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DOUBLE-OH
SEVEN: YEAR OF THE USER FEE? Will 2007 be known as the year
in which user fees were enacted to pay for FAA services? That's what the
airlines want, although general aviation's alphabet soup is opposed to
it. The issue is guaranteed to come to a head by Sept. 30, when existing
law authorizing the FAA's programs, policies and spending on things like
airport pavement and radars will come to an end. In the meantime, the
new Congress -- complete with new leadership -- convenes this week with
reauthorization high on its list of "must-do" tasks. All of which means
you'll likely see more and more arguments for and against user fees
throughout the year. For its part, the airline industry is leading the
fight for them, with its major trade group, the Air Transport
Association, saying it supports "a new 'cost-based' mechanism for
generating revenues necessary to maintain, operate and enhance the
national airspace system." Of course, aviation system users already are
paying fees -- through taxes on airline tickets and aviation fuel, as
examples -- to cover the government's costs. The airlines, however,
merely serve as collection agents for the government, eventually passing
on the ticket taxes they collect from passengers and paying next to
nothing to use a government system in conducting their business.
Meanwhile, general aviation, according to a 1997 study by the U.S.
General Accounting Office, is responsible for about 6% of FAA's ATC
costs while paying -- conveniently -- about 6% of those costs through
existing taxes. But that's not all: The airlines also want more of a say
in how the FAA and the ATC system are operated. According to an ATA
"statement of principles," the airline industry believes in "A reformed
administrative structure, providing for a direct role in governance
proportional to the extent of each user categorys financial
contribution to the operation, maintenance and enhancement of the
national airspace system." And all of this will be coming to a head as
first-of-the-year stories in the financial pages say
the airline and travel industries' futures are looking up.
More... |
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FAA
ISSUES "OPERATIONAL CONTROL" GUIDANCE The latest government
reaction to the Feb. 2, 2005, crash of a Bombardier Challenger
CL-600-1A11 at the Teterboro Airport (KTEB) in New Jersey was published
last week in the form of a newly revised operations specification
(OpSpec) for Part 135 charter operators. The new OpSpec, A008, was
published Dec. 28, and is a direct reaction to NTSB findings that the
charter flight was being conducted without proper FAA certification or
compliance with FAR Part 135. The FAA said it had "become aware" of
business practices calling into question "whether an air carrier has
control of its operations purportedly conducted under the authority of
its certificate." According to the FAA, the revised OpSpec allows it to ensure "who is
responsible and who should be held accountable for the safety of any
flight, whether commercial or not" by evaluating the "facts and
circumstances surrounding that flight." The FAA hopes to clarify and
prevent the kind of ownership and operational issues the NTSB believes
precipitated the accident, in which the Challenger was operated by
Platinum Jet Management LLC of Fort Lauderdale, Fla., under a management
agreement with Darby Aviation, based in Muscle Shoals, Ala. As part of
its reaction to the accident, which destroyed the airplane but did not
result in fatalities, the FAA recently conducted a review of Part 135
operators. That review, according to the FAA, highlighted that numerous
"Part 119 certificate holders conducting operations under Part 135 had
been authorized to use several 'doing business as' (DBA) names, some of
which were identical or substantially similar to the name of an aircraft
owner and/or management company that is otherwise legally distinct from
the air carrier." More... |
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In a Group Plan & Think
You're Getting the Best Deal on Life Insurance?
The Pilot Insurance Center ( PIC) finds many people believe
this is the case. Unfortunately, in some group plans you're only as good
as your weakest link. Meaning, while you may be in excellent health, you
may be paying a higher premium due to those in the group that aren't as
healthy. From airline pilots to weekend warriors, PIC has saved pilots
30-60% on coverage through A+ rated carriers or better. Find out if you
are getting the best deal. Call PIC today at (800) 380-8376, or
visit online.
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ECLIPSE
DELIVERS: NOW WHAT? We have it on good authority that several
Eclipse Aviation employees woke up Monday morning with hangover-induced
headaches. But their pain had nothing to do with New Year's Eve
celebrations. Instead, and as AVweb reported, the company on
Sunday, Dec. 31, delivered the first customer copy of its Eclipse 500
very light jet (VLJ), sneaking in under the deadline of its
end-of-2006 promise. Some eight years in the making, the first Eclipse
500 delivery was no doubt a cause for celebration, but the company's
work in 2007 is just beginning -- and recent snowstorms at its
Albuquerque, N.M., headquarters haven't helped a bit. The big questions
are when Eclipse will deliver a second airplane, when it will obtain its
production certificate from the FAA and whether it will make its
projected delivery numbers in 2007. According to Eclipse, the first
customer Eclipse 500 was delivered to co-owners David Crowe, a private
owner, and Jet-Alliance, a shared jet ownership company in Westlake
Village, Calif. While Crowe plans use his time with the jet primarily
for recreation, Jet-Alliance will be using it to serve its co-ownership
clients. The arrangement helps maximize Crowe's use of the airplane
while keeping Jet-Alliance's overhead low. Right now, Eclipse says it
has seven more aircraft, pictured above, being readied, but there is no
timetable for their delivery to customers. That said, the company has
every expectation it will be able to deliver them by the end of January.
More... |
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UFO
AT ORD? Yes, major U.S. airports are too congested, and it
can be tough for general aviation flights to get in at certain times
during the day, but we've never seen a non-scheduled flight hover over
an airline gate, waiting on space, before departing in a huff. With some
embellishment, that's basically what a group of airline employees say
they saw at Chicago O'Hare International Airport's (KORD's) gate C17 on
Nov. 17. The trick is that the employees report the "flight" was an
unidentified flying object, or UFO. Officially, no one at United Air
Lines or in the FAA control tower saw anything and there was nothing on
radar. Of course, we wouldn't expect visitors from another planet to
know anything about Class B airspace, or transponder requirements. While
the FAA control tower at KORD did log a call from an airport worker,
asking if they knew of the object, the FAA says it doesn't know anything
about the event and maintains it was nothing more than a weather
phenomenon of some sort. According to the employees and the Chicago Tribune, the noiseless, disc-shaped
"weather phenomenon" hovered over the gate area for a few minutes and
then departed -- straight up into a 1,900-foot overcast. Its departure
was so rapid, witnesses say it made a hole in the clouds.
More... |
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MORE
RAYTHEON DETAILS EMERGE Additional details on the Raytheon
Company's sale of its Raytheon Aircraft Company (RAC) subsidiary --
including the Beechcraft and Hawker business aircraft lines -- to a new
company formed by GS Capital Partners, an affiliate of Goldman Sachs,
and Onex Partners began to emerge over the holidays. First announced on
Dec. 21, the $3.3 billion deal -- which remains subject to various
government oversight and approvals -- will not include Raytheon's
fractional operation, Flight Options, or Raytheon Airline Aviation
Services (RAAS), but does include the Raytheon Aircraft Services FBO
network. The new company's name will be Hawker Beechcraft. The details
on the sale are not expected to be complete until sometime during the
first half of 2007, according to Raytheon, which also said its net
proceeds will be somewhere in the neighborhood of $2.5 billion.
More... |
PAPERS,
PLEASE For as long as we can remember, the only documentation
needed by a U.S. citizen returning home from Canada, Mexico, the Bahamas
or certain other locations by air was a driver's license and a birth
certificate. No more. Beginning Jan. 23, 2007, all U.S. citizens --
including children -- need a current passport, even if you're arriving
via private aircraft. That's according to a federal law enacted in 2004,
as implemented by the departments of State and Homeland Securitys
Western Hemisphere Travel Initiative. Some exclusions do apply, and
individuals traveling between the mainland and U.S. territories are
exempt. Of course, all of this -- including new passports with embedded
chips -- are part of the nation's continuing anti-terrorism efforts.
More... |
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Small Business Owners! AVweb's
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OHIO-BASED
TERRORISTS BEWARE! This should be easy enough: If you live in
Ohio and need to register an aircraft with the state, you must certify
you're not a terrorist and do not provide material assistance to a group
the U.S. Department of State considers a terror organization. That's
according to a law passed in 2006 and effective for anyone seeking
certain state-issued licenses, which applies to citizens and companies
who own an Ohio-based aircraft and must register it with the state. For
aircraft owners, compliance with the state's 2007 aircraft registration
requirement involves completing a five-page form and answering such
questions as, "Are you a member of an organization on the U.S.
Department of State Terrorist Exclusion List? " Helpful hint: The
correct answer is "no." More... |
AVwebBiz is an every-other-week summary of the latest business
aviation news, articles, products, features, and events featured on
AVweb, the internet's
aviation magazine and news service.
Today's issue was written by Joseph E. (Jeb)
Burnside (bio).
Click
here to send a letter to the
editor. (Please let us know if your letter is not
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Comments or questions about the news should be sent
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here.
Shiny side up, okay?
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