Business Aviation Advisor September/October 2017 by Business Aviation Advisor Magazine

SEPTEMBER / OCTOBER 2017

Who’s the Boss? Closing the Cabin/Cockpit Communications Chasm

Transition Time Decisions When You Upgrade or Trade GIVING HALF A WHOLE LOT OF THOUGHT THE CHARTER ADMINISTRATION WHO? WHAT? WHEN? WHERE? WI-FI? INNOVATIVE FLYING DOWN TO THE WIRE… AGAIN A Business Aviation Media, Inc. Publication

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S e p t e m b e r / O c t o b e r 2 0 17

• Volume 4 / I s sue 5

F E AT U R E S Who’s the Boss?

Closing the cabin/cockpit communications chasm

Who? What? When? Where? Wi-Fi?

by S E RG IO AGUIR R E

Five questions to get you connected

by PE TE AGUR

Innovative Flying

Transition Time

by BA A S TAFF R E P OR T

Fly-by-Wire Technology Enhances Aircraft Safety, Design

Decisions when you upgrade or trade

by D ON H ALOBUR D O

Giving Half a Whole Lot of Thought Aircraft co-ownership comes of age

D E PA R T M E N T S Publisher’s Message Time Seller

by TO M B E R TE L S

by G IL WOLIN

The Charter Administration

Should you charter out your aircraft?

Washington Report

by C A M E RON GOWANS

by DAVI D COLLOG AN

Down to the wire… again

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

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S e p t e m b e r/O c to b e r 2 017 B U S I N E S S AV I AT I O N A DV I S O R 3

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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 ASSISTANT EDITOR Michael B. Murphy mmurphy@bizavadvisor.com WASHINGTON EDITOR David Collogan dlcollogan@gmail.com CONTRIBUTORS Sergio Aguirre Gogo Business Aviation saguirre@gogoair.com Pete Agur The VanAllen Group pagur@vanallen.com Tom Bertels Partners in Aviation tom.bertels@partnersinaviation.com Cameron Gowans JetSuite, Inc. cameron.gowans@jetsuite.com Don Haloburdo Jet Aviation Flight Services, Inc. donald.haloburdo@jetaviation.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

Time Seller

Since my first grammar lesson about verb tenses, I’ve been fascinated with the concept of time. The future becomes the present, and then it’s the past – literally just like THAT! Reading science fiction fueled this preoccupation. But it was George Pal’s 1958 film version of H.G. Wells’ The Time Machine that really set my mind ablaze. Could time travel really be possible? Alas, no. Each moment passes, to be revisited and reclaimed only in memory. The awareness that time is the only non-renewable resource is what drives our business and personal lives today. In Walden, Henry David Thoreau nailed it: “The cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.” Something for which the supply is inexhaustible has no value. In market-based economies, the law of supply-and-demand sets the price. The knowledge of the finitude of supply, of the transitory nature of availability – of oil, of beauty, or of life itself – creates value. And nowhere is that more evident than with time. Saving time is the force motivating the continued growth and success of business aviation today. As an aircraft owner, you seek to make the most of time, given the conflicting demands of business, family, friends, recreation, and service to others. Today, even an occasional user can gain access to business jet and turboprop transportation, via fractional shares, jet cards, and single trip charter. These “occasional travelers” may well be driving the renewed surge in business aircraft travel. Argus International (www.argus.aero) reports that North American turbine aircraft charter has seen year-over-year gains every month through July. Total flight activity is flat from 2016, with charter alone up 9.6%, and fractional flight activity up 5.0%. In Europe, business aviation flying is up 3% year-over-year through July, according to Hamburg-based WingX Advance (www.wingx-advance.com), with transatlantic flights from the U.S. up 2% in July alone. More people today are saving time via business aircraft, and the commercial airlines are not pleased. They continue to campaign for Air Traffic Control privatization to assert control over the U.S. airways system. (See Washington Report, “Down To the Wire… Again,” page 18) And they have raised their game by creating a pseudo-public entity to sell their position to the public. In major markets, you’ll now hear radio commercials which blame the hot, sticky summer airline delays on “private jets” – on you! Your access to thousands of airports and flight routes is at risk if they succeed. Take a few moments of your valuable time to let your elected officials know that the world’s safest ATC needs to stay just where it is (www.usa.gov/elected-officials). Thanks for reading!

Gil Wolin — Publisher gwolin@bizavadvisor.com

Printed in the USA S e p t e m b e r/O c to b e r 2 017 B U S I N E S S AV I AT I O N A DV I S O R 5

■ AVIATION SAFETY

Who’s the Boss? Closing the Cabin/Cockpit Communications Chasm “We don’t worry while riding in the back of our aircraft. Our pilots are competent. If they’re safe, we’re safe.” – EXECUTIVE “I don’t get it. The boss says he wants a safe operation. Then he asks us to push the envelope. I’m worried about where this is headed.” – CHIEF PILOT

hese quotes highlight the all-too-frequent communications gap between the C-suite and the airport. Owners and executives talk “business risk.” Aviation professionals talk “operational risk.” But often they don’t perceive risk in the same way. When socio-political and workplace perspectives are different, that can create unintentional flight operational risks. There are three components to anyone’s view of risk: ■■ Industry Risk. ■■ Personal Risk. ■■ Positional Risk. Each presents a range of tolerances. Where you are on that continuum has a powerful impact on your communications with your aviation service provider – whether flight department, aircraft management company, or fractional/jet card/charter service. 6 B U S I N E S S AV I AT I O N A DV I S O R

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Industry Risk Tolerance

High Industry Risk Tolerance – Some industries, such as logging, commercial fishing, and motor racing, are high-risk physical environments. Entrepreneurial companies and some private equity partners exist in high-risk financial environments. Because high risks are the norm for executives in these businesses, they strive to get the job done while minimizing losses. A successful leader in these organizations must have a high tolerance for risk. As a result, they tend to be hyposensitive, if not adversarial, in discussions about aviation services operational risk management. Low Industry Risk Tolerance – Risk-averse industries, such as power companies and financial institutions, are at the opposite extreme. Continuity of electricity and the monetary system are critical to the public’s best interests – one of the reasons they are highly regulated. Consequently, they are tightly focused on managing risks. Their business processes are robust and hypersensitive to w w w. B i z AvA d v i s o r. c o m

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BY PETE AGUR The VanAllen Group / pagur@vanallen.com

performance variances. An executive with this perspective naturally tends to be a strong aviation services safety leader. Moderate Industry Risk Tolerance – Most businesses and individuals operate in the middle ground of risk tolerance. If you are here, you probably will experience greater influence from the other factors described below, which will affect your aviation safety leadership and conversations.

Personal Risk Tolerance

High Personal Risk Tolerance – A small portion of the population thrives on taking risks. These thrill seekers skydive, race, and free-climb. They see traditional rules and standards as barriers to their definition of success, and are opportunity-focused. They may view aviation safety Best Practices as a belt-and-suspenders approach to flying: as too restrictive. If this is you, without filters or mandatory go/no-go check points, you may be a risk contributor. Low Personal Risk Tolerance – Others are risk-averse. They abhor failure and may be paranoid about making mistakes. They rely on rules and regulations for guidance. These behaviors support proper aviation safety processes and procedures. However, if this is you, your critical decision-making may be too slow for the dynamic world of business aviation. Delayed adoption of aviation safety initiatives (e.g. installation of equipment, additional training, etc.) can prolong or amplify risks. Moderate Personal Tolerance – Most people have a moderate tolerance for risk. They learn from experience, and observe and respond well to information gained within the context of what they understand. If this describes you, education and information greatly enhances effective aviation safety communications with your aviation service provider.

Positional Risk Tolerance

High Positional Risk Tolerance – An enterprise leader or highnet-worth individual has significant positional power. No matter how politely they may frame an observation or opinion, what they say usually goes. If this is you, you have a very low sense of positional risk in deciding. That’s fine, if your decision is well-considered. But, if there is misalignment between you and your aviation service provider in your beliefs about operational safety, you will need to accede to him or her. Good leadership means respecting the professionals you hired. Low Positional Risk Tolerance – A junior manager has very limited authority. A wrong move could be career limiting. Their decisions are either within their scope of authority or very thoroughly vetted. If a junior manager is charged with managing access to business aircraft in your operation, create a strong dotted-line link with you or another C-Suite executive who can take the lead – and the heat – for critical aviation safety initiatives. Moderate Positional Risk Tolerance – Most senior managers have learned what they can and cannot control. They know how their organization’s decision system works. If this is you, you tend to play by those rules to create results that properly balance safety requirements with operational flexibility. One caution: Don’t w w w. B i z AvA d v i s o r. c o m

overplay the “safety” trump card, lest your credibility be compromised for crying “wolf.”

The “Secret Sauce”

How you operate via this matrix creates the lens through which you view aviation safety. Understanding your own position is critical to your ability to effectively lead aviation risk management. When it comes to aircraft operational safety, the most challenging – even dangerous – combination of positions is: 1. High Industry Risk Tolerance, plus 2. High Personal Risk Tolerance by top management, plus 3. Low Positional Risk Tolerance at the aviation services reporting point. Your risk-mitigating options are: ■■ Treat aviation services as independent from the core business. Their needs for conservative, low-risk policies, standards, and practices will be seen more clearly and with less risk-tolerance-induced bias. ■■ Position aviation as a Strategic Service. Protect your company’s brand by holding aviation services to a different/higher standard of performance than that of the core enterprise. ■■ Establish a formal dotted-line reporting relationship between your aviation services leader and a C-suite executive who can address risks with authority and in a timely manner. ■■ Use an outside expert – authorized by senior management and endorsed by the aviation department – to carry the message. The least challenging combination of positions is: 1. Low Industry Risk Tolerance, plus 2. Low Personal Risk Tolerance by top management, plus 3. High Positional Risk Tolerance at the aviation services reporting point. Here, aviation safety will reflect your core business and corporate culture. The following check points will be useful to you: ■■ Benchmark. Risk-averse organizations and managers welcome the direction of the herd. Stay updated on industry trends and regulatory mandates. ■■ Rely on proven business aviation best practices and policies. ■■ Conduct periodic internal and external reviews that assess compliance and identify opportunities for continued growth and improvement. Few pilots involved in accidents deliberately intended to violate safe practices. However, according to our analysis of accident investigation records, an astonishing number took inappropriate risks to better serve their passengers’ perceived travel requirements. These misperceptions often began with miscommunications. Miscommunications lead to mishaps. As an executive, your role in aviation safety is pivotal. Take the lead on bridging the risk management communications gap. BAA PETE AGUR is chairman/founder of The VanAllen Group, a

management consulting firm specializing in the business of business aviation. With an MBA and a BS in Aeronautical Sciences, he is an NBAA Certified Aviation Manager.

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■ AIRCRAFT MANAGEMENT

Transition Time Decisions When You Upgrade or Trade

BY DON HALOBURDO Jet Aviation Flight Services, Inc. donald.haloburdo@jetaviation.com

uccessful aircraft ownership requires making a series of correct decisions over its tenure, from acquisition to operation to disposition. When the time comes to move to a different aircraft, or to a different mode of lift, allocate enough time to consider all the facts (such as resale market conditions and current regulatory and technology requirements) and all your options. Making fast decisions based on insufficient or inaccurate information, or without expert help, usually is not in your best financial interest. When you first purchased your aircraft, you likely found and vetted an agent, broker, or acquisition consultant to assist you. So when you seek to make a change – whether upgrading from your current aircraft’s range or cabin size, or simply trading for a newer model – returning to that same expert can help you ask the right questions to assure a successful transaction. You should expect to discuss: ■■ Why are you choosing to make a change at this time? Has your travel mission changed? Has there been a change in your business or flying pattern, necessitating more or less capability? Longer or shorter stage lengths? Larger or smaller passenger loads? ■■ Has your current aircraft come to the end of its useful economic life? ■■ Is the cost of maintaining your aircraft now more than its asset value? For example, if your $2 million aircraft needs $1 million in maintenance, its current market value may increase only slightly.

may need temporary contract crew until yours earns its rating. ■■ Consider all the financial implications. For example, might a capital lease be a better option than ownership? ■■ How will timing affect your travel? You’ll either operate both aircraft at the same time for a period, or sell yours before the new one is delivered, thus necessitating supplemental lift for that period.

When You Trade:

■■ If you are moving from whole aircraft ownership to a fractional

share or charter, how will you handle the disposition of your crew? ■■ If you decide to sell your aircraft, how can you find a reputable organization or broker to handle the disposal? (See “Buying or Selling an Aircraft? First Buy an Expert,” BAA March/April 2015)

■■ If your aircraft currently is managed, do your present compa-

ny’s capabilities align with your new mission? For example, if your travel newly includes international flights, you may select a large cabin/long range capable replacement aircraft. You’ll need a management company experienced with international flying, — one that can secure onsite support anywhere in the world at any time. Evaluate the support your current company provides to determine if it will be adequate going forward. ■■ If your replacement aircraft will be available for charter, and it is a new make/model for your current management company, who pays for its entry into charter service? Can your present team provide you with an effective and seamless transition? ■■ What are crew considerations? For example, timing crew training is crucial so they can acquire a new type rating, if necessary, before delivery. Plan on training at least a month before delivery of your new aircraft. If the training slot you need is not available, you 8 B U S I N E S S AV I AT I O N A DV I S O R

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■■ What are the tax implications of your decision? Talk with your

tax attorney early in the process so the transaction is beneficial to you. To avoid penalties and to take advantage of tax benefits, have your broker and attorney coordinate the exchange. While your depreciation schedule may indicate that it’s time to replace your aircraft, current market conditions may make it impossible to obtain and secure your residual value. Changing regulations may require significant additional investment in an aging aircraft. Timing is critical. Asking the right questions of the right aviation advisor can help keep you flying in the right aircraft – at the right price. BAA DON HALOBURDO , is VP and General Manager of Jet

Aviation Flight Services, Inc. A former U.S. Navy pilot, he has more than 7,100 hours flight time, and serves on NATA’s Air Charter Committee.

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■ AIRCRAFT SALES & ACQUISITION

Giving Half a Whole Lot of Thought BY TOM BERTELS Partners in Aviation / tom.bertels@partnersinaviation.com

t takes only one flight for someone to grasp the advantages of business aviation. But deciding how best to access business aircraft – charter, jet card, fractional, whole aircraft ownership – can be a complex proposition. Each has its distinct advantages, and there’s not a one-size-fitsall solution. Low utilization requirements often reinforce the decision to charter, join a club, or get a card. But as the need to fly increases, the value proposition may lose a bit of its luster. That’s when many people start to seriously consider aircraft ownership. Beginning in the mid-1980s, the emergence of fractional programs made ownership a more practical option for those who needed less than full-time access. But while the infrastructure and manpower required to successfully operate a fractional program can deliver a fine customer experience, they also contribute to the highest cost of ownership.

Sole (Ownership) Searching

So what do you do when your needs grow beyond charter or fractional? Jumping straight to full ownership is a leap that many have considered but few have made. There’s a sole-ownership “noman’s land,” between 100 and 200 hours of usage per year, where 10 B U S I N E S S AV I AT I O N A DV I S O R

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the cost of purchasing your own aircraft is difficult to justify financially. Some make the leap anyway and attempt to recoup some of their costs by turning the aircraft over to a charter company. But charter revenue seldom meets owners’ high expectations, and most don’t relish the thought of strangers putting wear-and-tear on one of their principal assets. Another option, co-ownership, can be the ideal solution for some. Structured correctly, co-ownership can deliver the taxand-title autonomy of a fractional program, and aircraft access that rivals owning a whole aircraft. It literally can cut the net cost of owning the aircraft in half while providing many benefits that even fractional can’t, including access to the specific aircraft you own, flown by your own crew. Co-ownership is not a new idea. However, only two percent of business aircraft worldwide are jointly owned. If it’s such a great idea, why isn’t there more interest? While the financial benefits are obvious, joint ownership has a somewhat checkered reputation. Owners have faced a multitude of challenges, from schedule hoarding to expense disputes. Further exacerbating the problem, many DIY partnerships inadvertently bake in risk, ambiguity, and entanglement. The result can be a negative experience for one or both partners and everyone else concerned. Consequently, most people – even those who would benefit the most – do not consider co-ownership. And when asked, many industry insiders have discouraged it. But the tide is turning. w w w. B i z AvA d v i s o r. c o m

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Aircraft Co-Ownership Comes of Age

Just Do It Right

Co-ownership, properly executed, is a really smart way to own an aircraft. It’s a logical step for anyone outgrowing other options, and it also allows owners to fly newer or more capable aircraft than they could ever cost-justify on their own. But for co-ownerships to be successful, the inherent issues must be tackled and the risks mitigated. With that in mind, here are six of those issues, and ways they can be addressed: ■■ Matchmaking – Locating, vetting, and securing a compatible, qualified co-owner can be a formidable challenge. Ideally, coowners have the financial wherewithal to own the whole aircraft, but can’t cost-justify it based on usage. Alignment is key. Co-owners must agree on major points – the acquisition budget, aircraft make and model, home base, and much more. A friend at the club or a casual business acquaintance is not likely to turn out to be your best co-owner candidate. Needless to say, finding and successfully matching co-owners is a time-consuming undertaking. Unless you’re already confident you have the ideal co-owner, matchmaking is best left to industry professionals who make it a core service. ■■ Structure – Setting up how the aircraft is owned is both an art and a science. Co-owners should be autonomous in tax and title. The co-ownership legal structure can provide unique advantages in this area. Done correctly, an individual co-owner can handle financing, tax, and depreciation as he or she sees fit, without being affected by the other owner. This is fundamentally different than a partnership structured as an LLC. Rather than developing a co-ownership agreement from scratch, consider engaging a firm that’s already thoroughly evaluated and addressed the full range of issues that co-owners encounter. ■■ Management – Chances are, you’ve already dealt with an aircraft management firm at some point, especially if you’ve chartered. They’re the ones who schedule and dispatch flights, coordinate maintenance, handle billing, and orchestrate other behind-the-scenes functions that relieve owners from the drudgeries of running a flight department. In short, they’re the ones who make sure your airplane is ready to fly, wherever and whenever you need it. In a co-ownership, a first-rate management firm is essential to making the arrangement work smoothly and efficiently. Once the aircraft is operational, day-to-day communication regarding the aircraft should be channeled through the management company, not between co-owners. ■■ Scheduling – Ask anyone who’s been in an aircraft partnership about his or her experience, and you’ll undoubtedly hear about scheduling conflicts. Agreeing up front on how the schedule works isn’t just important, it’s imperative. The management company should be empowered to administer the schedule per the co-owner agreement. It’s a common misperception that owning half an aircraft means you get it only half the time. But consider that ideal coowners are flying fewer than 200 hours per year. That means the w w w. B i z AvA d v i s o r. c o m

aircraft is available the vast majority of the time each owner wants it. When a scheduling conflict does occur, it should be clear to both parties, per the agreement, how it is to be resolved. There doesn’t need to be a winner and loser. On the rare occurrence when the airplane is unavailable to one of the owners, alternative travel solutions can be provided by the aircraft management company. ■■ Crew – Co-owning an aircraft enables you to see familiar faces on the flight deck every time you fly. They’re your pilots. And unless you are ready and willing to set up your own flight department, there are distinct advantages to having the pilots administratively attached to the management company. After all, it’s a regular part of the management company’s business to identify and hire crewmembers, administer payroll, and coordinate recurrent training and development. ■■ Exit – All too often, the exit plan is ill-defined, and that’s a huge pitfall. It’s critical to define exit upfront, including timing and methodology. The plan also should stipulate how the aircraft is valued at the end of the relationship, how it will be sold, and how the proceeds will be distributed.

A Fresh New Look

Co-ownership certainly is not for everyone, but it’s an option worth exploring as your travel needs evolve and grow. It’s the ownership strategy that delivers the lowest net cost of ownership, and it’s been systematically transformed into a smart, efficient way to access business aviation. BAA TOM BERTEL S is chief marketing officer and co-founder of

Partners in Aviation. The company’s mission is to help savvy companies and individuals cut the cost of aircraft ownership in half through co-ownership.

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■ AIRCRAFT MANAGEMENT

The Charter Administration Should You Charter Out Your Aircraft? BY CAMERON GOWANS JetSuite, Inc. / cameron.gowans@jetsuite.com

■■ Do

Can You Share?

you want somebody else on your aircraft? If the idea of someone else sitting in your seat bothers you, charter is not for you. ■■ How often do you want/need your airplane? The question is more one of days available, rather than hours. The more frequently you can make the aircraft available, the more charter revenue it can generate. ■■ How predictable is your schedule? Do you know your schedule weeks ahead, or do you have frequent pop-up trips? The more set your schedule, the more revenue your operator can generate. ■■ Are you willing to give up your airplane during popular travel time? Fractional and charter operators have defined “peak days,” restricting access to meet all demand. If you purchased your aircraft planning to travel at the same time everyone else does, you will forgo revenue. ■■ Are you going to restrict use? Long flights only, daily minimums, no rock bands, and other restrictions will reduce potential revenue.

Will You Save?

To operate for compensation or hire in the U.S., your aircraft must be on a Part 135 commercial operating certificate (Part 135 of the Federal Aviation Regulations governs most business aircraft for hire). As the certificate holding entity, the operator must comply with numerous FAA requirements for flight operations, maintenance, training, and the administrative infrastructure to oversee all these activities. These requirements make it impractical for an individual owner to set up his or her own certificate for just one aircraft. So if you want to charter out your aircraft, you’ll 12 B U S I N E S S AV I AT I O N A DV I S O R

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use an existing certificate holder: a charter operator or management company. Part 135 can offer two main sources of savings: ■■ State Taxes – Many states require state sales or use tax to be collected from an aircraft acquisition, and a multimillion dollar purchase creates a significant tax liability. However, most states offer relief or an exemption if the aircraft is operated in commercial use. In high-tax states, this fact alone may be enough to justify chartering your aircraft. Compliance with these regulations and eligibility for this exemption vary from state to state, so do contact a tax advisor to ensure the transaction is as tax efficient as possible. ■■ Charter Revenue – When you’re not using the aircraft, others will pay you (via the operator) for its use. In today’s charter market, the operator should be able to generate enough revenue to make a significant contribution to the direct costs of your own flying. The revenue could make a dent in your fixed or capital costs. However, even in today’s low interest environment, it is highly unlikely that the aircraft will ever generate enough revenue to cover the fully burdened cost of owning and operating an aircraft. The decision to place your aircraft for charter is not simple, and should not be made quickly. However, it can significantly reduce your cost of ownership and make the ownership experience more valuable. BAA CAMERON GOWANS is the Vice President of Sales &

Marketing for JetSuite, Inc. He has more than 25 years in sales, marketing, and executive experience with OEMs, fractional providers, and charter/management organizations.

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t some point, you’ve likely considered whether to charter out your aircraft when you’re not using it. And unless you already use your aircraft more than 200 to 300 hours a year, there likely is room to do so. Allocating the high fixed costs of aircraft ownership (e.g., capital, crew, crew training, hangar, insurance) over a greater number of total flight hours reduces your own effective per hour cost. Many of today’s newer generation of business aircraft are designed for higher levels of use. Given these two factors, plus the higher demand for charter aircraft in the “sharing economy,” it may make sense to place your aircraft on a charter certificate. But is charter right for you? Two factors largely will inform your decision: can you share, and will you save?

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■ CABIN OPERATIONS

Who? What? When? Where? Wi-Fi? Five Questions to Get You Connected BY SERGIO AGUIRRE Gogo Business Aviation / saguirre@gogoair.com

technological reliability, and spectrum interference (or ambient noise) can have a major impact on performance. Look for a seamless network of towers, sufficient spectrum, proven and tested equipment, and advanced antennas.

Does network speed matter?

When it comes to wireless connectivity on the ground or in the air, you hear a lot about speed. Sure, speed matters, but it’s only one factor to consider. Think of it this way: network speed is like the speed limit on a highway. It tells you how fast you can go, but it doesn’t tell you how fast you will go – an important distinction. Your actual experience will depend on speed, plus other factors, such as: network capacity, network reliability and redundancy (availability of more than one signal, e.g., 3G and 4G), coverage, and the equipment you have onboard.

What’s the difference between network speed and network capacity?

If speed tells you how fast you can drive on a highway, capacity tells you how many lanes the highway has. The more lanes you have, the more likely you can reach the speed limit when others are driving on the same highway. A network with greater capacity can deliver a better experience to all users because it’s built to handle influences such as traffic volume, the number of devices connecting simultaneously, bandwidth usage, available spectrum (the radio frequency over which all wireless communications signals travel), and reliable infrastructure.

How reliable is the network?

To continue with the driving analogy, is your highway full of potholes, construction zones, and detours? Are there any bridges out? If so, you’re likely to be frustrated. The same holds true with an inflight network. Infrastructure, 14 B U S I N E S S AV I AT I O N A DV I S O R

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How vast is the coverage area?

A good highway doesn’t suddenly stop in Kansas. If you’re flying from New York to Los Angeles, you want to be sure you can conduct all your online activities throughout the flight. Therefore, it’s important to make sure the network you choose will keep you seamlessly connected wherever you fly. Ask about network infrastructure, because if the guts of the network aren’t in place with a fully built infrastructure including towers, satellites, sectors, and redundancy, then you’re likely to have a lessthan-optimal experience.

What do you want to do and what will it cost?

Activity such as streaming video requires high levels of bandwidth, while email requires much less. Even if you can stream video while in flight, it might be cost-prohibitive. You might want to consider other alternatives for inflight entertainment that can deliver the latest Hollywood hits and/or TV series from an onboard server. That way you can control costs and won’t consume large volumes of data. When you’re ready to consider a connectivity provider for your aircraft, these five questions will help ensure you choose the provider that best meets your needs. BAA SERGIO AGUIRRE is Senior Vice President and General

Manager, Gogo Business Aviation. An aviation industry veteran with more than 30 years of experience, he joined Gogo in 2007 and launched several of Gogo’s marquee products.

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GO GO BUSINES S AVIATION

If you’re considering an investment in inflight Wi-Fi service for your aircraft or looking to upgrade your existing service, making the right choice will have an impact on your communications capability, not just today, but likely for many years to come. So it’s important to understand the many variables that may influence your decision. Today’s business travelers expect to be able to connect to the Internet, make calls, and text during a flight. It’s no longer a luxury, but a necessity, and expectations for system performance are high, considering what we experience on the ground. Based on the network you choose, transitioning your online activities from your office on the ground to your office at 35,000 feet either can go without a hitch, or could force you to pause what you’re doing until you arrive at your destination. With that in mind, these five questions can help you choose an inflight network provider.

■ FLIGHT OPERATIONS

Innovative Flying Fly-by-Wire Technology Enhances Aircraft Safety, Design hile innovation often is promoted as a competitive advantage, it’s the benefit to you, the customer, that determines its real value. Early adapters using the first cell phone some 40+ years ago held in their hand a machine the size of a shoe box, with 20 minutes of battery time. Your smart phone today is millions of times more powerful than NASA’s total computing power in 1969. That same year, a promising computer-assisted flight control system, Fly-by-Wire (FBW), first used at the dawn of the jet age in the late 1940s, was used to assist in one of the most pivotal moments in aeronautic history: the Apollo moon landing. Modern digital FBW systems were born in the early 1970s, when NASA engineers recognized that by combining sensors and digital computers with navigational data and using wires – rather than mechanical links – to operate aircraft control surfaces (rudder, ailerons, flaps), they could improve aircraft performance and operational safety. FBW provides continuous monitoring and adjustments of those surfaces, to help ensure a smooth and efficient flight. It is designed to supplement, not replace, the pilot’s primary control of the aircraft. FBW technology helped to create the world’s only reusable spacecraft and its first supersonic passenger jet, and was pivotal in the introduction of stealth technology to military aircraft. Now, some 40 years after those NASA tests, FBW is the primary flight control system on almost every commercial jet sold today, and is the preferred technology on the world’s largest, most expensive business jets. And, for the past three years, it has become available to the midsize and mid-light aircraft buyer.

How Does Fly-by-Wire Work?

FBW uses an electronic interface in place of conventional mechanical flight controls. The technology converts the pilot’s movements of the flight controls into electronic signals, which then are transmitted to the flight control computers. In turn, they send commands to the actuators (the mechanisms that actually move the control surfaces) to make the aircraft respond to the pilot’s commands. Hydro-mechanical controls, currently found on most in-production aircraft, use mechanical and hydraulic linkages to control an aircraft’s actuators. Both of these control systems interpret a pilot’s actions, with hydraulic systems using distance, 16 B U S I N E S S AV I AT I O N A DV I S O R

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and FBW using force, to determine the action required. Just like the use of hydraulic systems, FBW augments the pilot’s command of an aircraft’s control systems. Without such control aids, a pilot would have to rely on his or her own strength to move a cable attached to each primary system, a feat that becomes nearly impossible with the size and speed capabilities of many modern aircraft.

Safety and Design Advantages

The many safety advantages of FBW include: ■■ Its ability to anticipate, interpret, and react to critical situations in milliseconds, enabling the pilot to quickly and effectively respond to safety-of-flight challenges. ■■ At least one computer in reserve to cover any potential malfunction in the main flight control computer, providing a greater level of reliability than in a purely mechanical or hydro-mechanical aircraft. ■■ Constant monitoring of sensor readings and pilot inputs, and an ability to simultaneously perform multiple tasks offers improved control and reduces pilot workload, helping to ensure a more comfortable flight for crew and passengers. Design advantages include: ■■ Greatly reduced mechanical complexity, as control cables are not routed through pulleys and cranks to the control surfaces on the wing or tail. ■■ Improved aerodynamics, and the ability to use smaller, more fuel efficient, and environmentally friendly engines. ■■ Much more cost effective to operate, due to weight reduction and reduced maintenance requirements as compared to mechanical linkages. While it took almost 40 years for Fly-by-Wire to reach business aviation, it is likely that your next new aircraft will feature this innovative technology, for improved safety and operational control. BAA w w w. B i z AvA d v i s o r. c o m

EMBR A ER

BAA STAFF REPORT

AMAZING THINGS HAPPEN WHEN , YOU,RE BOUND ONLY BY PHYSICS.

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Barring the immutable laws of science, Embraer designers and engineers enjoy a unique freedom to create our executive aircraft. To reshape a fuselage that slips through the air while providing unrivaled cabin roominess. Or tweak the delicate balance of lift and thrust to increase efficiency. Or create control systems that help pilots always perform at their very best. All are a product of unconventional thinking at its finest. With all deference to pioneers like Newton, Galileo and Einsteinâ&#x20AC;&#x201D;we simply donâ&#x20AC;&#x2122;t think their good work is finished.

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■ WASHINGTON REPORT

Down To the Wire… Again Rep. Shuster’s Plan to Privatize the ATC System Faces Growing Opposition BY DAVID COLLOGAN dlcollogan@gmail.com

ongress has a lot of must-do tasks to accomplish in the waning days of the fiscal year, which ends September 30. These include approving a raft of appropriations bills to keep the government running, passing the National Defense Authorization Act and adopting FAA reauthorization legislation. Once again, the largest roadblock to accomplishing the latter is Rep. Bill Shuster’s (R-PA) obsession with handing over the U.S. air traffic control system to a private entity whose board of directors would be dominated by the nation’s largest scheduled airlines. That’s right, the same carriers who have become infamous for merging themselves into an effective monopoly, bloodying a passenger who refused to give up a confirmed seat, instituting fees on everything but the air in the cabin, banking billions of dollars in profits annually -- all while ramping up the canned-sardines misery factor for customers by installing smaller seats and squeezing them ever closer together. Just like last year, Shuster pushed the latest version of his ATC privatization bill through the House Transportation & Infrastructure Committee, which he chairs. The plan was to bring H.R. 2997 to the House floor in mid-July and ram it through on a party line vote. But when Shuster and his minions began counting votes, they did not have enough to ensure passage, so House leaders refused to schedule debate. Initially Shuster had hoped President Donald Trump’s backing for ATC privatization would help build Republican support for the bill. But with Trump’s popularity ratings in the polls falling into the low 30s prior to the August recess, many Republicans have been trying to distance themselves from the president on a number of issues. Eight-term House member Tom Cole (R-OK) posted a July 31 message on his official web site titled: “If The FAA’s Not Broke, Don’t Try To Fix It.” Cole complained a privatized ATC would be removed from Congressional oversight, a change that could have serious consequences in terms of airspace and airport access for general and business aviation. “It is simply wrong to take billions of dollars’ worth of assets purchased by federal funds and put them in the hands of private interests – a recipe for lost accountability and possible misuse of funds,” Cole said. “The proposed structure of this corporate entity would allow the airline industry to control the makeup of the board of directors. Not only would the proverbial fox watch the hen house, it would also have the authority to set fees and dictate regulatory policy,” he warned. 18 B U S I N E S S AV I AT I O N A DV I S O R

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The counterpart Senate reauthorization bill, which does not include ATC privatization provisions, has not yet made it to the Senate floor. When Congress returned after Labor Day there were only 12 scheduled joint legislative days before the end of the fiscal year…and a whole lot of “must-pass” legislation that has to get done. Given those circumstances it appears likely Congress will end up kicking the FAA reauthorization can down the road yet again, settling for a short-term extension of current FAA programs and funding. But that does not mean ATC privatization opponents are assuming an extension will happen. They will remain vigilant and continue to enlist congressional supporters who share their deep concerns about a privatized ATC system. Over the past two years major business and general aviation trade associations have engineered an unprecedented effort to inform and warn about the many negative effects a privatized ATC system would entail. Well over 100 aviation organizations across the country have signed on in support of that position. Their message has resonated with aircraft owners and operators, airport executives, business and political leaders in small and medium-size communities and many others who have gotten the attention and support of their elected representatives. No one’s quitting 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.

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