Business Aviation Advisor Jan-Feb 2017

JANUARY/FEBRUARY 2018

Time Flies…

Will Your Aircraft?

Imminent mandates offer advantages, opportunities

Gimme Shelter Addressing the great hangar shortage

2020 VISION NEW LEADERSHIP FOR FAA PAY ATTENTION TO RETENTION THINKING OF BUILDING A HANGAR? GOOD LUCK? OR GOOD PLANNING? A Business Aviation Media, Inc. Publication

W W W . B I Z AVA D V I S O R . C O M

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• Volume 5 / I s sue 1

F E AT U R E S Time Flies … Will Your Aircraft?

Imminent mandates offer advantages, opportunities

by PAUL A D E R KS

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Pay Attention to Retention

by C HR IS TOPH E R BROYHILL

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Good Luck? Or Good Planning?

by G EORG E K LE ROS

What today’s pilot shortage means for you

Pre-buy inspections require the right team

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Gimme Shelter

by M AR IA A . SA S TR E

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Thinking of Building a Hangar?

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by E D G A Z VO DA

by G IL WOLIN

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2020 Vision

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Washington Report

by ANTHONY K IOUS S IS & DAV E L ABROZ Z I

by DAVI D COLLOG AN

Addressing the great hangar shortage

Eleven steps to success

A clear picture of NextGen upgrades

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D E PA R T M E N T S Publisher’s Message Connecting Flights

New Leadership for FAA

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2018 WEBINAR SERIES The Information You Need, From Experts You Can Trust

Pre-register or find out more at www.bizavadvisor.com/webinars w w w. B i z AvA d v i s o r. c o m

Ja n u a r y/ Fe b r u a r y 2 018 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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LEASING & LENDING SOLUTIONS FOR PRIVATE AIRCRAFT

Easily adjust to changing needs

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 Christopher Broyhill, PhD, CAM Mente Group CBroyhill@Mentegroup.com Paula Derks Aircraft Electronics Association PaulaD@AEA.net Ed Gazvoda Western LLC Ed@WesternLLC.net Anthony Kioussis Asset Insight akioussis@assetinsightinc.com George Kleros Jet Support Services, Inc. gkleros@jetsupport.com Dave Labrozzi Global Jet Capital dlabrozzi@globaljetcapital.com Maria A. Sastre Signature Flight Support info@signatureflight.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.

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Postmaster: Please send address changes to: Business Aviation Media, Inc., PO Box 5512 • Wayland, MA 01778, USA ©Copyright 2018 by Business Aviation Media, Inc. All rights reserved Printed in the USA

Connecting Flights Air travel used to be a time of respite, whether you were flying via a commercial airline or business aviation. Once airborne, you were out of touch, able to focus on reading and writing reports, or just catching up on much-needed relaxation.

That’s no longer so. The demands of today’s Information Age require 24/7 access to communications with work associates, family, and friends, as well as monitoring the news. That requires almost continuous access to the internet via Wi-Fi, just to keep up.

“Connectivity” was one of two primary messages heard in many presentations, as well as in just about every informal discussion in every convention hall aisle during last October’s 70th annual National Business Aviation Association convention. Continual inflight internet access aboard is now mandatory, both for business and for relaxing entertainment.

And it’s not just for you, the owner/passenger. That square flight bag briefcase containing the “Jepp” airways charts and airport approach plates (maps) that used to be carried by every professional pilot, largely have been replaced by smart phones and tablets, now carried in flexible backpacks. Virtually every FBO now offers free Wi-Fi for their passengers’ business use, and for pilots’ online flight planning.

That constant connectivity has a safety and cost control aspect, as well. The “Internet of Things” (IoT) enables your technician on the ground to monitor all aircraft operating systems – engines, airframe, and avionics – in real time, spotting any anomalies when they occur. No need to wait for the next inspection or a system failure – problems can be addressed immediately upon landing, improving your aircraft’s reliability and avoiding expensive unscheduled maintenance events.

The second big message heard during the convention was about another form of connectivity: evolving means of access to business aircraft. Since fractional aircraft shares were first introduced more than 30 years ago, new industry entrants continue to produce variations on that theme, from jet cards to structured shared ownership.

The one commonality among them? They all involve connection: shared aircraft use.

The desire to own a dedicated aircraft is not quite as strong among those younger than 40 or so – the coming generation of business leaders.

These new modes of access are driven by connectivity, by an internet accessible to virtually everyone, everywhere, at any time. It enables charter brokers, and fractional and charter operators, to share pricing and availability information, and respond almost immediately to each individual client trip request.

So connected via the internet is now one large networked fleet of aircraft, linking – and marketing – the world’s 2,200+ charter operators. If your aircraft is managed and available for charter, its next revenue trip might well be from the far reaches of this growing network.

That network will be critical to Business Aviation’s continued growth – for safety, service, reliability… and revenue.

Gil Wolin — Publisher gwolin@bizavadvisor.com Ja n u a r y/ Fe b r u a r y 2 018 B U S I N E S S AV I AT I O N A DV I S O R 5

■ INDUSTRY UPDATE

Time Flies …

Will Your Aircraft?

BY PAULA DERKS

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Aircraft Electronics Association / PaulaD@AEA.net

f you’re a business aircraft owner whose background isn’t in aviation, you often may wonder at the jargon and acronyms used by your pilots and flight department managers. They may use terms like “ADS-B” or “FANS” without breaking stride, but all you know is that it’s going to cost you.

How can an aircraft you placed into service just a few short years ago suddenly need thousands of dollars in upgrades? Without them, you’re told, the aircraft could be severely limited in its utility, or even be grounded. Do you really need to make a substantial investment in time and money – and be without your aircraft for weeks – just to be able to fly it after a certain date?

Yes. And here’s why.

The explosive growth in worldwide air travel during the last few years has created an enormous challenge. While the number of aircraft aloft at any given time has increased dramatically, the airspace within which they fly has not. The number of airports and runways hasn’t increased appreciably, either. All those 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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aircraft must go somewhere, and air traffic authorities are being forced to modernize with new procedures and new technologies, allowing them to safely and efficiently handle the growing demand.

This is a worldwide issue, and owners and operators in the U.S., in Europe, and in other countries are facing the same questions, challenges, and concerns. In the U.S., for example, beginning January 1, 2020, continued and uninterrupted access to major airports and the most efficient airspace for most business aircraft will require aircraft to be equipped with ADS-B, or Automatic Dependent Surveillance-Broadcast. This technology already is required in some Canadian, Australian, and Asian airspace.

European aircraft operators have until June 7, 2020 to equip. The basic ADS-B technology is a networked, all-digital way of identifying and locating aircraft that eventually will replace most ground-based analog radar facilities.

But even before the ADS-B deadline in 2020, aircraft flown over the North Atlantic will need to begin using technologies from FANS, or Future Air Navigation System. A key component of w w w. B i z AvA d v i s o r. c o m

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Imminent Mandates Offer Advantages, Opportunities

Many business aircraft owners and operators face looming equipment deadlines, and those mandates also present opportunities: you can get by with the bare minimum or greatly expand your aircraft’s comfort, efficiency, and capability.

FANS is the CPDLC, or Controller-Pilot Data Link Communications, a purpose-built, secure, text-based messaging system that allows discrete, two-way communications between air traffic controllers and aircraft.

Using CPDLC offloads these communications from the congested, shared “party-line” voice frequencies air traffic control currently uses. It’s already available from U.S. air traffic controllers and reportedly is 20 times faster than existing options. The deadline for implementing the CPDLC component of FANS over North Atlantic airspace has two phases: Phase 2B has to have been accomplished by December, in order for you to fly at altitudes between 35,000 and 39,000 feet; and Phase 2C must be completed by January 30, 2020, so you may continue to fly above 29,000 feet.

Raymond Larkin, vice president of business aviation sales for Latitude Technologies, said: “These data communication improvements enhance both safety and efficiency, and afford the more effective use of airspace and a safe increase in capacity.”

While these underlying technologies are relatively simple, integrating them into your aircraft’s existing avionics (aviation electronics) complement might not be, necessitating expense and downtime. And since your aircraft needs some communications capability, you can use this opportunity to enhance your aircraft’s avionics at the same time.

In all, the mandated upgrades – and the communications upgrades you choose to install – offer several benefits: ■■ Improved safety margins – There are more than 33,000 business turbine aircraft alone flying today. FANS and ADS-B enables Air Traffic Control (ATC) to monitor and direct aircraft in high density flight corridors, keeping all aircraft properly spaced and sequenced, enabling the airspace to accommodate the increased traffic safely.

■■ Enhanced pilot communications with ATC – CPDLC expedites communications between ATC and your flight crew, using direct one-to-one texts. This provides clear, concise instructions, rather than a hectic radio frequency shared by all aircraft in the local airspace.

■■ Time savings – This digital clearance delivery eliminates unnecessary maneuvering around airports, and resulting airborne wait times at busy airports. Flying shorter legs effectively puts more time in your day, getting you to your destination faster.

■■ Savings on operating costs – Less flight time lowers your direct operating costs. You consume less fuel and fewer hours to accomplish your travel missions, which extends the calendar time between required maintenance inspections. w w w. B i z AvA d v i s o r. c o m

of asset value – Completing these upgrades will ensure that your aircraft will maintain its value as a capital asset going forward. Without these upgrades your aircraft will be virtually grounded, beginning in January 2020 (See “2020 Vision,” page 12). It essentially will become a very large, very expensive paperweight.

■■ The opportunity to enhance your avionics – Your aircraft must be connected to ATC somehow to meet these equipment mandates, so why not take the next step and connect to other services and capabilities, including the internet? Since the CPDLC requirement calls for airborne connectivity, whether using ground-based or satellite technology, you will need to decide if you want the bare minimum necessary for compliance, or if you want to broaden your aircraft’s capabilities (See “Who? What?

When? Where? Wi-Fi?” BAA Sept/Oct 2017).

Together, all of these technologies usher in a “next generation” of capability and utility for your aircraft.

“NextGen avionics, including satellite-based navigation, ADSB and CPDLC/FANS 1/A, provide the ability to connect the aircraft to the ground to enable your crew to have access to the latest flight information, accurate flight tracking, and quickly communicate any flight plan changes,” said David Ufen of Rockwell Collins.

“Today, being connected during a business flight is no longer a luxury, it’s a necessity,” David Salvador, vice president of aftermarket sales for Gogo Business Aviation, said. “The investment in in-flight connectivity goes hand-in-hand with why companies and individuals operate business jets – efficiency, productivity, and quality of life. As a result, if looking to upgrade your existing service or if you’re considering adding connectivity for the first time, it’s important to understand your options and weigh the costs against the benefits.”

The benefits of these NextGen technologies are clearly defined and real. Ignoring the international equipment mandates and turning away from these technologies not only may be a financially costly mistake, you ultimately run the risk of having your aircraft grounded.

Once the deadline arrives — and then passes — will your aircraft be ready to keep flying? BAA ■■ Preservation

PAULA DERKS is President of the Aircraft Electronics

Association, providing regulatory representation, training, and member services to nearly 1,300 general aviation electronics entities in 43 countries. She is Publisher of AEA’s monthly magazine, Avionics News.

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■ GROUND SERVICES

Gimme Shelter Addressing the Great Hangar Shortage

BY MARIA A. SASTRE Signature Flight Support / info@signatureflight.com

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and hangars to accommodate these new aircraft, available open land at conveniently located airports is at a premium. All staff today must pass FAA and TSA background checks, and then be properly trained to marshal, tow, and park your aircraft.

While the minimum standards for ramp and hangar construction vary from airport to airport, the basic requirements do not.

Hangars large enough to accommodate the full range of business jets likely will require foam fire suppression, not just sprinklers.

Ramps must meet load-bearing specifications, which can run as high as 100,000 pounds for large cabin and bizliner jets. Most airports now require that the FBO executive terminal offer crew and passenger lounges, a flight planning room, conference room, public use telephones, and restrooms.

In addition to commercial liability insurance for people and property, an FBO must carry “hangar keeper’s” insurance to protect you and your aircraft from damage resulting from any staff negligence.

Demand for expanded FBO facilities is growing, and the FBO industry is responding, currently building more than one million square feet of hangar space worldwide. Rising FBO development expenses and operating costs – land lease costs, utilities, labor, facilities maintenance, and insurance – drive not only ramp fees, but also higher hangar lease costs and retail fuel prices. Yes, FBOs will be there when and where you need them, and be prepared: new requirements and services will require new pricing. BAA MARIA A . SASTRE , President and Chief Operating Officer

for Signature Flight Support’s global operations, is responsible for the daily operations of Signature’s worldwide network of fixed base operations and maintenance centers.

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nce, space to park and hangar your aircraft, both at home and on the road, was plentiful and reasonably priced.

Most turbine aircraft were fewer than 60 feet in length and wingspan, with tail heights under 24 feet. Most were light or midsize jets, and it was easy to “stack” a hangar, overlapping the wings of larger aircraft with those of smaller jets, thus maximizing the number of aircraft protected in each building. There were plenty of trained aviation professionals available to staff a Fixed Base Operation (FBO).

That is no longer so, due in equal measure to evolving aircraft design, airport development standards, staffing requirements, and the sheer number of aircraft in service today.

The change began in 1977, when Learjet introduced a dramatic modification, replacing its trademark “tip tanks” on each wing with winglets. These aft-leaning, upward bends increased the aircraft’s nonstop range by more than 5% using the same amount of fuel.

Today most business jets are winglet-equipped, making the fleet more fuel efficient, extending the aircrafts’ nonstop range, and reducing your per-hour operating costs.

The unintended consequence? Now every aircraft so equipped takes up more room on the ramp. FBOs no longer can stack aircraft in the hangar as efficiently and effectively as they did in the past. With more than 33,000 business turbine aircraft in service today, ramp and hangar space is at a premium.

That worldwide fleet will grow to more than 41,000 aircraft by 2027, according to the 2017 Honeywell, JETNET, and Teal Group forecasts. And thanks to expanding international trade, more than 57% of those will be long-range, large-cabin aircraft. Think Gulfstream 650ER (99-foot wingspan), Falcon 8x (86 feet), Global 5000 (94 feet), and Lineage (94 feet). The footprints for these newer models run 30% to 40% larger than older aircraft, so new aircraft arrivals now fill existing hangars much faster than did their predecessors.

Many existing hangars cannot accommodate these newer aircraft at all. Today’s large cabin aircraft run 25 to 28 feet in height, including a tail-mounted satellite antenna for cockpit and cabin connectivity, and are unable to clear the top rails of older hangar doors. They also have a much greater turning radius, which requires more ramp space to maneuver, and greater care by experienced line technicians exercised when towing them.

Sufficient space and additional staff are among the challenges facing FBOs today. As the industry seeks to build enough ramps

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■ GROUND SERVICES

Thinking of Building a Hangar?

Eleven Steps to Success

BY ED GAZVODA Western LLC / Ed@WesternLLC.net

Are you or your company considering building a hangar – for security, privacy, to save on rent, as an investment, or due to lack of existing space? Here’s what you need to know as you begin: Consider your requirements – What components are necessary for immediate and future aircraft and for the facilities and amenities to support your operation? Do you need office space for your flight department, covered parking, a maintenance shop, or self-fueling?

Meet with aviation real estate developers – The NBAA’s website lists aviation real estate companies. Check references. Visit one or more hangars built by the developers under consideration. Speak with the hangars’ owners about their experiences working with the developers.

Check with your preferred airport(s) to see if a new hangar can be accommodated and if the airport is willing to work with you.

Conduct a feasibility study, so you understand whether the economic, technical, and legal risks, as well as the timing issues you envision for your hangar project, match reality.

Determine your budget – How much are you willing to pay in total costs and on a monthly basis? Public airports lease the ground, typically for a term of 30 to 50 years at an annual fee of $0.10-$0.75 per square foot, after which your hangar becomes their property. The total development cost for a hangar can range from $50 per square foot for a simple hangar (think “barn”) to $350 per square foot for a more sophisticated facility. Include costs to pave any new ramp space or access to the taxiways, which will be determined by the fully loaded weight of your aircraft and its distribution across the wheels. Ongoing costs include financing, if any, as well as insurance, personal property tax, maintenance, and property tax.

Commission a site survey and a Phase One environmental study. Environmental or conservation issues need to be addressed before a building permit can be issued. You will discover if the site is home to an endangered species or contains hazardous materials.

Assemble the planning team: an architect, plus geotechnical, civil, and structural engineers. The engineers will specify the best access to the taxiways, identify the available utilities, classify the soil conditions, and plan for drainage. The architect will incorporate the engineers’ findings and recommendations to select the types of materials to be used; ensure the building meets guidelines to withstand hurricane-strength winds, snow loads,

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heat, and/or humidity; specify the ideal hangar door configuration; and prepare the building’s plans to meet your needs. The size and the use will determine if the hangar’s fire suppression system will be sprinkler or foam. If there is insufficient water pressure to support a sprinkler system, a costly water tower may be required.

Foam suppression, if required, adds a significant cost to the construction of a hangar.

Hire an attorney experienced with aviation developments to review the airport’s ground lease, development contract, and financing documents, if required.

Obtain permission to develop from the FAA, the airport, and local authorities. Depending on the location, obtaining a building permit may take one month to two years. The ground lease will specify a construction start date and a total minimum development cost. Should you fail to meet these requirements, the airport will have the right to terminate the ground lease.

Begin construction – The actual time to complete the hangar could be four to twelve months. Make provisions for weather conditions in the schedule.

Fly in and unwind in your new hangar – Navigating the design, construction, and financing of your new hangar can be daunting. Initial guidance from an experienced aviation developer, at no cost to you, is invaluable. BAA

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ED GA Z VODA is an aviation real estate developer at Western

LLC. Co-author of User-Effective Buildings, plus four more books on commercial real estate development and business, he earned a B.A. from Harvard University.

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JE T AVIATION

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Jet Aviation’s 3rd hangar at Seletar Aerospace Park in Singapore.

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■ AIRCRAFT FINANCE

2020 Vision A Clear Picture of NextGen Upgrades

BY ANTHONY KIOUSSIS & DAVE LABROZZI Asset Insight / Global Jet Capital

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Consider, for example, an operating lease, one of the most commonly used tools to finance a costly aviation asset. In this arrangement, the lessor retains ownership, and with it, the residual value risk. The lessee, however, has full use of the aircraft for a specific term while fulfilling all lease, insurance, maintenance, and (almost always) operational obligations.

These obligations include FAA regulations, in this case, the NextGen upgrade requirements. Failing to meet the deadlines is a violation of lease terms, and the lessor then can – and most assuredly will – call in the lease, including all payments due. This substantial cost is in addition to the previously mentioned expenses associated with the grounded aircraft.

If this is not sufficiently convincing, consider the supply and demand aspect of upgrading. As the deadlines draw ever near, the cost of components are increasing with demand. With a limited number of maintenance facilities capable of these installations, and the approximately 100 hours of work per aircraft it will take to complete them, the price for a slot also is likely to increase.

A reverse bell curve highlights the trend: while early buyers may have paid more for the new technology, late buyers will pay more for demand. Waiting will only increase your costs and inconvenience, whether you own the aircraft or not. The benefits of FANS 1/A+ and ADS-B are clear. And failure to meet the upgrade deadlines is really not an option. BAA ANTHONY KIOUSSIS , president of Asset Insight, and DAVE L ABROZ Z I ,

COO of Global Jet Capital, serve on the Board of the National Aircraft Finance Association, a nonprofit membership organization working to connect the people and ideas that finance the world’s business and general aviation aircraft.

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he mandate for NextGen upgrades is now just two years off, with no indication from the FAA that it will extend the January 2020 deadlines.

However, knowing what’s required, and when, doesn’t always translate into action. For those who’ve been procrastinating, the time to get your aircraft into compliance – whether you own or lease it – is right now.

Future Air Navigation System (FANS 1/A+) and Automatic Dependent Surveillance Broadcast (ADS-B) systems are the two key NextGen technologies necessary to keep your aircraft, and your business, flying.

An understanding of the benefits of these upgrades to your business asset – and the consequences of noncompliance – may help you better appreciate the need for prompt action.

FANS 1/A+ technologies create a direct air-ground datalink, enabling digital transmissions of short messages between pilots and operators. The mandate has expanded to include more tracks and airspaces. The last of these will take effect on January 30, 2020.

Without FANS 1/A+ by this point, you will be forced to use highly circuitous routings or fuel-consuming, low altitudes.

ADS-B (Out) notably improves safety with increased situational awareness, automatically transmitting positional information, and providing more surveillance coverage. By January 1, 2020, if you plan to fly above 10,000 feet, in FAA-designated Class A, B, or C airspace (which includes nearly every large, mid-sized, and many smaller U.S. airports), your aircraft must be equipped with ADS-B (Out) – or it is likely to be grounded.

While the ability to broadcast (out) is required, the ability to receive (in) is a value-added option. With the many benefits of ADSB (In), including the traffic, weather, and aeronautical information obtained, most owners are choosing that option as well.

In fact, sometimes it’s this type of option that leads business owners to lease, instead of buy, their aircraft. The ability to get the latest technology, make adjustments based on evolving business needs, and reduce the risk of investing significant capital or being tied to a title all make leasing worthwhile. However, whether you own or lease the aircraft, missing the upgrade deadlines will have an impact on where you fly, or if you do at all.

While it’s clear what costs a noncompliant owner would accrue – increased expenses in the form of storage fees and calendarbased maintenance, loss of revenue or even opportunity, as well as the cost of securing charter or another form of alternate lift – a lessee faces additional issues.

OUR WORLD is a big place.

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■ FLIGHT OPERATIONS

Pay Attention to Retention What Today’s Pilot Shortage Means for You

BY CHRISTOPHER BROYHILL, PhD, CAM Mente Group / CBroyhill@Mentegroup.com

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making a transition to the airlines. Pro-airlines respondents constituted a solid majority in every type of organization: from corporate flight departments to charter pilots to fractional operators.

Compared with pilots uninterested in making the switch, they tended to be younger, have less time with their employers, and were lower in the organization hierarchy.

Most interestingly, pro-airlines pilots were more likely to think they weren’t compensated fairly, lacked adequate retirement benefits, didn’t have a predictable schedule, and that their employer didn’t care about their quality of life.

What Are the Implications for You?

Unless you are willing to hire enough pilots to guarantee them a predictable quality of life, and are willing to pay them competitively with appropriate benefits, you risk losing at least half of them to the airlines. Yes, retention will cost you, but the cost of turnover, for contract pilots during new-hire training plus that training, is much higher.

As you read this, a majority of your pilots probably are considering that transition. If you are satisfied with your current pilot staff and want to keep them, you’re going to end up paying: either now, or later when you are forced to replace them. BAA CHRISTOPHER BROYHILL , PhD, CAM , is Mente

Group’s VP of Consulting, specializing in pilot retention. With 35+ years’ aviation experience, he is a retired USAF fighter pilot and former Director of Aviation for a Fortune 100 company.

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oday’s unprecedented “perfect storm” of phenomena affecting professional pilots has drastically changed the hiring environment for business aviation.

Why should you care? Because the pilots sitting in the front of your aircraft, with your life in their hands, may be contemplating a career move – and you may be the last to know about it.

In the past, it was common for business aviation pilots to stay in their jobs for decades and never consider moving elsewhere.

That practice has changed. Why? First, the major airlines are expanding their fleets. According to a recent study by Boeing, airlines will be buying tens of thousands of new aircraft during the next 20 years. The study predicts that more than 617,000 pilots will be required to fill airline cockpits worldwide; 112,000 just in North America. As the fleets are expanding, those airlines are retiring older pilots and replacing them. United and Delta Airlines alone will retire more than 13,000 pilots in the next ten years. At the same time, the major airlines are hiring in increasing numbers: 3,400 pilots in 2015, 4,100 pilots in 2016, and more than 5,000 pilots last year.

Secondly, the sources of pilot production are not providing new pilots at the rates they have in the past. Previously, the military has provided most airline pilots. Today, due to forced downsizing and increasing deployments worldwide, the military is generating smaller numbers of pilots and retaining those pilots longer.

Civilian pilot production can’t make up the shortfall, largely due to cost. The educational cost for a pilot to achieve a commercial instrument rating is approximately $25,000, typically without grants or scholarships. To attain an Airline Transport Pilot license, the pilot then must gain 1,500 hours of flight time, which can take years, and forces the pilot to fly as a flight instructor at extremely low rates of pay. The high cost of the credential and the time required to reach a decent salary level dissuades many young people from aviation careers.

So where are the airlines getting the pilots they need? Largely from business aviation. A representative from United’s HR department recently admitted that United targets business aviation pilots, because the pilots have time in sophisticated aircraft and are a known commodity when it comes to training and upgrade.

The commercial airline industry is following United’s example and pulling business aviation pilots into the major airlines in record numbers.

In a recent National Business Aviation Association survey, more than half (55%) of pilots indicated they were considering

■ AIRCRAFT MAINTENANCE

Good Luck? Or Good Planning?

Pre-Buy Inspections Require the Right Team

BY GEORGE KLEROS Jet Support Services, Inc. / gkleros@jetsupport.com

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hether you are a first-time buyer, or are upgrading to a different aircraft, you’ll want your aircraft to have a thorough pre-purchase inspection at a maintenance facility qualified to serve the specific make/model of aircraft you’ve selected (See “Inside View,” BAA July/August 2017).

There are different levels of pre-purchase inspection, depending on how deep you want to dig to reduce your risk. The history and condition of the aircraft ultimately determine your post-purchase ownership experience, so it’s important to get it right.

What Can You Expect?

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If this is your first aircraft purchase, you’ll need to hire an experienced contract pilot to perform these test flights on your behalf.

Flying with the seller’s pilot, your pilot will verify that all systems work correctly. Your pilot should coordinate with your tech rep to confirm the specific items that need to be checked. Flying up to a normal cruise altitude will allow the pilot to perform appropriate operational checks. Doing so should identify most operational issues not detectable on the ground.

Obvious problems with avionics, autopilot systems, pressurization, cabin temperature, cabin noise, and flight characteristics will be revealed during this process. The pilot and tech rep then will debrief with you and the broker. They may add to the pre-purchase checklist items requiring further investigation and correction.

Sometimes, the seller may pressure you to close the deal quickly. Indecision or price negotiation could drag out for weeks.

To find a team of advisors with expertise and integrity, consider using those belonging to and recommended by aviation trade associations. They must adhere to a professional code of ethics and conduct. You need to be able to trust them to guide your decision process and know when it is right to move forward – or not – through the pre-purchase inspection. BAA GEORGE KLEROS , Senior VP, Strategic Fleet Management

and Fleet Support for Jet Support Services, Inc. (JSSI), has more than 30 years of experience in Aviation Maintenance, Management, and Field Support Services for business jet aircraft.

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The purchase process typically is cordial, that is, until the prebuy inspection is mentioned. If you request a detailed inspection, it is normal to expect some pushback from the seller. However, an aircraft that is well maintained, operated regularly, and stored properly should not present any huge, surprising issues.

Assuming you already have a broker, step two in the process is to engage a qualified technical representative to be present during the entire pre-buy inspection. If you’re not a first-time buyer, your own mechanic can be your technical representative.

If you do not have a mechanic, where will you find this help?

Shop around and get recommendations from credible sources.

This person should report to and be contracted directly with you.

Share your expectations as you begin, and agree on the communication process. Since his or her job is to protect you, this individual should have a well-seasoned maintenance background and experience on the exact model you are considering for purchase.

He or she has the responsibility of drafting a pre-purchase inspection checklist of critical items. Although Original Equipment Manufacturers (OEMs) do not provide a standard list, some maintenance facilities do. Together with the broker, your tech rep will negotiate a reasonable checklist of points to examine that is satisfactory to both you and the seller. The goal is not to “nitpick,” but instead to ensure certain areas are inspected, to avoid incurable or expensive problems.

While it is not necessary, or usual, to completely disassemble the entire aircraft, detailed records research on the engines, auxiliary power unit, and airframe is highly recommended to understand the aircraft’s history. Damage is not always obvious.

However, a capable, experienced tech rep will know what to look for and what to ask. For example, a structure part change might trigger the question as to why this part was changed.

Step three is to have your pilot test the aircraft prior to the start of the inspection and again afterwards, at the acceptance flight.

■ WASHINGTON REPORT

New Leadership for FAA Change Happening at Critical Juncture for NextGen Program

BY DAVID COLLOGAN dlcollogan@gmail.com

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Federal Aviation Administration Administrator Michael P. Huerta

system to a private sector entity controlled by A4A’s member airlines. A4A has disingenuously cited early problems with NextGen as a rationale for its support of ATC privatization.

While it may seem Elwell would be just the sort of guy Trump might pick to head FAA – former military, worked for the airline lobbying group, etc. – the President previously singled out another pilot he has known for more than two decades.

During a “getting to know you” meeting with airline executives at the White House last February, Trump took a few verbal shots at the NextGen program and Huerta. Then, without referring to him by name, Trump began speaking about John Dunkin, who became Trump’s personal pilot in 1989 and continued in that role through the presidential campaign.

“I have a pilot who’s a real expert,” Trump said then of Dunkin, who offered Trump the following perspective on NextGen: “Sir, the equipment they’re [FAA] putting on is just the wrong stuff. If we’re going to modernize our system we should be using the right equipment.”

“My pilot, he’s a smart guy, and he knows what’s going on,” Trump concluded.

The possibility that FAA’s new leader could be a former A4A executive, or a pilot who was paid to keep Trump happy for 20+ years, is terrifying to contemplate. Upsetting the NextGen effort now, when FAA is more than a decade into the program, invites catastrophe. 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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FEDER AL AVIATIO N ADMINISTR ATIO N

redicting who might get, or quickly lose, a job in the Trump Administration is like trying to guess the outcome of a hyper-speed pinball game – there are just too many possible permutations to keep track of.

Yet one thing seems clear: Michael P. Huerta will have stepped down as FAA Administrator as of January 7, 2018, the final day of his five-year appointment. No one expects he will be asked to stick around longer.

His departure marks the end of a 7 ½-year run at the upper levels of the FAA org chart. Named deputy administrator of the agency in June 2010, he became acting administrator in December 2011. Huerta won Senate confirmation and was sworn in as Administrator on Jan. 7, 2013.

Huerta’s lengthy tenure has been marked by several positive developments. These include FAA partnering with the industry on a number of fronts to improve safety, and to reduce regulatory burdens for manufacturers and private pilots.

But Huerta will be remembered most for championing the NextGen ATC modernization program. Many observers credit him with helping push NextGen from a somewhat nebulous concept to a functional program that is putting new technology online and producing positive results. President Trump, who has criticized the NextGen program and who supports ATC privatization legislation, will select the next FAA administrator.

So, who will he pick? One possibility is Daniel K. Elwell, sworn in as Deputy Administrator this past June and in line to become acting administrator when Huerta departs.

Based on his aviation background, and strong Republican credentials, Elwell would seem a likely candidate to get the top job on a permanent basis. He’s an Air Force Academy graduate, has more than 6,000 total flight hours, and achieved the rank of Lieutenant Colonel.

After retiring from the military, Elwell was a commercial pilot with American Airlines and later served as that carrier’s managing director for international and government affairs.

He then joined FAA as assistant administrator for aviation policy, planning, and environment, while Marion Blakey was FAA Administrator. Elwell followed Blakey to the Aerospace Industries Association, where she was president and he was a senior executive dealing with a range of civil aviation issues and policy.

Elwell then moved to Airlines For America (A4A), the primary supporter of Rep. Bill Shuster’s (R-PA) multi-year effort to hand over ownership and management of the U.S. air traffic control

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