, and aircraft maintenance. The exemption is limited to non-commercial flights by the aircraft owner on his/her aircraft or an aircraft obtained through a qualifying lease. NBAA also continues to advocate for the extension of bonus depreciation, which allows aircraft owners and owners of other
ARGUS Ratings The Most Recognized and Requested Symbol of Quality
ARGUS Rated Charter Operators are the most trusted and respected in the world. ARGUS Rated Operators are the only choice for the most selective buyers of charter. ARGUS Ratings are private aviation’s only truly independent, third-party source for trusted operator due diligence. Demand the best, demand ARGUS Rated Charter Operators.
FLY CONFIDENTLY WWW.ARGUS.AERO
■ WASHINGTON REPORT
Disrupting ATC Modernization The Inability of Congress to Adopt Long-term FAA Reauthorization Is a Disservice to Everyone BY DAVID COLLOGAN ongress waited until Sept. 29 – one day before the end of the fiscal year – before finally passing legislation to keep the Federal Aviation Administration operating. Passage of the Airport and Airway Extension Act of 2015 means the agency is good to go…until March 31, 2016. The “hope” is that six months will provide sufficient time for congressional leaders to finally reach agreement on a long-term, multi-year FAA reauthorization bill. But no one in the aviation community is willing to bet that will actually happen by the end of March. That’s because Congress has shown an appalling inability in recent years to accomplish much of anything in a timely manner. The last time a multi-year FAA reauthorization measure was pending before Congress, our national legislature responded with an epic fail. Legislators fiddled and futzed for two years, passing a series of 23 – yes, 23 – short-term extensions before finally enacting the FAA Modernization & Reform Act of 2012. And here we are again, just three years later, mired in the same process. Daniel B. Fisher, vice president of legislative affairs for the Aeronautical Repair Station Association, put the latest shortterm extension into sharp perspective. “This extension does little to change the situation facing our nation’s aviation community. We can turn back the clock as often as Congress wants, but time will continue to run out. Until we have a responsible, long-term bill that adequately funds the FAA and guarantees the competitiveness of aviation companies, we’re all running out of time. Further delay is unacceptable and the men and women who work every day to ensure aviation safety deserve better than endless patches and punting that has characterized prior reauthorizations.” FAA managers, and a dedicated cadre of air traffic controllers, found ways to keep air traffic flowing safely despite uncertainty over long-term agency funding, even during a partial government shutdown caused by the budget sequestration battle a few years ago. But those uncertainties and funding delays have been terribly disruptive of FAA’s top long-term priority, implementation of the NextGen air traffic control modernization program. By Jan. 1, 2020 aircraft flying in controlled airspace are supposed to be equipped with ADS-B Out technology. ADS-B Out will broadcast an aircraft’s position to other aircraft and the Automatic Dependent Surveillance-Broadcast network on the ground. Some air carriers, and a few early adapters in business and general aviation have installed that technology, eager to take advantage of the safety benefits and preferred routing/reduced ATC 18 B U S I N E S S AV I AT I O N A DV I S O R No v e m b e r/ D e c e m b e r 2 015
delays available for properly equipped aircraft. But the approximately 10,000 aircraft that had ADS-B installed by early 2015 represent only a small fraction of the 100,000 to 160,000 aircraft that FAA estimates will need to have that equipment. Congress should be looking for ways to accelerate ADS-B equipage, not spurring speculation about whether that 1/1/20 deadline might slip. A principal reason an FAA reauthorization bill has not passed is that Rep. Bill Shuster (R-PA), chairman of the House Transportation & Infrastructure Committee, bit off way too much. Instead of focusing on what is doable, Shuster wants to create a private corporation to operate the nation’s ATC system. His plan also would establish an entirely new system of user fees to fund it, abandoning the ticket and fuel taxes that have reliably and fairly generated sufficient revenue for more than four decades. Shuster’s over-reaching approach encountered strong opposition from the business aviation community and other segments of the industry, resulting in rancor and delay instead of results. The fractious and fragmented 114th Congress can’t do the routine stuff, let alone agree on such radical changes. A straightforward, multi-year reauthorization bill that maintains the current structure and governance of FAA, along with the existing tax mechanisms to fund it is what’s needed… now! BAA DAVID COLLOGAN has covered aviation in Washington, DC
for more than four decades. This award-wining journalist is known as one of the most knowledgeable, balanced, wary, and trusted journalists in the aviation community.
w w w. B i z AvA d v i s o r. c o m
ISTOCKPHOTO
C
dlcollogan@gmail.com
D
RE A
OU TY
O S UP P O R YT
A
CTIONS SPEAK
Even in the most severe conditions, the mission of Gulfstream’s Field and Airborne Support Teams (FAST) remains the same: to return your aircraft to service as quickly as possible. Our continued commitment to service ensures that when needed,
ANYTIME. ANYWHERE.
Consider it Done™
Gulfstream Product Support is there. Our actions earn the trust and respect of our customers year after year. We’ll be there for you. Anytime. Anywhere.
™
DEREK ZIMMERMAN | +1 912 395 0856 | derek.zimmerman@gulfstream.com | GULFSTREAM.COM/FAST
[ discover ]
Finally, one clear source to fuel all your aviation business needs. Aviation Business Index (ABI) is a worldwide portal for aviation sales information. Easily find: • jets, turboprops, piston aircraft and helicopters for sale worldwide • market reports and lists • aircraft owners/operators, dealers/brokers and FBOs • aircraft financiers and insurance providers • aviation industry news and events Go to aviationbusinessindex.com to find accurate, real-time, updated information on aircraft for sale worldwide.
The World Leader in Aviation Market Intelligence | 800.553.8638 | +1.315.797.4420 | jetnet.com