AirportBusiness Blogs

… the aviation sector gets a reprieve. The alphabet groups in Washington breathed a collective sigh of relief with the release of the proposed Obama budget, expecting a renewed user fee battle following the President’s suggestion a year ago that new fees would be in the offing. Even the response of the Air Transport Association, which has led the call for new fees to get business aviation to pay more, was fairly muted in its response. ATA’s primary criticism was regarding the proposed increase in the security fee paid by passengers.

Some selected excerpts from the trade groups …

NBAA president Ed Bolen: "The proposal introduced by the White House today stands in clear contrast to language we saw last year. Our community, which has been so energized and mobilized by the user fee threat, should be heartened by this news.”

NATA president Jim Coyne: “While NATA is pleased with the Obama administration’s choice to omit a user fee proposal in the FY 11 budget, the industry must remain vigilant to ensure that any future user fee proposals are unsuccessful."

AOPA president Craig Fuller: “Today’s budget proposal makes it evident that our voices were heard. Someone in the Obama Administration decided to hit ‘pause’ when they came to the aviation user fee option.”

ATA president James C. May: “While we are pleased that the federal government is supporting significantly increased federal funding for Advanced Information Technology machines and Federal Air Marshals, we are disappointed that they again proposed increasing passenger security fees by an additional $7 billion from 2012 through 2015."

AAAE president Chip Barclay: “Airport executives remain committed to seeing the enactment of an increase in the federal cap on local Passenger Facility Charges to $7.50 with indexing for construction cost inflation along with a permanent extension of relief from the AMT penalty for airport bonds. Taken together, these measures would improve our infrastructure, stimulate the economy, and create good-paying jobs.”

ACI-NA president Greg Principato: "Since NextGen begins and ends at the airport, we are glad to see that the President has included $1.1 billion to help speed the development and implementation of a modernized air traffic control system. Airports look forward to working with the Administration and FAA on providing the ground infrastructure necessary to make NextGen a reality."

One thing that the industry has become united on in recent years is support for the NextGen air traffic control modernization program – from installing the critical infrastructure to calling for government support for equipage of aircraft. For the airport community, top issues that remain include the PFC increase; AMT relief; and continued funding for the Essential Air Service program. A concern in the Obama budget is that it “zeroed out” funding for the Small Community Air Service Development program, which assists airports in attracting new air service – an ongoing critical issue for many communities.

With the user fee debate (temporarily?) behind us, perhaps the legislators on Capitol Hill can finally get to passing long-term FAA/industry reauthorization. But then, that could be just too much to ask.

Thanks for reading. jfi

Like many of you, I was interested with the few details available when the Ethiopian Airline aircraft crashed into the Mediterranean on January 25. Other than the fact that all 90 on board were presumed dead, very little information followed, so I didn’t think about it much more. The accident was, after all, thousands of miles away.

Then, on the following Saturday, we got a telephone call from son Brett, our youngest, and all of a sudden the accident became quite interesting. Brett is a side-scan sonar operator/technician on a recovery vessel and he calls from places like England, Gibraltar, and Nova Scotia. All of his calls are important to us, but this one was even more so.

“By the way,” he asked, “do you know about the Ethiopian aircraft that crashed into the Mediterranean? We’re looking for it.”

Well, I’ll be danged.

Brett was calling from Beirut, Lebanon. The airplane crashed just off the Lebanese coast, and it seems the Lebanese government contacted the company Brett works for soon after the crash. Their ship is now actively searching for the aircraft with the side-scan sonar that Brett (and others) operates. All of a sudden this accident from thousands of miles away became much closer to home—kind of in the family, so to speak.

Oh, I do hope they find it.

I would fill you in on all the details, but I don’t know the details and may never know them—but if I do, you can read about it in a later Blog.

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… much of the discussion centers on economic recovery and pending security regulations for business aviation. Some 100-plus leaders of fixed base operations and others were on hand for the reformulated meeting hosted by the National Air Transportation Association. The Leadership Conference is now being held in tandem with the NBAA Schedulers & Dispatchers Conference, being held at the convention center here the rest of the week.

Richard Aboulafia, VP of analysis for the Teal Group Corporation and a favorite on the prognostication circuit, led off the NATA event saying that “I feel very good about saying the worst is over. We’ve got stabilization. The next step is recovery; then growth.” During the past year, according to Aboulafia, business aviation in North America has seen a 30.5 percent reduction in utilization, with the most notable drops being in the mid-size and smaller corporate aircraft segments.

Aboulafia also says that the used aircraft segment has also made the turn from its downward spiral and “things have stabilized.” Yet, there is still a glut of sorts in the marketplace, which will in turn impact new aircraft deliveries for some time.

He is optimistic, he says, about business aviation long term, and forecasts that some 10,117 new aircraft will be delivered over the next ten years, at a value of some $168.2 billion. That said, Aboulafia sees a sluggish 2010. Looking forward he says the key barometer for business aviation is corporate profits, and he recommends tracking the Bureau of Economic Analysis (www.bea.gov) for those numbers.

On the security front, one of the original leaders of the Transportation Security Administration – Asa Hutchinson – was on hand and expressed concern that the agency has been without a leader for the past year. A central issue regarding that appointment has been the unionization of TSA employees, which he opposes. Comments Hutchinson, “I’m opposed to the unionization of TSA because it’s a security organization.” He fears that TSA could find itself having to negotiate with union bosses to transfer employees or make other moves.

Regarding business aviation, Hutchinson says that there is a danger of TSA shifting its strategy and treating bizav like the airlines. It is not the same threat, according to Hutchinson, who comments that TSA should “analyze the risks, first and foremost” before imposing new security requirements on the industry. He does point out that TSA’s original Large Aircraft Security Program proposal was met with such industry opposition that the agency pulled it for a rethink. In all more than 7,000 industry comments were sent to TSA, which got the agency’s attention. “Your voice was heard,” he says.

Thanks for reading. jfi

… one can hope that the focus is on balance – that is, balancing the need for safe transport versus strangling an ailing industry with onerous regulations.

The U.S. Senate today begins four separate hearings into the Christmas Day attempted bombing of a Northwest airliner in Detroit, how intelligence failed to “connect the dots”, and other issues related to aviation security. Those expected to testify include the heads of DHS, the FBI, and the director of the National Counterterrorism Center (NCTC). As The Wall Street Journal reports, the NCTC was created after 9/11 to provide a central clearinghouse for intelligence among the various U.S. agencies. This has become the focal point of the discussion related to the Christmas incident.

For years my favorite word when discussing Congress and Washington was ‘reasonableness’ … getting those that regulate and legislate to be reasonable. Over the past several years that concept has been tossed out the window. ‘Balance’ may be a more reasonable expectation.

The concept of balance occurred to me during a recent visit to the Denton (TX) Airport north of Ft. Worth. The City of Denton has been pushing hard over the past six years to turn its general aviation airport into a dynamo of economic development, and will continue that push over the next five years. Quentin Hix, the Denton airport manager, sees the need for balance and is overseeing the installation of perimeter fencing and other security equipment to make the airport more secure for his tenants.

Explains Hix, “We along with other general aviation airports are faced with the challenge of increased federal regulation. TSA is focusing on security at general aviation airports. That’s going to be a huge challenge to us.

“It’s one of those things where the more you jump up and down and say ‘Hey, here we are’ the more you’re recognized as a place that could become a poster child for new regulations.”

Is the new perimeter security at Denton intended to head TSA off at the pass? Answers Hix, “It’s to try and get ahead of the curve, yes. But it’s more than trying to get ahead of anticipated regulations; security is one of our major missions of service here. Look around this airport and you can see hundreds of millions of dollars of investment. Part of what we feel obligated to provide is security; safety of operations; and unprecedented service to our general aviation users, be they individual pilots or corporate airplanes.”

At Denton and scores of airports across the U.S., officials are seeking to find the balance between protecting assets and people versus stifling commerce. People employed in aviation understand the need for security … but there’s pretty much universal agreement that better leadership from on high is needed.

An aside to today’s Congressional hearings comes in the form of Errol Southers’ announcement that he is withdrawing his nomination to head up TSA. The reason his nomination has been held up for months is because of his apparent support for unionizing TSA employees. So, while all the talk on Capitol Hill is about security, the nation’s safety comes down to a debate about unions. Something wrong here.

Attention Congress: Recognizing that reasonableness is beyond your comprehension, at least give some consideration to balance.

Thanks for reading. jfi

For once, however, the homeowners and the airport seem to agree.

The FAA proposes to lower the bottom altitude of Class B airspace in the area to straighten the approach and departure of aircraft operating in/out of Atlanta’s Hartsfield-Jackson Airport (ATL). That would lower the bottom of Class B to 5,000 feet over PDK, which is one of the busiest general aviation airports in the Southeast. Many aircraft operating at PDK are jets that operate efficiently only at high altitudes and need to get up there fast. True, they should be cleared quickly to a higher altitude, but the fear is that the clearance will come slower than currently. Departing aircraft could be held down longer and landing aircraft pushed down earlier. And, any way you look at it, the plan will compress more aircraft (many of them VFR) into less airspace and that does have a bearing on safety. Efficiency and safety concern Pat Epps, Epps Aviation, PDK, as does anything that makes life more difficult for his customers. Pat would like to see the proposed altitude changes stopped.

Those with homes in the area would like it stopped too, but for different reasons. They worry about increased pollution, noise, and, of course, safety.

The push for keeping the status quo is gaining, it seems. John Heneghan, a member of the Dunwoody, GA, City Council, publishes reports in his popular Blog. WSBTV has covered the issue in some detail. Perhaps most importantly, AOPA—the most active and effective defender of general aviation airports—is actively involved.

This should be interesting!

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… is the target of a new study being directed by professor James Smith of the American Public University System. Dr. Smith, who is also president of the airport/disaster consulting firm Smith-Woolwine Associates (www.swith-woolwine.com) , on Tuesday addressed a conference call hosted by the Airports Committee of the National Air Transportation Association.

As many in industry know, general aviation airports often play central roles in disaster response. Getting supplies and response personnel to an affected region can frequently be accomplished more directly by accessing a GA facility, rather than by using a larger commercial airport which may be much further away from where the aid is needed.

Mike France, director of regulatory affairs for NATA, says the association “is very pleased to be assisting Dr. Smith in his research into the role of general aviation airports during disasters. This type of research helps to quantify what those of us in the industry have known for a long time, that general aviation airports provide many benefits both economically and logistically to their surrounding communities.

“It’s very important for members of communities surrounding GA airports to understand the value that their airport can play in a disaster situation”

To accomplish his task, Dr. Smith plans to survey some 500 GA airports by March 1 while also conducting ten site visits to airports. Regarding the latter, he is looking for airport recommendations, using the following criteria …

… an airport that has had a successful or unsuccessful experience with a disaster mission;
… airports that want to get into the disaster response arena and are curious about what it will take; and
… airports that have encountered barriers to developing a disaster response regimen.

During a phone conversation following the NATA meeting, Dr. Smith asked for my thoughts on some airports that might be good for site visits, particularly in the West and Southwest. Thinking first from an infrastructure perspective, my recommendations were Alliance Airport north of Ft. Worth; Double Eagle Airport west of Albuquerque; and, Reid-Hillview Airport in San Jose.

Now he’d like to hear from the folks who are actually operating GA airports or tenant operations. He can be reached at (540) 763-3068 (office); (540) 239-1206 (cell); or jfsmith@swva.net.

Thanks for reading. jfi

I can put up with taking my shoes off and full body scans (although my scan would not be a thing of beauty). I will stick to the rules and not joke, will stand in the lines and try not to cause problems. I’ll keep my seat for the last hour of a flight, and will not put anything on top of my laptop or in my lap.

On the other hand…

Every time there is another scare, we demand more from passengers. It seems the customer—the passenger—catches the brunt of the problems. Still, I could willingly handle that if only the guvmint would…

Study the masters of security, the Israelis. Their record is near-perfect since the 1960s, they keep traffic moving and react quickly to a crisis without closing airports. Why would we not study their methods?

American passengers are put through many inconveniences and hassles, yet our guvmint seems more terrified that we might hurt someone’s feelings than that our system protects and works. I am personally not willing to continue down that road, but would like to know for sure that we are working like hell to study and adopt everything the Israelis do to make flight more secure AND to reduce the hassle factor for our passengers.

You can get online many of the steps the Israelis take, and I urge you to do so. For one small example, go to: http://www.cnn.com/2010/OPINION/01/11/yeffet.air.security.israel/index.html.

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… and trade association reps encourage industry firms to provide input on a recent notice of proposed rulemaking (NPRM). On Tuesday, the National Air Transportation Association and the Aircraft Electronics Association co-hosted a free webinar to discuss TSA’s NPRM, which would establish a new Part 1554 titled “Aircraft Repair Station Security” that would require any repair station, foreign or domestic, certificated under 14 CFR Part 145 to carry out a standard security program (SSP). According to NATA, the SSP would be required to describe:

• Access controls for the facility, aircraft, and/or aircraft components;
• Measures for identifying individuals with access to the facility, aircraft, and/or aircraft components;
• Procedures for challenging unauthorized individuals;
• Security awareness training for employees;
• The name of the facility’s designated security coordinator;
• A contingency plan; and 
• The means to verify employee background information.

TSA wants input, they say. According to AEA vice president Ric Peri, TSA “is recognizing” the diversity of the repair station segment. Is the company on-airport or off-airport? Is it a full-service repair station or a specialist in component services, a la an avionics shop? In light of that diversity, NATA vice president Eric Byer cautions against implementing a “one size fits all” approach. He adds that TSA is seeking input from industry on the applicability of the reg on companies located at airports that only handle aircraft under 12,000 pounds – that is, should they be exempt?

Another concern is that the NPRM will allow TSA to petition FAA to revoke/suspend an operating certificate, should it believe a company is a security threat. NATA’s Mike France says the association is pushing for “a layered appeals process”, one in which TSA isn’t the “sole decisionmaker”.

For more information, contact www.nata.aero or www.aea.aero.

Thanks for reading. jfi

… says a friend in response to last week’s attempted terrorist attack on a Northwest airliner at DTW. The conversation was about what an average traveler – in this case, someone who works in the banking industry who flew to Las Vegas recently – thinks about heightened security measures.

She doesn’t know what should be done, nor should she. But she wants to feel secure. Machines that do full body scans? Not a problem for her. The ACLU has a problem, but then they may not be flying that day.

I asked my senior-in-college (who has flown a bit) for his reaction, which was: “I don’t think anybody cares about it anymore, and ultimately it won’t change anything. We’ll ban the shampoo bottles, and then later on we’ll be able to have shampoo bottles.”  He, too, is right.

TSA right now is trying to position itself as the organization that is unpredictable, which gives them an advantage. Possibly right, to some degree. Personally, I don’t buy it. Sorry, I still haven’t gotten over the fact that airline pilots overflew MSP and the U.S. military wasn’t alerted until almost an hour later. (It took the general media a couple of days to figure out that angle.) A month ago, the debate around airport screening was about getting rid of all those all-intrusive body scanning machines; today, the clamor is for more of them – and fast.

There’s another problem here. It’s the U.S. Congress. They passed the Aviation and Transportation Security Act in 2001, and then didn’t fund their directives. Then there’s the TSA, which continually looks like an organization trying to find its true direction. It doesn’t help that Congress and this Administration can’t seem to figure out how to find a new leader for TSA.

It’s about commitment.

World War II started for the U.S. on December 7, 1941. It ended four years later. World War I, or the “War to end all wars”, lasted from 1914 to 1918.  Not the same wars … though much more dedicated was the response. Thing about those wars was, most of the country was pretty much on board with who was the evil party and what was the objective. Problem today is, half our country doesn’t believe we’re in a war … that, and the fact that we have a U.S. President who seems to prefer to posture more as a high school counselor than a wartime President.

President Obama says he wants to convene a group to discuss/analyze what might be done. Great idea. However, check the history of aviation study groups in Washington and their lists of recommendations and you’ll find that little is often done.

Like my friend said, they need to do something.

Thanks for reading. jfi

The day before Christmas Eve, Hendersonville (NC) Tribune newspaper ran a story that will reach the heart of everyone who loves and values general aviation.

The story started when Tyler Kilpatrick, a University of North Carolina-Asheville student, went to Cuernavaca, Mexico, about 53 miles south of Mexico City on a student exchange program. Tyler loved Cuernavaca and her host family, but she was brutally stabbed by a taxi driver, suffering lung punctures and serious injuries to other major organs. Her father came down to help his daughter through several weeks of critical hospital care.

Now we switch to one Mike Summey of Asheville. Mike is a story in and of himself. I wrote part of his story myself and it was published earlier this year in AOPA Pilot magazine. Mike is a self-made multimillionaire who flies a recently rebuilt—new engines, avionics and more—King Air.

After Tyler’s plight became public, Mike’s 27 year old son—a pilot himself—said, “Dad, we could bring them home for Christmas.” Mike quickly agreed and damned if they didn’t do it!

The next few days involved whirlwind negotiations between Mike and two governments. Eventually, with the help of Mike’s senator, and with special cooperation from Mexico, and trip charts donated by Jeppesen, all the arrangements were made. Mike and Jason even took a North Carolina physician, Dr. Robert Wells, with them after Wells first discussed Tyler’s condition with the Mexican physicians.

Mike, Jason, and Dr. Wells flew some 1,100 miles the first day overnighting at Brownsville, TX. The next day they flew 500 miles to Cuernavaca, picked up Tyler and flew back to Asheville, stopping in Brownsboro again for paperwork. As Mike told me, “It made for a long day.”

Mike tells me this was one of the most rewarding experiences with which he has ever been involved, and I can tell you that he’s been involved in a lifetime of rewarding experiences.

What a story!

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