AvBuyer Yearbook 2016

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AVBUYER YEARBOOK The Best IntelligenceDriven Editorial in O n e Vo l u m e

2016

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EDITORIAL Editorial Director / Publisher J.W. (Jack) Olcott 1- 201 572 9284 Jack@avbuyer.com

Editor’s

Welcome

Commissioning & Online Editor Matthew Harris 1- 800 620 8801 +44 (0)208391 6777 Editorial@avbuyer.com

A Celebration of BizAv Intelligence

Editorial Contributor (USA Office) Dave Higdon Dave@avbuyer.com Consulting Editor Sean O’Farrell 1- 800 620 8801 +44 (0)20 8391 6779 Sean@avbuyer.com ADVERTISING Linda Blackburn (USA Sales) 1- 614 418 7064 Linda@avbuyer.com Maria Brabec (European Sales) +420 604 224 828 Maria@avbuyer.com Karen Price 1- 800 620 8801 +44 (0) 208391 6774 Karen@avbuyer.com STUDIO/PRODUCTION Helen Cavalli Mark Williams 1- 800 620 8801 +44 (0)208391 6776 Helen@avbuyer.com Mark@avbuyer.com CIRCULATION Barry Carter 1- 800 620 8801 +44 (0)208391 6770 Barry@avbuyer.com AVBUYER.COM Michael Myburgh Michael@avbuyer.com Emma Davey Emma@avbuyer.com Managing Director John Brennan 1- 800 620 8801 +44 (0)208391 6771 John@avbuyer.com USA OFFICE 1210 West 11th Street, Wichita, KS 67203-3517 EUROPEAN OFFICE Trident Court, One Oakcroft Road, Chessington, Surrey, KT9 1BD, UK +44 (0)20 8391 6770

s part of AvBuyer’s ongoing commitment to the Business Aviation community, we are pleased to bring a collection of representative articles from 2015 to our readers in this 2016 Yearbook. We have bound a variety of features designed to provide insights to active users and managers of business aircraft and increase their overall intelligence regarding Business Aviation.

Many AvBuyer readers archive monthly copies of the print version of the magazine.

They find the information relevant to ongoing management and operational challenges, and maintaining bookshelf space for the magazine is convenient (aided by AvBuyer’s premium binding and presentation). Other readers use the capabilities of the Internet to search for meaningful material. Whether researched via print pages or computer searches, AvBuyer editorial is prepared and presented to serve the informational needs of active participants in Business Aviation.

But many readers wanted more, thus we created the 2016 AvBuyer Yearbook. We are pleased and proud to serve the community of active aviation professionals who rely on AvBuyer’s communication products to stay abreast of issues needed to manage, operate, buy and sell business aircraft, whether new or pre-owned. They expressed an interest in a compendium for convenient reference, which we present here. We thank them for their suggestion.

Being involved in the selection process for articles in this Yearbook was no easy task, and highlighted the vast spectrum of knowledge in so many different areas of Business Aviation that our writers bring. We have been truly advantaged by the expertise they have contributed to this publication during the past year.

As readers might anticipate, selected articles from Mike Chase’s monthly Aircraft Comparative Analysis are a staple of the AvBuyer Yearbook. Ken Elliott’s year-long coverage of

A

avionics mandates is included as well. Transactional techniques and insights for buying and selling as well as pivotal aspects of finance are presented, and readers are able to review market behavior throughout the year as captured by Jay Mesinger.

Risk strategies are presented by insurance expert Stuart Hope and legal specialists Keith Swirsky and Chris Younger. Maintenance subjects are addressed by several experts actively engaged in day-to-day challenges of keeping business aircraft operational and safe.

The Yearbook compiles meaningful articles dealing with Flight Department management, authored by seasoned practitioners Fred Haap, George Dom, Jodie Brown and Pete Agur. The community’s constant attention to safety is captured in Mario Pierobon’s ongoing series, while Dave Higdon’s stellar ability as an aviation journalist is reflected in his coverage of a broad range of Business Aviation issues from ownership to refurbishment. David Wyndham’s articles bring examples of his many years serving management with analytics and metrics relevant to effective use of business aircraft.

Case studies are presented as examples of how business aircraft are business tools for entrepreneurs and corporations throughout the globe. Rod Simpson’s four-part examination of Dassault Aviation’s development of business aircraft is included in its entirety as a case study in OEM commitment to Business Aviation.

AvBuyer is proud to present this collection of articles – a celebration of BizAv Intelligence, if you will - that we trust will add to your knowledge of Business Aviation and serve as a handy reference for review throughout the year ahead.

Jack Olcott Editorial Director & Publisher AvBuyer your source for Business Aviation Intelligence

The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet.

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Aircraft Comparisons 8 14 20 26

Cessna Citation CJ4

140 144 146 150 152

Avionics Mandates – Introduction (Part 1) Avionics Mandates – CPDLC & ATN-B1 (Part 2) Avionics Mandates – FANS 1/A+ & ATN-B2 (Part 3) Avionics Mandates – ADS-B (Part 4) Avionics Mandates – TCAS 7.1 (Part 5) Avionics Mandates – Installation Aspects (Part 6) Avionics Mandates – Low Viz Ops (Part 7) Avionics Mandates – Mandate Impact & Status (Part 8) Avionics Mandates – Data Comm (Part 9) Cockpit Displays Have Come a Long Way

The Business Aircraft Acquisition Checklist (Part 1) The Business Aircraft Acquisition Checklist (Part 2) Ten Common Mistakes of Buying a BizJet Price Tracking, Establishing an Aircraft’s Value Aircraft Ownership: Cash, Finance or Lease?

Aircraft Residual Values Valuing High Time Aircraft Economic & Functional Obsolescence? (Part 1) Economic & Functional Obsolescence? (Part 2) Economic & Functional Obsolescence? (Part 3) Upgrading Your Jet to Sell

Finance & Insurance

33

It’s Here To Stay: Cabin Connectivity Customized Cabin Avionics NextGen Upgrade Strategies

Buying & Selling 100 104 106 108 110 112 113 114 116 120 124

127

128 Engine Maintenance Management 132 Understanding Engine Audits 136 Engine Pre-Purchase Inspections

Bombardier Global 6000 Embraer Phenom 300 Dassault Falcon 900LX

Avionics 34 38 40 46 52 57 61 65 70 76 83 88 94

Engines

7

Tax: Chartering your Company Aircraft (Part 1) Tax: Chartering your Company Aircraft (Part 2) Tax: Chartering your Company Aircraft (Part 3) Differentiate Among Insurance Carriers Unexpected Curves of Aviation Insurance

Flight Department Management

97

156 158 160 162 166 170 174

155

Pilot Experience or Proficiency?

Management: Gaining Team Credibility Three Steps to Keep Service…

Creating a Flight Department (Part 1) Creating a Flight Department (Part 2) Creating a Flight Department (Part 3) Creating a Flight Department (Part 4)

Maintenance 180 184 187 190 192 194

139

Aircraft on Ground!

Understanding Spare Parts Support Finding a Happy Maintenance Home Maintaining Aircraft Capability Maintaining Older Aircraft Modernizing your Aircraft (Part 1)

177

196 198 200 204 208 212

Modernizing your Aircraft (Part 2) Modernizing your Aircraft (Part 3) Refurbishment Choices Carbon Fibre & The Cabin Maintenance The EASA Way The Paperless Hangar

Ownership 216 218 222 224 228 232

New or Used Aircraft? (Part 1) New or Used Aircraft? (Part 2) New or Used Aircraft? (Part 3) End-Stage Care for Aircraft Fixed Base Operations Global & Domestic Flight Planning

Profiles & Case Studies 238 242 244 248 252 256 260

237

One Man & His Jet - Case Study He Made His Bed… - Case Study Sanderson Farms - Case Study Dassault: A Century of Innovation (Part 1) Dassault: From Fast Jets to Falcon Era (Part 2) Dassault: Building the Falcon Family (Part 3) Dassault: The X-Planes (Part 4)

Safety 266 268 270 272 274

215

The Effects of Poor CRM When ‘No’ is Necessary Thinking Outside the (Tick) Box Fatigue Management Tips Complacency, A Silent Killer

265

Yearbook Contents

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TWO WAYS TO CONQUER THE WORLD*.

Now you have two choices for superior, ultra-long-range capability. The 5,950 nm Falcon 7X—the fastest selling Falcon ever (and with good reason). Or the new, 6,450 nm Falcon 8X, destined to become a favorite of world travelers. Both have the awe-inspiring ability to flyy long distances from short and challenging runways such as Aspen and London City.. The 8X is more than three feet longer, with over 30 cabin layouts. Fly far. Fly in comfort. Achieve more.

WWW.DASSAUL LTF FALCON.COM I FRANCE: +33 1 47 11 88 68 I USA: +1 201 541 4600

Section Contributor

Mike Chase’s analytical and consultancy services are highly valued within the Business Aviation industry. He is founder and president of Chase & Associates, and works closely with several respected sources to compile his unique Aircraft Comparative Analysis feature. Contact Mike via mike@avbuyer.com

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Aircraft Comparisons

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Aircraft Comparisons

8 G650

G550

Aircraft Comparative Analysis: Bombardier Global 6000 In this Aircraft Comparative Analysis, we provide information on a selection of business jets in the $50.2m-$73.5m range for the purpose of valuing the pre-owned Bombardier Global 6000. ithin this article we’ll consider the productivity parameters - payload/range, speed and cabin size, and cover current and future market values. The field in this study also includes the Bombardier Global 5000 and the Gulfstream G550 and G650.

The Global 6000 is the fourth and latest business jet model built

by Bombardier to compete in the ultra-long-range and large cabin market. The ultra-long-range business jet market began in 1995 with the Gulfstream GV, followed two years later by the Global Express, and is defined as large cabin business jets that can fly a 5,000nm (or greater) distance.

The Global 6000 traces its roots to the Global Express XRS which was the third ultra-long-range large cabin business jet produced by Bombardier. The Global 6000 started delivering to customers in 2012 and there are currently 99 Global 6000s in operation worldwide. The model offers a large, spacious cabin in excess of 2,000 cubic feet and can travel over 6,100nm non-stop. Two new models will follow the Global 6000 - the Global 7000 and Global 8000 ultra-long-range large cabin business jets.

Today the ultra-long-range large cabin business jet market has

W

TABLE A ULTRA LONG RANGE BUSINESS JET MARKET - Oct. 2014 IN YEARS OPERATION PRODUCED Gulfstream GV 191 1995-2002 Gulfstream G500 9 2004-2008 Gulfstream G550 455 2003-Present Gulfstream G650 76 2012-Present Total 731 Global Express 148 1997-2006 Global 5000 166 2005-Present Global Express XRS 159 2004-2012 Global 6000 99 2012-Present Total 572 Dassault Falcon 7X 222 2007-Present Grand Total 1,525 MODEL

MARKET SHARE %

48%

37% 15% 100%

Source: JETNET

1,525 units in operation (Table A, above). Currently Gulfstream (731 units) has a 48% share of the market, followed by Bombardier (37% share, or 572 units) and Dassault Falcon (15% share).

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Aircraft Comparisons

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Table B - Payload & Range

Payload and Range

Model

MTOW (lb)

Max Fuel (lb)

Fuel Usage (GPH)

Max Payload (lb)

Avail Payload w/Max Fuel (lb)

Max Fuel Range (nm)

Global 6000

99,500

44,716

461

5,770

2,804

6,163

5,876

Global 5000

92,500

38,959

455

7,139

2,930

5,520

4,958

Gulfstream G550

91,000

41,000

402

6,600

2,500

6,708

5,767

Gulfstream G650

99,600

44,200

453

6,500

1,800

7,000

5,980

Max P/L w/Avail fuel IFR Range (nm)

The data contained in Table B, left, is sourced from Conklin & de Decker and also B&CA (May 2014 issue). A potential operator should focus on payload capability as a key factor. The Global 6000s ‘Available payload with Maximum Fuel’ at 2,804 lbs has the second highest value in the comparative field, and is more than 1,000 lbs greater when compared to the Gulfstream G650 (1,800 lbs).

Also represented, according to Aircraft Cost Calculator the Global 6000 burns 461 gallons of fuel per hour (GPH), which is 1.8% greater than the G650 (453 GPH) and 14.7% more than the G550 (405 GPH).

Source: Data courtesy of Conklin & de Decker; JETNET; Aircraft Cost Calculator; B&CA May 2014 planning handbook & Aug. 2014 operations planning guide

Chart A - Cabin Cross-Sections

Cabin Volume

Souce: UPCAST JETBOOK

Chart B - Range Comparison Bombardier Global 5000 Bombardier Global 6000 Gulfstream G550 Gulfstream G650

5070.00 Nm 5742.75 Nm 6527.75 Nm 6800.00 Nm

According to Conklin & de Decker, the cabin volume of the Global 6000 (2,002 cubic feet) is less than that of the Gulfstream G650 (2,421 cubic feet, or 20.9% less). However, the Global 6000 offers a larger cabin volume than the Global 5000 (1,889 cubic feet) and the Gulfstream G550 (1,812 cubic feet).

The differences can essentially be found in the cabin length.

Both the Global 6000 and the Global 5000 have the exact same cabin height and width, but the Global 6000’s 48.35 foot length is nearly 6ft longer than the Global 5000’s. The Gulfstream G650 has the greatest length of this study group at 53.6 feet. The respective cabin cross-sections are represented in Chart A (courtesy of UPCAST JETBOOK).

Range Comparison

As depicted in Chart B, using New York City as a starting destination for the business jets in our field of study, the G650 shows more range coverage than the G550, Global 6000 and Global 5000 at 6,800nm, according to Aircraft Cost Calculator. The Global 6000 ranks third behind the G550.

Note: For jets and turboprops, ‘Seats-Full Range’ represents the maximum IFR range of the aircraft at Long-Range Cruise with all passenger seats occupied.

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ACC assumes NBAA IFR fuel reserve calculation for a 200nm alternate. The lines depicted do not include winds aloft or any other weather-related obstacles.

Powerplant Details

The Global 6000 and the Global 5000 jets are powered by two Rolls-Royce BR700-710A2-20 engines, each offering 14,750 pounds of thrust for both models.

The Gulfstream models also use Rolls-Royce powerplants with the G550 using BR710-C4-11s offering 15,385 lbst, and the G650 using BR725 A1-12 engines with 16,900 lbst.

Chart C - Cost per Mile* Global 6000

$7.87

Global 5000

$6.68

Gulfstream G550 $0.00

$6.55

$4.00

$2.00

$6.00

$8.00

US $ per nautical mile

• 1,000NM MISSION, 800 LBS PAYLOAD (G650 DETAILS NOT AVAILABLE AT TIME OF PRINT)

Cost Per Mile Comparisons

Using data published in the May 2014 B&CA Planning and Purchasing Handbook and the August 2014 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet-A fuel cost used from the August 2014 edition was $6.18 per gallon at press time, so for the sake of comparison we’ll chart the numbers as published.

Note: Fuel price used from this source does not represent an average price for the year.

Chart C (top right) details ‘Cost per Mile’, and compares the Global 6000 to the Global 5000 and G550 factoring direct costs, and with each aircraft flying a 1,000nm mission with a 1,600 pound (eight passengers) payload. The G550 at $6.55 cost per mile is lower by 16.8% compared to the Global 6000 ($7.87 cost per mile). The G650 ‘Cost per mile’ was unavailable at the time of print.

Total Variable Cost Comparisons

The ‘Total Variable Cost’, illustrated in Chart D, is defined as the cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The total variable cost for the Global 6000 at $3,779 is higher than the Global 5000 ($3,466) and the Gulfstream G550 ($2,918). The G650 ‘Total Variable Cost’ was not available at the time of print.

Chart D - Variable Cost

Global 6000

$3,779

Global 5000

$3,466

Gulfstream G550

$2,918

$1,000

$0

$2,000

$3,000

$4,000

US $ per hour • G650 DETAILS NOT AVAILABLE AT TIME OF PRINT

Table C - Comparison Table Long Range Speed (kts)

Cabin Volume (cu ft.)

Max Payload w/avail fuel range(nm)

Vref (Used) Price $ M

In Operation

% For Sale

Sold*

Global 6000

471

2,002

5,876

$62.00

99

6.1%

38

Global 5000

471

1,889

4,958

$50.19

166

10.2%

38

Gulfstream G550

459

1,812

5,767

$60.00

455

6.4%

88

Gulfstream G650

488

2,421

5,980

$73.5

76

3.9%

56

Model

SOURCE: DATA COURTESY OF CONKLIN & DE DECKER; JETNET; OPERATIONS PLANNING GUIDE B&CA *Full Sales Transactions past 12 months - JETNET STAR reports (Sept 2014)

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Aircraft Comparisons

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TABLE D - Part 91 & 135 MACRS Schedule Following is the MACRS schedule for PART 91: Year 1 2 3 4 5 6

over five and seven-year periods, assuming a Vref retail value of $62.0 million.

Following is the MACRS schedule for PART 135:

Deduction 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%

Year 1 2 3 4 5 6 7 8

Asking Prices vs AFTT, Age & Engine Thrust

Deduction 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46%

Source: NBAA

TABLE E - MACRS Depreciation Schedule 2014 Bombardier Global 6000 - Private (Part 91)

$62.0

Full Retail Price - Millions Year Rate (%) Depreciation Depreciation Value Cumulative Depreciation

1

20.0% $12.4 $49.6 $12.4

2

32.0% $19.8 $29.8 $32.2

3

19.2% $11.9 $17.9 $44.1

4

11.5% $7.1 $10.7 $51.3

5

11.5% $7.1 $3.6 $58.4

6

5.8% $3.6 $0 $62.0

2014 Bombardier Global G6000 - Charter (Part 135) Full Retail Price - Millions Year Rate (%) Depreciation Depreciation Value Cumulative Depreciation

$62.0 1

14.3% $8.9 $53.1 $8.9

2

24.5% $15.2 $38.0 $24.0

3

17.5% $10.8 $27.1 $34.9

4

12.5% $7.74 $19.4 $42.6

5

8.9% $5.54 $13.8 $48.2

6

8.9% $5.53 $8.3 $53.7

7

8.9% $5.54 $2.8 $59.2

8

4.5% $2.77 $0.0 $62.0

Source: Vref, Sept 2014

Aircraft Comparison Table

Table C (previous page) contains the average new retail prices from Vref for each aircraft. The average speed, cabin volume and maximum payload values are from Conklin & de Decker.

The number of aircraft in-operation and percentage ‘For Sale’ are as reported by JETNET. The Global 5000 has the highest fleet percentage ‘For Sale’ (10.2%), while the Gulfstream G550 has the most pre-owned sold in the past 12 months (88).

It is interesting to note that of the 99 Global 6000 aircraft in

operation today, only 6.1% of the fleet is ‘For Sale’ (representing a traditional seller’s market).

Of the 92 wholly-owned Global 6000 aircraft in operation (excluding seven Global 6000s that are in fractional service), North America is home to 46% and Europe 40% of the fleet (a combined total of 86%).

Depreciation Schedule for Business Aircraft

Aircraft that are used in a trade, business, or for the production of income that are primarily operated domestically and not

used in common or contract carriage (e.g. Part 91) may be depreciated over a five-year Modified Accelerated Cost Recovery System (MACRS) schedule. Aircraft used in common or contract carriage (e.g., Part 135) are depreciable under seven-year MACRS (see Table D). The aircraft can be purchased new or pre-owned to use the MACRS accounting method.

Table E, meanwhile, depicts an example of using the MACRS schedule for a 2014 model Global 6000 in private (Part 91) and charter (Part 135) operations

Chart E (top right), sourced from the Multi-dimensional Economic Evaluators Inc. (www.meevaluators.com), shows a Value and Demand chart for the pre-owned Global 6000, Global 5000, Gulfstream G550 and G650. The current pre-owned market for these aircraft shows a total of 55 aircraft ‘For Sale’. Fifteen of the 55 have an asking price - thus, we have plotted those 15.

The equation that we derived from these asking prices and other criteria used should enable sellers and buyers to compare, and perhaps adjust their offerings if necessary.

Demand and Value are on opposite sides of the same Price axis. The market treats the Global 6000, Global 5000, G550 and G650 in much the same way.

The Demand Equation for these vehicles is Price ($m) = 63.9 *Qty-0.5416. The flat slope (exponent >-1.0) indicates that there is more revenue in the lower portion of the market than there is in the upper. This equation is very well correlated, with an adjusted R2 of 96.1%, a Pearson’s2 of 96.9%, a P-Value of 1.31%, and a Standard Error of $1.81m.

The Value Equation is Price = 36.93 x Years-0.4781 x Max Range Nautical Miles1.666. We find that the Value Equation for these aircraft is well correlated, with an Adjusted R2 of 92.4%, a Pearson’s2 of 94.7%, and a Standard Error of $1.94m (with P-Values of 1.58e-05 and 3.85e07 for Years and Range in Nautical Miles, respectively).

The exponential value of range term - at 1.666 - is especially strong and reflects the importance that this market sector places on long-range capacity.

Thus, the market for used Global 6000, Global 5000, G550 and G650 aircraft responds to at least the four features depicted

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here: Years, Range, Price and Quantity.

Chart E - Value & Demand

Productivity Comparisons

The result is a very large number so for the purpose of charting, each result is divided by one billion. Added to this chart to illustrate the overall standing of the Global family of aircraft are the Global 6000 and Global 5000 along with the Gulfstream G650 and G550. A computed curve fit on this plot would not be very tight, but when all business jets are considered, the “r” squared factor would equal a number above 0.9.

Others may choose different parameters, but serious business aircraft buyers are usually impressed with Price, Range, Speed and Cabin Size. After consideration of the Price and Cabin Size, we can conclude that the Global 6000, as shown in our productivity index, is very competitive with the Gulfstream G550, although the Global 6000 is more costly to operate hourly than the G550.

Another valuable measure is the payload capability of the Global 6000 at 2,804 lbs, which is more than 1,000 lbs greater than the G650 and 300 lbs greater than the G550.

Nevertheless, it is clear from the chart that the Gulfstream G650 has created a new target for productivity in this class.

$70M $60M $50M

Projections for Future Used Global 6000s (Orange line), G650s (Light Blue Line) and G650ERs (Purple Line)

$40M $30M

Asking Prices

1. Range with full payload and available fuel; 2. The long range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

The Market for Used G550s, (Blue Octahedrons and Spheres), Global 5000s (Brown Octahedrons and Spheres)

$20M $10 M

Chart F - Productivity $100.0

Price (Millions)

The points in Chart F center on the same aircraft. Pricing used in the vertical axis is as published in the B&CA August 2014 Operations Planning Guide. The productivity index requires further discussion in that the factors used can be somewhat arbitrary.

Productivity can be (and it is here) defined as the multiple of three factors:

Gulfstream G650

$80.0 $60.0

Global 5000

$40.0

Global 6000

Gulfstream G550

$20.0 $0.0 4.0

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

Index (Speed x Range x Cabin Volume / 1,000,000,000)

Summary

Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value. There are other qualities such as airport performance, terminal area performance, and time to climb performance that might factor in a buying deci-

sion, but are beyond the scope of this article.

Overall, the Bombardier Global 6000 fares well against its competition so those operators in the market should find the preceding comparison of value.

Our expectations are that the Global 6000 ultra-long-

range large cabin business jet will continue to do very well in the pre-owned market over the coming years. Meanwhile, on the new aircraft market, it will be interesting to watch how Bombardier closes the gap on the G650 once the Global 7000 and 8000 are certified and delivering… T

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Aircraft Comparisons A

14 CITATION CJ4

Aircraft Comparative Analysis: Embraer Phenom 300

In this Aircraft Comparative Analysis, Mike Chase provides information on a selection of new and pre-owned business jets for the purpose of valuing the Embraer Phenom 300. new 2014 Embraer Phenom 300 has a list price of $9.315m with the Garmin G3000 Avionics system while the cost of a used Phenom 300 ranges between $6.8m (2010 year model) through $8.2m (2013 year model). The current new/used split for the Phenom 300 business jet fleet is currently 91% and 9% respectively.

Here, we’ll consider the productivity parameters (payload/range, speed and cabin size) and cover current and future market values. Exclusive to our online content at www.avbuyer.com we’ll also review the Maintenance Equity, as provided by Asset Insight, Inc.

A

for the Phenom 300. The field in this month’s study includes the Cessna Citation CJ4.

Brief History Embraer’s Phenom 300 has a capacity for six passengers in its normal configuration with a single pilot.

Interior configurations also offer options of a side-facing seat and belted toilet. Powered by two Pratt & Whitney PW535E engines, the Phenom 300 first flew in May 2008. It earned FAA Certification in December 2009 and first delivery to a private customer took place that same month.

An early indicator of the future success of the

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Aircraft Comparisons

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Table A - Payload & Range MTOW (lb)

Max Fuel (lb)

Fuel Usage (GPH)

Max Payload (lb)

Avail Payload w/Max Fuel (lb)

Max Fuel Range (nm)

Max P/L w/Avail fuel IFR Range (nm)

Phenom 300

17,968

5353

158

2,216

942

2,077

1,247

Citation CJ4

17,110

5,828

188

2,150

1,052

1,991

1,425

Model

Source: Data courtesy of Conklin & de Decker; JETNET; Aircraft Cost Calculator; B&CA May 2014 Purchase Planning Handbook & Aug. 2014 Operations Planning Guide

Chart A - Cabin Volume Cubic Feet

270

280

290

300

Phenom 300 Citation CJ4

Q

293

310

320

Q

324

Phenom 300 was its selection by fractional provider Flight Options (with a 10-year order for 300-aircraft with 50 options) and NetJets (up to 125 Platinum Edition Phenom 300s).

The Phenom 300 boasts the largest space in the light jet class, and offers a large rear baggage compartment of 85 cu ft (19 cu ft internal and 66 cu ft external), that can accommodate luggage including golf bags or skis. The Phenom 300 utilizes either the Garmin G1000 or G3000 Avionics system.

Today, there are 229 Phenom 300 business jets in operation worldwide with 64 (or 28%) in fractional ownership, three in shared ownership, and 162 wholly-owned.

Additionally, 3% of the Phenom 300 jets are leased according to JETNET. North America is home to the largest percentage of the fleet (46%), followed by South America (30%), and Europe (16%) accounting for a combined total of 92%.

Payload & Range

Chart B - Range Comparison Cessna Citation CJ4 Embraer Phenom 300

1625.330 Nm 1662.380 Nm

The data contained in Table A (left) is sourced from Conklin & de Decker and B&CA’s May 2014 issue. A potential operator should focus on payload capability.

The ‘Available payload with Maximum Fuel’ for the Phenom 300 is 942 lbs, which is less than the Citation CJ4 (1,052 pounds).

Also shown is the fuel usage by each aircraft model in this field of study (as provided by Aircraft Cost Calculator). The Phenom 300 at 158 gallons per hour (GPH) leads the Citation CJ4 as the most frugal - the Phenom 300 average fuel usage shows 30 GPH (16%) less fuel burn than the Citation CJ4.

Cabin Volume

According to Conklin & de Decker, the cabin volume of the Phenom 300 (324 cubic feet) is greater than the Citation CJ4 (293 cubic feet), as depicted in Chart A (left).

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Range Comparison As depicted by Chart B (left), using Wichita as a starting destination, according to Aircraft Cost Calculator (ACC) the Citation CJ4 shows slightly less range coverage than the Phenom 300 but both offer non-stop operations throughout North America (including Canada, Mexico and USA).

Note: For jets and turboprops, ‘Seats-Full Range’ represents the maximum IFR range of the aircraft at Long-Range Cruise with all passenger seats occupied. ACC assumes NBAA IFR fuel reserve calculation for a 200nm alternate. The lines depicted do not include winds aloft or any other weather-related obstacles.

Chart C - Cost Per Mile*

Cost Per Mile

Chart D - Variable Cost

U $ per nautical mile $0.00

$3.00

$2.00

Citation CJ4

Q

Phenom 300

Q

$3.28 $2.78

* 1000nm MISSION, 800lbs PAYLOAD

The Phenom 300 is powered by two Pratt & Whitney Canada PW535E engines, each offering 3,360 pounds of thrust (lbst). The Citation CJ4 offers a pair of Williams FJ444A engines with 3,621 lbst each.

Using data published in the May 2014 B&CA Planning and Purchasing Handbook and the August 2014 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet-A fuel cost used from the August 2014 edition was $6.18 per gallon at press time, so for the sake of comparison we’ll chart the numbers as published.

Note: Fuel price used from this source does not represent an average price for the year.

Chart C (right) details ‘Cost per Mile’ and compares the Phenom 300 to its competition factoring direct costs and with all aircraft flying a 1,000nm mission with an 800 pound (four passengers) payload. The Phenom 300 shows a cost per mile of $2.78, which is less than the Citation CJ4 ($3.28).

$ per hour

$1,000

$0,00

Q $1,467

Citation CJ4

Q $1,281

Phenom 300

Table B - Comparison Table Long Range Speed (kts)

Cabin Volume (cu ft.)

Max Payload w/avail fuel range (nm)

Bluebook (New/Used) Price $m

In-Operation

% For Sale

Sold*

Phenom 300

383

324

1,247

$9.315**

222

5.0%

75

Citation CJ4

380

293

1,425

$9.380

164

3.1%

36

Model

Total Variable Cost The ‘Total Variable Cost’ illustrated in Chart D (right) is defined as the Cost of Fuel Expense, Maintenance Labor

Source: Data courtesy of Conklin & de Decker, JETNET; Aircraft Bluebook; Operations planning guide B&CA * New & Pre-owned full sales transactions in the past 12 months (as of Jan 2015); Source: JETNET

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Table C - Part 91 & 135 MACRS Schedule MACRS SCHEDULE FOR PART 91 Year Deduction

2

1

3

4

11.52 %

5

6

-

-

5.76 %

-

-

20.00 %

32.00 %

19.20 %

11.52 %

1

2

3

4

5

6

7

8

14.29 %

24.49 %

17.49 %

12.49 %

8.93 %

8.92 %

8.93 %

4.46 %

MACRS SCHEDULE FOR PART 135 Year Deduction

Source: NBAA

Table D - MACRS Depreciation Schedule 2014 EMBRAER PHENOM 300 - PRIVATE (PART 91) Full Rate Price - Million

$9.315

Year

1

2

3

4

5

6

20.00 %

32.00 %

19.2 %

11.5 %

11.5 %

5.8 %

Depreciation ($M)

1.6

3.0

1.8

1.1

1.1

0.5

Depreciation Value ($M)

7.5

4.5

2.7

1.6

0.5

0

Cum. Depreciation ($M)

1.9

4.9

6.6

7.7

8.8

9.3

Full Rate Price - Million

$9.315

Rate (%)

2014 EMBRAER PHENOM 300 - CHARTER (PART 135) Year

1

2

3

4

5

6

7

8

14.3 %

24.5 %

17.5 %

12.5 %

8.9 %

8.9 %

8.9 %

4.5 %

Depreciation ($M)

1.13

2.28

1.63

1.16

0.83

0.83

0.83

0.42

Depreciation Value ($M)

7.98

5.70

4.07

2.91

2.08

1.25

0.42

0.00

Cum. Depreciation ($M)

1.3

3.6

5.2

6.4

7.2

8.1

8.9

9.3

Rate (%)

Source: ACC (aircraftcostcalculator.com), Jan 2015

Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The Total Variable Cost for the Phenom 300 shows a lower cost at $1,281 compared to the Citation CJ4 ($1,467).

Aircraft Comparison Table Table B (previous page) contains the new retail prices from Aircraft Bluebook for each aircraft. The average speed, cabin volume and maximum payload values are from Conklin & de Decker, while the number of aircraft in-operation and percentage ‘For Sale’ are as reported by JETNET.

The Phenom 300 and Citation CJ4 both have less than 10 percent of their respective fleets currently ‘For Sale’, traditionally representing a buyer’s market. Evidently Phenom 300s make an attractive proposition with a total of 75 units (new and used) sold over the past 12 months (an average of 6.25 units monthly) compared to the Citation CJ4 with 36 units - three units per month (or approximately half the number of sales of the Phenom 300).

Depreciation Schedule Aircraft that are owned and

operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery System (MACRS).

Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period (see Table C, above).

In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight-line

method meaning that equal deductions are taken during each year of the applicable recovery period. In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There are a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in commercial charter service (i.e. Part 135) are normally depreciated under MACRS over a seven year recovery period or under ADS using a twelve year recovery period.

Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year.

Table D (left) depicts an example of using the MACRS schedule for a 2014 model Embraer Phenom 300 aircraft in private (Part 91) and charter (Part 135) operations over fiveand seven-year periods respectively, assuming an Aircraft Bluebook New retail value of $9.315 million sourced from Aircraft Bluebook

Asking Prices vs AFTT, Age & Engine Thrust Chart E (right) sourced from the Multi-dimensional Economic Evaluators Inc. (www.meevaluators.com), show a Value and Demand chart for the pre-owned Phenom 300 and Citation CJ4.

The current pre-owned market for these aircraft shows a total of 15 aircraft ‘For Sale’ with seven displaying an asking price, thus we have plotted those seven jets. We also added to the mix other preowned light business jets and other business jets with asking prices ranging from $6.8m-

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Productivity Comparisons The points in Chart F (right) are centered on the same group of aircraft. Pricing used in the vertical axis is as published in the Aircraft Bluebook. The productivity index requires further discussion in that the factors used can be somewhat arbitrary.

Productivity can be defined (and it is here) as the multiple of three factors: 1. Range with full payload and available fuel; 2. The long range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

The result is a very large number so for the purpose of charting, each result is divided by one billion. The examples

Chart E - Value & Demand The Market for Used Phenom 300s Compared to Numerous Other Used Models with Similar Attributes The Market for Used Phenom 300s, (Blue Spheres) & Other Used Aircraft

$9.8M

$5.6M $4.2M

Asking Prices

$8.4M $7.0M

$2.8M $1.4 M

Chart F - Productivity Price (Millions)

$9.315m. The equation that we derived from these asking prices and other criteria used should enable sellers and buyers to compare and perhaps adjust their offerings if necessary. Demand and Value are on opposite sides of the same Price axis.

The Demand Equation for these business jets is Price $M = 11.8*Qty-0.136. This power equation is very well correlated, with an adjusted R2 of 99.4%, and a P-Value of 2.16E-04.

The Power Equation describing the Value Equation is Asking Price = 183.4 * Years -0.300 * Passenger Capacity 1.17 * Range 0.648 * Cabin Height 2.29. We find that the Value Equation for these aircraft is only fairly well correlated, with an Adjusted R2 of 74.2%.

However, each of the contributing variables is highly influential, with P-Values of 2.50E-09, 6.09E-04, 3.03E-04 and 4.66E04 for Years, Passenger Capacity, Range and Cabin Height, respectively.

Thus, the market for used Phenom 300s responds to at least six features: Years, Passenger Capacity, Range, Cabin Height, Price and Quantity.

$20.0 $16.0 $12.0 $8.0

Citation CJ4

Phenom 300

$4.0 $0.0 0.0000

0.1000

0.2000

0.3000

0.4000

Index (Speed x Range x Cabin Volume / 1,000,000,000)

plotted are confined to the aircraft in this study. A computed curve fit on this plot would not be very tight, but when all business jets are considered the “r” squared factor would equal a number above 0.9. Others may choose different parameters, but serious business aircraft buyers are usually impressed with Price, Range, Speed and Cabin Size.

After consideration of the Price, Range, Speed and Cabin Size, we can conclude that the Phenom 300, as shown in the productivity index Chart F, is productive compared with its competitor - largely due to the fact that the Phenom 300 offers a larger cabin and lower operat-

ing costs including a 30 GPH (16%) average fuel burn savings.

Although the Phenom 300 ‘Available Payload with Maximum Fuel’ - at 942 lbs is lower compared to the Citation CJ4, the purchase price is lower than that of the CJ4 aircraft.

Ultimately, operators should weigh up their mission requirements precisely when picking which option is the best for them.

Summary Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value.

There are other qualities such as airport performance, terminal area performance, and time to climb performance that might factor in a buying decision, too, however.

The Embraer Phenom 300 continues to be very popular in the new and pre-owned market today.

Those operators in the market should find the preceding comparison of value. Our expectations are that the Embraer Phenom 300 aircraft, which started delivering at the end of 2009, will continue to do very well in the new and pre-owned markets for the foreseeable future. T

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Aircraft Comparative Analysis: Dassault Falcon 900LX In this Aircraft Comparative Analysis, Mike Chase provides information on two popular business jets for the purpose of valuing the Dassault Falcon 900LX. A 2015 large cabin Falcon 900LX has a list price of $43.3m.

O

ver the following paragraphs, we’ll consider productivity parameters (payload/range, speed and cabin size) and cover current and future market values. The field in this study includes Embraer’s Legacy 650 business jet. Both the Legacy 650 and Falcon 900LX were launched in 2009 following the great recession. So how have these two aircraft fared during this post-recession recovery?

Brief History

The Dassault Falcon 900 aircraft first flew on September 21, 1984. It is unique because it – along with its siblings, the smaller Falcon 50 and the Falcon 7X, an advanced development – are the only business jets currently (or previously) produced with three engines. The Falcon 900 was developed from the Falcon 50, itself a development of the Falcon 20 aircraft, and the 900’s engineering included computer-aided design and the incorporation of composite materials.

Subsequent, improved models include the Falcon 900B featuring newer versions of its Honeywell TFE-731

engines and increased range, and the Falcon 900EX featuring further improvements in engines and range along with an “all-glass” flight deck. The Falcon 900C is a lower-cost companion to the Falcon 900EX and replaced the Falcon 900B. In 2003, Dassault began offering the EX with the new EASy (Enhanced Avionics System) digital cockpit based on the Honeywell Primus Epic. In 2005, the Falcon 900DX entered service. Both the Falcon 900EX EASy and Falcon 900DX ended production in 2010.

At EBACE 2008, Dassault announced another development of the 900 series; the Falcon 900LX, incorporating High-Mach Blended Winglets designed by Aviation Partners, Inc. These same winglets are being offered for the entire Falcon 900 series as a retrofit kit.

Worldwide Appeal

There are 43 wholly-owned Falcon 900LX aircraft in operation worldwide with none in shared ownership or in fractional ownership. By continent, North America has the largest fleet percentage at 46%, followed by

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T 5 B d NA Live: NA F nts: Franklin Gothic, Mrs. Eaves, Helvetica EPro: DangerBoy (206) 293-3688

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Table A - Payload & Range MTOW (lb)

Max Fuel (lb)

Fuel Usage (GPH)

Max Payload (lb)

Avail Payload w/Max Fuel (lb)

Max Fuel Range (nm)

Max P/L w/Avail fuel IFR Range (nm)

Falcon 900LX

49,000

21,000

274

4,464

1,800

5,000

3,810

Legacy 650

53,572

20,600

362

4,938

1,909

3,980

3,076

Model

Data courtesy of Conklin & de Decker; JETNET; Aircraft Cost Calculator; B&CA May 2015 Purchase Planning Handbook & Aug. 2014 Operations Planning Guide

Chart A - Cabin Cross-Sections Dassault Falcon 900LX

Embraer Legacy 650

Europe (at 27%) and Asia (24%) for a combined total of 97%.

Additionally, seven (16.3%) of the fleet are leased, according to JETNET.

Payload & Range

The data contained in Table A (left) are sourced from Conklin & de Decker and B&CA’s May 2015 issue. A potential operator should focus on payload capability. The ‘Available Payload with Maximum Fuel’ for the Falcon 900LX is 1,800 lbs, which is less than the Legacy 650 (1,909 pounds).

In addition, Table A shows the fuel usage by each aircraft in this field of study. The Falcon 900LX at 274 gallons per hour (GPH) has 24.3% less fuel consumption (88 gallons) than the Legacy 650 (362 GPH). Thus, the Falcon 900LX with three engines is the more fuel-frugal according to data from Aircraft Cost Calculator.

Cabin Cross Sections

Souce: UPCAST JETBOOK

Chart B - Range Comparison Embraer Legacy 650 Dassault Falcon 900LX

Source: Aircraft Cost Calculator

3669.480 Nm 4680.000 Nm

According to Conklin & de Decker, the Falcon 900LX cabin volume is 1,218 cubic feet and its cabin length is 33.2 ft. The Embraer Legacy 650 has a larger cabin volume at 1,656 cu ft - 36% greater. This owes to its additional length (49.8 ft) compared to the Falcon 900LX. Note from Chart A, left (courtesy of UPCAST JETBOOK) that the Falcon 900LX offers greater cabin height and width, however.

As depicted by Chart B (left) and using Paris, France as a origin point, the Falcon 900LX shows more range coverage than the Embraer Legacy 650—reaching most of Asia, Africa and the United States non-stop, as sourced from Aircraft Cost Calculator (ACC).

Note: For jets and turboprops, ‘Seats-Full Range’ represents the maximum IFR range of the aircraft at Long-Range Cruise with all passenger seats occupied. ACC assumes NBAA IFR fuel reserve calculation for a 200nm alternate.

The lines depicted do not include winds aloft or any other weatherrelated obstacles.

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Powerplant Details

Chart C - Cost per Mile*

The Falcon 900LX is powered by three Honeywell TFE 731-60 engines, each offering 5,000 pounds of thrust (lbst). The Legacy 650, meanwhile, uses two Rolls-Royce AE 3007A2 engines, each offering 9,020 pounds of thrust.

US $ per nautical mile $0.00

$6.00

$3.00

Q $6.12 Q $5.37 Q

Legacy 650

Cost Per Mile

Falcon 900LX

Using data published in the May 2015 B&CA Planning and Purchasing Handbook and the August 2014 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet-A fuel cost used from the August 2014 edition was $6.18 per gallon at press time, so for the sake of comparison we’ll chart the numbers as published.

Note: Fuel price used from this source does not represent an average price for the year.

Chart C (top, right) details ‘Cost per Mile’ and compares the Falcon 900LX to its competition factoring direct costs, and with each aircraft flying a 1,000nm mission with 1,600 pound (eight passengers) payload. The Legacy 650 shows the highest cost per nautical mile at $6.12, 14% more compared to the Falcon 900LX at $5.37.

*1,000nm, 1,600lbs payload mission costs

Chart D - Variable Cost US $ per hour $0

$1,000

$2,000

Q $2,355 Q $2,301

Legacy 650 Falcon 900LX

Total Variable Cost

The ‘Total Variable Cost’ illustrated in Chart D (right) is defined as the Cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The Total Variable Cost for the Legacy 650 shows a cost at $2,335, which is marginally higher than the Falcon 900LX at $2,301.

Table B - Comparison Table

Aircraft Comparison Table

Table B (right) contains the new prices from Vref Pricing Guide for each aircraft. The average speed, cabin volume and maximum payload values are from Conklin & de Decker, while the number of aircraft in-operation and percentage ‘For Sale’ are as reported by JETNET. The Falcon 900LX and Legacy 650 have more than 10

Long Range Speed (kts)

Cabin Volume (cu ft.)

Max Payload w/avail fuel range (nm)

Used New Vref Price $m

In-Operation

% For Sale

New & Pre-owned Sold*

Falcon Gulfstream 900LX GV

459 430

1,218 1595

5,416 3,810

$16.5 $43.30 ‘02

191 43

12.0% 16.3%

1.1 20

Legacy Falcon 7X 650

459 425

1,656 1506

5,000 3,076

$25.0 $31.60 ‘07

236 73

11.0% 9.3%

1.6 36

Model

*New & Pre-owned Full Sales Transactions in the past 12 months (as of July 2015); Source: JETNET Data courtesy of Conklin & de Decker; JETNET; Vref; ACC

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Table C - Part 91 & 135 MACRS Schedule MACRS SCHEDULE FOR PART 91 Year Deduction

1

2

3

4

5

6

-

-

20.00 %

32.00 %

19.20 %

11.52 %

11.52 %

5.76 %

-

-

1

2

3

4

5

6

7

8

14.29 %

24.49 %

17.49 %

12.49 %

8.93 %

8.92 %

8.93 %

4.46 %

MACRS SCHEDULE FOR PART 135 Year Deduction

Source: NBAA

Table D - MACRS Depreciation Schedule 2015 FALCON 900LX - PRIVATE (PART 91) Full Retail Price - Million Year

$43.300 1

2

3

4

5

6

20.00 %

32.00 %

19.2 %

11.5 %

11.5 %

5.8 %

Depreciation ($M)

$8.7

13.9

8.3

5.0

5.0

2.5

Depreciation Value ($M)

$34.6

20.8

12.5

7.5

2.5

0

Cum. Depreciation ($M)

$8.7

22.5

30.8

35.8

40.8

43.3

Full Retail Price - Million

$43.500

Rate (%)

2015 FALCON 900LX - CHARTER (PART 135) Year Rate (%)

1

2

3

4

5

6

7

8

14.3 %

24.5 %

17.5 %

12.5 %

8.9 %

8.9 %

8.9 %

4.5 %

Depreciation ($M)

$6.19

10.60

7.57

5.41

3.87

3.86

3.87

1.93

Depreciation Value ($M)

$37.11

26.51

18.94

13.53

9.66

5.80

1.93

0.00

Cum. Depreciation ($M)

$6.2

16.8

24.4

29.8

33.6

37.5

41.4

43.3

Source: Vref, July 2015

percent of their respective fleets currently ‘For Sale’. However, the Falcon 900LX at 16.3% is higher than the Legacy 650 at 11%.

Depreciation Schedule

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified

Accelerated Cost Recovery System (MACRS). Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period (see Table C, above).

In certain cases, aircraft may

not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight-line method meaning that equal deductions are taken during each year of the applicable recovery period.

In most cases, recovery periods

under ADS are longer than recovery periods available under MACRS. There are a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in business aircraft charter service (i.e.

Part 135) are normally depreciated under MACRS over a seven year recovery period or under ADS using a twelve year recovery period.

Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six year recovery period. There are certain uses of the aircraft, such as non-business flights, that may have an impact on the allowable depreciation deduction available in a given year.

Table D (left) depicts an example of using the MACRS schedule for a 2015 Falcon 900LX aircraft in private (Part 91) and charter (Part 135) operations over five- and seven-year periods, assuming a used retail value of $43.3 million, per Vref Pricing guide.

Asking Prices vs Age, Quantity and Engines

Chart E (top right), sourced from the Multi-dimensional Economic Evaluators Inc. (www.meevaluators.com), shows a Value and Demand chart for the pre-owned Falcon 900LX including the Legacy 650. The current pre-owned market for Falcon 900LX aircraft shows a total of seven aircraft ‘For Sale’ with two displaying an asking price, thus we have plotted those two.

We also added other large and super-medium cabin preowned business jets of similar ilk with asking prices ranging from $6 million to $36 million.

The equation that we derived from these asking prices and other criteria used should

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enable sellers and buyers to compare, and perhaps adjust their offerings, if necessary.

Demand and Value are on opposite sides of the same Price axis. Thus, the market for new/used Falcon 900LX responds to at least four features: Years, Max Cruise Mach, Quantity, and Price.

Chart E - Value & Demand

A Study of Pre-owned Falcon 900LX Compared to the Legacy 650 and Other Similar Business Jets

Productivity Comparisons

The points in Chart F (right) are centered on the same aircraft. Pricing used in the vertical axis is as published in the Vref Pricing Guide. The productivity index requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. Range with full payload and available fuel; 2. The long range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

Summary

Within the preceding paragraphs we have touched upon several of the attributes that

Chart F - Productivity Price (Millions)

Others may choose different parameters, but serious business aircraft buyers are usually impressed with Price, Range, Speed and Cabin Size. After consideration of the Price, Range, Speed and Cabin Size, we can conclude that the Falcon 900LX, as shown in the productivity index is very productive compared with its competitor.

Primary reasons to consider the Falcon 900LX are range, fuel economy, higher cruise speed, lower cost per hour and variable costs. The Falcon 900LX has a smaller cabin volume compared to the Legacy 650 – at least in terms of length - and has a higher acquisition price. Operators should weigh their mission requirements precisely when picking the aircraft option that is the best for them.

$60.0

Falcon 900LX

$40.0

Legacy 650

$20.0 $0.0 0.0000

2.0000

4.0000

6.0000

Index (Speed x Range x Cabin Volume / 1,000,000,000)

business aircraft operators value. There are other qualities such as airport performance, terminal area performance, and time to climb performance that might factor in a buying decision, however.

The Falcon 900LX continues to be very popular in the mar-

ket today. Operators should find the preceding comparison informative. Our expectations are that the Falcon 900LX, which started delivering in 2009, will continue to do very well in the new and pre-owned markets for the foreseeable future. T

8.0000

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Aircraft Comparative Analysis: Cessna Citation CJ4 In this Aircraft Comparative Analysis, Mike Chase provides information on two popular business jets for the purpose of valuing the Citation CJ4. A 2015 Citation CJ4 has a list price of $9.414m.

O

ver the following paragraphs, we’ll consider productivity parameters (payload/range, speed and cabin size) and cover current and future market values for Textron Aviation’s Citation CJ4. The field in this study includes Bombardier’s Learjet 31A/ER business jet.

Table A - Textron Citation CJs in Operation

Brief History

The CitationJet is a low-wing aircraft with a T-tail, pressurized cabin, and powered by two turbofan engines pylon mounted on the rear fuselage. The Model 525 was the basis for the family, which encompasses the CJ1, CJ1+, CJ2, CJ2+, CJ3, CJ3+ and the CJ4 models.

The CJ4, which was introduced in 2005, is a stretched version of the CJ3, adding another two feet to the CJ3 cabin. The first CJ4 business jet flew on May 5, 2008, with initial deliveries starting in 2010. This model also introduces a different wing design than the

Souce: JETNET; In Operation as of August 6, 2015

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Table B - Payload & Range

MTOW (lb)

Max Fuel (lb)

Fuel Usage (GPH)

Max Payload (lb)

Avail Payload w/Max Fuel (lb)

Max Fuel Range (nm)

Max P/L w/Avail fuel IFR Range (nm)

Citation CJ4

15,660

5,828

188

2,150

1,052

1,991

1,426

Learjet 31A/ER

16,000

4,653

182

2,253

2,000

1,600

900

Model

Source: Data courtesy of Conklin & de Decker, Orleans, MA, USA; JETNET; ACC - Aircraft Cost Calculator; B&CA May 2015 Purchase Planning Handbook and Aug. 2015 Operations Planning Guide

Chart A - Cabin Cross-Sections

earlier CJ models, employing a moderately swept wing design similar to the Citation Sovereign.

With more powerful engines (two Williams International FJ444As) than its predecessors, longer wings, and among the most advanced flight decks in its class, the Citation CJ4 became the largest member of the CJ family, but remains in the Light Jet category with eight seats. A total of 1,382 CitationJet-series aircraft are currently in operation, as shown in Table A (previous page), and of those, a total 187 units are Citation CJ4 models.

There are 178 wholly-owned Citation CJ4 aircraft in operation worldwide with nine in shared ownership and none in fractional ownership. By continent, North America has the largest fleet percentage at 79%, followed by Europe (14%, for a combined total of 93%). Thirteen CJ4s (7% of the fleet) are leased, according to JETNET.

Payload & Range

The data contained in Table B (top, left) are sourced from Conklin & de Decker and B&CA’s May 2015 issue. A potential operator should focus on payload capability. The ‘Available payload with Maximum Fuel’ for the Citation CJ4 is 1,052 lbs, which is less than the Learjet 31A/ER (2,000 pounds).

In addition, fuel usage by each aircraft in this field of study is depicted. The Citation CJ4, burning 188 gallons per hour (GPH), burns six gallons of fuel more than the Learjet 31A/ER (182 GPH), according to data from Aircraft Cost Calculator.

Source: UPCAST JETBOOK

Chart B - Range Comparison Bombardier Learjet 31A/ER Cessna Citation CJ4

1443.000 Nm 1625.330 Nm

Cabin Cross-Sections

Source: Aircraft Cost Calculator

According to Conklin & de Decker, the Citation CJ4 cabin volume is 293 cubic feet and its cabin length is 17.3 ft. The Learjet 31A/ER has slightly less cabin volume at 281 cu ft – (4.3% less). The cabin length of the Learjet 31A/ER, at 12.9 feet, is over four feet less than the CJ4’s.

Note from Chart A, middle left (courtesy of UPCAST

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JETBOOK) that the Citation CJ4 offers greater cabin height but less cabin width than the Learjet 31A/ER.

Chart C - Cost Per Mile US $ per mile

Range Comparison

As depicted by Chart B (bottom, left) and using Witchita, Kansas as the origin point, the Citation CJ4 shows more range coverage than the Learjet 31A/ER, reaching most of the lower 48 states and Mexico non-stop, according to Aircraft Cost Calculator (ACC).

Note: For jets and turboprops, ‘Seats-Full Range’ represents the maximum IFR range of the aircraft at Long-Range Cruise with all passenger seats occupied. ACC assumes NBAA IFR fuel reserve calculation for a 200nm alternate. The lines depicted do not include winds aloft or any other weatherrelated obstacles.

Powerplant Details

As mentioned, the Citation CJ4 is powered by two Williams International FJ44-4A engines, each offering 3,621 pounds of thrust (lbst). The Learjet 31A/ER, meanwhile, uses two Honeywell TFE731-2 engines, each offering 3,500 lbst.

$0.00

$2.00

Learjet 31A/ER Citation CJ4

$4.00

Q $3.48 Q $3.08 Q

* 600nm Mission costs, 800lbs Payload

Chart D - Variable Cost US $ per hour $0

$1,000

$

Q $1,641

Learjet 31A/ER

Q $1,273

Citation CJ4

Cost Per Mile

Using data published in the May 2015 B&CA Planning and Purchasing Handbook and the August 2015 B&CA Operations Planning Guide we will compare our aircraft. The nationwide average Jet-A fuel cost used from the August 2015 edition was $5.25 per gallon at press time, so for the sake of comparison we’ll chart the numbers as published.

Note: Fuel price used from this source does not represent an average price for the year.

Chart C (top, right) details ‘Cost per Mile’ and compares the Citation CJ4 to its competition, factoring direct costs and with each aircraft flying a 600nm mission with an 800 pound (four passengers) payload. The Citation CJ4 shows a cost per nautical mile at $3.08, which is 11.5% less than the Learjet 31A/ER at $3.48.

Table C - Comparison Tables

Long Range Speed (kts)

Cabin Volume (cu ft.)

Max Payload w/avail fuel range (nm)

Used Vref Price $m

In-Operation

% For Sale

New & Pre-owned Sold*

Gulfstream Citation CJ4GV

459 380

1595 293

5,416 1,426

$9.0 $16.5 ‘02 New ‘15

191 187

12.0% 4.4%

20 4

Falcon 7X Learjet 31A/ER

459 417

1506 281

5,000 900

$1.6 $25.0 ‘07 Used ‘03

236 206

13.6% 9.3%

36 3

Model

*New & Pre-owned Full Sales Transactions in the past 12 months (as of Aug 2015); Source: JETNET Data courtesy of Conklin & de Decker; JETNET; Vref; ACC

Total Variable Cost

The ‘Total Variable Cost’ illustrated in Chart D (above) is defined as the Cost of Fuel Expense, Maintenance Labor Expense, Scheduled Parts Expense and Miscellaneous Trip Expense. The Total Variable Cost for the Citation CJ4 computes at $1,273, which is 22.4% less than the Learjet 31A/ER at $1,641.

Aircraft Comparison Table

Table C (above) contains the prices from Vref Pricing Guide for each aircraft. The average speed, cabin volume and maximum payload values are from Conklin & de Decker, while the number of aircraft in-operation and percentage ‘For Sale’ are as reported by JETNET. The Citation CJ4 at 4.4% has less than 10

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Table D - MACRS Depreciation Schedule MACRS SCHEDULE FOR PART 91 Year Deduction

1

2

3

4

5

6

-

-

20.00 %

32.00 %

19.20 %

11.52 %

11.52 %

5.76 %

-

-

MACRS SCHEDULE FOR PART 135 Year Deduction

1

2

3

4

5

6

7

8

14.29 %

24.49 %

17.49 %

12.49 %

8.93 %

8.92 %

8.93 %

4.46 %

Source: NBAA

Table E - Part 91 & 135 MACRS Schedule

Asking Price vs Age, Quantity and Engines

2015 CITATION CJ4 - PRIVATE (PART 91) Full Retail Price - Million Year Rate (%)

$9.414 1

2

3

4

5

6

20.00 %

32.00 %

19.2 %

11.5 %

11.5 %

5.8 %

Depreciation ($M)

$1.9

3.0

1.8

1.1

1.1

0.5

Depreciation Value ($M)

$7.5

4.5

2.7

1.6

0.5

0

Cum. Depreciation ($M)

$1.9

4.9

6.7

7.8

8.9

9.4

Full Retail Price - Million

$9.414

2015 CITATION CJ4 - CHARTER (PART 135) Year

1

2

3

4

5

6

7

8

14.3 %

24.5 %

17.5 %

12.5 %

8.9 %

8.9 %

8.9 %

4.5 %

Depreciation ($M)

$1.35

2.31

1.65

1.18

0.84

0.84

0.84

0.42

Depreciation Value ($M)

$8.07

5.76

4.12

2.94

2.10

1.26

0.42

0.00

Cum. Depreciation ($M)

$1.3

3.7

5.3

6.5

7.3

8.2

9.0

9.4

Rate (%)

Source: Vref, Aug 2015

percent of its fleets currently ‘For Sale’. However, the Learjet 31A/ER at 13.6% is in a buyer’s market. The average number of new and used transactions per month is nearly the same for both models at four, and three respectively, as shown in the last column of Table C.

Depreciation Schedule

Aircraft that are owned and operated by businesses are often depreciable for income tax purposes under the Modified Accelerated Cost Recovery

recovery period or under ADS using a twelve year recovery period.

Aircraft used for qualified business purposes, such as Part 91 business use flights, are generally depreciated under MACRS over a period of five years or by using ADS with a six year recovery period. There are certain uses of the aircraft, such as nonbusiness flights, that may have an impact on the allowable depreciation deduction available in a given year.

Table E (left) depicts an example of using the MACRS schedule for a 2015 Citation CJ4 aircraft in private (Part 91) and charter (Part 135) operations over five-and seven-year periods, assuming a used retail value of $9.414m, per Vref Pricing guide.

System (MACRS). Under MACRS, taxpayers are allowed to accelerate the depreciation of assets by taking a greater percentage of the deductions during the first few years of the applicable recovery period (see Table D, above).

In certain cases, aircraft may not qualify under the MACRS system and must be depreciated under the less favorable Alternative Depreciation System (ADS) where depreciation is based on a straight-line method, meaning that equal deductions

are taken during each year of the applicable recovery period.

In most cases, recovery periods under ADS are longer than recovery periods available under MACRS. There are a variety of factors that taxpayers must consider in determining if an aircraft may be depreciated, and if so, the correct depreciation method and recovery period that should be utilized. For example, aircraft used in charter service (i.e. Part 135) are normally depreciated under MACRS over a seven year

Chart E (right), sourced from the Multi-dimensional Economic Evaluators Inc. (www.meevaluators.com), shows a Value and Demand chart for the new and pre-owned Citation CJ4 including the Learjet 31A/ER. The current preowned market for Citation CJ4 shows a total of nine aircraft ‘For Sale’ with two displaying an asking price, thus we have plotted those two.

We also added other pre-owned business jets of similar ilk with asking prices ranging from $1.5m-9m The equation that we derived from these asking prices and other criteria used should enable sellers and buyers to compare, and perhaps adjust their offerings, if necessary.

Demand and Value are on opposite sides of the same Price axis. As evidenced, the market for new/used Citation CJ4s responds to at least four features: Years, Cabin Height, Quantity and Price.

Productivity Comparisons

The points in Chart F (right) are centered on the same aircraft.

Pricing used in the vertical axis is as published in the Vref Pricing Guide. The productivity index

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Summary

Within the preceding paragraphs we have touched upon several of the attributes that business aircraft operators value.

There are other qualities such as airport performance, terminal area performance, and time to climb that might factor in a buying decision, however.

The Citation CJ4 continues to be very popular today. Those operators in the market should find the preceding comparison useful. Our expectations are that the Citation CJ4, which started delivering in 2008, will continue to do very well in the new and pre-owned markets for the foreseeable future. T

Chart E - Value & Demand

A Study of Pre-owned Citation CJ4 Compared to the Learjet 31A/ER and Other Similar Business Jets

Chart F - Productivity Price (Millions)

requires further discussion in that the factors used can be somewhat arbitrary. Productivity can be defined (and it is here) as the multiple of three factors: 1. Range with full payload and available fuel; 2. The long range cruise speed flown to achieve that range; 3. The cabin volume available for passengers and amenities.

Others may choose different parameters, but serious business aircraft buyers are usually impressed with Price, Range, Speed and Cabin Size. After consideration of the Price, Range, Speed and Cabin Size, we can conclude that the Citation CJ4 displays a high level of productivity.

Popular attributes of the CJ4 are range, cabin size, plus lower hourly and variable costs.

However, the CJ4 has the higher acquisition price and significantly lower payload capability of the two aircraft in our analysis.

Operators should weigh their mission requirements precisely when picking the option that is the best for them.

$12.0 $9.0 $6.0 $3.0

Citation CJ4 2015

Learjet 31A 2003

$0.0 0.0000

0.1000

0.2000

0.3000

Index (Speed x Range x Cabin Volume / 1,000,000,000)

The best aircraft for sale search anywhere, everywhere - on pc, smartphone and tablet.

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Section Contributors

Ken Elliott is a highly-respected industry authority on avionics as a member of the NextGen Advisory Council sub-committee and Technical Director, Avionics at Jetcraft. Contact him via ken.elliott@jetcraft.com or www.jetcraft.com

Dave Higdon has covered all aspects of civil aviation over the past 35 years. Based in Wichita, he’s a renowned journalist, and an active instrument-rated pilot with more than 5,000 flight hours in everything from footlaunched wings to combat jets.

Contact him via Dave@avbuyer.com

Donald Ridge is a Senior Analyst for JSSI, the world’s largest independent provider of hourly cost maintenance programs. He began as a Gulfstream technician, working his way to Director of Maintenance 121/135 Air Carrier.

Contact him via www.jetsupport.com

Brian Wilson is the National Key Accounts Manager at Gogo Business Aviation, an industryleading provider of in-flight connectivity solutions. Prior to Gogo, he sat on numerous Dealer Advisory Boards and was a member of the Aircraft Electronics Association Board of Directors. Contact him via Bwilson@gogoair.com

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It’s Here to Stay...

What you Need to Know About Connectivity Brian Wilson outlines some overlooked aspects of on-board connectivity, and considers why a low-cost system is no longer an acceptable solution in Business Aviation.

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he Oxford Dictionary describes addiction in an adjective form as identifying someone who is “physically dependent on a particular substance”. A recent study found the average person checks their smartphone or tablet 150 times a day for messaging, voice calls, email traffic, internet access or what time it is. Considering only the hours we are awake, it’s safe to assume we look at our device every six minutes. Not even the bathroom is a safe haven from using our cellphones!

We are addicted to staying in touch, and today it is no different when we board an aircraft. Passengers do more than anticipate connectivity; they demand it!

Passenger In-Flight Expectations

Many of us remember the days when meals were served on board all airline flights in economy class. It’s a safe bet that no one expected the same culinary experience as they’d get from a 3-star Michelin-rated restaurant, though, so surely passengers today would not expect the same connectivity experience flying 500MPH at 35,000 feet as they would seated in their home or office? Wrong! Passenger feedback has been challenging at best.

Passenger expectations when compared with the limitations in today’s technology suggest the industry had better do a better job in educating the consumer. (I would advocate that after the passenger safety video is completed a short usage video be played outlining expectations for connectivity.)

Let’s focus on two technologies that enable the majority of the business jets flying today with connectivity:

“... industry had better do a better job in educating the consumer.”

• Air to Ground (ATG) • Satellite based Swift Broadband (SBB) Air to Ground: A network of towers is strategically based across the continental United States, Alaska and the southern populace areas of Canada. The towers beam the signals upward in a shape of cones that overlap each other to provide seamless coverage to the aircraft. Antennas mounted on the belly of the aircraft communicate directly with the towers once the aircraft reaches an altitude of 10,000 feet.

There are no satellites involved with ATG, which allows this technology to have the fastest connectivity speed today, averaging 2Mbps and peaking at 3.1Mpbs (based on Internet congestion).

Swift Broadband: Working with a network of Satellites based 22,000 miles above the earth, SBB coverage is almost global, with the exception of the extreme north and south latitudes. The satellites beam their signal downward and communicate with an antenna mounted on the top of the fuselage or tail cone. This technology works when the aircraft is on the ground, and it does not have the 10,000 feet limitation of ATG. Stated data speeds of 200, 332 and 432 Kbps and their respective global coverage areas vary according to the size of the antenna on the aircraft. Connectivity speeds can be increased by using a router capable of data compression or by bonding multiple channels of SBB. Both ATG and SBB systems allow passengers to text, make voice calls, surf the internet and check their email.

Limitations in the technology and the speed for which the

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data are transferred will have a variable effect on the following: • • • • •

Email attachments over 10Mb Live video- and Internet- based streaming services Social media Graphically intense web-based home pages Network congestion.

Passengers should be cautioned that using streaming video services or social media will not only frustrate their user experience, but the consumption of bandwidth will negatively affect everyone on board.

Maximizing Charter Revenue

Speak to any aircraft owner who offers their aircraft for charter operations and you will hear varying expectations about offsetting operating costs, perceived utilization rates and monthly fees when using a management company. Speak to any charter or management company and you will only hear one common message: if your aircraft does not have connectivity on-board, expect to see it sitting on the ground!

The paradigm shift started about five years ago in 2010. Prior to that date, flight departments continued to believe the passengers in the cabin just wanted to relax, and enjoyed being away from email, voice calls and the internet. Today, passengers are refusing to board aircraft if the Wi-Fi is down or the aircraft does not have internet access.

Crew members frequently report the first question they are asked by passengers before they board as “Is the internet working?” Passengers will usually tolerate minor cabin discrepancies but they will not live without connectivity. They expect Wi-Fi to be on board the aircraft in the same way they expect to have it when entering a hotel, airport or coffee shop.

Furthermore, pilots have become the first line of technical support between their home-base and the passengers.

Applications loaded on their phones or tablets allow the crew to at least confirm if the Wi-Fi is available and if a connection can be made.

A typical management company relies heavily on its charter division to bolster ancillary income for themselves and the client.

This usually begins with a meeting between the two parties to understand what the owners want and to discuss their expectations. Keeping the aircraft mission-capable will surely lead to a discussion about connectivity. Many charter companies have lost trips due to a bad passenger experience using the Wi-Fi, or insufficient cabin technology.

If you take anything from this section of the article, remember the following: Passengers want the same connectivity experience that they receive at home or in the office, and if you choose to offer your aircraft for charter, but install an inexpensive system that only allows text messaging; simple emails without attachments; no internet; and a short list of applications, your aircraft [or your client’s aircraft] will sit on the tarmac!

Best Equipped, First Sold

Adding connectivity to your aircraft also allows you to keep it ahead of the competition in the event that you plan to sell it. Aircraft that do not have connectivity onboard, or offer cheap systems will witness a similar effect to its resale value as a home in a neighborhood adjacent to a garbage dump!

Most flight departments allocate funds every year to keep the aircraft current with the latest technologies, but the focus can easily be swayed by the needs of the crew in the cockpit.

The cabin has become the focal point over the last few years, and prospective buyers want to know what technology is onboard to keep them productive in-flight. The following points will assist you in an upgrade: • Understand what cabin technologies are currently onboard; • Sit down with the owner and passengers to understand their expectations; • Does the aircraft fly domestically, internationally or both; • Attend a leading industry event like NBAA, EBACE, ABACE or LABACE to discover more about the products available; • Research and choose three different

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products that fit both your flight profile and passenger expectations; • Discuss the upgrade with three leading MROs that focus on cabin connectivity, and solicit proposals for the work scope; • Choose the company you feel the most comfortable with after checking references, and schedule the upgrade at your next maintenance interval.

Costly Monthly Service Fees

The excitement of having internet onboard quickly dissipates when the first monthly service bill arrives. Earlier plans offered unlimited usage for a fixed monthly price, but individual consumption of data has risen dramatically during the past few years and service providers can no longer absorb the extra costs.

Service plans offered today allow you to choose an option that gives you a set amount of data for a set price each month.

Once that data threshold is exceeded, you are subject to ‘overage’ costs (usually based on a per Megabyte amount).

It’s imperative that flight departments educate crew and passengers on how to control costs. Most people today carry multiple devices and have their Wi-Fi always activated searching for an open network. Once they board the aircraft these devices will automatically log onto the server and background data will start to run. It’s easy for 5-6 passengers to have 15-18 devices consuming data, and that doesn’t factor in the crew!

Laminated user guides are common on board to assist passengers with how to use the system. I recommend adding a

section highlighting how to control the usage of data that will result in lower monthly costs…

• Turn the Wi-Fi “off” on the devices you’re not currently using; • Avoid streaming services; • Reduce social media site visits; • Prohibit any software or program updates; • Filter out Cloud applications.

Service costs are the most overlooked part of the upgrade process. Much time is spent searching the right product and installation facility, yet service costs can equal or exceed the installation price in as little as 18 months.

When discussing the plan options with your chosen service provider, ask what control filters they possess to help keep your costs down.

Today we think of connectivity as a conduit for the internet, email and texting. Moving forward this technology will evolve within the aircraft to encompass everything, including in-flight entertainment, environmental controls, on-board system diagnostics, databases, engines and emergency medical events.

Owners and operators must keep their aircraft “enabled” so their current and prospective new clients don’t view it as “disabled”. T Are you looking for more articles on Cabin Avionics? Visit www.avbuyer.com/articles/category/business-aviation-avionics

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Customized Cabin Avionics Just Add Patience and Perseverance!

With today’s cabin avionics, virtually all things are possible to those who have the patience and funds, notes Donald Ridge. But in customizing the cabin, an aircraft owner needs to consider ongoing maintainability...

T

hroughout my aviation career, I’ve been involved in countless aircraft transactions that typically result in some kind of cabin refurbishment by the new owner. There are always a few squawks that may need to be fixed before taking a first flight in the newly acquired airplane - but then, most new owners want to add something to reflect their own personality.

Other than a flashy new paint job, I can think of no better way to customize this new purchase than by designing a new interior that includes some of the latest high-tech cabin electronics that are available today.

There are, of course, countless factors to consider when narrowing the cabin equipment options. As I think about all the new aircraft owners I’ve known

and their need to make the aircraft their own, the term ‘custom’ becomes an important word - especially in relation to the aircraft cabin, because that is where they will be spending their time travelling.

Distinctive cabin avionics, lighting and entertainment systems - regardless of the aircraft type – can all be custom-designed to exceed customer expectations. Just keep in mind that any customization will also require plenty of patience and perseverance in seeing the job through to the end.

Where to Begin?

Considerations begin with finding a qualified facility that comes with seasoned avionics professionals.

Most facilities qualified to maintain your particular aircraft type will typically have a good avionics

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department that is capable of doing the job, but it is always good to do research to find the most-qualified shop for your aircraft’s customized installation.

Whenever there is a need to integrate equipment into the aircraft’s electrical system, the FAA requires a Supplemental Type Certificate (STC). The chosen facility will likely have available a few existing FAA STCs for your aircraft that can implement the installation faster than certifying a unique one-of-a-kind design.

As we have already stated, however, many new aircraft owners want something special, or may even want to try and recreate their home theater experience in their new cabin. This can all be achieved but like many things there are always trade-offs to make it happen, and it usually involves a significant investment of time and money.

A Study in Patience

I was part of a team tasked with refurbishing a Gulfstream GIV interior for a well-known client. The cabin entertainment system that the owner wanted included the latest, state-of-the-art high-definition audio and video systems.

The challenge began when the audio and video components, built by different manufacturers, wouldn’t synchronize even though we had been told they would work together. The systems were operating on separate channels, and there was so much interference that - in order to get the system to work - we finally had to install additional computers. We were ultimately able to marry the two and create a customized software interface.

All of the extra work was followed by a lengthy FAA approval processes that caused more than a month’s delay in the delivery of the aircraft. The customer was frustrated and unhappy, until he saw and experienced the final product. They got their customized movie theater system (that also required the pilots to use the latest noise canceling headphones to block out the surround-sound and fly without distraction).

Onward Challenges

This unique solution is still working great today, but the touch screen hardware selected has already become obsolete because of the discontinuation of the product line. So even with the latest and greatest custom system, in a few short years, systems can become obsolete and create challenges when a problem arises and replacements are needed.

Maintainability is a key factor for the longevity of any customized installation, and it can depend on future parts availability like the touch screens just mentioned, as well as the quality of the installation itself. Keeping these systems working and up-to-date with current technology can also affect the aircraft’s value when you look to sell down the road.

Many cabins we see today at JSSI have legacy systems that are obsolete and cannot be repaired, so when something breaks, the entire system needs

“...in a few short years, systems can become obsolete and create challenges...”

replacing. There are basic system replacements on the market that only require space for a couple of black boxes and a few feet of extra wire. Such simple enhancements can be combined with an LED lighting upgrade to freshen up any cabin.

If it were up to me, I would always go with a cabin upgrade solution that already has an STC for my airplane type. It simply makes life easier and is usually a smart economic decision. But the bottom line is that almost anything is possible when customizing cabin avionics of an airplane today.

Whether it is worth the time and tenacity it takes to complete the task is something that only the owner of the aircraft can decide.

As always, weigh the costs with the benefits! T Are you looking for more articles on Avionics? Visit www.avbuyer.com/articles/category/business-aviation-avionics

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NextGen Upgrade Strategies: The Where, When, How & Why Today operators face equipment mandates throughout the globe, notes Dave Higdon. As varying airworthiness and air traffic authorities improve their systems, how and when do you plan to comply‌? espite some popular political chatter about unilateral action, ICAO, an arm of the United Nations, makes decisions responding to the consensus of its nearly 200 member states in their effort to ensure safe, orderly air travel within an international system with some common bases. But single member states ultimately set their own rules,

D

so deadlines for deploying various technological advances vary from country-to-country.

Nevertheless, while individual nations set the rules for their domestic airspace, operators are typically bound by the rules of the nations they visit. So the lack of a mandate in a home nation won’t relieve an operator from fulfilling a mandate if it applies in a destination country.

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meet RVSM standards). EASA’s FANS mandates will not impact operators who won't be crossing the Atlantic in the course of their operations (at least in the foreseeable future).

The same cannot be said for Automatic Dependent Surveillance-Broadcast (ADS-B).

The majority of the world's business aircraft face a future in which air traffic authorities require ADS-B to access most airspace. ADS-B is the future of airtraffic surveillance and is already required in much of the world, even though the FAA gives aircraft owners until 2020 to comply.

Automatic Dependent Surveillance—Contract mode (ADS-C) meanwhile provides precision position reports using an approved reference technology – WAAS GPS is the most common – that reports to ATC via an Inmarsat or Iridium satellite link. Like ADS-B, it requires virtually no human interaction once powered-up.

Position Reference and More

The Line-up

Two years ago the European Aviation Safety Authority (EASA) began requiring use of a Future Air Navigation System (FANS 1/A) of some form for air traffic using the North Atlantic Track System (NATS). The airspace impacted expanded last year, and extends to most of the North Atlantic this year.

For the commercial traffic among the approximately 1,500 aircraft using that airspace each day, FANS 1/A is old hat (the advent of Extended range Twin Operations—ETOPS— helped encourage its adoption long before the EASA requirement kicked in). It’s somewhat newer to business aircraft operators, however.

Unlike EASA, the FAA has no mandate in place for FANS; but US operators who regularly cross the Atlantic will ultimately face the issue of equipping.

Failure to equip with FANS 1/A doesn't lock out an operator from crossing the North Atlantic altogether. It does, however, leave unequipped aircraft unable to access the most efficient tracks with the reduced separation (similar to the altitude restrictions imposed on US operators who fail to

The Technical Service Order (TSO) that makes a position source legible for use in most of these cases is the FAA's TSO-C 166b and its international counterparts. US operators that never fly above FL180 have a second option under TSO-C 154c.

The system used most commonly in Europe and North America is a TSO-C 166b-compatible WAAS GPS, which provides position data accurate enough to support precision instrument approaches. For operators with the need for precision position data under multiple mandates, installing WAAS GPS is a first priority.

While many modern business turbine aircraft sport Flight Management Systems with GPS (even WAAS GPS), given advances in the TSO operators should determine whether their current FMS fulfills the requirements for the systems planned. If not, an upgrade is needed; how and what will vary with the equipment already installed – and future plans.

For aircraft lacking such modern navigation equipment, it may be a good time to examine the aircraft, its panel and your future plans.

“...operators should determine whether their current FMS fulfils the requirement for the systems planned...”

Next Priorities

Avionics shops counsel owners and operators to weigh their plans for the company airplane: whether it will remain as is, get upgraded, or be traded - and at what point. Most will advise against sinking funds into an airplane that won't be kept long enough to be impacted by a mandate, or one nearing the end of its useful life.

For some owners, complying with mandates may require more than the installation of equipment. For example, there are issues of crew training to be considered. Furthermore, if the airplane regularly ventures beyond US borders, assuring its legality in those foreign destinations should be paramount (as mentioned above, FANS 1/A has little importance to an operator that never flies the Atlantic, although the Controller/Pilot

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42

DataLink Communications (CPDLC) hardware required for FANS 1/A may be desirable due to expected mandates in Europe).

When and How?

Where, exactly, an aircraft receives upgrades to help it meet various mandates is one of those choices best made after consulting with various shops about needs, costs and schedules. Timing the work to coincide with other major maintenance needs offers an opportunity to save both time and money, according to various shops and the Aircraft Electronics Association.

A business turbine aircraft due for expended downtime should be examined in light of the pending mandates the operator must meet. Even if the mandate itself is years out – such as the 2020 deadline for ADS-B Out in US airspace – installing the needed systems during other maintenance obviates the need for more aircraft downtime.

Are you thinking of converting that analog panel to glass? What better time to make the needed updates for looming mandates? Is the airplane going in for new interior or engine work? You would be wise to also consider what work could be undertaken to meet mandates that will ultimately impact your flight operations.

The Do-Nothing Option

Of course, operators may choose to procrastinate – and face the prospect of frustrations, worry and a lengthy delay as they wait for overbooked shops to find a vacant slot to take the aircraft in and undertake the necessary work. Some operators may opt to ignore most of these mandates altogether. But there will be consequences!

As noted before, NATS users face the loss of the most-efficient, most-favorable crossing tracks if they fail to comply with the FANS 1/A requirement of EASA. The costs come in the form of longer legs that consume more fuel and flight time.

Ignoring the ADS-B Out mandate in the US, meanwhile, essentially locks operators out of airspace in which Mode C transponders are now required. Even the business pilots of highperformance piston aircraft want access to airspace higher than that available in most of the country without ADS-B Out. And if those aircraft need access to airports in today's Bravo and Charlie airspace, ADS-B Out is the answer.

The Clock is Ticking...

Consult with aviation professionals on need and timing; finance resources on costs; tax expert on making the most of the upgrade work; then, pick the shop you’re most comfortable using (preferably one that knows your aircraft and its panel, see our MRO guide overleaf). Start planning now!

And remember, it’s better to take advantage of

benefits beyond meeting some regulatory deadline. In the US alone, using a navigation WAAS GPS to comply with ADS-B Out opens up about 3,500 runway ends to precision approaches unavailable via an ILS. And eventually operators will want to access the approaches available only to aircraft that can meet Required Navigational Performance (RNP) standards.

Better tracking, improved pilot/controller communications and a safer, more-efficient ATC environment holds benefits for both those making the mandates and those who meet the requirements. T

MRO Aircraft & Avionics Capabilities Tables To view our non-exclusive MRO Aircraft and Avionics reference guide as prepared by Jetcraft’s Ken Elliott, see overleaf.

C AI AIRCRAF AIRCRA AIRCR AIRC AIR AIRCRAFT O OE G OEM GR GRO GROU GROUP GROUPS Embraer Phenom Embraer Legacy Embraer Lineage Cessna Jet Light Cessna Jet Medium Gulfstream Medium Gulfstream Large Dassault Medium Dassault Large Bombardier Medium Bombardier Large Bombardier Learjet Hawker Series Beechjet Astra, Galaxy, Westwind Airbus ACJ Boeing BBJ AV AVIONIC AVIONI AVION AVIO AVI AVIONICS O OE OEM Rockwell Collins Honeywell Garmin Universal GoGo (Aircell) ICG FreeFlight L3 including ACSS Satcom Direct

TYP T TYPES TYPE Y 100/300 450/500/600/650 All CJs Citation X/Sovereign G100/150/200/280 GII through G650 Falcon 10/20/50/200 Series Falcon 900/2000 Series & 7X Challengers Globals All Learjet Models All Hawker Models All Variations All Variations All Variations All Variations

TY TYP TYPE OF O AVIONICS AV AVI AVIO AVION AVIONI AVIONIC A (M (Mandates) (Mandates (Mandate (Mandat (Manda (Mand (Man (Ma All All All Datacom, ADS-B, PBN Datacom Datacom ADS-B All Service Provider

Garmin.qxp_Layout 1 28/09/2015 09:29 Page 1

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We’re not about to make you tear it up for ADS-B. Garmin has a Vantage ADS-B solution that can work seamlessly with your system to keep you flying – without requiring a time-and-money-consuming overhaul of your panel. A transponder upgrade paired with a GDL 88 with WAAS, Flight Stream gateway device and a tablet running Garmin Pilot™ will give you all the advantages ADS-B has to offer. It’s the most advanced technology you can find at a most cost-effective price. Installation can be easily fit into scheduled maintenance with minimal downtime. So your aircraft can keep flying. And keep looking good.

See which easily installed Vantage ADS-B solution is right for you at Garmin.com/ADS-B. Or contact our ADS-B HelpLine at 1-844-GET-ADSB or ADSB@garmin.com.

©2015 Garmin Ltd. or its subsidiaries

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MRO Aircraft & Avionics Capabilities Tables

ABC Comple ons Abelag Technics Abelag Technics ABS Jets Aero Dienst AES Air Service AMAC Aerospace Astronic Industria Australia Avionics Avionicare Avionics Services Avjet Banyan Air Service Bizjet Bombardier (YUL) BAS Service Centers Capital Avia on Capital Avia on Inst. Av. Carpenter-Momentum CE Avionics Constant Avia on Chicago Jet Group Cessna Cita on Cessna Cit. Serv. Centers Dassault Aircra Serv.

Dassault Service Drabpol Duncan Avia!on Duncan Avia!on Ellio" Avia!on Embraer Epps Avia!on Execujet Maintenance Field Avia!on FieldTech Flightstar Flying Colours Gate V GDC Technics Greenpoint Gulfstream Gulfstream Gulfstream Serv. Centers Gulfstream Serv. Center Haggan Avia!on Harrods Avia!on Hawker Beech Hawker Pacific

Mobile CA EBAW EBBR EBKT LKPR EDDN WSSS LFSB LFSB SBGL YBCS EGMC SBSP KBUR KFXE KTUL KYUL Worldwide KPWA KMNZ KMQY KSFB KCLE KBHM KARR KICT Worldwide KLIT Worldwide EPMO KLNK KBTL 16 US Loc's KMLI Worldwide KPDK Worldwide KYYZ KFTW KCMI CYPQ KSUS LOWW KSAN KDTO KSAV KBQK Worldwide KWPB KAPA EGGW KICT KIND Worldwide

X X

X

X

X X X X X X X X X Avionics & Instruments X X X X X X X X Avionics & Instruments Avionics & Instruments Avionics & Instruments Avionics & Instruments X X X X X X X X X X X X X X X Avionics & Instruments Avionics & Instruments Avionics & Instruments

X

X X X X X X

X X X X Avionics & Instruments X X X X X X X X Avionics & Instruments X X X X X X X X X X X X X X X Speciality work Avionics & Instruments X X X X X X C X X X X X X X X X X X X

X X X

X X X

X X X X X X X X X X X

X X X X X X X X

X X

X X X X X X X X X X X X

X

X X X X X X X X X X X X X X X X X X X X X

X X X X X X X

X

Satcom Direct X

X X X

X X X X X

X X X

Rockwell Collins Honeywell Garmin Universal GoGo (Aircell) ICG FreeFlight L3 ACASS

LOC 1 LOC 2

AVIONICS

Bombardier Large Bombardier Learjet Dassault Medium Dassault Large Embraer Phenom Embraer Legacy Embraer Lineage Cessna Light Cessna Medium Hawkers Beechjet/Nextant Astra, Galaxy, WW CRJ BBJ ACJ

MRO

AIRCRAFT Gulfstream Medium Gulfstream Large Bombardier Medium

44

A thru h

X

X

X X X X X X X X X X X X

X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X

X X

X X

X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

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AvBuyer.com

LFSB LSGG KCPS KBED KTEB WSSL SBGL KGSO KINT KSDL Worldwide EGSC KGRR CYYZ VYYY FALA SBGR KCGF KPTK KOXC KRSW KMHT KMEZ EDMO LSGG LSZA LSZB Worldwide CYYZ CYYC KDAL KSPI KAGS KLAX KIAH KSFB KGYH KBJC KBNA KGSP KDAY LSGG ZSAM SBJD KPDK KTOL KFXE KBOI KALN KGJT

X X X X X X X X X X X X X X X X X X X X X X X X X X Avionics & Instruments X X X X X X X X X X X X X X Avionics & Instruments Avionics & Instruments X X X X Avionics & Instruments

X X X

X X X X X X X

X X X X X X X

X X X X X

X X X X X X X

X X X X

X X X X X

X X X

X X X

X X X X X X X Avionics & Instruments X X X X X X

X

X X X X X X X X

X

X X X X X X X

X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X

X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X

X X X X X X X X X X X X

X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X

X

X X X X X

X X X X

45

X X

X X X X X X X X X X X

Satcom Direct

Jet Avia on Jet Avia on Jet Avia on Jet Avia on Jet Avionics Landmark Avia on Landmark Avia on Landmark Avia on Lu!hansa Technik Marshalls Mayday Avionics Mid Canada Mod Center Mjets Na onal Airways Corp Navy Aerospace Nextant Aerospace Pentastar Private Sky Pro Star Avia on Rose Aircra!

RUAG RUAG Scandinavian Avionics Skyservice Standard Aero Associated Standard Aero Standard Aero Starport Stevens Avia on Stevens Avia on Stevens Avia on TAG Avia on Taikoo Aircra! Services TAM The Maintenance Group Toledo Jet Center Western Aircra!

West Star Avia on

L3 ACASS

LOC 1 LOC 2

ICG FreeFlight

MRO

AVIONICS

Rockwell Collins Honeywell Garmin Universal GoGo (Aircell)

AIRCRAFT Gulfstream Medium Gulfstream Large Bombardier Medium Bombardier Large Bombardier Learjet Dassault Medium Dassault Large Embraer Phenom Embraer Legacy Embraer Lineage Cessna Light Cessna Medium Hawkers Beechjet/Nextant Astra, Galaxy, WW CRJ BBJ ACJ

J thru w

X X X X X X X X X X X X

X X X X X X X X X X X X

X X

X X X X X X X X X X X X X X X X X X X X X X

X X X X X

X X X X X X X

X X X X X X

X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X

X X X X X X X X X X X X X X X X

*CMD Flight Solutions (cmdflightsolutions.com) has had a variety of ADS-B solutions certified during 2015 since original publication

This is a non-exclusive list of primary business jet Maintenance Repair Organizations and Avionics facilities worldwide, focusing on those facilities that are capable of supporting business jet upgrades and completions applicable to avionics mandates for communication, navigation and surveillance. Where known, aircraft types serviced by the MROs are included. Avionics facilities that are not primarily MROs are shown as ‘Avionics & Instruments’. These facilities indicate their ability and approval to work on business jets and where known, their avionics capability is listed. T

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Avionics Mandates (Part 1): An In Depth Review

OPERATIONAL RADIO STATIONS (AS OF SEPT 2014).

ARE YOU READY FOR ADS-B?

Over several parts, Ken Elliott will be navigating the complex world of avionic mandates, offering a comprehensive, clear, 360 degree view of NextGen and all that comes with it...

W

hile we will be using the term ‘mandate’ within the following series, the context first needs to be explained. In this series the terms ‘mandates’, ‘requirements’, ‘recommendations’, ‘rules’ or ‘operational guidance’ may be used interchangeably because in reality, they are interpreted much the same by transport authorities.

Mandates from an operator’s perspective are requirements to be complied with in order to complete mission profiles. For a light jet operator domestically-based and flying regionally there will be less compliance needs than for an intercontinental large cabin operator flying across different controlled airspaces.

Even when not mandated to equip, though, an operator desiring additional capability, such as a

Wide Area Augmentation System capable of localizer performance with vertical guidance (WAASLPV) or other forms of enhanced navigation or approach guidance, may consider requirements for planning and budget purposes. Such an upgrade reflects an individual business case for cost efficient operations into terminal areas and airports important to the user of a business aircraft.

Throughout this series, the terms NextGen (US), Single European Skies and its iterations such as SES2+ (EU), and ICAO Global Concept Block will be used interchangeably or as appropriate. Surprisingly, there is a high level of interaction between these three concepts for managing and controlling airspace. In addition, however, special cooperation is required for oceanic airspace, the largest region of all.

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Background

Aviation mandates are usually provided to improve SAFETY and EFFICIENCY, thereby reducing the chance of miscommunication and confusion while increasing the number of aircraft that can be accommodated at the same time. Core avionic elements of Communication, Navigation and Surveillance are developed and continuously improved to meet increasing demands on airspace and infrastructure. These core elements will be featured throughout the series.

Some mandates impact a limited set of users while others, such as Automatic Dependent Surveillance-Broadcast mode (ADS-B), are universal. Whether universal or not, it should be borne in mind that no mandate is created in a vacuum.

Back in 1935 the Radio Technical Commission for Aeronautics (renamed in the 1990s as simply RTCA) was formed to develop technical standards for avionics equipment. For eight decades the Commission has provided a forum for industry and transport authority collaboration on most new technologies. Standards were painstakingly developed over years of networking between industry competitors and government specialists, creating rewrite after rewrite of technical documents. All this effort flushes out the technical aspects of NextGen airborne technology so that equipment manufacturers and aircraft builders can design requirements into their product. Most of the world today follows RTCA general guideline for technology implementation into aircraft.

Other organizations such as the Society of Automotive Engineers (SAE), Mitre and NASA are also utilized with US NextGen, where tasking by FAA leads to research and development of standards. European agencies also contribute to RTCA activities to augment alignment between US and European standards.

Graphic A: Simplified Mandate Grouping Surveillance

Communication

ATM

Table A: Positives vs Pushbacks Ma Majo Maj Major P Po Pos Posi Posit Positi Positiv Positive Positives o of R Re Req Requ Requi Requir Require Requirem Requireme Requiremen Requirement Requirements Most users equipped = efficient operations

Ma Majo Maj Major R Re Rea Reas Reaso Reason Reasons ffor fo O Op Ope Oper Opera Operat Operato Operator D De Del Dela Delay o or Pu Pushback Pushbac Pushba Pushb Push Pus Reluctance to be first or an early adaptor

Less time and less delay

Equipage costs will reduce over time

Reduction in fuel, energy and cost

We have all the equipment we need!

Less confusion and miscommunication

What is the benefit v cost to us?

Successful completion of trips as planned

The requirement will be delayed or go away

Enhanced safety and tracking

We will qualify for a grandfather clause

Overall continental + oceanic airspace efficiency

We may trade the aircraft before the due date

Worldwide, transport authorities and governmental agencies responsible for airspace management and control are budget-driven, strategizing their operations to limit expenditure on infrastructure and overhead. The more that infrastructure is eliminated from ground installations and moved into the cockpit of operators’ aircraft, the better for governments.

Cockpit-centric technologies are the future direction, so equipage upgrades are here to stay.

To be fair - and as one example - the FAA has most of its 660 planned ADS-B ground stations and 100 of the 230 Air Traffic Control centers ready or operating ADS service (see map on previous page). Furthermore, the FAA has in place 3,498 WAAS-LPV approaches. In some respects (as in this case) the onus is now on operators to equip, train and approve their aircraft and crews for utilizing advanced technology.

“In some respects (as in this case) the onus is now on operators to equip, train and approve their aircraft and crews for utilizing advanced technology.”

Perceived Benefits & Operator Reluctance

One of the business cases for NextGen and SES is the need for universal equipage. The more that users are appropriately equipped, the easier it is for national or oceanic airspaces to function in a coordinated and efficient manner. As shown by Table A (above), universal adoption by operators is slow for multiple reasons, including negative experiences with previous mandates.

Furthermore, there is a gap in perspective between commercial, business and light GA users, and differences may widen with military applications and the onset of more unmanned vehicles. Each segment of airspace user has a unique business case for its operations while possibly seeing bigger benefits for other user groups.

There is no ‘one size fits all’, so requirements are clearly written around airspace efficiency, both domestic and international, having equal relevance to any user operating in a designated airspace.

Four Business Aviation User Groups Navigation

Approaches + Low Visibilty Ops

With respect to business aircraft owners and their avionics requirements, there are four categories of user groups, none of which are completely insulated from the need to upgrade in some form

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or another. When purchasing your next aircraft, considering its technology status will be an important consideration for you.

• New Aircraft: Either current or future delivery equipped with the latest technology and mostly compliant with NextGen. • Recent Aircraft: Acquired ‘new’ within the last 5-7 years and mostly provisioned for NextGen. • Legacy Aircraft 1: Acquired aftermarket and upgraded along the way. Could be somewhat compliant with NextGen. • Legacy Aircraft 2: Acquired aftermarket, not upgraded, and in need of major modification to comply with NextGen.

A Global View of Mandates

Some of the drivers behind current avionic mandates are: • Worldwide increase in airspace users.

• Need for closer 4D separation to efficiently accommodate increased traffic flow.

• Need to save energy and cost, to lower dependency on infrastructure and to improve surveillance.

• Interoperability across multiple time zones within airspace controlled by national agencies.

Table B: Mandate Calendar AD ADSADS ADS-B O Ou Out Pr Pre-2014 Pre-201 Pre-20 Pre-2 PrePre Gu o Gul Gulf of Me Mexico Mexic Mexi Mex

Hud H Hudson Hudso Huds u Ba Bay FL FL350FL350 FL35 FL3 40 400 Australia Australi Austral Austra Au Austr Aust Aus (p (part) (part (par (pa FL FL290+ FL290 FL29 FL2 Sin S Singapore Singapor Singapo Singap Singa Sing i FL FL290+ FL290 FL29 FL2

IInd Indonesia Indonesi Indones Indone Indon Indo n FL 2 FL 209 209+ 20

Mo Month Mont Mon

20 2014 201

20 2015 201

20 2016 201

20 2017 201

20 2025 202

FANS 1/A Ph 2C NAT ICAO FL290+

Data Recording (CVR) EU

January

20 2020 202

ADS-B Out N. Am Airspace

January

February

VDL Mode 2 – EU FL285

February

FANS 1/A Ph 2a NAT OTS FL350390

February

MNPS Change to RNP RNP 10+4 N Atlantic

February (some EU countries unready)

PM-CPDLC (Link 200+)

March

VHF 8.33 std All EU ECAC

ADS-B Out Perth, Aus IFR

ADS-B Out Australia All IFR

All A/C RNP RNP 10+4 N. Atlantic

These drivers create a need for change in airspace ADS-B Out ADS-B Out user performance, requiring equipment changes Europe Europe June (New (Retrofit technically defined by RTCA and others. Equipment Aircraft) Aircraft) and aircraft builders worldwide adopt these new PM-CPDLC (Link 200+) standards, allowing operators to function and air December Legacy traffic controllers to automatically monitor and guide Aircraft traffic flow globally.

TCAS II v HUDs 10% FANS 1/A HUDs 50% HUDs 100% ADS-B Out 7.1 of Fleet Ph 2b NAT of Fleet of Fleet Europeans have led the way on certain operational December Hong Kong EU CofA pre China ICAO China China FL290 mandates, especially where high density airspace March 2012 Commercial FL350-390 Commercial Commercial demands it. However, they tend to give way on Expect ATN Expect Expect HUDSubject to B2 US SMGCS EVS implementation dates as member nations align to Change mandate mandate Business timeline timeline A/C China implementation readiness. Meanwhile, ICAO cautiously follows the lead of US and European guidance. Occasionally individual nations, like Note: Mandate Calendar current as of December 2014 –future requirements of US Australia, take a lead on mandates as demonstrated FANS, Advanced Surface Movement Guidance & Control Systems (A-SMGCS), recently by their local ADS-B Out implementation.

Heads Up Displays (HUDs) and possibly greater recording and tracking of aircraft.

At risk of oversimplification, current known mandates can be grouped as shown in Graphic A (previous page), with Air Traffic Management (ATM) facilities being the terrestrial component. Approaches and Low Visibility Ops are user-elective yet are moving into mainstream requirements as their role in providing benefits becomes clearer. approaches, completing PBN to touchdown.

Within each technology group noted in the Graphic (yet While newer aircraft may escape with minor service bulletins, applicable across more than one group), are the familiar terms the more aged aircraft are likely to require significant reof ADS-B, Performance Based Navigation (PBN) and elements equipage if they are to be eligible for operation in airspace of Future Air Navigation Systems (FANS—FANS 1 developed redesigned around advanced technology.

by Boeing, FANS A developed by Airbus and the amalgam of NextGen is focused on the integration of airspace and its both, known as FANS 1/A). These technical terms apply to users, via the automation and streamlining of navigation, capabilities added to existing equipment-based technologies communication and surveillance with an ability for both the such as Transponders, Flight Management Systems (FMS), VHF pilot and controller to detect and avoid other aircraft at all radios and Satcom. For low visbility operations the less welltimes. We hope you will enjoy and benefit from the series known technology of Enhanced Flight Vision is introduced, running throughout 2015. T along with ATM and FMS via high integrity GPS used for

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Avionics Mandates (Part 2): All You Need to Know About CPDLC - ATN-B1

Helping you to familiarize with avionics advances and related mandates for equipage, Ken Elliott unpacks Controller-Pilot Data Link Communications (CPDLC) within NextGen, this time focusing on ATN-B1. ata Comm encompasses two main areas: ATN-B1 (or CPDLC) and FANS 1/A+ (including ATN-B2). It can be confusing when confronted by a string of unfamiliar letters. The reader requires either an avionics glossary to crack the code or a degree in aviation technology (possibly both) to understand the alphabet soup. Controller-Pilot Data Link Communications (CPDLC) is one of those codes, and it is best understood by an introduction of its history.

Like most technologies, CPDLC began with a need to solve a problem and progressed through a series of gradual piece-meal steps toward a seemingly eternal resolution in an environment

D

where goalposts are constantly shifting. Historically, signs of frequency congestion emerged in the 1980s.

Primarily the problem applied to frequencies allocated to Air Traffic Control (ATC) sectors and to the Aircraft Communications Address and Reporting System (ACARS).

Sector frequencies manage enroute flights, and ACARS covers messaging data between aircraft and ground, both for ATC and Airline Operations Control (AOC). There were concerns of voice communication language barriers and overlap where an ongoing ATC and aircraft communique could be overridden by another transmission. Communication (including data) was via Very High Frequency (VHF) and High Frequency (HF).

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HI HISTORY HISTOR HISTO HIST HIS

ID IDENTIFIER IDENTIFIE IDENTIFI IDENTIF IDENTI IDENT IDEN IDE

K E FEATURES KEY FEA FEAT FEATU FEATUR FEATURE F FE

IINS INSTIG INSTI INST INSTIGATING INSTIGATIN INSTIGATI INSTIGAT INSTIGA N AG AGENCY AGENC AGEN AGE

T TIMEFR TIMEF TIME TIM TIMEFRAME TIMEFRAM TIMEFRA I

New Architecture

In 1983 ICAO began an effort to establish a DataLink architecture under FANS-1 its Future Air Navigation System (FANS) Boeing 1990s (Oceanic) structure. This became the architecture and protocol standard of an oceanic Automatic Dependent Surveillance communications network, where HF and Early (ADS) early Satcom ruled. Boeing, a long time FANS-A Implemented Controller-Pilot DataLink Airbus 1990s (Oceanic) user of ACARS, developed FANS-1 to Structure Communications (CPDLC) developed the newer ARINC 622 binary data from & using ACARS format, followed by Airbus with its FANS-1/A FAA FANS No latency timer per RTCA NAC RTCA-FAA 2000s (Oceanic) FANS-A. Later these were combined Automatic Dependent Surveillance and have since evolved into FANS(ADS) Current Global ARINC 622 1990s1/A+.

FANS-1/A+ Controller-Pilot DataLink Oceanic RTCA DO-258A 2000s Boeing (FANS-1) incorporated the Communications (CPDLC) developed Structure ED100A (evolved) from ACARS but using VHF Data Link principles of Automatic Dependent (VDL) Mode 2 or Satcom Surveillance (ADS) and early CPDLC The Network Aeronautical Telecommunications using the existing ACARS. Note that ATN ICAO using ISO 1990s Architecture Network ADS is automatic surveillance such as Controller-Pilot DataLink position reporting, and CPDLC is CNS/ATM CPDLC Communications (CPDLC) ICAO 1990s Comm (Continental) communication using text in the form of Based on & developed from ATN data, not voice, for clearance requests LINK 2000+ EUROCONTROL and authorizations.

(Continental) ICAO 9705Controller-Pilot DataLink CNS/ATM FANS-2 or 9896 ADS for FANS is known as ADS-C Communications (PM-CPDLC) VHF 2000s Comm ATN-B1 RTCA DO-280B (ADS Contract) and allows an automatic DataLink (VDL) Mode 2 Airbus FANS& ED110B handshake by contract between the B+ RTCA-DO219 aircraft and enroute ATC for DataLink.

FANS-1/A+ In work FAA CNS/ATM Leading to US domestic FANS-1/A+ over VDL This is different from ADS-B (ADS RTCA SC214 and 2017-2025 Comm FANS-3 or -C Mode 2 Broadcast), which uses GPS/FMS and WG78 ATN-B2 Transponder technology to provide CNS/ATM Automatic Dependent Surveillance–Broadcast (ADS-B) using Transponders flight and position information that is ADS-B & -C Surveillance Automatic Dependent Surveillance-Contract (ADS-C) using Satcom broadcast as “OUT” data to ATC and aircraft with receivers that have “IN” TABLE A capability.

ABOVE IS A SUMMARY OF THE DATA COMM HISTORY WITH THE HIGHLIGHTED Meanwhile, specifically for CPDLC, SECTIONS BEING THE FOCUS OF THIS ARTICLE. ICAO continued its separate FANS effort based primarily on newer Aeronautical Telecommunication The VHF congestion was partially resolved by Network (ATN) protocols and standards. This implementing the use of 8.33 KHz spacing, development also became known as ATN-B1 narrowing the gap between assigned frequencies (Baseline 1). Having a CPDLC architecture that was and providing many more channels. HF, meanwhile, based on universal International Standards (ISO) is gradually being replaced by Satellite subsequently provided a continental-based DataLink Communications (Satcom), operating at much higher platform, which was different from the oceanic frequencies. HF, including HF DataLink (HFDL), has system due to the high density of airspace and users its own limitations, mostly regarding poor quality of in continental airspace. the signal, voice distortion and overall reliability of This newer DataLink structure known as CPDLC service.

VHF DataLink (VDL) Mode 2 was eventually adopted The need for a solution grew greater with

by EUROCONTROL for use across continental significant expansion of air traffic. Furthermore, there Europe under the final program designation of LINK was a need to standardize two way communications 2000+ (otherwise known as FANS-2). VDL Mode 2 between ATC and aircraft as well as the data that are has a much higher and faster data capacity than the automatically provided from an aircraft to the existing ACARS. ground. Because airlines were already established The term FANS is typically linked to oceanic with ACARS, there was a need to consider both airspace and today includes both a Data Comm and existing and new equipment, as well as operational surveillance component. On the other hand, the requirements. term CPDLC or ATN-B1 covers continental The combination of these factors and the operations where, because of transponder and radar divergent interests of different aviation governing coverage, surveillance is not a requirement. However bodies has created a background of confusing the US is beginning to implement FANS 1/A+ over terminology, coupled with a potpourri of data comm VDL Mode 2 for its continental airspace while timelines.

Early Implemented Structure

Automatic Dependent Surveillance (ADS) Controller-Pilot DataLink Communications (CPDLC) developed from & using ACARS

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THIS IS THE SCOPE OF AIR NAVIGATION SERVICE PROVIDERS (ANSP) IN EUROPE, SHOWING THE EXPANSION OF COVERAGE TO THE EAST.

Link 2000+

Link 2000+ is a key element of the Single European Sky (SES 2+) initiative adopted in March 2014 after several iterations, and now accommodates users already equipped with FANS 1/A+.

Protected Mode (PM-CPDLC), used by Link 2000+, allows the flight crew to select from a menu of standard ATC communications to send and receive messages via text. A corresponding application exists for ATC Controllers. PM-CPDLC is an up-to-date version of CPDLC that minimizes messaging errors, protecting communication data both ways. PM-CPDLC has higher integrity than FANS 1/A+ CPDLC, verifying entire messages that are received by the intended recipient.

Link 2000+ ground services are provided out of several control centers offering DataLink services on a 24/7 basis to all aircraft equipped with the appropriate avionics in the upper airspace (above FL 285) and include: • Geneva (LSAG) • London (EGTT) • Maastricht (EDYY) • Rhein (EDUU) • Scottish (EGPX) • Zurich (LSAZ) Typical messages to and from ground stations are: • Frequency Changes • Climb/Descent Clearances • Direct Clearances • Turns & Headings • SSR Instructions • Replies to Aircrew Requests • Microphone Checks The following underlying protocols are applicable to CPDLC: • Voice and DataLink shall co-exist as a means of ATS communication. CPDLC supplements voice.

• CPDLC shall only be used in the context of non-

• •

time-critical communications. Time-criticality is determined by the ATC traffic situation, systems and flight crew/controller response time and recovery time. A voice response is generally expected in a few seconds, while the latency of CPDLC is usually much longer (up to several minutes).

The decision to use either voice or CPDLC shall be at the discretion of the controller and/or pilot involved.

A controlled flight shall be under the control of only one ATC unit at any given time.

“There are no Letter of Authorization (LOA) requirements for Link 2000+ and

User guidance for Link 2000+ is Flight Crew DataLink Operational Guidance – Version 6, available from the EUROCONTROL website under Link 2000.

There are no Letter of Authorization (LOA) requirements for Link 2000+ and training is the responsibility of the operator. Note that there have been a number of Link 2000+ disconnections (Provider Aborts) reported, and while this anomaly is being resolved there is a White List where certain aircraft (and equipage) can be added. This is a complex issue beyond the scope of this article. More information can be found at: https://www.eurocontrol.int/link2000/ wiki/index.php/White_Lists.

training is the responsibility of the operator.”

Mandate and Timeline

Depicted in Table B (overleaf) is the current EUROCONTROL requirement for ATN-B1 or CPDLC over VDL Mode 2 (see note 2 below and see also italics under Aircraft Equipage, overleaf). In summary, the mandated requirement is: • Aircraft operation above FL285 • Aircraft operation in designated European Airspace

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GRAPHIC A

traditionally ATN-B1 is linked to continental European operations. Requirements are often referenced as ‘CPDLC’ for LINK 2000+ and ‘FANS 1/A+’ elsewhere. Remember that requirements are based on what you need to operate in certain airspaces. Typically, mandates are higher level requirements that apply to almost all users in much larger 3D airspaces.

It is important to highlight the link between Data Comm and the wider modernization of airspace.

Data Comm development, and especially its implementation, is becoming fully integrated with other NextGen programs aimed at Trajectory Based Operations (TBOs). Aircraft and equipment programs supporting NextGen often combine FANS 1/A+ for oceanic use, with CPDLC for Link 2000+ as well as ADS-C and ADS-B capability. They are even now designing for ATN-B2, FANS 3/C.

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•

•

1 January 2011: All new aircraft operating above FL285 must be equipped with a compliant system 5 February 2015: All aircraft operating above FL285 must have been retrofitted with a compliant system (see Note 2, below) Note 1: Aircraft equipped and operationally approved for FANS 1/A+ before January 1, 2014 are exempt specific LINK 2000+ requirements Note 2: Due to delays in ground station readiness, retrofit requirements are postponed until late 2015.

FUNCTION FUNCTIO FUNCTI FUNCT FUNC FUN FU VHF Com Immunity from FM radio broadcasts Controller Pilot DataLink Comms (CPDLC) ATN/VDL Mode 2

US FANS-CPDLC: 2015-2017 & Beyond

The FAA planned to start implementing FANS 1/A+ technologies in domestic airspace as early as 2015.

Data Comm will be used for clearances over VHF VDL Mode 2, which is faster than the existing VHF network. This allows for pre-departure clearances and reroute requests. The FAA had previously updated its Data Communications plans in response to an RTCA NextGen Advisory Council (NAC) recommendation to not require domestic use of a latency timer. This is reflected in FANS 1/A instead of FANS 1/A+.

Among other efforts between 2002 and 2004, the FAA undertook a CPDLC pilot program out of Miami Air Route Traffic Control Center with American Airlines. Since 2012 the FAA has embraced a dual stack aircraft structure having both FANS 1/A and ATN-B1 Data Comm systems installed with the goal of seamless operations (FANS 1/A+).

Also the FAA is working with industry to revise installation and operational guidance for ATN-B2, currently nearing completion. This is expected to create full participation from airlines and General Aviation, but expect it to be an evolutionary process.

Today, limited CPDLC-based data services are available in the US (such as initiated ground clearance via CPDLC at some Towers and 30/30 RNP4 with CPDLC/ADS-C at Anchorage).

Incidentally, CPDLC continental-based services are also available in Canada, Australia and Africa.

Recently RTCA has been contracted for advice on NextGen services, including Data Comm, in South America. In fact, CPDLC as VDL Mode 2 is fast becoming a worldwide data standard.

Aircraft Equipage

Because many of the CPDLC or ATN-B1 solutions today include FANS 1/A+ for both oceanic and continental operations, actual equipage will be covered in depth in the next month’s article focusing on FANS. It is, however, helpful to point out that as

EQUIPMENT EQUIPMEN EQUIPME EQUIPM EQUIP EQUI EQU Q E

NO NOTE NOT 1

All VHF Com equipment Third VHF Digital Radio, also either: Communications Management Unit (CMU) and Multifunction Control Display Unit (MCDU) Or

NOT NOTE O 2 N For guidance, see JAA TGL

SES DataLink Services Implementing Rule – EC Reg. No 29/2009 for above FL285

EASA Special Condition on ATN B1 DataLink Installation

Core Europe (LINK Region): Feb 2013 Rest of EU: Feb 2015

NOT NOTE O 3 N Some states may have exempted from the requirement Airframe Dates Forward Fit: Jan 2011 Retro Fit: Jan 2015 ** Additional Information Link 2000+ Program Website

Air Traffic Service Unit (ATSU) and Dedicated Control and Display Unit (DCDU) Or Integrated solution (e.g. Boeing FANS-2) Or Electronic Flight Bag Solution (TBD)

part of the equipage considerations for CPDLC or ATN-B1 there are existing DATALINK RECORDING requirements for new aircraft: • FAA-registered a/c with CPDLC Part 135 Dec 2010 • FAA registered a/c with CPDLC Part 91 April 2012 • EASA-registered - April 8, 2014.

TABLE B

THE CURRENT EUROCONTROL REQUIREMENT FOR ATN-B1 OR CPDLC OVER MODE 2.

From a general perspective, new aircraft orders are increasingly compliant, only requiring minor bulletin changes for CPDLC implementation. Older legacy aircraft may require significant changes.

Regulators are working hard to minimize equipage requirements. The FAA, for one, is making it very clear the agency intends to continue supporting ACARS, VDL Mode ‘0’ for towers and importantly FANS 1/A + equipped aircraft that include a message latency timer or monitor.

In fact, the FAA is working hard not to require minimum equipage and to work diligently on ATNB2 in an advanced form, with its final implementation date of 2025. Installation providers T may be found listed in this annual on pages 44-45.T

Some useful Reference Sources EUROCONTROL - Skyways publication EUROCONTROL - Skybrary publication ICAO – GOLD (Global Operational Data Link Document) NBAA – under Aircraft Operations (CNS and International Ops) Duncan Aviation – website (www.duncanaviation.aero) including Straight Talk

Are you looking for more articles on avionics and mandates? Visit www.avbuyer.com/ articles/category/businessaviation-avionics/

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Avionics Mandates (Part 3): What You Should Know About FANS 1/A+ - ATN-B2 Helping you to familiarize with avionics advances and related mandates for equipage, Ken Elliott reviews aviation technologies within NextGen, this time focusing on Part 2 of Data Comm, covering FANS 1/A+ and ATN-B2.

L

ast time we addressed the first of Data Comm’s two main areas; ATN-B1 (Controller Pilot Data Link Communications, or CPDLC).

This time we look at the second part, FANS 1/A+ (including ATN-B2). We covered the Data Comm history reaching the point in time when FANS 1/A + was introduced.

FANS Historical Recap

In 1983 ICAO began an effort to establish a DataLink architecture under its Future Air Navigation System (FANS) structure. This advance became the architecture and protocol standard of an oceanic communications network where heretofore HF and early Satcom ruled. Boeing, a long time user of the

Aircraft Communications Addressing and Reporting System (ACARS), developed FANS-1 to the newer ARINC 622 binary data format, followed by Airbus with its FANS-A. Later these were combined and have since evolved into FANS-1/A+. (As an aside, Controller Pilot Data Link Communication (CPDLC) in Europe is now LINK 2000+ but also carries the term FANS 2.)

Boeing (FANS-1) incorporated the principles of Automatic Dependent Surveillance (ADS) and early CPDLC using the existing ACARS. Note that ADS is automatic surveillance such as position reporting, and CPDLC is communication using text in the form of data, not voice, for clearance requests and

authorizations.

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Table A contains a summary of FANS-specific history:

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HISTORY HISTOR HISTO HIST HIS I H

IINS INSTIGATING INSTIGATIN INSTIGATI INSTIGAT INSTIGA INSTIG INSTI INST N AG AGENCY AGENC AGEN AGE

TIM T TIMEFRAME TIMEFRAM TIMEFRA TIMEFR TIMEF TIME I

1990s

IDENTIFIER IDENTIFIE IDENTIFI IDENTIF IDENTI IDENT IDE D IIDEN

K E FEATURES KEY F FE FEA FEAT FEATU FEATUR FEATURE

Early Implemented Structure

FANS-1 (Oceanic)

Automatic Dependent Surveillance (ADS) Controller-Pilot DataLink Communications (CPDLC) developed from & using ACARS

Boeing

Early Implemented Structure

FANS-A (Oceanic)

Automatic Dependent Surveillance (ADS) Controller-Pilot DataLink Communications (CPDLC) developed from & using ACARS

Airbus

1990s

FAA FANS

FANS-1/A (Oceanic)

No latency timer per RTCA NAC

Current Global Oceanic Structure

FANS-1/A+

RTCA-FAA

2000s

Automatic Dependent Surveillance (ADS) Controller-Pilot DataLink Communications (CPDLC) developed from ACARS but using VHF Data Link (VDL) Mode 2 or Satcom

ARINC 622 RTCA DO-258A ED100A

1990s2000s (evolved)

The Network Architecture

ATN

Aeronautical Telecommunications Network

ICAO using ISO

1990s

FAA CNS/ATM Comm

FANS-1/A+ Leading to FANS-3 or -C ATN-B2

US domestic FANS-1/A+ over VDL Mode 2

In work RTCA SC214 and WG78

2017-2025

CNS/ATM Surveillance

ADS-B & -C

Automatic Dependent Surveillance–Broadcast (ADS-B) using Transponders Automatic Dependent Surveillance-Contract (ADS-C) using Satcom

• Worldwide (ICAO) International Civil Aviation Organization Aviation System Block Upgrades 1 and 2.

US FANS-CPDLC

The FAA uses FANS 1/A services today in the North Atlantic and Pacific oceans. Domestically, rather than adopt an ATN-only based solution, the FAA has opted for a longer-term solution combining FANS with ATN (as CPDLC). This dual stack aircraft structure has both FANS 1/A and ATN-B1 Data Comm systems installed with the goal of seamless operations (FANS 1/A+).

Currently, as the FAA implements FANS 1/A+ technologies in domestic airspace, Data Comm will be used for clearances over VHF VDL Mode 2, which is faster than the existing VHF network.

ATN-B2, an evolution forward of FANS 1/A+, is in its final stage of development by FAA RTCA sub-committee SC214 and EUROCAE WG 78. This protocol will hopefully be embraced worldwide.

Simplified FANS Structure ADS for FANS is known as ADS-C (ADS Contract) and allows an automatic handshake by contract between the aircraft and enroute ATC for DataLink.

This is different from ADS-B (ADS Broadcast), that uses GPS/FMS and Transponder technology providing flight and position information. This information is broadcast as “OUT” data to ATC and aircraft with receivers having “IN” capability.

ICAO had continued a separate FANS effort similar to Boeing (FANS-1) and Airbus (FANS-A), based primarily on a newer Aeronautical Telecommunication Network (ATN) set of protocols and standards. This development also became known as ATN-B1 (Baseline 1). Understanding this nomenclature is important because today the two Data Comm paths of FANS 1/A+ and ATN-B1 are being combined in the form of ATN-B2. (The ‘+’ on the end of FANS 1/A, incidentally, came about when RTCA industry standard DO-258 was amended to DO-258a, adding a message latency feature in CPDLC. All FANS-1/A+ messages can be sent over Inmarsat or Iridium satellite systems in addition to VHF (VDL Mode 2).)

ATN-B2 brings together the oceanic focused FANS 1/A+ and continental focused ATN-B1, and it is still under development by FAA RTCA subcommittee SC214 and EUROCAE WG 78. ATN-B2 includes advanced services such as 4D Trajectories, Dynamic RNP and Advanced Flight Interval Management with ATC winds.

From a global perspective FANS development satisfies the specific goals of various transportation authorities and includes: • US (FAA) Next Generation Air Transportation System (NextGen); • Europe (European Commission) Single European Sky ATM Research (SESAR) program; and

Think of Data Comm as having three major components: • Ground • Network • Aircraft

“Separately, aircraft must have equipment suitable for VHF, HF and Satcom as required...”

Data communication can be via VHF (either POA ‘Plain Old ACARS’, or AOA ‘ACARS over AVLC’, otherwise known as VDL Mode 2). It can also be via HF using High Frequency DataLink operating at slow speeds, yet may be used over the poles. Lastly data communication can be via satellite, today, using Inmarsat and/or Iridium (FANS Over Iridium - FOI). Iridium provides polar coverage, alleviating the need for HF. VHF ground stations operate as continental networks, while satellites use SITA, ARINC, Satcom Direct and at least 11 other commercial networks, to provide allocated bandwidth to multiple aircraft operators who contract their service. These services are communication, broadband and data.

They also may “internetwork” to ensure that messages from users of one network are communicated to users of another.

Separately, aircraft must have equipment suitable for VHF, HF and Satcom as required to meet their individual needs. Aircraft crews need to be trained and may require a letter of authorization (LOA) to operate when used for FANS services (currently the case in the US), or alternatively authorization via an OpSpec.

FANS - ADS-C

While there is the data communication component of FANS, there is also the surveillance component known as ADS-C. ADS-C is a contract that, once established sends data automatically from the aircraft to the ‘contracted’ air traffic center, thereby

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There are three levels of surveillance, highlighted in Table B Su Survei Surve Surv Sur Surveillanc Surveillan Surveilla Surveill Surveil Surveillance Le Lev Leve Level L

Me Metho Meth Met Method

Wh Wher Whe Where P Pr Pri Prim Prima Primar Primari Primaril Primarily

Primary

Traditional ground radar

Continental regions

Secondary

Traditional transponder

Continental regions

Automatic Dependent Agreement (ADS-A) Now Contract (ADS-C)

Satcom

Where there is no or limited primary radar coverage

Automatic Dependent Broadcast (ADS-B)

Transponder – Data Link Unit

Continental regions

59

supplanting the need for radar contact. Being surveillance data (aircraft position and trends), this action is equivalent to the ADS-B Out function of continental surveillance that originates partially as a highly accurate GPS position broadcast by an aircraft transponder.

ADS-C is not broadcast data per se, but is requested surveillance under an individual contract between aircraft and ATC. ADS-C can be over Satcom or VHF, as a facilitation of ACARS for example. In the event ADS-C services are not available, CPDLC/ATN coverage is the default.

Network service providers need to support ADS-C for all of your FANS capability to be functional.

There are four types of ADS Contract available: • Periodic that are time-based; • Event that are aircraft 3D deviation-based; • Demand that are initiated by ATC for immediate surveillance information of an aircraft trending position; • Emergency that is initiated by the pilot.

Table C outlines current FANS mandate dates D Date Dat a

Ma Mandate Mandat Manda Mand Man

February 2013

FANS 1/A NATS Phase 1 – desirable tracks FL360-390

January 2014

Link 2000+ CPDLC can be used by FANS equipped aircraft

February 2015

FANS 1/A Phase 2a – expanded airspace, organized tracks FL350-390

Aircraft Equipage

Aircraft and equipment programs supporting NextGen often combine FANS-1/A+ for oceanic use with CPDLC for Link 2000+, as well as ADS-C and ADS-B capability. Confusingly, there are as many partial equipage versions existing as there are solutions available, making it essential for many operators to seek professional advice, specifically for their aircraft.

A simple rule is the newer the aircraft the greater likelihood of equipage compliance. A typical set of FANS equipment will include: •

• •

• •

•

Flight Management System (FMS) with a MultiFunction Display Control Unit (MDCU) providing WAAS/SBAS GPS signal accuracy. The MDCU should have Satcom dialing and messaging capability.

EFIS displays may require modification for display messages and annunciation ‘in front of the pilot monitoring’.

A Level-D ARINC 741-compliant Satcom using either Inmarsat or Iridium satellite service. Be careful to ensure FANS compliance of the actual Satcom equipment itself. For example, when using Iridium the system design must meet the specification of TSO C-159a, and when using Inmarsat the equipment must meet TSO C-132 requirements. If the equipment does not meet these standards then an Alternate Means of Compliance (AMOC) must be sought.

A VDL Mode 2 capable VHF transceiver.

A Communications Management Unit (CMU) to control and perform the DataLink in certain configuration of OEM equipage. This could be an upgrade to an existing CMU. A compatible data-capable Cockpit Voice Recorder that in some cases may be a combined cockpit and flight data recorder (CVFDR). This is

November 2015

Reduced Lateral Separation Minimums in NATS (RLatSM) Desirable tracks at 1/2m track spacing

December 2017

FANS 1/A Phase 2b – all MNPS airspace FL350-390

January 2020

FANS 1/A Phase 2c – all MNPS airspace FL290 and above

• •

needed to record the data sent back and forth as Data Comm now replaces some voice communication critical to a flight’s record.

Modified Audio Control Units so that either pilot can select audio over Satcom.

Cockpit aural and visual annunciation.

This impressive and scary list of required equipment is the reason why, outside of new aircraft OEM solutions, equipment suppliers and MROs have been slow to react. Solutions require complex Supplemental Type Certificates (STCs), which take a considerable amount of time and financial investment in non-recoverable engineering (NRE) to implement.

Installation Facilities

In the first article of this series a table of OEMs and MROs with NextGen installation capability was provided (see p44-45 of this year book). Apart from the aircraft OEMs that either have - or are frantically working on - their FANS solutions, there are several key MRO players that are focusing on specific programs.

There are several MROs offering, or proposing aftermarket inclusive FANS solutions, and in some cases they are keeping their STC development close

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when you are discussing these upgrades, to check what the upgrade actually covers, as many are only incremental solutions to the total FANS requirement.

Some solutions come as part of factory avionics packages such as Dassault’s EASy II, Bombardier’s Batch 3 for Globals, or Gulfstream’s PlaneView cockpit. If your aircraft is covered under an equipment OEM maintenance service program, such as Rockwell Collins CASP or Honeywell HAPP, there are distinct advantages to using equipment solutions from the same provider in terms of support.

Furthermore, with FANS Over Iridium there is an opportunity for lower installation and operating cost solutions being explored across multiple aircraft platforms. For example, Dassault recently announced a GoGo Iridium solution across a range of its aircraft platforms.

Certification and Operation

to their chest. Following, is a list of ‘non-aircraft-OEM’ MROs developing solutions today: Chicago Jet Center – an early starter with a number of STCs both completed and in work across several aircraft types. Chicago Jet has FANS information on its website.

Duncan Aviation – always a leader in anything avionics and very well versed in FANS, with a complete and thorough coverage of NextGen on its website www.duncanaviation.com.

Jet Aviation – selected by Rockwell Collins for the equipment manufacturer solution STC on the Bombardier CL604. Can offer several Bombardier factory solutions on newer aircraft.

Marshalls of Cambridge – factory authorized Bombardier CL604 solution recently announced and in work.

Clay Lacy – another early starter having a number of legacy Gulfstream solutions both ready and in work.

Banyan – has a Boeing 727 solution in work.

Dassault Falcon Services – although owned by Dassault, DFS provides a FANS solution under the Elite II upgrade program for the Falcon 900C and EX. There are a broader number of MROs incorporating factory bulletins and modifications that address FANS upgrades as they are promulgated by either the aircraft manufacturer or the avionics equipment manufacturer. These facilities may either be factory owned or factory authorized. Make sure,

“FANS DataLink services are automated and highly flexible to users both in the air and on the ground.”

As previously mentioned, FANS installations are complex and require STCs to implement across different aircraft types. Operational approval can also be involved and is structured to the individual user requirements, including where DataLink services will be used.

While FAA airworthiness circular AC 20-140B offers guidance on the installation certification or design approval of FANS, FAA AC 120-70B provides guidance for the operational approval of DataLink systems to ICAO standards. The AC covers authorization process, flight crew qualification and training, preparing the Minimum Equipment List (MEL) and the Master (MMEL), aircraft flight manual, maintenance, operational use and reporting, as well as information for foreign carriers.

Benefits of FANS

DataLink services do not rely on voice, avoiding all the concerns regarding voice over, interpretation of words, HF limitations, out of range VHF, out of range radar, pilot and ATC workload, and data update times.

FANS DataLink services are automated and highly flexible to users both in the air and on the ground.

FANS improves safety, reduces operating costs and saves time. Lastly, beyond Data Comm, FANS serves other areas of NextGen from surveillance to T navigation, to improved traffic flow.T

Some useful Reference Sources EUROCONTROL - Skyways publication EUROCONTROL - Skybrary publication ICAO – GOLD (Global Operational Data Link Document) NBAA – under Aircraft Operations (CNS and International Ops) Duncan Aviation – website including Straight Talk Chicago Jet – website

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Avionics Mandates (Part 4): What you Should Know about ADS-B Helping you to familiarize with avionics advances and related mandates for equipage, Ken Elliott reviews aviation technologies within the NextGen/SESAR architecture, this time focusing on ADS-B.

I

n line with domestic and international aviation goals, industry and certification authorities have developed a complete suite of integrated technologies under the umbrella of Communication, Navigation and Surveillance (CNS).

One significant element of this, under the Surveillance segment, is Automatic Dependent Surveillance (ADS).

As the term implies, ADS serves the need to automate the sharing of data between all users, air and ground, that inform the position and movement status of an aircraft. There are two ways to accomplish this from a worldwide perspective, one being Broadcast (B) and the other Contract (C), hence the terms ADS-B and ADS-C. Broadcast is literally the ability to send and receive the data via line of sight or within the range capabili-

ty of the higher frequencies used. Contract, on the other hand, means the ability to handshake and pass on the same data within areas where an out-of-range condition may exist. This is where the use of satellites comes into play. The satellite(s) and corresponding service providers, become the enabler for those large open oceanic spaces. ADS-C can also be the transcontinental means of sharing the data for enroute ATC datalink, and may be facilitated by VHFbased ACARS. The interplay between ADS-B and FANS may be a bit confusing. The previous article of this series covered FANS and included ADS-C. To refresh and clarify, the connection between ADS-B and FANS is the use of datalink communication methods as a conduit for surveillance data, normally part of ADS-B. The ADS-C component of ADS is where, using

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Table A - Three are Three Levels of Surveillance

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Surveillance Level

Method

Where Primarily

Traditional Ground Radar

Continental Regions

Traditional Transponder With ID

Continental Regions

Automatic Dependent Agreement (A), Now Contract (C)

Satcom

Where No/Limited Primary Radar Coverage

Automatic Dependent Broadcast (B)

Transponder – DataLink Unit

Continental Regions

Primary Secondary

Table B - A Summary of Transponder History Transponder Mode EHS will be required for ADS-B in Class A Airspace and for Europe Transponder Level

What’s Included

Mode A

Traditional Four Digit ID [Controller Allocated, Pilot Entered]

Mode C

Mode A & Altitude [Pilot Selectable]

Mode S

Modes A, C & Unique Aircraft Automatic 24 Bit Address Tied to Aircraft Registration Number

Mode ELS

Modes A, C & S With Elementary Surveillance [EU – baseline 1]

Mode EHS

Mode A, C & S with Enhanced Surveillance [EU- baseline 2]

Table C - There are Three Ways to Receive ADS-B Advisory Traffic Data (assuming your aircraft has ADS-B In capability) Method ADS Direct ADS Rebroadcast Traffic Information Service Broadcast

Includes Aircraft to Aircraft Direct Aircraft to Aircraft Rebroadcast (via Ground Stations) TIS-B Aircraft Data as Seen by ATC and Includes Both Direct & Rebroadcast

the aircraft FANS 1/A Satcom, a contract is created between the Operator, Satcom service provider and ATC to automatically make available the surveillance data from your aircraft while receiving data from others. The pilot is not normally in the loop. The originating aircraft, ATC and other aircraft within a given region are in the loop all the time, constantly updating at far better rates than the existing primary radar.

Moving to the next level, the system has the ability to send and the separate ability to receive. The send ability is ADS-B Out (the only part of ADS-B currently under mandate). The receive ability, or ADS-B In, is not yet mandated and therefore optional. However, a lot of the work around ADS-B is centered on In Trail Procedures (ITP) where aircraft can make requests and be guided through efficient flight level changes as leading or paralleling other aircraft.

ADS-B In is required for this advanced primarily oceanic airspace tool. ADS-B In is also to be used for aircraft separation needs. ADS-B In can further

provide pilot notices and weather (especially useful to GA).

One of the most significant benefits of FANS is the mitigation of the need for primary surveillance radar. Air Traffic Control (ATC) using ADS-B or -C can ‘see’ the same or better than the limited coverage and reliability of radar. In fact historically, as Table A (left) shows, there are three levels of surveillance.

Today we are fast moving into the third level of fullyautomated, global and more frequently updated surveillance.

Remember: For ADS-B In users, the information provided by ADS-B is always advisory only and never replaces the Out The Window (OTW) view or ATC instructions. ADS-B should be seen as another tool in the cockpit toolkit.

US ADS-B

On January 1, 2020 the FAA will require all aircraft operating in US airspace above 10,000 ft to be ADSB Out equipped. So you have from now until the end of 2019 to comply. This airspace requirement follows the Mode-C transponder requirement currently in use for many years.

There are new considerations for light sport aircraft and some less restrictive GPS requirements in the works for legacy commercial operators that are lessening the all-embracing rule regarding ADS-B. Expect some other easing between now and 2020.

The closer we are to the deadline the more breathing space may be provided, but for most it is likely that nothing will change. For most business jet operators, the Class A airspace portion of the rule will apply and that means different equipage requirements to anyone flying in Class E airspace.

Unique to the US, there are two ways to equip (see Equipage). For Part 25 aircraft, equipage for Class A is sufficient, but to receive the free weather information provided on a different frequency with wider broadband capable of graphic transmission, it is recommended to include a Universal Access Transceiver (UAT).

Traffic Information Service–Broadcast (TIS-B) and Flight Information System–Broadcast (FIS-B) define free surveillance, weather and airspace notification information available to pilots. TIS-B also allows nonADS-B transponder equipped aircraft being tracked by radar to have their location and track information broadcast to ADS-B equipped aircraft.

To the credit of the FAA all ADS-B ground stations are in place as of late 2014. There are some interoperability issues in work, but all should be fully activated and interactive before 2020. Currently ADS-B Transceivers are able to "wake up" the US ADS-B ground stations, triggering them to transmit traffic data to aircraft within a local area. If equipped with ADS-B In, an aircraft can now display this transmitted information in the US. Those with the UAT and dedicated display can also receive weather information that is always available as FIS-B from ADS-B ground stations.

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Table D - Mandate Dates (Note: dates may be subject to change)

International ADS-B

ADS-B Out coverage is available, or in work, in several worldwide locations, with Australia being ahead of the pack. Coverage can also be found in Hong Kong, Singapore, Hudson Bay and Indonesia.

Canada beyond Hudson Bay, Sweden and China are ramping up fast with ground stations.

Equipage

What drives equipment requirements are the Technical Standard Orders (TSOs). These are C154c (Universal Access Transceiver) and TSO-C166b (1090 ES). Remembering that to operate in Class A airspace, or in the European Union and across the world, equipment standard requirements must be at the level of TSO-C166b.

Not only may new equipment be required for your aircraft to comply with ADS-B requirements, but existing equipment may need to be upgraded or modified (see Table F, left).

Because ADS-B requires a Type Certificate (TC) or a Supplemental Type Certificate (STC), for jet aircraft it is recommended that the aircraft OEM be consulted where a TC or STC is involved. Consult an MRO if the issues involve only STCs. Often there are bundled packages that include FANS and CPDLC upgrades available to operators. Sometimes only part of the work can be accomplished based on pending certifications on launch aircraft.

Because of budgets, existing aircraft equipage, downtime limitations and operational needs, no one OEM or MRO solution fits all issues for any one type of aircraft.

Remember, as is usually the case the newer the aircraft, the less of an upgrade will likely be needed.

This impacts downtime, of course, with out of service times being estimated from a few days to several weeks. As with many major modifications, if you are advised a longer downtime will be required you should plan to combine work with a major inspection, interior rework or an add-on to repaint.

Combining aircraft access costs across multiple work tasks can be a significant saving and less risk for hangar rash.

Importantly: for everyone reading this article, if you have not completed ADS-B STC/TC upgrades, modifications or service bulletins and they are available to you today, this is the time to plan, schedule and perform. You will be glad you did!

In 1998 aircraft owners were ramping up for TCAS, TAWS, ELT and RVSM, all with steadily approaching mandates. The demand to schedule

Date

Mandate

Pre 2013

Gulf of Mexico (all) & Hudson Bay (FL350-400) Areas

December 2013 and Later

Australia, Singapore, Vietnam & Hong Kong (FL290+)

January 2015

EU New Build

December 2017

EU Retrofit

January 2020

US & Canada All

June 2020 Dates in Work

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To better serve the wider aviation community, address concerns and resolve ADS-B system-wide technology issues, the FAA has created an industrywide collaborative work group called FAA Equip 2020. The first call to action meeting was held in October 2014. Also under the auspices of RTCA SC 186, the FAA is progressing with further ADS-B guidance currently centered on interval management.

EU All India, South Africa, Russia, China, Japan, Iceland & Portugal

Note: There is now operational flexibility for International operators impacted by the Hong Kong, Vietnam and Singapore mandates. NBAA provided a letter to its members to this effect, dated January 8, 2015.

Table E - Three Equipage Paths for Operations ADS-B 1090 ES TIS-B

ADS-B 978 UAT TIS-B & FIS-B (in US)

ADS-B 1090 ES TIS-B + FIS-B

Primarily FAA Part 25 Aircraft & International

Primarily FAA Part 23 US-Based Aircraft

Primarily FAA Part 25 Aircraft & Int’l where FIS-B is Available

ADS-B Out (1090 ES)

ADS-B Out (UAT)

ADS-B Out (1090 ES)

ADS-B In TIS-B

ADS-B In TIS-B/FIS-B

ADS-B In TIS-B/FIS-B with 978 UAT Device

Table F - Existing Business Jet Avionics Impacted by the Introduction of ADS-B System Impacted

Version Required

Why

Dual Transponders

1090 MHz ES

TCAS II (Only if Equipped)

Must be capable of ADS broadcast (min)

Version 7.1

Hybrid surveillance and more

Dual FMS/GPS

Meets Specific TSO Requirements

Dual Air Data

Altitude/Speed Source Capable

Heading Source (Optional) Antenna(s) or Diplexer(s) SATCOM Cockpit Display

Any Valid Heading

High integrity GPS meeting ADS-B standard (May need to change antennas) Providing airspeed, altitude and other data To provide aircraft heading information

Meets TSO(s) ADS-C Capable ADS-B In - Display Capability

Needed for FIS -B For optional oceanic and worldwide ADS-B ops Optional FIS-B & TIS-B In display of data

into overworked shops was exponential in the extreme. Shops hired unfamiliar contract workers to support that surge in business, while costs to complete the work rose significantly. This created a difficult customer-MRO situation across the US, and probably elsewhere, where loyalties were strained and stories of late aircraft deliveries abounded.

Certification delays for STCs further exacerbated the situation. Are we headed for a similar situation today?

By January 2015 there were 9,064 out of a ballpark of 150,000 aircraft equipped to meet Automatic Dependent Surveillance mandates. It is further estimated that around 20% of those aircraft do not properly comply with equipment performance requirements. Some issues include air-ground determination and Baro/Geo altitude, ICAO 24 bit address, transponder codes and flight ID errors. Do not assume that waiting for an upgrade will remove the risk of these errors on your aircraft. Errors by

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respect to compliance, and there are differences in equipage requirements set by different certification regions. Work with your OEM or MRO to ensure compliance requirements are fully met. This becomes a factor when trading aircraft, especially as we arrive closer to the 2020 deadlines.

One area worthy of mention for US operators is the availability of funding for NextGen. The NextGen GA Fund via Nexa Capital Partners and the Aircraft Electronics Association (AEA), is available to operators of business jets. Recently it was announced that L3 Aviation has a low cost ADS-B Out/In equipage solution available through this funding that offers favorable terms to borrowers.

Access to funding is via the Aircraft Electronics Association (AEA), whose members are able to arrange financing for operators via web portals.

When talking to your OEM or MRO mention this available resource. Most shops are long-standing members of AEA, a trustworthy and very active organization representing the avionics industry worldwide. T

Benefits of ADS-B

WHAT DOES YOUR PANEL REQUIRE, AND WHEN?

overworked shops will mitigate any gains from resolutions to current issues.

Lastly on equipage, do not assume costs will come down, that mandates will be delayed or that experience on other aircraft will make it less risky on yours. All of these assumptions have been proven wrong over and over in the avionics world, with only certain exceptions (like a tendency for Europe to delay or realign requirements).

Easily accessible FAA and EASA guidance for equipage and operations can be found in: • FAA AC 20-165A – ADS-B Out installation guidance • FAA AC 20-172A – ADS-B In installation guidance • FAA AC 20-149A – FIS-B installation guidance • FAA AC 90-114A (Updated Oct 2014) – ADS-B Operations as well as InFO 13009 for Ops Specs and LOA • EASA AMC 20-24 – ADS-B Certification Considerations. (Many countries outside of EU use this standard).

Be Careful!

Ensure that your equipage meets the standards and requirements set by the country in which you are registering and operating your aircraft. Remember that the region where you fly takes precedence with

• Traffic avoidance advisory both laterally and vertically.

• Surveillance in the vast area without primary radar coverage as well as oceanic via ADS-C in areas without primary or secondary radar coverage.

• Display of real-time traffic in the cockpit.

• Another enhancement to safety using automatic traffic call-outs, including surface runway incursion warnings.

• Reduction of separation with greater predictability in departure and arrival times.

• With an eventual wide migration of airspace users, including ground vehicles, the real benefits of ADS-B will be realized.

Reference Sources EUROCONTROL - Skyways publication EUROCONTROL - Skybrary publications Mode S & ADS-B w/Mode S video demonstration ICAO – GOLD (Global Operational Data Link Document) NBAA – under Aircraft Operations (CNS and International Ops) Duncan Aviation – website including Straight Talk Chicago Jet – website Flight Aware – ADS-B Flight Tracking

Are you looking for more articles on Avionics? Visit www.avbuyer.com/articles/category/business-aviation-avionics

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Avionics Mandates (Part 5): What you Should Know about TCAS 7.1 Helping you understand avionics advances and related mandates for equipage, Ken Elliott reviews aviation technologies within the

NextGen/SESAR architecture, this time focusing on TCAS 7.1.

T

he midair collision over the Grand Canyon between two airliners in 1956 spurred the collaboration of industry and government in the development of a collision warning system. After a number of years using passive avoidance systems, industry realized the need for a predictive system, involving complimentary avoidance interaction between conflicting aircraft. In other word, if one aircraft decides to avoid another by climbing, the other aircraft needs to correspondingly descend. This necessary evolution eventually became TCAS II, with TCAS I being an advisory-only version of collision avoidance.

While technological advancements flourished, there was still a need for a practical solution that would avoid nuisance alerts in high-density traffic areas around busy commercial airports. In the early

1960s a scientist from Bendix Corporation touted an algorithm based on closure rate and time, rather than distance for predicting collision between aircraft.

In the 1980s Bendix-King (with United Airlines) and Honeywell (with Northwest Airlines) introduced the first commercial TCAS II. Ironically, Honeywell absorbed Bendix-King (as Allied Signal) at a later date, gaining significant avionics expertise from the acquisition. Another midair collision in California in 1986 prompted Congress to require FAA to mandate TCAS II in commercial aircraft, leading to a 1991 (subsequently delayed to 1993) requirement.

Initially the version of TCAS II adopted was labeled 6.0, which after several iterations became 7.0 in 1997. While TCAS II 7.0 incorporated a number of improvements over 6.0, one primary upgrade

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was to accommodate the requirement for reduced vertical separation minima (RVSM). Close separation of aircraft in the oceanic tracks and elsewhere introduced anomalies and nuisance alerts with TCAS II version 6. Today, versions of TCAS II are required worldwide in larger aircraft, including business jets.

TCAS Versions for ACAS

Traffic Alert & Collision Avoidance Systems (TCAS) are designed to meet the ICAO standard for significantly reducing the risk of midair collision. The system functions independently of groundbased air traffic control (ATC). For TCAS to be effective, however, all users of the different airspace sectors need to be transponder equipped and reporting, at a minimum, Mode C altitude.

All TCAS systems provide collision threat information, alerting both audibly and visually, and displaying traffic on either a dedicated display or on a multifunction display. The two levels of traffic alerting—TCAS I and TCAS II—differ primarily by a function of their alerting capability (Table A).

TCAS I: Providing real time traffic advisories (TAs) that assists pilots in visual acquisition of other aircraft that may become a threat, TCAS I is mandatory for US turbine powered passengercarrying aircraft having more than 10, and less than 31 seats.

TCAS I has a range approximately of between 3-5nm, and consists of one antenna and a cockpit display.

Typically installed on General Aviation fixed-wing aircraft and helicopters, TCAS I is not a passive system as it interrogates, by design, other transponders. A less expensive version of TCAS 1 is Traffic Advisory System (TAS).

TCAS II: Introduced as a safety net to avoid potential mid-air collisions, TCAS II works independent of separation standards.

Based on secondary surveillance radar (SSR) transponder signals, TCAS II interrogates Mode C and S transponders of nearby aircraft (‘intruders’). From the replies, TCAS II tracks intruder altitude and range, issuing alerts to the pilots, as appropriate. Aircraft that do not carry transponders are not detected. It should be noted that while TCAS II assesses threats from intruders, it does not take into account ATC clearance, pilot intentions or autopilot status.

TCAS II provides both traffic advisories and resolution advisories (RA). RAs provide recommended escape maneuvers, allowing the pilot to modify or regulate the vertical speed to either increase or maintain existing vertical separation between aircraft.

It is the pilot who makes the final decision in the response to a resolution advisory, which provides a clear climb or descend (rate-based) command. RAs also sense the direction of other TCAS - equipped aircraft.

TCAS II is mandated by the US for commercial aircraft (including regionals) with more than 30 passenger seats or a MTOW greater than 33,000 lbs. Although TCAS II is not mandated domestically for Business and General Aviation, many turbine-powered aircraft and some helicopters are equipped with TCAS II. In Europe, TCAS II version 7.0 has been mandated for over a decade on all aircraft with a take-off weight exceeding 5,700 kilograms, or if approved for a passenger seating configuration of more than 19 seats. ICAO mandated TCAS II version 7.0 in 2003 in all aircraft with greater than 30 passenger seats.

TCAS II requires two antennas mounted top and bottom of the aircraft, and is capable of both identifying and resolving traffic 14 miles ahead and 7 miles behind the aircraft. The system can process up to 30 aircraft simultaneously and has a one

TABLE A: TCAS Levels of Protection

Target Aircraft Equipment

Own Aircraft Equipment TCAS I

TCAS II

Mode A XPDR Only

TA

TA

Mode C or Mode S XPDR

TA

TA & Vertical RA

TCAS I

TA

TA & Vertical RA

TCAS II

TA

TA & Coordinated Vertical RA

Source: FAA

second process cycle. TCAS II Minimum Operations Performance Specifications (MOPS) were developed by RTCA as DO-185B and by EUROCAE ED-143.

Before we move on in our discussion of TCAS, it’s worth outlining the current status of Airborne Collision Avoidance System (ACAS) and Traffic Collision Alert Device (TCAD) technology: - ACAS II: This is effectively an ICAO (Annex 10) standard.

- ACAS III: This system of the future was to be designed for horizontal and well as vertical alerting. However, a different concept - ACAS-X - is under development for introduction in the 2020 timeframe.

- TCAD: A purely passive unit that only listens to transponders is labeled TCAD. Transponders within range all need to be active, responding to other interrogations, in order to be sensed. TCADs and their active cousin TAS are mostly found on smaller GA aircraft.

TCAS: Traffic Advisory/Resolution Advisory

As we outlined above, there are two types of TCAS II aural and visual alerts, including Traffic advisory (TA), and Resolution Advisory (RA). The traffic advisory function (TA) prepares the pilot visually and aurally for a potential resolution. A resolution advisory (RA), however, immediately provides the pilot with the plus/minus range of vertical speed at which the aircraft needs to be flown to avoid a collision.

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Diagram 1

Diagram 2

Collins and ACSS (a division of L-3 Aviation Products). Note that Honeywell owns Bendix-King, which supplies business jet versions of TCAS systems within the Honeywell family.

Even if an RA is contrary to an ATC clearance or instruction, the pilot is required to immediately comply with its command provided he/she deems the action to be safe. Under ICAO standards, a pilot is obliged to follow resolution advisories unless doing so would endanger the aircraft. In the US a pilot may disregard an RA if the pilot has made a definitive visual acquisition of the other aircraft. Complying with the RA, however, will in many instances cause an aircraft to deviate from its ATC clearance. In this case, the controller is no longer responsible for separation of the aircraft involved in the RA. Unless ATC receives the RA downlink, the controller will be unaware of RAs being commanded between conflicting aircraft.

The pilot should communicate the RA and its resultant flight level to the controller so that a new flight path can be generated.

ICAO has no RA downlink provisions at this time. (Note that TCAS II as installed will communicate the equipage and operational status to ADS-B.)

TCAS II version 7.1

RTCA DO 185B and EUROCAE ED-143 provide TCAS II version 7.1 guidance. Primarily TCAS 7.1 enables mitigation of the risk for a mid-air collision in situations where aircraft flight tracks are closer, such as with FANS 1A airspace. There are three significant issues addressed by TCAS II version 7.1: • Reversal logic enhancement • “Level off” aural alert • Change to descend RAs at low altitude There are four additional minor issues addressed by TCAS II version 7.1: If a dedicated display is used, the RA is displayed on an outer ring representing vertical speed. Inside the rings are the individual targets: • Blue for situational awareness traffic • Yellow for traffic advisory, and • Red for resolution requirement traffic. (The same red is used to indicate the vertical range on the outer ring.)

After traffic aural warnings are provided and “climb” or “descend” appropriately responsive action taken, a “clear of conflict” message is provided to the crew. The goal of the aircraft TCAS communications is to ensure that one aircraft’s resolution complements the other’s. If one aircraft receives a climb command, the other is commanded to descend, and a safe separation RA of between 300 and 700 feet can be expected.

Imagine that each aircraft surrounds itself with a constantly changing protective bubble, the shape and size of which is dictated by the virtually instantaneous performance or movement status of the aircraft. RAs vary based on the aircraft’s speed, heading, altitude and apparent intention, with urgent RA’s being issued without prior TA warning. The TCAS II will update the situation every second.

TCAS II is designed to a Technical Standard Order (TSO) C119c and all TCAS manufacturers are required to follow that standard in performance capability of their equipment. There are three major suppliers of TCAS II today; Honeywell, Rockwell

• It corrects an issue that occurs as an aircraft descends through 1,000’ above ground level (AGL); • It transmits the TCAS II processor part number and level of software; • It corrects for multi-aircraft logic concerns, reducing the risk of close encounters within RVSM airspace; • It modifies the status report sent to the aircraft’s Mode S transponders informing of its 7.1 Hybrid Surveillance capability.

Problems with Adjusting Vertical Speed: The “Adjust vertical speed, adjust” RA command has been replaced by “Level off, level off” to prevent the problem of pilots increasing rather than decreasing the vertical speed, as a natural response to the original command format (see Diagram 1 ‘TCAS II Version 7.1 Level Off’, courtesy of SKYbrary.)

Problems with Reversal Logic: In certain instances version 7.0 TCAS II failed to reverse an RA when two converging aircraft remained within 100ft. This was because version 7.0 allows for reversal of RAs when the current RA is no longer predicated to provide sufficient vertical spacing. A feature has been added in version 7.1 that monitors RA compliance in coordinated encounters. Thus, when a version 7.1 TCAS detects that an aircraft is not responding correctly to an RA, it will issue a reversal RA to the aircraft that will then maneuver in accordance with the RA (see Diagram 2, ‘TCAS II Version 7.1 reverse logic’, courtesy of SKYbrary.)

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Figure 1 - No RA

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Figure 2 - Preventative RA - no vertical speed change is required when the following are issued.

(a) Preventive Aural: MONITOR VERTICAL SPEED Pilot Response: No action required.

Maintain the vertical speed within the green arc.

Incorporating Version 7.1

On March 18, 2014 the FAA issued a Revision B to Advisory Circular 20-151 for the airworthiness approval of TCAS systems and associated transponders. The Advisory includes significant changes to the previous ‘A-version’ and mostly centers on hybrid surveillance functionality.

The latest TCAS II TSO Standard, TSOC119d, requires RTCA/DO-300A Hybrid Surveillance functionality. This requirement has been added to the TSO and airworthiness approval guidance to reduce congestion on the 1090 MHz frequency while the system is airborne and when on the ground.

From a pilot’s perspective, when airborne there will be no difference in operation of a TSOC119d traffic display verses earlier variants. However, when the aircraft is on the ground and TCAS is in the TA or TA/RA mode, traffic advisories will not be annunciated. This reduces the burden on the 1090 MHz frequency during ground operations, as the TCAS systems are essentially passive.

Figures 1-4 (left and far right) depict a typical set of RA vertical speed responses from the Advisory Circular showing the modified system.

A GA Problem (B) Preventive Aural: MONITOR VERTICAL SPEED Pilot Response: No action required.

If a descent is initiated, it must be limited to less than 500 fpm.

(c) Preventive Aural: MONITOR VERTICAL SPEED Pilot Response: No action required.

Decent rate cannot be greater than 2,000 fpm.

Figure 3 - Initial corrective RAs - pilot response is expected within five seconds. The pilot should promptly and smoothly fly to the green arc.

In 2011 the FAA issued a Safety Alert for Operators (SAFO) centered on both the occurrence and response to RAs. GA operators with TCAS II will likely be flying business jets; TCAS I, TAS and TCAD equipment meet the needs of most GA applications. These business aircraft are more likely to conflict with VFR traffic at lower altitudes, creating more TA and RA occurrences than Part 121 traffic. Also, Part 121 crews have a better track record of compliance with the operating requirements of TCAS II. Most business aircraft RAs occur in the Northeast US and within Class C or D airspace. Pilots are likely to see other aircraft when close and therefore ignore an RA. The FAA advises that operators review their training programs and follow Advisory Circular AC 120-55 guidance.

Pilot Operating Handbooks should be updated.

Accomplishing the Upgrade (a) Corrective Aural: DESCEND, DESCEND Pilot Response: Smoothly establish a descent rate between 1,500 fpm and 2,000 fpm.

(b) Corrective Aural: CLIMB, CLIMB Pilot Response: Smoothly establish a climb rate between 1,500 fpm and 2,000 fpm.

For most existing TCAS 7.0 systems, the upgrade to TCAS 7.1 involves a software change to the TCAS processor itself.

However, there may be some wiring considerations if upgrading is part of

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an ADS-B installation, depending on the specific aircraft type and overall ADS-B equipment. The bigger concern is the amendment requirement of the TC or STC that installed the existing TCAS II Version 7.0 currently in the aircraft.

Although the software upgrade to the TCAS II processor may be ready, the aircraft approval to use it may not be. If the STC was completed by a third-party, it is highly recommended that operators discuss the amendment with the STC holder, who may not be your preferred MRO. Even STC amendments can take considerable time as STC applicants and holders join the line of those waiting for approvals. With ADS-B/FANS STC applications mounting, delays may be extended.

If an upgrade pertains to recent aircraft, the factory solution is likely to be ready or well underway. For legacy aircraft the solution may be an MRO option and not yet tackled by the existing aircraft OEM. The OEM tends to work backwards from later models to earlier, while MROs seize the opportunities existing in legacy aircraft where no OEM solution is likely to offer competition. In essence, MROs tend to look for the sweet-spot of aircraft models, where residual value still justifies the expense of upgrading and a healthy demand exists.

When last checked, all the Dassault Honeywell EASy II cockpits with TCAS 2000 have the 7.1 upgrade available to meet the December 2015 requirement for operators flying in and out of Europe. For the Dassault Falcon 900B using Honeywell CAS 81A, the solution was well underway in late 2014, and for Falcon 900EX and 900C with Honeywell Elite II there is no current factory solution.

For Gulfstream’s G450 and G550 the TCAS upgrade is serial number-specific, while for GIV and GV the upgrade is equipment-specific. Bombardier, Embraer, Cessna and Hawker Beechcraft models outfitted with TCAS II have 7.1 capability available, but check with the OEM for specific readiness based on aircraft model, serial number range and TCAS II equipage. T View the latest prices for jets for sale at

Figure 3 - Initial corrective RAs - pilot response is expected within five seconds. The pilot should promptly and smoothly fly to the green arc.

(c) Corrective Aural: LEVEL OFF, LEVEL OFF Pilot Response: Smoothly reduce vertical speed to zero fpm.

(b) Reversal Aural: CLIMB, CLIMB NOW Pilot Response: Reverse descent rate and immediately start a climb between 1,500 fpm and 2,000 fpm.

Figure 4 - Modifications to initial corrective RAs. Pilot response to these modified RAs is expected within 2.5 seconds.

Pilots should promptly and smoothly fly to the green arc.

(a) Increase Aural: INCREASE DESCENT, INCREASE DESCENT Pilot Response: Increase the descent rate, fly to the green arc, 2,500 fpm to 3,000 fpm.

(c) Weakening Aural: LEVEL OFF, LEVEL OFF Pilot Response: Smoothly reduce vertical speed to between 0 and -250 fpm.

Eurocontrol has issued several very useful and informative TCAS documents, including: • Jan 2012 #14 – ACAS II Bulletin Version 7.1 is coming…

• July 2014 – ACAS II Guide incorporating 7.1.

• July 24, 2014 Version 3.2 - Overview of ACAS II incorporating 7.1.

• July 24, 2014 Version 1.2 - TCAS II Version 7.1 Overview for ATC. • July 24, 2014 Version 1.2 - TCAS II Version 7.1 Overview for Pilots.

- SKYbrary: Offers a wealth of excellent and recent TCAS data for pilots and air traffic controllers covering TCAS in general, and specifically the 7.1 upgrade. SKYbrary also has guidelines for regulations and procedures useful for pilots.

- NBAA: Online under Aircraft Ops, CNS (subject to Membership log-in privileges) NBAA has several key TCAS documents to help pilots and others understand the complexities of both TCAS and the 7.1 upgrade.

- FAA: Apart from its Advisory Circulars the FAA has an informative document ‘Introduction to TCAS II Version 7.1’.

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Avionics Mandates (Part 6): Living with Mandates

Helping you understand avionics advances and related requirements for equipage, Ken Elliott reviews aviation technologies within the NextGen/SESAR architecture, this time focusing on the installation aspects of avionics mandates.

ith only 6.5% of the total US-based aircraft equipped for ADS-B, there is a significant need for installation capacity between now and January 2020, the deadline for ADS-B Out equipage. Clearly, the Maintenance, Repair and Overhaul (MRO) community will be hard pressed to fulfill the demand.

W

As a rough guide focusing on turbine business aircraft, Table A shows that each US MRO needs to complete an average of 4.7 aircraft per month between now and 2020 for everyone to meet that country’s deadline. (Note that MROs owning multiple locations have greater capacity to achieve the monthly quota.)

* Does not count multiple MRO or OEM locations (see p44-45 for tables on MRO’s and OEM capability.)

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When shopping for a location to handle your aircraft’s avionics upgrade, keep in mind there are two primary paths to follow: • Original Equipment Manufacturer (OEM) core facilities including OEMowned facilities worldwide.

• Maintenance, Repair and Overhaul (MRO) facilities including OEM-authorized service centers.

When it comes to equipage, pathways can become complex. For an OEM, the solution may be developed via a Type Certificate (TC) or a Supplemental Type Certificate (STC). For an MRO, the solution is developed via an STC. Factory approved solutions provided via OEM: This path is where the standard aircraft ‘new-build’ avionics suites are upgraded or added to in order to meet requirements.

Although developed via a TC or STC, the aircraft OEM issues the change as a service bulletin or factory modification to operators.

Very often the aircraft must return to an OEM facility for the work. Be careful as modifications may occur in phases and be aircraft model- or serial number-specific.

MRO in partnership with Equipment Providers: This path is specifically used when the equipment provider wants to own or have usage rights to the STC. A partnership is created with an MRO to develop the STC on a candidate aircraft.

While the MRO may have the advantage of owning the STC, the facility typically cannot be exclusive users of its data. This means other MROs can implement the STC but the equipment provider controls the data. On occasion, the equipment provider will agree to an exclusivity clause, typically allowing for 12 months of singular market share capture.

MRO STCs supported by Equipment Provider: Even though the MRO independently develops the STC, the facility is supported by the equipment provider. Equipment providers support this path when they do not see enough of a business case to go into partnership for an STC. MROs developing these STCs may elect to hold data exclusively for their own use. In this instance an operator must

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select that specific MRO for the upgrade.

Several years ago it was common for MROs to make their STCs exclusive, thereby creating bad blood. Today, in the best interest of the avionics industry, most MROs are moving away from that trend.

MRO STCs using avionics that differ from original equipage: This path is very common for older legacy aircraft where neither the equipment provider nor the aircraft OEM has a desire to provide a solution, with cost often the decider. Similar economic factors drive these STCs to use mixed equipage; so called ‘happy boxes’ providing interface between old analogue and new digital technology are commonly deployed.

Do not expect an easy ride with these STCs as both cost and risk typically climb; but occasionally innovative, low-cost STCs are developed by more entrepreneurial avionic facilities. It is important to note that, as a general rule, installation difficulties increase exponentially as mandate deadline dates draw near.

It makes a lot of sense to bundle together upgrades like FANS and ADS-B Out as well as timing them to coincide with major inspections,

Note the impact of other mandates, particularly Data Com (CPDLC/FANS). Because Data Com & TCAS 7.1 have earlier deadlines than ADS-B, stress is apparent earlier than expected.

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downtime, be

interior rework or paint. However, combining paint and avionics may not help, as your aircraft will be buried in the paint hangar for much of the time.

When trading an aircraft, read its specifications carefully. “Provisioned” means just that, and often the bigger chunk of the work awaits you. Especially for Data Com, there are several phases and there are misunderstandings interpreting CPDLC, FANS and ADS-C. Earlier articles in this series explain these Data Com areas, but it is recommended you sit down with an avionics specialist at your aircraft OEM or MRO to map out the requirements needed, and how best to accomplish them. You will be glad you did!

careful to ask

Access

“When avionic facilities quote installation

if the cost and time for interior repair and refurbishment or access is included.”

On the aircraft side, primary NextGen technologies are: Data Com (Mandated); ADS-B Out (Mandated); PBN/RNP/WAAS-LPV (Required, based on operational need); and TCAS 7.1 or later (Mandated).

Each has unique installation access considerations, but downtime is of particular interest to operators.

When avionic facilities quote installation downtime, be careful to ask if the cost and time for interior repair and refurbishment or access is included.

Because these facilities often leave access as an additional cost due to its variability, more downtime is implied. Access is a major consideration for work scope bundling. Opening the aircraft’s interior only one time for a broadened work scope involves less risk and less wear.

Opening up the cabin and specifically removing headliners is a major access concern. If the headliner is ‘one-piece’, you can only imagine the access labor required.

Cabin and headliner access is primarily reserved for antennas and wire runs, including antenna cables. A specific antenna concern with NextGen technology is the replacement of GPS antennas.

While Flight Management Systems on aircraft already have GPS antennas, it is possible they may need to be replaced to accommodate ADS-B Out and PBN position accuracy requirements. The

aircraft headliner will need to be removed if GPS antennas are mounted atop the cabin and if their footprint changes. A concern like this should be addressed early with the avionics facility.

Another concern centers on antennas required for Satcom ADS-C and if the desire exists to add intercontinental WiFi. While many Satcom, Inmarsat or ViaSat antennas are mounted atop the aircraft tail, Iridium (domestic) antennas are usually mounted atop the fuselage. When selecting Satcom options, you should also discuss antenna type and location with the avionics facility.

Lastly, with respect to access, it is assumed the aircraft already has a full TCAS II system onboard.

For the TCAS 7.1 upgrade, the only need for access should be to reach the processor and maybe to add minor wiring for ADS-B Out. Note: For any NextGen technology already certified on your model and serial number aircraft, downtime should not be dependent on the length of the certification process.

Specific Programs

A great starting point for ADS-B Out programs is the FAA NextGen website. Because of GA pressure there has been significant effort expended to provide meaningful data to the aviation community.

After spending a few minutes on the ‘Equip ADS-B’ portion of the FAA site, users will quickly notice the helpful results. This region of the FAA website includes a current updated list of ADS-B Out STCs (www.faa.gov/nextgen/equipadsb/equipment/).

For FANS/CPDLC, the program status is different.

For aircraft covered by an aircraft OEM program, the path is easier to navigate, starting with a call to the aircraft OEM’s avionic specialist. Bear in mind that some reputable MROs are authorized to complete aircraft OEM service bulletins and if one of those MROs is your normal service location, there exists options for the MRO to undertake factory-authorized upgrades.

Creatively, MROs are now working with Satcom equipment providers such as Gogo-Biz, ICG and True North as well as major avionics suppliers

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aircraft delivery.

• Equipment part numbers not as listed.

• Equipment software levels not as expected.

• Position of equipment not in its factory standard location.

The way to avoid additional costs is to keep good records, share all your data with the avionics specialist and create your own ‘to do’ list of questions, covering these and other concerns. Reputable equipment and maintenance tracking programs are also available. They are helpful in preventing installed equipment and part number errors. Most major installations require a flight test or two that involve fixed and variable operating costs not borne by the installation facility.

The hassle of extra downtime and the stress of things going wrong are best avoided, so be prepared and educate yourself on the NextGen technology. Network with the wider aviation community, and always ask questions up front.

Location

Rockwell, Honeywell, Universal and Garmin to provide economical FANS (and ADS-B) solutions.

These solutions offer other NextGen benefits because the updated GPS provides greater accuracy.

Precision PBN, better Satcom data services and display dependent ADS-B In are some indirect benefits.

MRO STC programs are now emerging and are often in competition with each other. See Side Bar A at the end of this article to view a listing of some of these.

Cost

While not delving into actual numbers, there are general costs to consider. Access is one area where unexpected fees can creep in, as mentioned above.

Each aircraft is unique, especially as it ages and it’s interior layout changes. It is common for access costs to be a major portion of the work scope on aging aircraft. Another area for cost creep is additional work scope based on ‘aircraft not seen’ or subject to a ‘review of avionic diagrams’.

Following are ‘catch all’ buckets where costs may occur unexpectedly, most with justification by the avionics facilities.

• Provisions including hardware and wiring, listed but not actually in the aircraft.

• Equipment still listed but in fact changed since

The location you select for your aircraft is critical in so many ways. There are many factors to consider, and no one selection process fits all. The important elements of trust and relationship by far top the list.

After those, consider the following: • Hangarage, and specifically where your aircraft will sit for the major portion of its downtime.

• How will your aircraft be protected during its stay?

• Who will be working on your aircraft and especially, who is taking it apart?

• Who is the crew chief, engineer and the certification specialist? Get to know them!

• Facility capability, including airframe and engine?

• Educated questions asked beforehand, the level of detail in the Proposal and the professionalism of any communications before you agree to sign.

• Proposal pricing, but perhaps more importantly Terms & Conditions.

• Training and product support, including for the installation itself.

• Will assistance be provided for operational approval?

• Facility location and logistics that impact you.

Having a customer office is very helpful!

Timing

Looking back at Table B (page 71), it could be said that timing is everything, but the timing impacts of operator planning, budget and schedule are equally important. It is not always possible to plan well ahead, and even best made plans may need to be changed. For an operator, predicting the short-, medium- and long-term plan for the aircraft will help determine slot times for service. Combining major maintenance with an upgrade is the best way to go with major inspection dates predicated on projected flying hours.

If trading an aircraft, the operator has the difficult

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MRO STCs

MRO STC programs are now emerging and are often in competition with each other. Following are some of them…

Clay Lacy: Gulfstream GIV, GIVSP & GV FANS STC including CPDLC, ADS-C and provisions for LINK 2000+ and ADS-B Out. Clay Lacy’s website covers the program (including a useful White Paper).

Comlux: Challenger 600 series. FANS STC involving a partnership of equipment manufacturers (e.g., Universal Avionics, ICG and L3). This solution offers CPDLC, FANS over Iridium (FOI) and the required Data Com recording capability.

Duncan Aviation: Dassault Falcon 900B and Falcon 2000 using a Universal Avionics solution for CPDLC, FANS and ADS-B Out. Chicago Jet: Dassault Falcon 50, 900 and soon 2000. Also advancing on solutions for the Gulfstream GIV, GIVSP, GV & G100. Several other aircraft types are also in work. decision to make of whether to upgrade and add to the sell price, or sell as is.

There are good arguments for both approaches, but one way to view the question is: If your aircraft, fully-equipped and compliant for all avionic mandates, is sitting on the ramp next to an equivalent aircraft that is not fully equipped and priced correspondingly less, which aircraft will sell first?

Because the equipped aircraft is a known quantity and the unequipped has all the required implementations still to go (and is therefore an unknown quantity), it could be assumed that the equipped aircraft will sell first. It has the edge and none of the risks or concerns covered within this article to face down the road.

Training & Operational Approval

In today’s environment, equipment plus installation and certification are well understood and implemented. However for a slew of reasons, training and operational approval are neglected areas, with resources unapplied and experience lacking. The NBAA has recently taken on

this concern specific to cabin connectivity issues, where it has been shown that lack of training is a key contributor to common aircraft connection problems.

If the avionics facility does not offer training or assistance in obtaining international (or domestic) operational approval, the quality of service you will receive during an upgrade may be deficient.

Operational approval should be planned well ahead. Hold an initial meeting with the aviation authority prior to starting work on the aircraft. Ensure operational approval is achievable before any funds are spent or work commences on the aircraft.

Each aviation authority has its own approval process, and their websites provide the avenues to follow. Knowing projected domestic and world operation regions for your flight department will allow proactive planning of approvals to be authorized once the aircraft installation is complete. T Are you looking for more articles on Avionics?

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Other programs are offered by Jet Aviation and Standard Aero. Many worldwide facilities, including those offering major aircraft refurbishments, bundle mandated avionics upgrades either as available from the aircraft OEM or under license from an STC holder. Also versatile international avionic companies such as Scandinavian Avionics and Hawker Pacific (Avionics), well represented in many areas of the world, are capable of meeting operator NextGen equipage needs.

SEE P44-45 FOR A FULL LIST OF BUSINESS JET CAPABLE OEMs AND MROs.

RESOURCES • Aircraft Electronics Association (AEA) • National Business Aviation Association • Skybrary • OEM and MRO company websites – avionics • FAA NextGen • FAA A153 Application Checklist for ADS-B Out operations outside US airspace

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DASSAULT’S RECENTLY ROLLED-OUT FALCON 5X SPORTED ELBIT SYSTEMS’ ENHANCED FLIGHT VISION SYSTEM

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Avionics Mandates (Part 7): Enhanced Low Visibility Operations Helping you understand avionics advances and related

requirements for equipage, Ken Elliott reviews aviation

technologies within the NextGen/SESAR architecture, this time focusing on Enhanced Low Visibility Operations.

ost improvements in aviation are incremental (and rightly so), with safety and performance being paramount. However, once in a while there arises a paradigm shift where the improvement opportunity becomes a game changer and the uptake is driven by competition, or by mandate.

One such major shift is the recent advance that enables enhanced low vision operations. In a very unlikely scenario, the FAA is providing a certification

M

path for operators to equip and be approved for something never before accomplished. In the realm of low vision and under a pillar of NextGen, the Holy Grail of all-weather operations is finally within reach for owners and their pilots.

Aircraft OEM competition fuels necessary equipage as mandates are not yet forthcoming, unless you are an air carrier based in China where new rules require Head-Up Displays for air carriers and others.

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ILS

Let’s start at the beginning - in 1941 to be precise. In that year the world was introduced to Instrument Landing Systems (ILS), which in turn developed into different categories (as shown in Table A, left).

The critical aspect of ILS, that has never changed, is the need for ground infrastructure at each runway where an ILS approach exists. Once the operator needs to fly the approach under Category II or III rules the increased ground infrastructure is matched by a corresponding increase in duplicate aircraft equipage, recurrent pilot training and frequent equipment testing.

Both FAA and owners alike have long sought a solution to this one problem, best explained as ‘a means to operate below non-precision approach (NPA) minima at any runway end without the need for expensive ground and air equipage, including all the related operating costs’.

GNSS

Then along came the Global Navigation Satellite System (GNSS) using GPS, which is a satellite solution and a means to provide an accurate lateral and vertical guidance path as precise as ILS, more or less.

While GPS provided amazing opportunities for enroute and terminal operations, it never quite met the accuracy requirements to do better than a Cat I ILS. Aircraft-based augmentation system (ABAS) improved the reliability and integrity of airborne GPS systems.

Satellite-based augmentation system (SBAS) with terrestrial based error monitoring stations, has enabled 923 approaches (as of April 2015) equivalent to Category I ILS. Ground-based augmentation system (GBAS) promises to break the 200ft HAT/DH barrier currently set for Cat I ILS.

So is GBAS the Holy Grail?

Unfortunately not. GBAS requires a terrestrial-based error monitoring and correction station at each airport, and is only installed in a few locations. GBAS is also a focus for air carriers, meaning that highvolume Metroplex airports will be the first equipped and wide-body jets the first approved for GBAS operations, a similar situation that has occurred with RNP-AR. Significantly, all of these satellite-based technologies, as with ILS, are extending the instrument segment of an approach.

However, at some point in every flight

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there needs to be a transition to the visual segment.

Unless an aircraft and crew have all the gizmos, training and approval for Cat II or III, and the corresponding runway is suitably equipped and approved, there has been no change to the visual transition point since 1941. The rule is still ‘see with the human eye at the visual transition point or you must begin the missed approach procedure’!

Synthetic Vision

Apart from some tweaking with a limited number of approaches and special authorization to enable lower than CAT I when equipped and operating with HUDs, the only way forward today is with synthetic vision. To repeat and also to reinforce the point, for extending the instrument portion of any straight-in approach to ‘lower than current CAT I minimums’ at any non ILS runway, while avoiding airport equipage, the only way forward is with Synthetic Vision: To be more accurate, with a Synthetic Vision Guidance System (SVGS).

Competitive aircraft OEMs understand this fact, but they also understand that while SVGS presses the instrument segment barrier closer toward the ground (at best 150ft HAT/DH with 1400 RVR), it still leaves the visual segment itself unresolved, such that an operator can plan and always fly the trip as filed during low visibility. Note that the visual segment of an approach is from 200ft height above the ground touchdown point (HAT) or decision height (DH).

Instruments can guide an aircraft to that point without the human eye as long as a full operational ILS exists at the runway. This is referred to as ILS CAT I. The lower instrument barrier for SVGS referred to here is intended for runways with or without ILS as long as an approved alternative low approach, such as WAAS-LPV, exists.

Enhanced Flight Vision

As they say, ‘seeing is believing’, and no database with GPS technology can ever match what you see in real time. But what if you have a real time device that sees as if it were a human eye, and more importantly at frequencies outside the visible spectrum of light? Enter the enhanced vision system (EVS).

Currently there are a few ‘sweet spot’ frequencies that can see what the eye

cannot and with signal processing, provide a pretty decent picture. Certain bands of infrared (IR) can create windows in fog, haze, snow, rain, smog and dust, but not pure cloud. Some active radars in various bands can see through most visibility blockers found at airports, but they have poor image quality or are not mature enough in their technology to ‘cut the mustard’.

Highly sensitive and expensive (cooled) IR-based cameras are widely populated in Gulfstream and Bombardier model long range jets. Their sensitivity is key toward providing the operator with an ability to use lower landing minimums.

Evaluations of active radar devices are also underway, and understandably under wraps until proven commercially viable.

However, Rockwell Collins has announced a version of its X band radar that may be used to facilitate synthetic vision with real time data, due to its ability to ‘pick out’ visual cues in the runway environment.

Cleverly lower cost and uncooled, multi-spectral cameras tease out essential visual cues both on the approach and during the landing phase. While not yet certified, two systems are in development and undergoing aircraft certification: Rockwell Collins EVS-3000 on the Embraer Legacy 500/450; and Elbit’s ClearView on Dassault’s Falcon 5X/8X. Both systems utilize several different sensors encapsulated into a single camera unit, to catch the various cues at an airport including LED lighting. GPS technol-

ogy is used to confirm the expected position of these cues in relation to the aircraft position.

New vision-based technologies are emerging all the time as competitors seek the Holy Grail. With so many ways to achieve low visibility performance, there has arisen confusion around the use of EVS and the misuse of the term by many potential operators. EVS in itself is a great situational awareness tool, with low cost uncooled devices migrating into all types of aircraft and helicopters. These have good enough sensitivity to be useful for pilots. For any reduction in landing minima, however, an EVS today must be cooled (an internal maintenance-free function), and have a sensitivity much better than 35mK (milli-Kelvin).

Because certification is dependent on the pilot’s ability to maintain visibility within the airport approach and landing environment at all times, the EVS can only earn credit when displayed on a Head-Up Display (HUD), and it must be sufficiently sensitive and possess adequate resolution to be equivalent to the human eye.

Critically, human eye equivalency is what it is all about. The reason for this is the rule for landing an aircraft has never changed. FAR 91.175 simply added two sections (l) and (m) to allow for Enhanced Flight Vision System (EFVS meaning EVS displayed on HUD) to be used in lieu of natural vision (the human eye). To replace natural vision, the system must be equivalent as demonstrated by a complex

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FIGURE 1: Visual & Instrument Segments of the Approach; What Technology May Apply; and Where

series of flight testing during aircraft certification.

A HUD displaying EVS and approved for credit, such as lower minima, is known only by the FAA as EFVS. Confusingly, it is still known anywhere else as EVS.

Instrument and Visual Segments

NPRM FAR 91.176 (a)

FIGURE 2: Extending the Visual Segment of the Approach with EFVS in Lieu of Natural Vision

Here is where the philosophies of flight do battle and the outcome is not yet decided. Synthetic vision (SV) proponents believe that with sufficient instrumentation guidance (and perhaps a small EVSfilled window in the Primary Flight Display), head down approach and landing can be achieved. Honeywell has openly promoted this position.

HUD proponents such as Rockwell and currently supported by the FAA position, display SV on a HUD. The SV is switchable with EVS. EVS, displayed on the HUD, is then operationally approved as an EVS-HUD combination (EFVS in the US), for landing credit that currently goes to 100ft height above the terrain and the decision height for continuing to land.

The decision height for ILS CAT I still stands at 200ft, so the EVS rule equates to ILS CAT II, but may not be called as such.

Note: For Europe the EVS credit is tied to RVR where a one-third RVR credit for any specific runway may be received.

Because synthetic vision does not see in real time, any lower minima gained by its use as a complex guidance system pushes the instrument segment lower to the ground (see Figure 1, top left). For EVS however, because it is real time visualization, it may be used (if displayed on a HUD) for visual credit in the visual segment.

So next we arrive at the method by which an operator may attain the Holy Grail‌ The FAA has essentially taken the old landing rule FAR 91.175 and returned it to its existing status with no EFVS provisions. It has created a new landing rule just for EFVS operators. The rule is still under Notice of Proposed Rulemaking (NPRM), but was due for final release in 2015. If granted, this FAR changes the game as a true paradigm shift. Why so significant? Here an aviation authority has created a rule that is ahead of a technology able to perform and meet its fullest intent!

In essence the FAA has created a path with an end goal where all OEMs and their customers operating under Part 91,

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This rule FAR 91.176(a) describes the steps to attain 0/0 approach and landing operations including approach ban clearance for Part 121 operators. Interestingly the FAA proposes also to move the existing FAR 91.175 section (l) and (m) into a new FAR 91.176(b), where the 100ft HAT/DH limit still applies.

By extending the visual segment all the way to touchdown and rollout, without the intervention of the human eye at any point, the means to the Holy Grail has been determined.

So the yellow brick road has been constructed to the Emerald City, but on this road just as in the Wizard of Oz novel, there are difficult spots to navigate: everyone is looking for the technology that will overcome the opaque visibility barrier.

The FAA has added two new visual cues to FAR 91.176(a); namely runway threshold or runway touchdown zone

landing surface. Wisely the FAA proposes to implement the new rule in phases beginning with 1,000, then 300 and then 0 RVR, along with the corresponding altitude limitations.

The most important and fundamental challenge for the aviation technologist is how to overcome the opaque visual barrier by designing a product that can continuously see the runway threshold or the runway touchdown zone landing surface, from 200ft or greater (the point at which the instrument approach being flown transitions to visual). To be truly revolutionary, the technology needs to see in all low visibility conditions, a situation unattainable today.

While this landing ‘predictability solution’ does not take care of runways closed due to thunderstorms, ice or NOTAM events, it certainly ups the ante for many operators. As with all game changers, the new capability does come with certain requirements and limitations — additional training and OpSpec/MSpec or LOA for example. Takeoff credits may

follow where methods exist today to obtain lower takeoff RVR approvals, such as for air carriers.

Summary

In summary, low visibility landings are still an immature area of flight operations, but since the early 2000s tremendous strides have occurred. Aircraft OEMs are lining up for various forms of low visibility operations (LVO) technology as the enabling rules expand gradually across the world.

As technology slims down in size and prices reach affordability, smaller GA will take an interest. Because of its complexity however, expect LVO equipage for credit to be mostly an aircraft OEM venture, at least for the near future. T Are you looking for more articles on Avionics?

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AvBuyer.com

Avionics Mandates (Part 8): Helping you understand avionics advances and related

requirements for equipage, Ken Elliott reviews aviation technologies within the

NextGen/SESAR architecture, this time focusing on mandate impacts and status. s we venture past the midpoint of 2015, it is appropriate to take stock of the impacts of NextGen and SESAR mandates. Below you will find a potpourri of perspectives on this fluid technology transition that is expected to level-off around 2020. Since 2015 began, we have seen several changes in how authorities are addressing mandates. An aggressive FAA has been supporting ADS-B equipage while a noncohesive Eurocontrol has further delayed the implementation of DataComm requirements under EU operating rules.

Operators do not suffer well such a flip-flop on requirements, especially in the case of EU DataComm. This technology is partially driven by varying levels of preparedness across the different nation states of Europe. Regulators and the authorities responsible for ground equipage need to understand the long-term impact that results when mandates are delayed. While delay may be the right answer for the moment, the conditions that arose and created the need for postponement could and should have been avoided.

There is a very large group within the aviation

A

community that considers it totally appropriate to delay equipage, approvals and training for avionic mandates, often based on the previous record of date-stretching or later relaxation of rules for certain types of aircraft and operators. Delaying implementation dates is fodder for their cause. But as outlined in previous articles, the industry cannot sustain a torrent of last minute upgrades from 2018-2020, for example.

FAA, Industry & Financial Support Cooperation

Apart from the FAA consideration of relief for ADS-B GPS requirements for legacy air carrier operators, the Administration has stood firm on the 2020 ADSB rule regarding to whom it applies and which equipment is needed for operations in which airspace. FAA has applied its resources to understanding and answering the concerns of operators, including small GA, creating forums for industry and user groups. It has also enabled funding for lower-cost solutions of ADS-B. In parallel with FAA efforts to enable operators to add ADS-B, finance groups such as NEXA Capital

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Partners LLC are providing favorable loans to all US-based GA operators that may, over time, be used for NextGen equipage. NEXA has also placed an order for 10,000 L3 Lynx multilink ADS-B units as part of a Jumpstart 2020 Program for ADS-B across light GA. Sadly NEXA was meant to be both publicly and privately funded to support these kinds of pro-

grams, but at this time is only funded via private means.

Another development that is encouraging for operators is the industry partnership of rivals to pool their unique resources into a single solution. A recent example of this cooperative approach is the announcement by both Rockwell Collins and Universal Avionics to partner

on an ADS-B solution for aircraft equipped with certain of their existing products. This arrangement allows anyone with Universal Satellite-Based Augmentation System (SBAS) Flight Management Systems (FMS) to integrate with Rockwell TDR-94D Transponders.

While still requiring an STC, the ground working of sharing integration, proprietary data and factory support is laid. Both the FMS and the transponder models are ADS-B ready, making this approach a winwin between providers and their users.

Another aspect of these creative solutions available for mandate solutions in the market place is their aptitude for growth.

If, for example, the equipment such as an FMS can provide for the new Lateral Path Vertical (LPV) approaches and provide DataLink messaging, then there is a selling advantage to the aircraft owner going forward.

Often operators, in a desperate effort to keep costs to the minimum, will resolve for the short-term but set themselves up for failure later, especially when it comes to selling the aircraft.

Europe in Review

DataLink rules under Eurocontrol have yet again changed, pushing back dates to those outlined in Sidebar A (top, left).

While the FAA wrestles with the potential spin-off of its Air Traffic Organization (ATO) into a public-private arrangement, it at least has singular authority across all of the 50 states and the District of Columbia.

On the other hand the European Commission (Transport) and its aviation divisions, have the disparate interests of all 28 member states to grapple with. So it is no small miracle that it now has Version 1 of a SESAR Deployment Plan well underway. For those who like to peer into a murky magic mirror and ponder on the future this, at least, provides a way forward for those technologies currently being embraced.

A Deeper Look into FAA’s NextGen Wishing Well

Merging the current implementation agenda into the future, the FAA is focusing on four NextGen areas (see Sidebar C, bottom, left).

Using the RTCA NextGen Implementation Working Group (NIWG) and other ad hoc work groups focusing on metrics development, ADS-B, DataComm harmonization and PBN implementation, the FAA is attempting to focus limited

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https://www.faa.gov/nextgen/media/CNO%20 Report_Final.pdf

Down in the weeds, but still under the watchful eyes of Congress and the Government Accountability Office (GAO), the FAA is also working with RTCA committees to better measure the implementation of NextGen in US airspace.

Fortunately, due to Congress insistence, the interests of all stakeholders need to be monitored. This includes the very different operational characteristics of Business GA in an arena where air carrier flight track interests dominate.

Metroplex areas, while centered on major hub airports, include a number of regional GA airports. NextGen implementations and particularly PBN (RNP approaches) at hub airports, are of concern with respect to unintentional impacts to secondary airport operations. The key consideration of any change to our shared airspace is “do no harm”.

On a wider front and in a spirit of collaboration, the US and EU have been sharing their NextGen and SESAR programs.

Focusing on interoperability, between both ground and air portions of their Air Traffic Management systems, they have developed a Memorandum of Cooperation (MOC). View this document at: http://www.sesarju.eu/sites/default/files/ documents/reports/State-of-Harmonisation.pdf

Of course the big US NextGen success story for GA is WAAS LPV, an SBAS solution that compliments ILS. Further, when operators use HUDs with EVS (EFVS), they may complete Category II equivalent straight-in approaches at thousands of runway ends. Even without EVS, operators can fly low visibility approaches into thousands of non-ILS approach runway ends.

Looking much like part of an Impressionist painting, the map of US WAAS-LPV procedures, with and without ILS, is a result of an astounding achievement by the FAA and its partners. No other region of the world can offer such a wealth of low visibility procedures for appropriately approved aircraft and crews.

Finally for GA operators a review of the FAA’s NextGen website could be helpful to understand the benefits and expected national airspace impacts (www.faa.gov/nextgen).

Some GA Equipage Concerns

For aircraft brokers, buyers and sellers, the realistic equipage status of a specific

aircraft is of significant concern nowadays.

Just a quick look at Table A will show you how frustrating it can be to find out exactly where an aircraft serial number stands with respect its NextGen mandate status.

(Note; the term NextGen is here referring to all PBN, DataComm, ADS-B and other requirements that are either mandated or operationally required from a global

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resources on critical areas of its national airspace and infrastructure.

On June 3, 2015 the FAA updated Congress on the current status of NextGen. While the brief report poses the positive spin to ensure continuation of the funding stream for airspace programs, it is a useful read for those wishing to know at high level where we are today regarding NextGen. Read it here:

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perspective). Making this situation worse are changes made to mandates, either by date or by equipage. As mentioned previously, this is a concern with DataComm in the EU. FAA’s ongoing DataComm clarification, particularly as to how equipage requirements may impact Business GA, adds uncertainty.

The term equipage is in itself a generalization because it includes software needs that can change like the weather and complicate an operator’s authorization

to use installed hardware.

Aging aircraft that have fallen ‘off the radar screen’ of OEM primary attention are in an even worse situation, unless you work with an MRO that has real expertise on the aircraft model of interest. As mentioned, both in this article and previous AvBuyer articles, there are great solutions being offered by MROs for legacy aircraft.

However, Table A still applies as some of these creative solutions are very dependent on existing avionics that can

vary dramatically by serial number or simply because an owner upgraded differently to the norm in the past, by their own preference. To be fair to aircraft OEMs there are several quality mandate upgrades available for those aircraft considered ‘off the radar’. Shop around before major decisions are made.

It is hardly surprising, therefore, that given these uncertainties and with respect to NextGen/SESAR or ICAO mandates that many operators, sellers and buyers want to hold out on upgrades. However, as demonstrated last month, installation considerations overall still favor an earlier, rather than later, implementation of upgrades. A good OEM or MRO, and there are several, will help you navigate the complexity and specifics of upgrades.

Where We’ve Come From

Most of us like to know at least a little of our genealogy because it helps us understand both our heritage and, perhaps, the complexity of who we are today. Equally, a reflection on the development of our national airspace from humble beginnings to modern day complexity helps keep the roadmap in a proper perspective.

We have arrived at a complexity that is driven by economics, population, the environment, demand for efficiency and above all, a need for increased safety. Our common airspaces are under an everincreasing usage demand, while upcoming regional airspaces across other continents are playing ‘rapid catch up’. Sidebar D (left) clearly demonstrates the need for an integrated (or at least seamless) airspace across the regions of North America and Europe.

The aviation industry and authorities across different oceans and borders have come a long way since Orville & Wilbur Wright. But with unmanned aircraft systems (UAS) entering the mix of airspace users in the near future, the need for NextGen/SESAR and ICAO integration is paramount.

Business GA users are typically far better technologically prepared for NextGen than their air carrier counterparts, so despite the concerns addressed in this article, overall, there is room for increased optimism, as we pass the 2015 mid-year mark. T Are you looking for more articles on Avionics?

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Avionics Mandates (Part 9): Update on Data Comm Helping you understand avionics advances and related requirements for equipage, Ken Elliott reviews aviation technologies within the NextGen/SESAR architecture, this time focusing on Data Comm.

e begin this article with its relevance for Business Aviation – what are the benefits and impacts of Data Comm (primarily centered on commercial fleets) to the average business aircraft operator. Already nearly 1,000 US-based business jets are equipped with pre-departure clearance (PDC) digital technology, which requires radios capable of handling datalink communications.

Following are the benefits of Data Comm to business aircraft operators: • Two-way data exchange, instead of voice, between pilots and air traffic controllers; • Reduced separation between aircraft; • Greater efficiency in route changes while remaining in the departure queue; • Reduced user costs; • No altitude or lateral restrictions when crossing via tracks; • Routing advantages when avoiding weather; • Use of ADS-B and ADS-C (which offer their own benefits but require Data Comm);

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• • • •

Better pre-departure clearance and later en-route services; Increased fuel efficiency, safety and predictability; Oceanic operational benefits; Ability to have data uplinks sent to the flight department on the ground simultaneous to FMS message being received.

Following are the disadvantages of not participating in the voluntary use of US Data Comm services: • Delayed departure clearances – in the queue; • Less efficient communications and cockpit resource management; • Increased crossing and altitude restrictions; • Limitations to oceanic operations; • Less favorable and possibly more frequent re-routes as the airspace congestion increases; • More fuel consumed and higher hourly cost to the operator; • Miscommunication of read-back errors.

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90 Data Comm includes both Controller Pilot DataLink Communications (CPDLC) and Future Air Navigation Systems (FANS) protocols. The current implementation status of these technologies is in flux across the world and is causing operators to understandably deliberate on their equipage and training decisions.

Following is an outline of Data Comm as of mid-2015.

FAA

In 2012 the US government committed $28.37m for Data Communication (Data Comm) Segment 1, to implement services that provide benefits including reduction of ground delays, greater airspace throughput and reduction in workload.

Phase 1 of this segment covers departure clearance text-based data to the onboard Flight Management System, rather than traditional voice. Phase 2 focuses on en-route services.

The FAA has wisely taken a cautious approach to NextGen Data Comm implementation to date. Figure 1 (previ-

ous page) highlights the phases of FAA Data Comm implementation and their benefits (provided courtesy of FAA).

At certain airports, during June 2015 changes to the receipt and uplink of flight plans by the FAA were adopted.

CPDLC and Pre-Departure Clearance (PDC) act as a baseline for later NextGen Data Comm technology, providing services such as clearances, instructions, crew requests, reporting and traffic flow management. PDC may be used in place of CPDLC if the aircraft is not CPDLC equipped, but only through the end of 2016.

Initially as a trial phase, Phase 1 changes will not impact Business Aviation and will be voluntary for air carriers. Flight plan sections must comply with ICAO coding (ICAO-4444).

Departure Clearances (DCLs) can be uplinked when a flight plan differs to what is existing in the FMS. Understand that while Data Comm in the US is not mandated for all operators, if you want to use the Data Comm serv-

ices and take advantage of its benefits, you will need to be appropriately equipped. All operators not equipped with CPDLC will likely receive lower priority departure clearances. For the US, long-term equipage will need to be adequate for FANS Baseline 2 and additional VHF (Satcom for US Oceanic).

DataLink services can be provided by Satellite, VHF or HF means, and the communication method may not necessarily be known by the operator. The air traffic services and third-party service provider determine the DataLink means, partially based upon your equipage and operational approval.

ATN-Baseline 1, is a digital system and FANS-1A, is an analog based system. Currently the digital operation is known as FANS 1/A+ over VDL-Mode 2 and the analog operation is known as the VDL-Mode 0/A. The FANS 1/A system uses both digital and analog components. These will later transition into a full ATN (Baseline 2) system, using new Segment 2 advanced services such as; 4D trajectories, Dynamic RNP, advanced interval management (A-IM) with ATC winds and D-Taxi (see also under North Atlantic-ICAO below). A later ATN Baseline 3 is being developed to include the contiguous US and a wider set of users.

To operate Data Comm within the US, operators must be approved, based on equipage and training via OpSpecs, M Specs or an LOA, depending upon the FAA FAR Part under which they operate.

Initial departure clearance trials have taken place at Newark, NJ and Memphis, TN by United Airlines and FedEx respectively and report between 6-12 minutes departure clearance time savings. These trials have been extended until late 2016. Beginning soon this CPDLC technology will be extended at up to 57 additional commercial airports at an estimated cost of $7m per facility.

A Segment 1, full Phase 2 final investment decision (FID), is due from the FAA by the close of 2015. Initial Phase 2 investment was approved and commenced in 2014.

Airlines and others have concerns over the security of Data Comm, including message protection and corruption of information critical to flight. On May 27, 2014 the FAA announced a security control audit of Data Comm to ensure that proactive protection methods are implemented. This includes contingen-

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cies up to and including, a complete loss of the Data Comm services.

The FAA intends to measure Data Comm performance via various metrics to be reported on its NextGen Performance Snapshots website (NPS) www.faa.gov/nextgen/snapshots/.

One metric being considered is average taxi-out time. For Business Aviation, this could be IFR flight taxi time from ramp to take off. Longer taxi times indicate inefficiencies that Data Comm services should reduce.

On March 2, 2015 the FAA issued a policy statement regarding an existing data recording rule that was well received by operators and gained widespread industry support. Part 121 and 135 aircraft Cockpit Voice Recorders (CVR) are currently required to record Data Comm as well as existing voice activity. Many legacy aircraft – however could not comply, and industry was not updating to the new CPDLC equipment.

Under the new policy, the CVR recording requirements are separated between aircraft built before December 6, 2010 and those built after that date.

An existing FAA InFO 10016 document, dated August 16, 2010, is cancelled and a revised InFO is under development.

Data Comm is an essential part of airport surface operations, especially during its initial phase of departure clearance. Figure 2 (top, right) demonstrates the wide spectrum of surface considerations at major airports today (courtesy of FAA).

North Atlantic (ICAO)

Since February 2015, for aircraft using the existing North Atlantic tracks between FL350 and FL390, FANS 1A, CPDLC and ADS-C operations are a requirement. This Phase 2 North Atlantic mandate resolves the ever-increasing volume of air traffic electing to use these desirable skyways.

Note that Data Comm covers all of communication, surveillance and ATC intervention capabilities.

Beginning December 7, 2017 a Phase 2B mandate will extend applicability to the entire ICAO North Atlantic region, followed by another Phase 2C, effective January 30, 2020 adding all altitudes above FL290. If operating in areas of existing radar coverage, the New York Oceanic flight information region or the airspace north of 80 degrees north latitude, the Phase 2 requirement may be excepted.

On July 1, 2015 the FAA issued a

notice clarifying and advising the areas of oceanic airspace where it will have jurisdiction. The notice highlights the air traffic control services available and complies with an ICAO requirement for member states to define their jurisdictions and available services. This short and informative notice may be located in the US Federal Register as Docket # FAA-2015-1497, Airspace Docket #15AWA-4.

RTCA special committee SC214 is working closely with ICAO on harmonization of future Data Comm protocol and standards. This will ensure inter-operability across different world regions, streamline equipage requirements and reduce operator confusion.

Eurocontrol (SESAR)

As reported in the previous Avionics Mandates article, the dates for CPDLC implementation throughout Europe have changed. We covered date changes and regional implementation status.

Important Eurocontrol dates include:

•

Regulation (EC) 29/2009 covering CPDLC requirements will now be effective from February 5, 2018.

• All aircraft should be appropriately equipped by February 5, 2020.

Forward- and retro-fit are now indistinguishable in the updated requirement.

FAA and SESAR harmonization is ongoing, just as with FAA and ICAO, ensuring similar protocols of Data Comm as aircraft transition from North Atlantic Tracks to EUROCONTROL airspace.

Figure 3 (overleaf) offers a summary of harmonization technology areas (courtesy of SESAR/FAA).

A Gentle Reminder

As mentioned in previous articles, be very careful when assessing the equipage of your current or next aircraft for Data Comm. Very often aircraft are only provisioned, and what may apply to one range of serial numbers from the aircraft OEM may be very different to another.

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•

• •

•

Always consult with your maintenance or completion provider to ensure equipment “long part” numbers are applicable to the upgrade. Beyond the part number, most equipment will list a hardware and software status designation that should also be verified prior to the Data Comm, CPDLC or FANS, being implemented.

Do not forget training followed by operational approval is required. Consult with Business Aviation member organizations such as NBAA for advice on operations in different world regions. US operational approval guidance may be found under FAA Airworthiness Circular AC12070C recently updated and OpSpec A056 for air carriers. T

• • •

http://www.faa.gov/nextgen/programs/ datacomm/ https://www.faa.gov/about/office_org/ headquarters_offices/avs/offices/ afs/afs400/afs470/datacomm/ www.faa.gov/about/office_org/ headquarters_offices/ato/service_units/ techops/atc_comms_services/dcit/dcit_ current_documents/ www.youtube.com/watch? v=WWJ8mUl5LsQ https://www.faa.gov/about/office_org/ headquarters_offices/avs/offices/afs/afs400/ afs470/datacomm/ www.icao.int (Search for Data Comm GOLD) National Business Aviation Association Aircraft Electronics Association RTCA for Committees and Documents

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Becker All-Around ADS-B he aviation community has been hearing of the arrival of Automatic Dependent Surveillance – Broadcast (ADS-B) space-based surveillance for over a decade. Adoption of this technology is now well established as installations of ADS-B equipment and ground based tracking systems progress at an ever increasing pace around the world. But many aircraft owners and operators are still trying to understand what ADS-B installations require and what advantages ADS-B technology will bring.

ADS-B offers the capability to dramatically improve airborne situational awareness and to improve air traffic management capabilities through more timely and accurate identification of aircraft position and intent than is possible with current radar-based systems. ADS-B Out avionics systems automatically send WAAS/GPS-based aircraft or ground vehicle position and intent information to suitably-equipped ADS-B ground stations and to adjacent aircraft or ground vehicles equipped with ADS-B In-capable receivers and display systems.

The operational benefits here are clear; operators of aircraft and ground support vehicles can remain aware of each other during arrival and departure operations, and when airborne, both air traffic managers and aircraft crews are aware of the relative positioning of their aircraft in the airspace they occupy. And of course, mandates are being placed into effect in the major continental and oceanic airspaces on a global basis, most of which will be in force by the year 2020. In short, ADS-B has arrived, and aircraft operators and manufacturers must take action now to prepare for this next generation surveillance environment.

Becker Avionics is dedicated to providing ADS-B solutions across the board, including airborne and ground-based installations, serving all segments of the aviation community. We refer to this as the “Becker All-Around ADS-B” solution set. We at Becker believe that ADS-B solutions designed with a systems perspective and with the objective of offering tangible operational benefits offer the best value to both aircraft operators and original equipment manufacturers in the deployment of this exciting new technology.

In the air, Becker offers a complete line of 1090 MHz Mode-S ES (Extended Squitter) transponders, with our

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Compact Line products addressing the needs of General Aviation aircraft, and with our Prime Line products serving larger fixed wing aircraft and rotor craft, up to and including aircraft in commercial passenger-carrying service. These transponders, when coupled with an appropriate WAAS/GPS position source, meet the requirements of the current mandates based on RTCA DO-260B and associated airworthiness directives. And most importantly, these products offer full ADS-B capability delivered with the legendary Becker quality and lifecycle support. Our products for the General Aviation market are scheduled for certification during the first half of 2016, and our Prime Line products for Business Aviation, Regional Aviation and Commercial Air Transport are scheduled to be certified by the first quarter of 2017.

On the ground, Becker offers the ADS-B Traffic Localization and Surveillance System (ATLASS). This system offers a variety of ADS-B derived operational benefits to fleet operators, airport operators and airspace managers. Key capabilities of the ATLASS system include situational awareness, airport operations supervision, surface movement awareness, search and rescue mission management, security services and law enforcement support, flight following for airlines and fleet operators and back-up situation display for ATC and UAV operations surveillance.

ATLASS is offered in three cost-effective and standalone surveillance packages to meet the needs of fleet operations (FLEET), airborne/ground vehicle tracking (SURFACE) and Air Traffic Management (AIR), all three configurations being easy to install and simple to maintain. Traffic is detected and processed by a ground sensor and then displayed on map backgrounds which can be tailored to operational needs, and which are updated regularly to maintain their operational currency.

Becker Avionics stands ready to work with you to meet your ADS-B operational and regulatory needs, whether airborne or ground based. Our specialty is the engineering of built for purpose solutions, and our reputation for quality stands unchallenged in the industry.

When you think ADS-B, think “ADS-Becker”.

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Cockpit Displays Have Come A Long Way!

Reflections from the Rear View Mirror Brian Wilson walks us through some hair-raising experiences with aircraft cockpits over the decades to help illustrate how far Business Aviation avionics have come over the 37 years of his aviation career.

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t was another hot and humid Saturday afternoon in South Florida, and I could feel the sweat running down my back as I carried my avionics test equipment aboard the B727-200. This aging jet had been used entirely as a freighter carrying anything from fresh fish caught in the Caribbean to young stallions destined for the lucrative horse racing tracks in Florida.

As I sat down on the torn fabric that encased the worn-out cushions of the pilot’s seat, the rancid combination of heat, humidity and fodder from the last haul seemed overwhelming. As my focus honed in on the avionics, it struck me that cockpits from that era more resembled the ones in the Smithsonian museum than today’s state-ofthe-art glass and touchscreen panels.

With that said, there was one reliable system

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in that dated cockpit that today’s young pilots have probably only read about in their training manuals: Within that panel were two fully-functional Automatic Directional Finders (ADFs), which in its rudimentary form is no more than an AM radio with a bearing pointer. Once tuned to the proper channel my favorite college football team was soon broadcasting play-by-play action across the cockpit speakers – fancy that, my young aviators!

Fast-forward a decade and I was sitting in the jump seat of a Gulfstream GI due to take-off from Madrid on a night flight to Brussels. The crew had not been satisfied with the performance and accuracy of the VLF/Omega navigation system recently installed and insisted on me joining the flight to share their experience.

The two turboprop engines shook the fuselage as the aircraft left the runway and ascended into the evening sky. Due to this being an allnight round-trip the crew was well prepared with espresso coffee, unfiltered cigarettes and jovial conversation spoken exclusively in Spanish. It was not long after we leveled-off that it was apparent the VLF/Omega systems were not receiving a viable signal and the crew reverted back to VOR/DME, a sophisticated form of dead reckoning.

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Having just met my crew over a short briefing prior to the flight, and this being a start-up company with many new pilots, I was now searching for the emergency evacuation procedures in case the frigid North Sea or the English Channel became our ‘unscheduled’ destination. Only after the young co-pilot turned to me and said in broken English “Eiffel Tower” did I feel comfortable we were on the right track. You see, we didn’t have a Multi-Function Display with a moving map and our flight plan, our position and weather on the screen. I had brought along a map of Europe for which I drew a line from Madrid to Brussels, and Paris was one of the intersecting cities!

Another occasion found me kneeling at the end of the pedestal of a Lear 55 as we were testing the radar stabilization operation that had been squawked numerous times by the crew.

The flight was scheduled after lunch to better our chances of ‘painting some weather’, and the typical afternoon Cumulonimbus clouds didn’t disappoint us that day. One good thing about flying in Florida besides the flat terrain is having 1.5 million open acres of the Florida Everglades to one side and the Atlantic Ocean on the other side. On this occasion we requested a space over the everglades so we could paint ground clutter and adjust the stabilization.

The crew and I were focused on making calibrated turns, climbs and descents while adjusting the calibration potentiometers encased in the radar indicator. Having completed our mission we turned our attention to outside the cockpit for the flight back, only to see the clouds and pending rain storms scattered across the horizon…

The return flight had us going around, under and through thick formations of clouds and precipitation causing slight turbulence and blind spots from all sides of the aircraft. It seemed like ATC was vectoring us to a new heading every few minutes and warning us of traffic doing the same to escape the prevailing and shifting weather.

Since TCAS was just being introduced at that time, and coupled with high equipment and installation costs, we didn’t have the system onboard. I quickly realized that we did have our own primitive avoidance system; it was ATC warning us of the position of the local traffic and the three of us peering out the cockpit windows to locate and avoid potential danger!

“I was now searching for the emergency evacuation procedures in case the frigid North Sea or the English Channel became our ‘unscheduled’ destination.”

The Evolution of Cockpits

The complexity of the cockpits in that era went hand-in-hand with the stick-and-rudder skills of the crew. There was a direct correlation between the standard set of six instruments in the cockpit of the aircraft in which these pilots did their

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initial training and the ones they were flying.

The crew had to be very cognizant of everything inside and outside the cockpit often relying on their own initiative and perception, commonly referred to as “flying by the seat of their pants”.

Any seasoned avionics technician in that day could fix most cockpit squawks with a #2 Phillips screwdriver, a Simpson multi-meter and a set of wiring diagrams. The first generation of pilot instruments was electro-mechanical (i.e. they had internal servo motor-generators that mechanically steered the instrumentation for pitch, roll and azimuth). Remote Instrument Amplifiers were needed to interface the existing systems like the flight director computer, vertical and directional gyro with the ADI and HSI. These instruments soon were being replaced with Electronic Flight Instrument Systems (EFIS).

These color Cathode Ray Tubes (CRTs) were heavy and had a high current draw, but brought reliability and redundancy to the cockpit. The early generation used three small 4-inch displays driven by remote Display Processing Units (DPUs).

The third display was actually a second EHSI mounted in the center panel that had a weather radar display feature when paired with a compatible radar system. The three-tube system quickly evolved into a five-tube system with a fully functional MFD replacing the legacy radar indicator.

Advancements in technology resulted in the CRT generation being replaced with Liquid Crystal Displays (LCD) that ran cooler, were smaller, and reduced or eliminated the amount of the remote units required to run the displays.

Since the earlier models replaced the ADI and HSI they had a vertical profile which was commonly called the ‘portrait’ display. Newer models, which had a horizontal (‘landscape’) profile, quickly caught on as almost all the previous instrumentation was swallowed up in this new architecture.

Today’s cockpit resembles more of a spaceship from a Hollywood movie, with high-resolution flat-screen monitors positioned end-to-end across the panel. A pilot’s interaction with the aircraft is transcending from two hands on the yoke to one on the side-stick controller and the other on the point-and-click trackball controller.

Crew members can rely on increased safety and advanced situational awareness due to technologies not available to the business aircraft just 25 years ago, including TCAS II; EGPWS; RVSM; Enhanced Vision System (EVS); Head-Up Display (HUD); GPS/WAAS/LPV; Synthetic Vision; and Runway Awareness and Advisory System (RAAS).

Profoundly Changed

Many pilots who have flown for 25-plus years will recall their own harrowing experiences with cockpit panels of yore, and wholeheartedly agree as

“...interaction with the aircraft is transcending from two hands on the yoke to one on the side-stick controller and the other on the point-and-click trackball controller. ”

to how today’s systems have reduced workload and improved safety, particularly as the number of aircraft flying increases each year.

NextGen (US) and SESAR (Europe) will address this particular concern with new technology for the cockpit and the Air Traffic System, allowing aircraft to fly closer together both laterally and longitudinally in the same way RVSM tightened the vertical limits.

In the 37 years I’ve been in aviation (military, commercial and business) it is the cockpit that has seen the most profound changes. I can only imagine what today’s engineers are drafting for the next generation, but I will always remember when a simple AM radio was all I needed! T Are you looking for more articles on Avionics? Visit www.avbuyer.com/articles/category/business-aviation-avionics

Section Contributors

Jim Becker is a respected Accredited Senior Appraiser with the American Society of Appraisers. He also holds an FAA Airframe & Power Plant Mechanic license. With nearly 25 years in the aviation industry, 20 have been with Elliott Aviation valuing aircraft.

Contact him via jbecker@elliottaviation.com

Captain George Dom USN(Ret) is president and founder of NFS Advisors, representing buyers of business aircraft and Business Aviation services with factory-new and pre-owned aircraft purchases. Contact him via gdom@nfsjets.com or www.nfsjets.com

Jay Mesinger is the CEO and Founder of Mesinger Jet Sales. Jay serves on the Jet Aviation Customer and Airbus Corporate Jets Business Aviation Advisory Boards (BAAB).

Contact Jay at jay@jetsales.com

David Wyndham is coowner & president of Conklin & de Decker where his expertise in cost and performance analyses, fleet planning and life cycle costing are invaluable. He’s formerly an instructor pilot with the US Air Force.

Contact him via david@conklindd.com

Chris Younger is a partner at GKG Law, P.C. practicing in the firm’s Business Aircraft Group. He focuses his legal practice on business aircraft transactions and issues relating to federal and state taxation and regulation of business aircraft ownership and operations. Contact him via cyounger@gkglaw.com

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Business Aircraft Acquisition Checklist 100

(Part 1)

Items Buyers Should Consider Carefully.

Identifying the steps involved with acquiring and using a business aircraft will reduce the likelihood of surprises and lead to a more successful experience with Business Aviation, notes attorney Chris Younger. Here are some tips...

Board of Directors evaluating the purchase of a business aircraft must consider a multitude of issues in conjunction with the aircraft acquisition process. Many of these items require long lead times to complete.

Tax planning, conducted in advance of the closing, is essential to minimizing the effective costs of aircraft ownership and operations. Similarly, aircraft financing transactions, which often have the longest lead times of all the components in aircraft transactions, need to be planned and commenced in the earliest stages of the aircraft acquisition process. Finally, operational considerations, such as whether the aircraft will be managed in-house or by an external management company, must be addressed in an orderly fashion.

Board Members must ‘run the traps’ (or insist

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that their advisors do their homework) early to ensure that all necessary issues are spotted and addressed prior to the company making a commitment to acquire. It makes sense to approach the process by utilizing the concept of a business aircraft acquisition ‘checklist’ that includes the following…

1. Business Aviation Experts

The Board should first and foremost assemble and retain an experienced team to address the acquisition. Experts knowledgeable in brokering, taxes and technical subjects related to Business Aviation are essential. Be advised that Business Aviation has unique requirements, thus the team the company used to acquire land for a new factory is not the best choice for advising on aircraft acquisition.

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air carrier operating certificate to be flown in FAR Part 135 commercial operations, it is also ideal to involve the management company in the aircraft inspection process for the purpose of identifying all equipment requirements, and to confirm that the aircraft meets all requirements for its operation under FAR Part 135.

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3. Structuring & Tax Planning

The structuring of the company’s use of Business Aviation should be determined prior to the acquisition of the aircraft to ensure that all open items are addressed in connection with making an offer on a specific aircraft.

The Board must access relevant sales tax, federal excise tax and income tax issues as well as FAA regulatory considerations. Furthermore, certain tax planning opportunities, particularly relating to sales tax, should be explored.

Implementing the recommended tax planning may take considerable time due to the potential need to form a new entity to acquire the aircraft and to procure applicable tax-related registrations for the purchasing entity.

4. Aircraft Financing

In addition, the Board may need to retain other specialists, such as a customs broker, depending on the nature of the transaction and the specific aircraft to be acquired.

By hiring an experienced aviation team, the Board will receive the best advice regarding selecting the aircraft make/model that fits the company’s mission profile; identifying the pool of target aircraft available; narrowing the list to those aircraft that are most appealing based on technical specifications, layout, price, maintenance history and cosmetic appearance; and spotting potential legal and tax issues that may exist depending on where the aircraft is currently located, where it will be based, and how it will be owned and operated.

2. Aircraft Management & Operations

The Board and its aviation team will need to decide if the aircraft will be managed “in-house” or by an external management company, and whether it will be available for lease to a charter operator to offset aircraft ownership and operating costs.

If the Board and its aviation team decide that the company will hire an outside third party to manage the aircraft or allow a charter operator to lease the aircraft, much focus will shift to selecting the appropriate service providers since they will have a significant impact on a successful outcome. Thus it is best for the Board to decide in advance how the aircraft will be managed and the flight department structured.

If the aircraft will be added to a charter operator’s

“The structuring of the company’s use of Business Aviation should be determined prior to the acquisition of the aircraft.”

If the company plans to finance the aircraft’s purchase, the Board should immediately engage in the process of soliciting loan proposals and identifying a preferred lender. The process of negotiating the loan terms is often an arduous and time-consuming exercise. While most lenders generally request specific information on the aircraft to be acquired, they are typically able to provide general financing terms in advance if certain specific aircraft parameters are provided (such as model year, price range and aircraft type).

A lender will also be able to commence the lender’s due diligence process regarding the borrower and credit committee approval of the loan prior to the identification of a specific aircraft.

If the Board is in a position to purchase the aircraft without financing, it may be useful to negotiate the terms of the loan during the time that the aircraft is in its pre-purchase inspection but fund the loan after the aircraft is acquired. This will allow the Board to focus on the key elements of each stage of the aircraft acquisition process. It also provides the lender greater comfort regarding the status of the collateral securing the loan, which often allows the lending process to proceed more smoothly. However, there is a drawback to this approach since the incentive to finalize the financing may not be as strong on either side of the table once the aircraft is purchased.

Next, we will conclude our study with a discussion of additional terms an aircraft buyer should consider carefully. T

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A Business Aircraft Acquisition Checklist 104

(Part 2) Additional Items Buyers Should Consider Carefully.

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Chris Younger concludes his list of items to be covered by Board Members and their advisors when acquiring the benefits of Business Aviation. ast time we emphasized the need to address the areas in aircraft acquisition that were particularly time-consuming and had an impact of subsequent aspects of the transaction. Specifically we covered the need to assemble a knowledgeable team of professionals well-versed in the specialized field of Business Aviation.

Our checklist continued with Aircraft Management and Operations, followed by Structuring and Tax Planning, concluding with Aircraft Financing. The following items complete the Acquisition Checklist.

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5. Proposal, Negotiations and Documentation

When a suitable aircraft has been identified, the Board should engage its aviation counsel to prepare an offer letter, carefully drafted and negotiated to protect the company. Although the terms of an offer letter are usually not legally binding, it nonetheless commits the parties to the transaction and helps to avoid ambiguity regarding important business points.

Furthermore, it helps to prevent the aircraft seller from “sandbagging” the buyer by presenting issues in the purchase and sale agreement that were not considered by the Board when it made the offer to purchase a particular aircraft.

Once the offer letter is executed, typically the buyer’s counsel prepares the aircraft purchase agreement setting forth the commercial terms of the purchase and sale transaction. This document: • • • • • •

Expands upon the offer letter provisions, Clearly defines circumstances where the deposit becomes non-refundable, States the obligations of the seller regarding the delivery condition of the aircraft, Describes the inspection scope and procedure, Provides for conditions upon which each party is obligated to perform in proceeding to closing, and Sets forth detailed closing procedures.

The purchase agreement also governs the resolution of disputes and the rights and remedies of the parties. The typical time frame to negotiate the purchase agreement is two weeks, although in an import or export transaction this timeline may be lengthened substantially.

6. Aircraft and Seller Due Diligence

As soon as an aircraft purchase agreement has been negotiated and signed, the Board must engage with the company’s team of aviation experts to conduct its due diligence of the aircraft, aircraft documents and the aircraft seller. This process typically includes the completion of a pre-purchase inspection of the aircraft and the aircraft documents.

The scope of the pre-purchase inspection is typically outlined in the purchase and sale documentation, and the inspection facility is chosen as part of the process of negotiating purchase and sale documentation. The inspection timetable typically is from one to four weeks, depending on the age and condition of the aircraft, the level of inspection to be performed, and the discrepancies discovered during the course of the inspection.

Once the pre-purchase inspection begins, the Board should have its technical consultants, its flight department or management company personnel and hopefully its future flight crew involved in the process of reviewing the aircraft and its documents.

The Board must also engage its aviation counsel to conduct due diligence regarding the status of the aircraft’s seller and the status of its title to the aircraft as well as verification of the seller’s authority to sell the aircraft. These are especially important issues when an aircraft is being imported into the US.

7. Closing

If all of the steps in Part 1 and 2 of this article are followed properly, the Board should be able to complete the closing process relatively smoothly. For the closing, the Board will need to ensure that the aircraft is in a jurisdiction that is sales-tax friendly, that all the foregoing steps have been followed, that all required documentation is in escrow to proceed, and that the aircraft can be operated following closing in the manner and to the destinations desired.

It is imperative that all of the steps relating to an aircraft acquisition be carefully orchestrated to achieve the mission critical planning objectives in the most efficient manner possible. The preparation of a detailed checklist that includes each of the foregoing items is an indispensable aid in guiding the Board through the aircraft acquisition process. T

“The Board must also engage its aviation counsel to conduct due diligence regarding the status of the aircraft’s seller and... title to the aircraft.”

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Buying A Business Jet: Ten Common Mistakes 106

George Dom reviews the basics for Board Members and those who seek advice in buying a suitable pre-owned business jet. electing the right aircraft, at the right price, with the right terms, and avoiding unpleasant surprises is a complex project that requires discipline, focus and persistent attention-to-detail. A successful acquisition is a teameffort requiring expertise in operations, market research and analysis, legal, tax, insurance, finance and project management. Unfortunately, aircraft buyers routinely make one or more of the following ten mistakes:

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1. Not considering all options. Today there are lots of ways to fly privately—charter, jet cards, fractional ownership, whole ownership, and more— with new programs, aircraft and operators

regularly coming and going. Objectively compare all travel options to achieve the best value and safety while meeting your requirements, budget and preferences.

2. Not selecting the right airplane for the mission.

Defining operational requirements with an understanding of real-world contingencies is necessary to avoid costly surprises and frustrations. For example, headwinds flying west in the winter, ATC delays on congested air routes and airports, customs port-of-entry requirements, and challenging destinations (mountainous terrain, hot/high elevations, runway length, etc.) can all adversely impact the optimistic ranges advertised by aircraft manufacturers, brokers and dealers.

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3. Becoming emotionally attached. Emotional attachment to one specific aircraft during the search and negotiation process would be a mistake; especially in the current market, there are plenty of other fish in the sea. When a seller becomes aware you have an emotional attachment to his or her aircraft, your negotiating position is substantially diminished. Keep your ego in check.

4. Not completing a thorough pre-purchase evaluation. This is a great example of being penny-wise and pound-foolish. Even if purchasing the aircraft from a friend or colleague, inspect the most common problem areas of the aircraft and its logs and records. The records must be comprehensive and complete. The devil is in the details of documentation. Damage history, life-limited components, and conformance with the manufacturer’s maintenance program are just three key areas that could pose high-risk to an inattentive buyer.

5. Not hiring an experienced aviation attorney and tax advisor. These professionals will ensure compliance with FAA and IRS regulations, often misunderstood by those not familiar with aviation. An example of a common violation is the “flight department company” — acquiring an aircraft to operate under FAR Part 91 and placing it in a single-purpose entity with no other use than to hold and operate the aircraft.

According to the FAA, a flight department company is considered a commercial operation and subject to the rules and regulations of FAR Part 135, exposing the pilots to license revocation and the owners to penalties as well as tax and insurance consequences.

6. Not being available and responsive. It is essential to be available to your advisors at milestone decision-points with clear, concise and direct communication. “Time kills deals”. Poor communication risks unpleasant surprises and misaligned expectations.

7. Not understanding the all-in acquisition cost.

These include capital and operating costs, refurbishment/upgrades, and upcoming scheduled maintenance. Don’t overestimate the benefit of chartering the aircraft to offset costs (chartering has inherent costs associated with additional flight hours, inspections, wear and tear, Part 135 certificate management, possibly additional flight crew, etc.). Budget conservatively for upgrades and incorporation of desirable optional service bulletins and unscheduled maintenance. Consider enrolling the aircraft in a maintenance services program.

8. Inattention to insurance liability limits, exclusions and endorsements. Take the time to discuss “what-if” scenarios with your insurance broker to stress-test your coverage. Keep your broker informed of every contract you sign regarding operations and maintenance of the

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aircraft to ensure you do not inadvertently void your insurance coverage.

9. Not applying early for financing. If applicable, application for financing sooner is better as it takes longer to complete the process these days. Many a closing has been delayed because the buyer procrastinated in arranging for financing.

10. Rushing to complete an immediate refurbishment/upgrade project. When buying a preowned aircraft, avoid major refurbishment until you have flown in your new steed for a few months, unless the aircraft is acquired as an immediate “refurb project”. Take time to think through all the changes/upgrades you would like to make and then schedule it to achieve the greatest financial efficiency with minimal down-time by aligning the refurbishment with an upcoming maintenance period for sufficient lead-time to acquire the necessary equipment, parts and materials.

Today’s Bonus Point

Not seeking an experienced, trustworthy advisor.

The opinions of those who haven’t been involved in the aircraft market are interesting, but inadequate and potentially misleading.

As a commercial pilot and former military fighter aviator, I have sufficient flight experience that I could safely take off and land a Gulfstream G550, but it wouldn’t be as smooth as I’d like. That doesn’t mean I’m not a good pilot, I’m just not trained with recent experience in the G550. The same reasoning applies to your relative, your friend, and even your chief pilot if they are not trained or current in the aircraft marketplace and the complexities of the transaction process. T

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Price Tracking

How Do We Value Our Aircraft?

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One of the most elusive factors in our industry is determining what our aircraft are worth. Buyers say they paid less; sellers say they got more! Who’s right? asks Jay Mesinger.

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oth Aircraft Bluebook and Vref do a great job of reporting on many factors effecting valuation, addons, value differences between model years, and impact on damage and poor cosmetic condition.

Each publication struggles to capture real value of the base aircraft, however. Both report based on prior quarter sales.

In this rocky recovery period as numbers of sales transactions remain lackluster, gaining enough quarter-over-quarter insight produces a very unpredictable barometer.

As we read each month about the deliveries of new aircraft, our industry tries to put into perspective the value of the pre-owned segment of our fleet. Unlike many industries, ours does not have a recordation body that captures actual sales prices. Real-estate and even used cars are tracked with accuracy.

Our industry is impacted by speculation, hearsay and confidentiality agreements that keep buyers and sellers from being willing to—or even having an interest in—divulging sales prices. So where does that leave us? It leaves us guessing about what is the proper sale or purchase price for an aircraft.

New aircraft deliveries for the most part are tracked based on the manufacturers setting their base retail pricing on an airplane when new. Except for some small discounting at time of purchase from the manufacturer, the value-guessing game begins when the aircraft reaches its first owner.

In our industry’s past we were all using a factor of about 3-4% per year as a fairly accurate residual loss rate.

Collectively our industry is coming to understand that a more realistic number should be as much as 10% for the first year, then as much as 7-8% for each year thereafter. Might that number begin to go down after some number of years?

Probably. How much is still not defined.

Doing the Math

How do we, as an industry test this? That’s easy. We can each use example airplanes for which we have absolute knowledge of the sales price. Take that sales price and do the math: • •

Turn to one of the reporting books and look at the original ‘new’ delivery price; Deduct 10% off of that number for the first year;

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Deduct 7% from the remaining amount, annually, until you reach the current year.

How close does that number come to the actual sales price that you truly believe? If the loss rate seems too aggressive, go to year six and reduce the loss rate to five percent per year, deduct that amount and then calculate for the next year. My sense is that such an approach gets you either right on, or very close to the actual sales price.

During our pre-downturn years—2003 to 2008—selling numbers were often skewed by premiums being paid for new or very-like-new airplanes that were available for immediate delivery. Be sure that you do not use the premium price to calculate current value. That premium was lost in one day starting at the first resale of the aircraft after its original premium-laden purchase.

As an industry, we have been burdened with inaccurate information regarding pricing for way too long. The more iterations of aircraft sales we have, the more difficult it becomes to peg residual value. Using an understated annual residual loss rate only complicates an already complicated calculation. It also hinders an accurate understanding of values and keeps a solid trajectory from occurring in a recovery.

As long as sellers cannot trust input as to what number to ask (or even worse what number to accept) as a sale price, and buyers do not know what number to trust as a purchase price, any meaningful business of buying and selling cannot get traction.

The post-2008 period in our industry has been full of false starts. After one quarter, we shout recovery. After the next quarter we scratch our collective heads and wonder where the recovery went. I reported a year or so ago that ‘flat would be the new up’. If we could just get 3-4 consecutive quarters of flat pricing we could consider that a healthy market. That has still not happened. Sure the trend is leveling to some extent, but we are still not on solid ground.

We are not ready to relax and consider that the good old days have returned. We must all work harder than ever, and we expect that hard work to continue for some time. The days of coasting through a career may be gone for good.

Maybe the requirement to work harder and smarter than ever in the history of our industry is a good thing. It raises the barrier for entry into this great industry of ours. T

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Cash, Finance or Lease: How Should you Obtain your Next Airplane?

While lending institutions are restoring practices popular before the financial meltdown, even with multi-million dollar transactions cash still remains king, notes David Wyndham in this primer on financing basics. et us take a quick look at the state of financing for business aircraft as 2015 dawned. The post-recession return to equity-based lending and the concurrent need for borrowers to provide more detailed financial disclosure, kept financing at about 25% of US retail business jet transactions through the end of 2014.

Twelve-month LIBOR rates have been prime subone percent since September 2012. The latest Federal Reserve Board (October 2014) Senior Loan Officer Opinion Survey on Bank Lending Practices indicated that 10% of large banks eased their standards for commercial and industrial loans to firms of

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all sizes, with no one tightening loan standards.

Banks are stabilizing their balance sheet. For companies with excellent credit, borrowing money isn't free, but for a profitable corporation, it is very close.

A big advantage of paying cash for an aircraft transaction is the speed at which the transaction can occur. The immediacy of the cash deal can secure the best pricing as there are no financing contingencies. There is also no debt to disclose on the balance sheet. The cash deal attracts the least amount of external attention as it keeps everything between the buyer and seller. For a company with sufficient liquidity and a Board that is averse to debt, the cash deal is the only deal.

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Other Uses of Cash

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Financing a multi-million dollar business jet can allow the cash to be used for investing in opportunities that are understood by you, but may appear to have a higher risk for the lender. Traditional asset-based lending for a new or recent vintage business jet currently offers interest rates in the 34% range. Residual values of newer business jet models have stabilized and remain at higher percentages than most other capital equipment. Generally, getting the best finance terms require down payments of 20%. For a popular business jet, this covers the residual-value risk to the lender.

Leases have advantages for companies that know their utilization will remain stable and are intent on retaining the aircraft for the full term of the lease. A lease can also be a viable option if your company does not need the tax depreciation. With an operating lease, at lease end you can purchase the aircraft at fair market value or return the aircraft and walk away. Some leases have early buyout options. A lease can be financially a good alternative but with two major caveats: Leases can be more restrictive on aircraft utilization Getting out of a lease early is costly.

The lessor, in assuming the residual value risk, wants to maintain the aircraft’s value. An aircraft with lower utilization (i.e., flight hours) will have a higher resale value versus one with higher total flight time. End-of-lease detriment calculations look at the total time flown and the time remaining until heavy maintenance on the major cost components. Flying more than anticipated in the lease agreement can result in a costly expense when the lease ends. Make sure your team understands the end-of-lease terms especially as they relate to aircraft condition and utilization.

Banks love it when customers want to exit their lease early. Even early buyout options may not be that advantageous if the financing agreement calls for high residual percentages. One client we have wants to upgrade their leased midsize jet to a larger jet. If exercising the early buyout option on their midsize jet, they will pay the bank about 50% more than the current market value of the aircraft.

Net Present Value

When we are working with a client evaluating business aircraft options, one part of the analysis is to look at Net Present Value (NPV), which considers income that could be generated from investing the lease payments when they come due. The NPV analysis evaluates both the timing and the magnitude of the cash flow as well as prevailing interest rates.

With a business jet, there is no revenue-generation save for the eventual sale of the asset. So, while the business jet acquisition NPV is almost

always negative, we look to the NPV to identify what cash flows are most favorable to the buyer.

With internal rates of return that are greater than the financing terms, and allowing for the tax depreciation of the aircraft, the NPV favors the finance option over the lease for most of our corporate clients. The higher the internal rate (i.e., hurdle rate), the more favorable financing becomes. Balloon payments can enhance the finance NPV versus the cash purchase. These options tend to be available for new aircraft and for popular preowned models that are nearly new.

Lease NPVs tend to be favored when there is little or no tax depreciation benefit, or when the term is very short – i.e., under five years.

With any ownership option, you are taking a responsibility for the future value of the asset. The provider of a traditional loan shares that responsibility during the loan term. At loan end, you need to decide whether to sell or trade the aircraft, or continue with that aircraft. For a six-year-plus loan, you are likely finished with any tax depreciation and no longer have the interest expense. From an NPV perspective, you have maximized the value of the loan. T

“ ...we look to the NPV to identify what cash flows are most favorable to the buyer.”

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Residual Values: The Effect on Financing.

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The idea of aircraft financing swinging back to a more open and broader-based service industry is so exciting and expansive in the discussion of a recovery, notes Jay Mesinger. But how will the residual value component impact on lenders’ willingness to participate? ith regard to aircraft financing, the good news is that there are more resources and flexibility around age of aircraft that can be considered. Even a moderate swing toward more liberal terms would be a huge improvement for buyers.

For the last several years, pinning down residual loss rates and a residual value have been plagued with outcomes that have been less meaningful since predictions never seemed to hold true. A combination of factors played into the problematic nature of these assessments.

Thus, rather than developing another financing article, I felt it would be beneficial to expand on the importance of residual value in the financing industry’s willingness to provide funds for aircraft that have been overlooked during our recovery.

In the 40 years that I’ve been buying and selling aircraft across multiple downturns and recoveries, I’ve never seen a recovery that did not have a robust lending community to help stabilize, and push the recovery along.

That fact is interesting because a lack of financing may have slowed the current recovery, but more cash buyers entering in the market means a more solid group of new owners.

When you use all-cash to buy, often the result is a better thought-out purchasing decision and a greater eye towards purchase price. Furthermore, as more lenders trickle back into the market and financing is not limited to a few ‘big name’ banks that are mostly driven to lend based on strong, long-standing relationships, a healthy competition in favor of the borrower will return.

Rather than summarily declining requests for financing, lenders today are becoming more tolerant regarding the age of the aircraft and models out of production.

Discretion still will be - and should be - used to keep our industry recovery on a solid footing. The metrics used to evaluate residual value will surely center on a combination of age, pedigree, records and cosmetic condition, as well as modernization and upgrades.

Longer Shelf Lives

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“If we can get an industry buy-in to this concept, we will be able to consider a longer life to our existing fleet”

Will older aircraft bear the cost of avionics modernization? My sense is ‘yes’ for many aging models, and this is a huge factor on our older fleet remaining relevant to the lending community. If we can get an industry buy-in to this concept, we will be able to consider a longer life to our existing fleet. If that happens, we may begin to see a bottom-up strengthening to our market rather than just top-down improvement. This situation will be a change from the recent past when we struggled to assess at what point an aircraft reached its scrap value.

I wouldn’t want to spread hope across the oldest, less compliant segment of our fleet (including very old turboprops and non-turbofan jet aircraft).

Even though the lenders may embrace slightly older aircraft, they will not have an interest in the very oldest, least compliant models.

Imagine if we could just add 10 years to the fleet life. That change would be a huge benefit to the value component, as well as to the growth rate of our recovery. New weighting components for residual value will increase the attractiveness of aircraft that recently were overlooked or not counted.

I am sure that it will be clear very soon why lenders are becoming more and more willing to take this positive step to aiding and supporting the recovery. The lending community is remembering the great value a well thought-out aircraft portfolio can bring to their bottom lines.

We are very excited about the recovery and all the ancillary growth this will bring to our industry.

There is no doubt the manufacturers will continue their work to bring new models to market as well as new iterations to current products - and this will affect the top-end valuation of the market.

I am most excited about the low-end market opportunities for first-time buyers and step-up buyers from turboprops to jets.

I believe we will have a great 2015 and beyond.

Aircraft financing will be a big part of our collective success! T

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Who Buys Them, and Why? Jay Mesinger considers buyer concerns regarding high-time aircraft, and outlines how sellers of such aircraft can help remove barriers to a deal.

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he manager of a leading aircraft valuation guide asked what I thought about adding a category for aircraft previously owned and operated in fractional programs. Essentially, these aircraft were going to have higher cycles and times. Shouldn’t they be viewed and valued differently to other aircraft?

When fractional ownership programs began, no one really knew if hours flown by fractionals would match the expectation at that time, which was about 800 hours annually – approximately twice the typical annual usage for a wholly-owned business jet. We concluded that it would be wise to wait and see if the fractional idea even caught on first. Imagine that!

With the benefit of hindsight, it probably would have been a good idea to add that category. It’s clear now that the idea certainly caught on, and in fact there are a tremendous amount of aircraft that have been used in these programs now sitting on the market with two or three times the number of hours on their airframe and engines versus a comparable non-fractional airplane.

Perception Vs. Reality

The outcome is usually a smaller pool of prospective buyers - sometimes significantly smaller. The smaller the pool of prospects, the longer it could take to find a buyer. Many who discount the aircraft do so because they cannot overcome the perception that the airplane may not be as safe as a lowertime model. In my opinion, this is probably unfounded provided the aircraft has been maintained properly. Thus we find perception, rather than reality, becomes the central focus.

The idea of a higher-cost to operate is based more in reality than perception. The higher the time and cycles of the airplane, the closer one gets to the expiration of many lifelimited components. Even those without life-limits become more liable to develop faults or simply wear out. While these conditions do not make the airplane unsafe, they do make it a more costly prospect.

As regards to that high-time airplane becoming harder to sell, it takes an intelligent, experienced buyer who realizes at a certain price (one less than the lower-time airplane) the value outweighs the cost.

So as we get to a fleet age that is on an upward trajectory, and then segment those airplanes into average airframe time versus higher airframe time, we arrive at a reality of segmentation that will not change.

Another problem with pegging the value of the high-time aircraft is that there are far fewer transactions that occur to create real comparisons for valuation. So if there is not an industryrecognized calculation that accurately depicts the impact of high-time, it unfortunately becomes a ‘What are you willing to pay me?’ scenario when selling to the smaller buying population that would accept the aircraft.

As a seller of a high-time airplane, you should be very open to buyers that express an interest in your aircraft, and refrain from using terms like ‘bottom feeder’.

To answer the question in the title of this article, the ‘Who’ is the knowledgeable buyer, and the ‘Why’ is price of the aircraft. I chose the words to answer that question thoughtfully. If someone makes you an offer on a high-time aircraft, consider it carefully. Work to get a good contract and have it include realistic pre-buy protocols. Bottom line, make the deal! T

“ Thus we find perception, rather than reality, becomes the central focus.”

Since aircraft typically used in fractional programs do not have airframe life-cycle restrictions, there’s no reason not to consider them a viable proposition to sell and buy, but very little guidance is given – even today – as to how they should be valued. The valuation guides do report an average airframe time for each model year, and they give a calculation to use for additional hours over that, so that a prospective buyer can correct the valuation above or below the average time calculated for a given year. That works for small variances but not for significant changes.

As an example, let’s assume an airplane for a given year has an average airframe time of 5,000 hours. A comparable one that has been in several years of fractional service has 10,000 or more hours on the airframe. The difference has various implications for the buyer. First, it elicits questions from the less experienced buyer regarding safety. The experienced buyer, on the other hand, will focus on cost of operation and resale.

These are both legitimate questions, and are not unlike the discussions that arise from buyers with respect to damage history in an aircraft.

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High-Time Aircraft

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Economic & Functional Obsolescence? (Part 1) 114

Should you Scrap or Upgrade your Older Aircraft?

What is involved in a decision to upgrade or scrap an older aircraft?

Aircraft appraiser Jim Becker notes there are more than the usual aspects of avionics, equipment, records and condition to consider where deciding on an older aircraft’s economic worth is concerned… n aircraft has both a physical life and an economically useful life. Generally defined, the physical life is the number of years or hours that the aircraft can be operated before functional or economic obsolescence is considered. The economically useful life is the number of hours or years that the aircraft may be profitably operated for the purpose intended.

These two definitions may present different circumstances for operators of older aircraft.

As defined, economic obsolescence is a form of depreciation where the loss in value of a property is caused by factors external to the property, and may include passage of new legislation; changes in ordinances; and reduced demand for the product.

Functional obsolescence, on the other hand, is a form of depreciation in which the loss of value or usefulness of a property is caused by inefficiencies or inadequacies of the property itself, when compared to a more efficient or less costly replacement property that new technology has developed. Some of the symptoms suggesting the presence of functional

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obsolescence are excess operating cost and lack of utility.

It is easy to imagine how these two definitions would affect a piece of equipment such as a copy machine or a tractor. But how does it affect our aging corporate aircraft fleet?

Keep in mind that the peak production year for corporate aircraft was in 1981 and there are thousands of 30+ year-old aircraft still in operation. Obviously, just because an aircraft is old doesn’t mean that it can’t be operated safely but in some cases, it cannot be operated economically. There are several issues that will affect the continued operation of these older aircraft.

Investment Issues

Are there times when it makes economic sense to invest an amount in your aircraft that exceeds its actual market value?

Although the values of older aircraft have plummeted, cost of operation tends to go up the older an aircraft gets - and in some cases, can be double

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HUBBARD AVIATION TECHNOLOGIES’ QS3 HUSHKIT SOLUTION FOR OPERATORS OF GULFSTREAM GII/IIIs

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or triple the cost per hour of a younger aircraft. For some aircraft, a major maintenance inspection can cost upwards of $250,000, with engine overhauls nearing $500,000+, per engine. Considering that the value of the aircraft may be a half to a third of that amount, it is a difficult decision to decide whether to invest two or three times the aircraft’s market value just to keep it operational.

In many cases, making upgrades can still be beneficial to you by extending the life of an aircraft that may already fit your mission profile. For instance, if you are going to spend over a million dollars on an aircraft that is worth $700,000, it still may be less than finding a replacement aircraft of equal utility. In addition, you do not have to spend the time and money in finding a suitable replacement aircraft; training crew members; understanding new maintenance programs; and potentially finding a new maintenance facility.

Regulatory Issues

Next, what are the regulatory matters that may affect older aircraft? As an example, there is a December 2015 deadline for aircraft to be Stage 3 noise-compliant in order to be operated in the US. This affects the older generation of turbojet engines (such as those powering the Learjet 24/25 series; Hawker 600 and Gulfstream GII/GIII). The key question for these operators is, do they want to invest in a noise suppression system (hush kit) to become compliant, or does it make more sense not to invest? The answer will vary for each individual flight department.

An even larger upcoming regulatory issue is the Automatic Dependent Surveillance – Broadcast (ADS-B) Out mandate, which takes effect in 2020.

Part of the FAA’s NextGen System, this will affect all aircraft operated in the US for flight in most controlled airspace. Even though ADS-B is only five years away from being mandated, there is still a lot of uncertainty regarding when particular, less-popular legacy aircraft will have a solution and what the actual cost will be. As with most avionics upgrades, the older aircraft can be expensive to modify.

Something else to consider is the functional obsolescence of the Cathode Ray Tube (CRT) type Electronic Flight Instrument Systems (EFIS). This affects not only some older aircraft but many that are as new as ten years old. The problem is that the CRT EFIS tubes have a finite service life. Although there are still replacement tubes to be had, there are no companies manufacturing new tubes anymore.

When the inventory currently in the suppliers’ hands is depleted, there will be no more replacements. As of today, many models do not have a LCD panel replacement option and those that do will be forced to upgrade.

Cocktail of Factors

For those who still operate older aircraft, just because some element of functional or economic obsolescence affects you doesn’t mean that your air-

“...if you are going to spend over a million dollars on an aircraft that is worth $700,000, it still may be less than finding a replacement aircraft.”

craft is necessarily ready for the scrap yard. There really isn’t any one issue that will render an aircraft obsolete. Many factors will ultimately determine whether you will still be able to, or even desire to operate your aircraft ongoing.

Each flight department must weigh the pros and cons of replacing a legacy aircraft, giving consideration to their flight budget and specific flight missions. As long as parts are still available and the aircraft can be made compliant to the upcoming regulatory mandates, there is no reason that an older aircraft can not be operated safely for the foreseeable future, although it may not always make economic sense to do so.

Next time, we will continue our discussion of older aircraft and the issue of economic obsolescence by considering the typical owner/operator who may be in the market to buy an older jet. T Are you looking for more Business Aviation Ownership articles? Visit www.avbuyer.com/articles/category/ business-aviation-ownership/

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Economic & Functional Obsolescence?

(Part 2) Upgrading Older Aircraft Makes Sense For Many Operators...

Previously, Elliott Aviation’s Jim Becker discussed economic and functional obsolescence as it applies to older corporate aircraft. Can it make economic sense to invest an amount in an aircraft exceeding its market value? e have found that, for many operators, the answer to the above question is ‘yes’. Despite the fact that an aircraft has a physical life and an economic useful life (see Part 1 on previous pages of this year-book), older corporate aircraft are indeed viable solutions to a certain type of operator as we’ll discover below…

In the past year alone, over 600 jets older than 25 years have transacted, not only including older

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Challengers, Citations, Hawkers, Learjets and Gulfstreams, but also those built by companies that are no longer making aircraft (i.e. Sabreliner and IAI).

The evidence shows that owning a jet older than 20 years can make sense to various operators.

Even though many of these aircraft are facing economic obsolescence, their owners have chosen to invest the capital necessary to bring the aircraft up to modern standards.

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There are several reasons why an owner/buyer would choose to invest in a decades-old airplane. In some cases, it’s an operator who has owned their aircraft for many years: It is a known entity to them - they know its maintenance and operational history and are comfortable with their aircraft’s performance and operating costs. They don’t have a foreseeable change in their typical flight mission, and by keeping their older jet, they don’t need to re-train their flight crew on a different aircraft type.

I recently spoke with the owner of an older model Hawker 800XP who invested in modernizing their aircraft with the latest Honeywell CDS/R with FMS 6.1 avionics, along with new paint and interior. While that investment neared the value of the aircraft, they have owned the jet for many years and were very comfortable flying it. Their crew is familiar with operating the aircraft and, for them the size of the cabin was perfect for their mission needs.

Similarly, I saw an owner of a late-1970s King Air 200 recently spend over $1.5m dollars on upgrades, replacing the avionics with a state-of-the-art Garmin G1000 panel, upgrading the engines with more powerful PT6A-52s, and refurbishing it with a new paint and interior, all-new wing boots and fuel cells.

To some, it would seem pure folly to invest this kind of money in an aircraft with a value well below $1m, but if you dig deeper, you can see why it made sense for them (they had purchased the aircraft new and it had served them well for about forty years). The cost of replacement like-for-like with a newer model would have been greater.

Generally speaking, this particular owner-type is happy with their maintenance-provider, and the aircraft owned still receives a good level of support from the OEM. Another motivated group would be the aircraft buyer who simply doesn’t want to pay the price of a newer model. They can purchase an older aircraft, and similar to the owners in the above case studies upgrade the avionics, paint and interior even the engines in some cases. Although this buyer-type may have invested more in the aircraft than its market value, they end up with an aircraft that has been brought up to modern

standards for less money than buying a newer aircraft already at those standards.

A third group also seeks to take advantage of the low acquisition cost of an older aircraft… Some charter operators have been taking advantage of price declines for older jets. Although the acquisition savings may be offset somewhat by higher operating costs, it still makes economic sense to them to follow this route. In many cases they can charge the same hourly rate for an older aircraft as for a newer one, especially if the cosmetics are good.

The Lending Myth

When used aircraft prices started falling in 2008, many aircraft lenders restricted the types of aircraft that they were willing to finance. Buyers of older aircraft aged 15-years-plus found limited choices for finance as many lenders refused to underwrite those jets. This put additional downward pressure on these models.

It’s a myth, however, that aircraft lenders won’t loan on an older aircraft. Companies such as Aircraft Finance Corporation (as an example) specialize in older aircraft. While no age restriction is placed, there is a preference to loan on aircraft with fewer than 10,000-12,000 airframe hours though.

Closing Thoughts

Hopefully the above discussion illustrates that an older aircraft that might have become obsolescent in the opinion of some is not necessarily obsolescent to all. There can be many reasons to purchase, or continue flying an older aircraft. Many factors will determine whether an aircraft can be operated economically or, in fact, has become obsolete.

The ultimate decision maker is you. You decide if your aircraft is still providing the required level of service and reliability and if, in some cases, it is worth it to you to invest an unrecoverable sum of money in that aircraft.

Next time, we’ll focus specifically on the buying segment for older aircraft and consider what the buyer of an older aircraft should consider to ensure they walk away from the deal smiling… Stay tuned! T

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Economic & Functional Obsolescence?

(Part 3)

Can You Fly Away Smiling in an Older Airplane?

Previously, we considered economic and functional obsolescence in older aircraft and when it makes sense to shop for an older aircraft.

Yet there are still many factors to ensure that you are ultimately happy with your older purchase, warns Elliott Aviation’s Jim Becker. et’s assume you’ve decided to take advantage of the low purchase-price for an older aircraft. What can you do to a) determine whether to follow through with the purchase, and b) avoid the potential minefields associated with shopping for this class of aircraft?

Once you have decided which aircraft types fit your mission profile, you really need to do your homework to determine which models are practical to operate.

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Operating Costs: First, get a good idea of what the operating costs will be. There are several services that specialize in determining operating costs for the various models available, including Conklin & de Decker, Aircraft Cost Calculator, and several other online resources.

Maintenance Costs: Next, decide where the maintenance will be done. Just because there is a maintenance facility in your area doesn’t mean it will be capable - or even willing - to work on your

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Telling the Time…

prospective vintage aircraft. Identify suitable maintenance facilities, which must have technicians experienced in your chosen model as well as required tooling and manuals, before buying the aircraft.

Parts Availability: Another issue for older aircraft can be parts availability. In some cases, the OEM is no longer in the business of building corporate aircraft. It is always a good idea to determine where you can obtain parts before you commit to buy. You can do this by contacting flight departments operating that model of aircraft – these are probably your best sources of information.

Bear in mind that the available parts will likely be more expensive than those for newer aircraft. Depending on the model, you might investigate the availability of spare parts to stockpile. For example, items such as EFIS tubes are becoming increasingly difficult to find since they are no longer manufactured.

When a specific model is identified, there are many factors to consider. One of the most obvious is airframe time. Typically, the lower the better, but on an aircraft of this class, that may not always be true.

While abnormally high airframe times can be a red flag, the same can hold true for abnormally low airframe times.

For example, if the average fleet of the model you are considering has 12,000 airframe hours, a 2,000-hour machine may look highly attractive.

Scratch below the surface: if that particular aircraft has been sitting around for an extended period of time without having been run or flown, it could be a particularly troublesome buy!

Engine times are another factor to consider: the lower the time since overhaul or mid-life inspection, the better. And consider overall requirements: examine the log books to get an understanding of the amount of time and cycles remaining on critical (i.e. expensive) engine components. If the engines are enrolled on a maintenance service program, be sure to contact the plan administrator to check that the account is fully paid.

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Forecast Expenses: Get a handle on future expenses before you select a model to purchase.

Some aircraft are more expensive to maintain than others. Find out the maintenance schedule for your prospective purchase and determine what the expensive events will be. The engine manufacturer or an authorized overhaul facility will be helpful in determining engine expenses. Maintenance facilities and aircraft operators of similar aircraft can also be a good source in determining maintenance costs.

Online Research: Many of these models have pilot forums where various issues are discussed. Pilots love to talk about their aircraft and are usually a good source of information.

“Find out the maintenance schedule for your prospective purchase and determine what the expensive events will be.”

Satisfactory Service

The aircraft’s service history is another key factor.

The inspection status of an aircraft at this price point can have a huge effect on the aircraft’s overall value. Have the logbooks and maintenance status reviewed before making an offer on the aircraft. It is imperative to get a clear picture on what inspections are coming due. Some of these inspections may cost more than the purchase price of the aircraft.

Following are some important questions to ask: • Who has been maintaining the aircraft?

• What are their qualifications?

• Where is the aircraft being operated?

If possible, get copies of the work orders for the last few inspections. This will give a good indication of whether the aircraft has had good

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maintenance care. You don’t want to be the one who is paying for someone else’s deferred squawks.

Some of the usual factors of aircraft value actually have little influence on an aircraft of this vintage.

For example, the age of the aircraft, damage history, and certain missing records will not have the same effect on this class of aircraft as it will have on a much newer and more expensive model.

Other Key Considerations

Consider the avionics and other equipment installed in the prospective aircraft. It can be more cost-effective to find an aircraft that has the avionics and equipment that you want already installed.

For an aircraft of this vintage, these upgrades can add marginal value, regardless of what the owner spent to have them installed.

Finally, consider price. For an aircraft of this vintage, prices can vary hugely. For example, a Beechjet 400s lowest published ask price at time of print was $249,000 while the highest is $950,000.

Fully analyze the reasons why your desired aircraft

“Some of the usual factors of aircraft value actually have little influence on an aircraft of this vintage.”

is priced at a certain value, and take the items we’ve listed above into consideration.

Once you have identified a specific serial number of the model you desire, involve your maintenance facility. Also, have the same maintenance facility that will perform the regular maintenance undertake the pre-purchase inspection. This way you won’t be caught between two shops if there are squawks that were missed in the pre-purchase inspection.

Keep in mind that you may only be allowed to perform a limited scope inspection. The value of some older aircraft have fallen so low that many owners will not allow them to have the full exposure of a traditional pre-purchase inspection. You need to consider this situation when budgeting for future expenses.

As we have discussed in this article series, if it fits your mission profile and budget there is no reason why you can’t continue to operate, or purchase, an older jet aircraft. If you do your homework, you can obtain a safe and reliable aircraft at an unbeatable price, and fly away smiling! T

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Upgrading to Sell?

How Much Should you Invest to Sell Your Aircraft?

Jay Mesinger addresses an often asked and appropriate question, but one that entails a complex answer. s anyone who owns and operates an aircraft knows, there are numerous ways to spend funds. While direct operating costs are ongoing, there are expenses that can be and often are deferred, such a striping and repainting or re-ragging the interior. What should be the timing of such discretionary items, particularly when you are considering the sale or replacement of the company aircraft? Should upgrades be done to enhance the ownership experience or to facilitate the sale at the time of replacement?

I discourage sellers from spending money that they do not get to enjoy. In other words, there should be a direct benefit from investing funds in your current aircraft. If you postponed painting and now realize that the aircraft’s cosmetics will be a real

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deterrent for a buyer, painting immediately prior to selling without enjoying the pride that comes from operating a handsome steed is a real shame.

The same goes for interior work. Worse yet, let’s say you do invest in paint and interior work but the first thing a potential buyer says is, “I wish it where blue, not green”!

Other factors (such as price) being equal, cosmetics do make a measurable difference in the aircraft’s appeal at the time of sale. Do not misunderstand; your aircraft does not need to look brand new to be appealing to a buyer of preowned equipment. But a very clean aircraft is more desirable than one that the prospective buyer would be embarrassed to operate without investing in refurbishments, which means down time, additional cost and effort for the new buyer.

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(Incidentally, cost and timing of refurb impact current owners as well as prospective buyers.)

During your ownership life you may find a predictable time to have cosmetic upgrades done in conjunction with other scheduled maintenance or shop visits. You should take advantage of such opportunities to bundle work. But if you haven’t and it is time to sell, consider discounting the aircraft by the cost of the paint job or cabin re-rag. That approach may work with some buyers. Remember, however, that you are asking the buyer to acquire the aircraft and take it out of service for two to three months before they get to enjoy the benefits of ownership, which is a lot to ask. It is better to bring a very nice looking, not necessarily pristine aircraft to market.

Bottom line, don’t bring an aircraft to market that is in desperate need of cosmetics. Also, avoid a sizeable investment just to sell. Find the balance.

Other Costs

Consider other expenditures—major airframe inspections, for example. Often sellers ask about selling their aircraft right before a major maintenance event such as a “C” check, 72 or 96 month inspection. Again, buyers expect heavy discounting for near-term scheduled maintenance.

Typically, buyers want at least 25-35% of service life remaining before a major inspection is due.

Otherwise they may be unwilling to buy, or they may demand the inspection be completed by the current owner.

Spending funds on avionic upgrades requires careful thought, in part because various options may be available. When I help someone buy, I seek an aircraft that meets regulatory mandates and has suitable connectivity (high-speed internet) to satisfy mission needs.

When the current owner/seller has made the investment, my buyer probably will not be investing 100-cent dollars to get the modifications. However, if the seller has not done the upgrades, the price for avionics modifications essentially is set and not likely to escalate due to surprises that often happen when dealing with cosmetic or maintenance events.

Worst-Case Scenario?

Consider the worst-case scenario: you own an aircraft that is facing significant maintenance work, has very poor cosmetics, no connectivity and mandatory regulatory upgrades. What do you do?

“It is better to bring a very nice looking, not necessarily pristine aircraft to market.”

You have not made those investments in the aircraft (thus should have money in the bank), but it is unrealistic to expect that the potential buyer will view your aircraft as similar to one that requires little or no work. The buyer probably will discount your aircraft by an amount greater than the cost of required refurbishments.

It also is important to understand that some buyers want nothing to do with a “rehab project”— which is what some people call an aircraft that needs lots of work—regardless of price. The small universe of buyers willing to take on rehab projects is hard to find, often adding considerable time to the selling period. Thus, I advise clients to pursue every offer; think each through from a personal perspective; and I try to put the seller in the buyer’s shoes.

More importantly, if time is on your side, make long-range transition plans so that you can benefit from investments in upgrades during your ownership experience rather than spend funds that a total stranger will enjoy! T

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Section Contributors

Dave Higdon is a highly respected aviation journalist who has covered all aspects of civil aviation over the past 35 years. Based in Wichita, he has several thousand flight hours, and has piloted pretty much everything from foot-launched wings to combat jets.

Contact him via Dave@avbuyer.com

Nadeem Muhiddin is the General Manager at Gamit, which specializes in Aviation Asset Management. Specifically, Gamit is an industry leader in aircraft and engine auditing and comprehensive technical management.

Contact Nadeem via n.muhiddin@gamit.co.uk or visit www.gamit.co.uk

Tony Rossi is a seasoned sales and service professional with nearly 25 years’ experience in the aerospace industry. As an Engine Product Line Specialist for Jet Support Services, Inc., he’s responsible for facilitating engine repairs and overhauls specific to the Pratt & Whitney product line. More from www.jetsupport.com

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Engine-Maintenance: It’s All Up to the Maintenance Manager...

Dave Higdon considers best-practices for managing the maintenance needs of the company aircraft to ensure it performs at its optimum level for your corporation.

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he aircraft maintenance technician looked up from the high-bypass fanjet that he was inspecting prior to purchase, grinned and told the prospective buyer, “Nothing's certain but death, taxes, annuals - and hot-section overhauls.” As the technician withdrew the borescope from deep within the jet’s powerplant, he smiled again. “There’s no doubt about it. That engine needs overhaul...at some point.”

The inspector's impish grin belied his intent, and the prospective owner exhaled – then smiled

as the technician qualified, “But not now – and not for a while.” The technician recommended that the soon-to-be owner continue the seller's maintenance management program.

“If you want to get these powerplants to their TBO hours, keep up good on-condition management and follow what the old owner did,” he advised. “But don't be afraid to get another look-see if engine-monitor data drift out of spec. Otherwise, I’ll see you at the annual and find out how good you are at engine maintenance management.”

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health monitoring and trend analysis provide information tools designed to help owners and maintenance technicians with data on which to base their decisions. Those systems also help owners understand the need behind some of those decisions.

“...these devices can instantly alert the flight crew, and even the maintenance shop when any parameter strays from the norm...”

What’s the oil level? Are fan spins interferencefree? Are you visually free of damage? For most turbine-aircraft pilots those three steps encompass the Alpha and Omega of pre-flight engine checks. Pretty much all else - particularly the hard-working compressor stages and hightemperature hot-section components - sit far from view.

Cycles, rather than a clock and operating hours, may stand as the primary parameter for preventive and required maintenance; hours still count for most engines though. Regardless, much of engine maintenance occurs when conditions require the work, as defined by the manufacturer.

Both hours and cycles come with on-condition parameters.

So how do pilots and maintenance technicians judge when something might be amiss – or headed toward a problem? In these days of fullauthority digital engine controls (FADEC), engine maintenance decisions largely hinge on enginehealth information. Electronic engine health monitoring systems track and record important parameters many times a second. Using the monitoring systems' database of normal parameters as reference, these devices can instantly alert the flight crew, and even the maintenance shop when any parameter strays from the norm, or worse, when they deviate into a range capable of inflicting damage. The warnings generated typically indicate one of three levels of severity – from no action needed to immediate, dramatic action warranted.

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On-Condition vs On-Time & On-Screen

Engine Maintenance Management

This owner-operator stepping up to a twin jet knew the concept. But as somebody who progressed to turbofans from piston singles over a decade, “maintenance management” generally consisted of the same stuff he applied starting with his first single: Regular oil changes (with oil analysis); routine filter replacements; and the engine elements of an annual inspection (compression checks, exhaust system tests, spark plug cleanings and all the other trappings of the 12-month ritual).

Moving into something with the six-figure cost potential of un-anticipated engine work, however, demands attention to different parameters.

Management practices for engine maintenance require a more-organized, more focused approach.

Fortunately, the art and science of engine-

Pulp Friction vs Digital Tracking

Engine maintenance monitoring at its most basic consisted of traditional paper-based logging of powerplant use and performance, plus enginemaintenance record-keeping and monitoring.

What already stood as a complicated process in those simpler days now demands a maintenancemanaging process compatible with electronic data, electronic records and electronic-based maintenance manuals.

Today's engine maintenance monitoring at its most basic begins on the shop floor on a tablet or notebook computer capable of showing and recording the maintenance logs, maintenance manuals and information from the aircraft OEM, avionics manufacturer and, of course, the builder of the powerplant(s).

These monitoring systems go by various names

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– ‘Engine Indicating and Crew Alerting System’ (EICAS) – is a common label used by Boeing and multiple business aircraft makers. Airbus' in-house ‘Electronic Centralized Aircraft Monitor’ (ECAM) version is broader in scope, and is built on its flyby-wire flight control technology.

These engine monitoring systems employ sensors deployed through the engine to measure rotational speed of components, compressor temperatures, Inter-Turbine Temperatures (ITT), various fuel and oil pressures, fuel flow and other information on the engine’s performance. The data reveal important information about the health of the engine. For example, changes in fuel consumption detected over time consumed would indicate a loss of engine efficiency. Some sensors can sense impending failures in time to notify both the crew and ground stations. Alert messages indicating anomalies are instantly transmitted.

The most sophisticated systems today provide for data delivery from the aircraft's central recording bank directly to the maintenance computers on the ground – highlighting the engine parameter discrepancies that triggered any and all warnings and alerts. From those readings, maintenance technicians can download all the engine data for the flight and compare them to past hours and factory-observed norms in search for the causative problem and solution.

Far from being merely a problem-alerting tool, these engine-performance records also serve to prove an engine's trouble-free operational history when preparing for a sale or an overhaul. But few things make a prospective buyer happier than being shown detailed records of the engine's operational history, maintenance work and all the work performed on- and off-wing. Yet data alone can't make for appropriate maintenance management.

The Engine-Maintenance Constant

The shop or operator needs a system compatible with managing engine maintenance requirements to fully oversee the powerplants' care and feeding. That starts by becoming wholly familiar with the manufacturer's own general guidance for that powerplant, and information specific to the installation. For example, while all PT6A engines are Pratt & Whitney Canada products, not all PT6A powerplants face the same operating environment or needs: some requirements are controlled by airframe type and mission use.

Each airframe/powerplant combination tends to have some specific needs in terms of care, feeding and maintaining the engines. The selection of a system to manage, track and implement the needs of those powerplants is essential. An array of computer-based options exist for recording work performed, alerting operators to work needed – comfortably ahead of

“What system should an operation use?

That's as individually defined as asking what kind of paint or interior an owner prefers...”

the need – and provide other tangible benefits for monitoring fuel use, maintenance costs, downtime and other parameters.

What system should an operation use? That's as individually defined as asking what kind of paint or interior an owner prefers – though the stakes are higher. What works best for the aircraft and operation underpins the dominant recommendations made by maintenance technicians.

Operators with one aircraft to track obviously need less by comparison to that of an operator with a fleet to manage – particularly a mixed-type fleet where airframes and engines come from different manufacturers. Operators consulted for this story offered a range of suggestions, each specific to their individual needs and use. One common suggestion stood out for its uncommon relevance, however: Work with the maintenance provider to select a program compatible with the shop's own computer-based record-keeping and management system.

For most operations a system capable of running on today's most-common tablet computers—iOS, Android or Windows – will suffice. But maintenance technicians stressed the importance of keeping up with entries. “The computer doesn't know you had an engine inspection or oil added unless you tell it,” noted our sharp-witted maintenance technician.

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“Not even those automated-reporting systems have real value if not used to their potential. That brings us to the weakest link on most maintenance-management systems...the owners in single-airplane and owner-flown operations.

“Unless the person's main and only job is either flying or maintaining the airplane, maintenance management often fails for the same reason we occasionally overdraw at the bank: Human failure to use the system.”

For the best solution, most suggested making sure the aircraft has a ‘maintenance home’ and someone whose job it is to stay on top of your needs for engine-maintenance management.

Others suggested enrolling the engines in a program that covers anticipated and unanticipated needs on a per-running-hour cost basis – such as those offered by Jet Support Services, Inc., Rolls-Royce CorporateCare, and others. That enrollment and the communications it entails can help the owner manage engine health while protecting them from the big-dollar hit that mismanagement can impose.

For this, shop around. Multiple programs exist for many engines – including programs offered by the engine OEM and third parties. T

Just as foot soldiers are advised to take great care of their feet, aircraft operators should pay particular attention to the wellbeing of their aircraft’s engines. Careful attention to powerplant maintenance protects an aircraft’s value and contributes measurably to safety.

An hourly cost maintenance program offers the added advantage by removing much of the unpredictability of the costs associated with aircraft engine upkeep.

JSSI, the world’s largest independent provider of hourly cost maintenance programs for aircraft engines and airframes, for example, offers programs tailored to a highly extensive range of airframes and powerplants. An aircraft owner pays an amount of money per hour flown, which provides them with coverage for maintenance needs along with the technical expertise from a company with 25 years’ experience in the market.

Discover more at www.jetsupport.com.

Some operators prefer a program provided by the powerplant’s OEM, and Rolls-Royce (among others), provides just such a solution through its CorporateCare engine management program.

The concept is the same – pay a per-flight-hour amount, and receive complete engine management, from line-maintenance parts to full engine overhauls. Find out more at: www.rolls-royce.com/ civil/services/corporatecare/

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Hourly Maintenance Programs

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The Key for Avoiding a Nasty Surprise!

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An engine is an expensive and complex piece of equipment that has a significant impact on an aircraft’s safety, notes Gamit’s Nadeem K. Muhiddin. Those are all very good reasons to understand it fully before accepting ownership…

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et’s take a very close look at fundamentals.

An aircraft engine endures extreme pressures and temperatures in its daily operations, along with hundreds of hours of use over the course of an average year.

During its lifespan, it will undergo scheduled and unscheduled maintenance and inspections, been operated by various pilots, could potentially have powered more than one aircraft and should have accrued detailed notes and records tracking its history and condition that date back to its original build.

Its records ought to be as extensive as the engine itself, meaning there potentially could be some hidden (and unwanted) surprises buried deep within those records waiting to spring on a careless

operator. And yet, among the various Civil Aviation Authorities around the world, engine auditing is not a regulated or certified function within aviation.

To a large extent the responsibility for having the records of a powerplant audited correctly lays with the aircraft owner/operator – so it’s up to that person to appoint somebody with the necessary credentials and experience to ensure all records of the engine are present and correct. Failure to do so during a prepurchase inspection of an aircraft could result in time-intensive and costly corrections being made further down the line.

For example, we were once tasked with managing the overhaul of an older JT8-219 engine for a VIP aircraft. The technical team delving into the engine’s

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Nobody does it like CorporateCare® Bringing you the most comprehensive and sought after business jet engine maintenance program in the world, with industry leading service and expertise provided by the original manufacturer. Regardless of where you travel, CorporateCare will be there to support you. To help maximize your assets availability, value and liquidity, Rolls-Royce is proud to offer CorporateCare.

To find out more contact Steve Friedrich, Vice President – Sales and Marketing, at +1 (703) 834-1700, or email corporate.care@rolls-royce.com.

Trusted to deliver excellence.

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records discovered they were incomplete, which incurred a substantial amount of additional work (and cost) to authorize the valid EASA release-to-service of the aircraft.

And this wasn’t the first occasion our asset management company—Gamit—has found incomplete records. On another occasion a privately operated six-year-old aircraft was brought into the shop with the owner seeking its removal from the NRegistry and re-registration on the G-Register. The audit revealed that at a certain point in the aircraft’s life one of the flight crew had mislaid both engine log books, necessitating the lengthy and costly task of having them re-built from scratch in co-ordination with the engine OEM and the various MROs that had performed work on it previously.

Audit Types

There are two specific types of audits that a prospective or current aircraft owner should understand…

Loaner Engine Audits: Usually these are installed when your owned engine is sent away for repair or overhaul. This is usually a short-term item with a quick installation. The records are usually checked back to the engines’ last shop visit, and include all Airworthiness Directives (ADs), Service Bulletins (SBs) and statutes.

If anything looks unusual with this paperwork, however, the auditor will want to dig deeper into the records and go further back.

Pre Purchase Inspection: These types of audits will track the records going back to the ‘birth’ of the engine - essentially, all of the paperwork is inspected back to engine build. This documentation should all be present and correct.

It’s worth remembering here that engines are not cheap, and they can change aircraft and location many times throughout their life. Engines can also be the cause of aircraft accidents, and if the records are not 100% accurate the insurance company could discover those paperwork errors and seek to pin the incident on that fault. If successfully proved, that action would nullify any insurance coverage.

An Involved Process

Typically two main areas play a factor in the initial assessment of an engine’s records irrespective of whether it’s for loaner engines or a pre-purchase audit: • The Life Limited Parts (LLP) status will show how many serviceable cycles remain on the engine; and • The Engine Gas Temperature (EGT) recording from the MPA run shows how efficiently the engine is running. This is especially useful if operating in hot temperatures.

Provided that the above two points are acceptable, and assuming that a Borescope inspection is a given before any engine is installed

“...and if the records are not 100% accurate the insurance company could discover those paperwork errors...”

on any type of aircraft regardless of the length of time the powerplant is required to operate on the aircraft, the audit would go into full-swing assessing the engine log books and records to ensure all certificates are in place for work carried out and that all work has been certified correctly. The AD and SB status can be of particular importance because if certain actions haven’t been taken when they should have been, or are coming up shortly after an owner takes responsibility for the engine, this situation could prove particularly expensive.

Accident and/or incident checks are also essential to an audit, and while mishaps may not have written-off an engine they can be a reason for a low-price for an engine and need to be understood by the prospective operator before taking ownership. In addition, checks should be made that the engine’s total hours and total cycles are correct from the time the engine was installed on the aircraft and when checks subsequently were carried out.

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As you probably ascertain, engine audits are a complex, involved process. Remembering that the correct conduct of an audit is ultimately the responsibility of the aircraft owner and that audits are not a globally regulated function, who should an owner turn to for assistance?

The following outline provides some basic starting points – although you will need to establish that service providers have the right experience and certifications specific to your aircraft and engine type.

• • • • • •

Aircraft Management Companies; CAMO; Technical Services Engineers; Licenced Aircraft/Powerplant Engineers; Aircraft Quality Manager/Engineers; Pilot with an Aircraft Engineering Background.

Only as Good as the Input

Today, there are Maintenance Management Systems used widely by operators to track maintenance that are a good point from which to start your auditing process. Don’t forget, though, that a computer program is only as good as the person who inputs the data. Mistakes can happen, so it’s also essential to check the dirty finger print records that have the engineer’s signature and stamp.

If all of the above elements check out fine, then you know an engine is in a good state of repair and is acceptable to the airworthiness authority to fit to the aircraft you plan to purchase, or continue to operate while your regular powerplants are at the repair shop.

Are you looking for more articles on engines? Visit www.avbuyer.com/articles/ business-aviation-engines T

“Don’t forget, though, that a computer program is only as good as the person who inputs the data.”

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Other essential areas of audit include: • Repairs Status; • Borescope Inspections (preferably videos); • Maintenance Program Planning Document & Limitations; • Traceability of Parts (also that the traceability is acceptable to the applicable airworthiness authority of the aircraft that will receive the powerplant); • Engine Monitoring Documents; • Reliability Program Documents; • Corrosion Control Program; • Shop visit Reports; and • Maintenance Management System.

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Engine Pre-Purchase Inspections: Understanding an Aircraft Engine’s Status and Costs.

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Because engines are one of the biggest maintenance cost drivers on an aircraft, savvy buyers request engine pre-purchase inspections, notes JSSI’s Tony Rossi.

Here’s an example why…

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Warranty Coverage Issues

It is important to keep in mind that if a defect is found in an engine that is still under a manufacturer or overhaul shop warranty during a pre-purchase inspection, it’s possible that it won’t be covered! Why? Quite simply, there is no

maintenance requirement for the borescope. The key here is that the engine was operating within normal parameters and the borescope was optional. That cracked PT or CT Vane you find would probably have been just fine until the next scheduled maintenance event. You would be surprised at the amount of cracking on such a part that is actually within maintenance manual limits.

Viewed through a borescope, damage typically looks worse than it actually is.

Any findings during a borescope inspection called out in the maintenance manual (such as during a 400-hour nozzle flow on most PT6A series engines) are usually something that the manufacturer or overhaul shop will agree to consider and possibly warrant.

Realistic Cost Estimates

Many of the aircraft on the market today are 20-30 years old and the engine overhauls can cost as much as, or more than the value of the airframe.

Knowing the Time Before Overhaul (TBO) or Hot Section Inspection (HSI) interval of the engines is critical as many owners sell an aircraft right at the time the overhauls are due.

If this is the case, talk to the overhaul shop and try to get a realistic estimate of the cost of the upcoming maintenance. Many providers will tell you there’s no way to predict the cost of an overhaul but they should be able to provide average costs. While there are always variables, it’s not as hard as you might think to get a very educated guess on these upcoming costs.

That brings us back to that borescope and log review on the Citation V mentioned at the beginning of this article. It didn’t initially make sense to me that only one impeller would be due on a pair of engines that were original to this aircraft. Those suspicions were confirmed; both were due. A discrepancy was tracked back to a flight hour and cycle reporting math error. These engines were in great shape and the aircraft was as well, but the owner and prospective buyer couldn’t come to a mutual agreement on how to value (or devalue) the aircraft, based on the upcoming overhaul costs.

A thorough understanding of the aircraft engines’ status is a key factor in the pre-buy inspection process and will provide insight to the overall cost of operating that aircraft for years to come. T

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had just snaked the borescope through the second and third stage LT stators and disks on the engines of the Citation V and was trying to get a peek at the HT Blades. “How does everything look in there?” The owner was anxious to hear if I had found anything. Standing nearby, the prospective buyer wasn’t saying anything - just waiting patiently for my report.

After a view through the borescope and pictures of the internal condition of the engine, I would get to the logbooks and spend some time looking at the Life Limited Component (LLC) history of these engines. There was a question about one of the impellers being timed out. A new impeller would be a high-dollar expense and add substantial cost to the upcoming engine overhauls.

This scenario played out many times during my tenure working for a Designated Overhaul Facility (DOF) for JT15D engines. Potential buyers would call us looking for an expert opinion and borescope report on the condition of the engine, commonly referred to as the engine ‘pre-purchase inspection’. More often than not, the borescope inspection is just a precaution and a means to find any Foreign Object Damage or other damage in the engine not visible to the naked eye.

If you are in the market for an aircraft and are thinking about having a borescope inspection accomplished on the prospective aircraft, it’s always a good idea to start with a sales contact at the repair facility for that particular engine model or an FBO that is familiar with the airframe and engines. Most sales representatives will jump at the chance to provide this service because they can gather updated times and cycles from the engines’ log books, allowing them to track maintenance and provide quotes. Many times these inspections can be done at very reasonable rates.

One Pratt & Whitney Canada DOF sales person told me that in many instances they can provide a technician to borescope two engines at a cost in the $2,500.00 range. That’s a small price to pay for your peace of mind when purchasing an aircraft!

“Many times these inspections can be done at very reasonable rates.”

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Section Contributors

Stuart Hope, co-owner of Hope Aviation, is a licensed Airline Transport Pilot and a frequent NBAA speaker and industry authority on insurance and risk management topics.

Contact him via shope@hopeaviation.com

Keith Swirsky is president of GKG Law, P.C., and Chairman of the firm’s corporate aircraft and tax groups. A founding member of NBAA’s Tax Committee, he is a regular speaker at tax conferences.

Email: kswirsky@gkglaw.com

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Chartering your Chartering your Company Aircraft: Company Have You ConsideredAircraft: the Tax Issues?

Have you considered the Tax Issues?

(Part 1 of 3) What should owners know about placing their business aircraft on a management company’s charter certificate? Keith Swirsky opens a three-part discussion series… n an arrangement that can offer mutual benefits, many company aircraft are managed by charter operators that are certified by the Federal Aviation Administration to offer flights for hire. The aircraft owner receives income from the management company, which in turn has access to an additional aircraft for its charter service. What appears to be a relatively straight forward business arrangement is in fact a sophisticated contract with considerable tax implications.

Frequently, the management company will present the owner with financial projections in a simple equation indicating that, if the owner

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allows the management company to charter the aircraft to third parties, the owner will net a substantial profit over its direct operating costs.

Whether or not such a profit is likely to be realized is not the subject matter of this article. Rather, this article will address the various tax implications associated with the decision to allow the management company to charter the aircraft to third-parties.

The tax considerations fall into two primary areas: • •

State sales and use tax, and Federal income tax.

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“...problems arise when the document provided by the management company is not referred to as a ‘Lease Agreement’...”

location of the aircraft on the date of closing may have sales tax consequences, ultimately state use tax considerations (meaning where the aircraft will be ‘used and consumed’) drive the aircraft planning and structuring. The most likely state where the aircraft will be used and consumed is the state where the aircraft is hangared. In other words, if the aircraft is acquired in State ‘X’ and qualifies for a State X exemption from sales tax, such as a flyaway exemption, but the aircraft is thereafter moved to State ‘Y’, where it is hangared, State Y’s use tax laws will drive the aircraft ownership and operations planning.

When an aircraft is externally managed and placed on a management company’s charter certificate, the mechanism for transferring possession of the aircraft to the management company for its use in third party charter activities is known as a lease. The title of the document should be irrelevant, as it is necessary to transfer possessory rights in the aircraft to the management company in order to allow the aircraft to be chartered to the public.

However, problems arise when the document provided by the management company is not referred to as a ‘Lease Agreement’ because many states may not treat the transaction as a lease of the aircraft from the owner to the management company if the document does not clearly appear to be a lease agreement. It is generally true that titling the document as a lease agreement and providing traditional lease terms (such as, most importantly, an hourly rent) will have the most desirable result from a state use tax perspective.

In connection with entering into a lease agreement, the entity owning the aircraft should obtain a state sales and use tax permit (i.e., a sales tax vendor registration). This permit allows the aircraft owning entity to acquire the aircraft and assert that its acquisition is solely for the purpose of ‘resale’.

Buying to Sell/Lease

The decision to add an aircraft to a management company’s charter certificate implicates certain limited federal excise considerations that we will also address in this series of articles.

State Sales & Use Taxes

When purchasing an aircraft it is a common misconception that one must focus solely on either the state of formation of the entity acquiring the aircraft, or the physical location of the aircraft on the date of delivery, to determine potential sales and use tax liability associated with the aircraft.

Although it is true that the state of formation of the entity owning the aircraft and/or the physical

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A purchase for the purpose of resale is generally an exempt purchase. In other words, if the aircraft owning entity is acquiring an aircraft solely for the purpose of resale, it is generally entitled to claim a use tax exemption in the state where it is hangaring the aircraft, and therefore avoid tax on the purchase price of the aircraft.

This result, of course, requires that the aircraft owning entity make no other use of the aircraft for its own purposes other than to hold the aircraft solely for leasing purposes. This is a critical provision because in many states, any use that is inconsistent with holding the aircraft for leasing purposes (such as a single flight for personal use) can void the exemption and cause the full value of the aircraft to be subject to state use tax.

Of significant importance in this regard, if the aircraft owning entity enters into a ‘management 

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142 services agreement’ with the external management company, that document would imply that the entity owning the aircraft is ‘using’ the aircraft for its own purposes, thereby undermining the use tax exemption on the purchase price of the aircraft.

To further illustrate this concept, in most states, when an aircraft is acquired for lease to a management company for use in third party charter, the rent paid by the management company is exempt from use tax. There are notable exceptions to this general rule, such as in Florida, where rent paid by a charter operator is generally not exempt from sales and use tax. However, Florida and other states, such as Texas, may reach a conclusion that the transaction between the aircraft owner and the management company is not a lease transaction, when the document is not referred to as a lease agreement and when an hourly ‘rent’ is not paid by the management company to the owner.

More specifically, when the lease agreement provides that the management company will credit the owner with all of the charter revenue, less a sales commission, and debit the owner with all the various operating expenses associated with the charter flight, states such as Florida and Texas may reach a conclusion that the transaction is not a lease transaction and is in essence a ‘joint venture’ with a common profit objective. Such an interpretation would lead a state to conclude that the

“It is paramount that the relevant contracting parties enter into the management company documentation.”

aircraft owning entity ‘used’ its own aircraft in connection with the joint venture activities, thereby causing the full value of the aircraft to be subject to state use tax (the full value, in these circumstances, would either be the original purchase price or the fair market value, depending on the law of the state and the specific facts and circumstances).

In circumstances where a ‘lease agreement’ is prepared, with a specific hourly or monthly net rental payment, the state is more likely to reach the conclusion that the parties entered into an actual lease of the aircraft to the charter company instead of a joint venture.

It is paramount that the relevant contracting parties enter into the management company documentation, as the sales and use tax consequences are directly driven by the identity of such parties and by the terms and provisions as well as the titles, of such documents.

It is also clear that there is significant opportunity for sales and use tax minimization with properly planned and documented agreements with an external management company. Additionally, there is a huge potential for creating unnecessary sales and use tax liability with improperly prepared documentation. T Are you looking for more Business Aviation Tax articles?

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Chartering your Company Aircraft: Have You Considered the Tax Issues?

(Part 2 of 3)

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he federal income and excise tax consequences of placing an aircraft on a management company’s charter certificate are indeed complicated, at least for the layman. If an aircraft is used primarily in a trade or business that is organized as a passthrough legal entity or a closely held “C” corporation, and the charter rental revenue received by the aircraft owner equals or exceeds 2% of the lesser of the fair market value of the aircraft or the unadjusted basis of the aircraft, then the hours the aircraft is chartered and the cost related to chartering must be separately accounted for and prorated.

Costs to be accounted for in this regard include not only the fixed and direct expenses of operating the aircraft, but also annual tax depreciation deductions otherwise permitted under the Internal Revenue Code (IRC). In general, all such costs will be treated as “passive” losses for federal income tax purposes.

For the aircraft owner, characterizing a loss as “passive” may be adverse due to the prohibition on netting such losses against non-passive income imposed in IRC Section 469. Most aircraft owners have little or no passive income other than charter rental income. Since costs allocated to the aircraft charter activity when tax depreciation is included typically exceed charter rental income, the net amount of passive tax losses are suspended and carried forward to future tax years until they can be deducted against future passive income, or until the owner sells the aircraft in a taxable transaction - whichever occurs first.

In the event of a taxable sale of the aircraft, all unused passive tax losses attributable to the aircraft owning activity are converted to non-passive tax losses and may then be used to offset any income reported on the owner’s Form 1040. However, in the event that the aircraft has retained significant value, the use of such tax losses in the year of a taxable sale of the aircraft will have no practical net tax benefit due to the depreciation recapture rules set forth in IRC Section 1245.

Examples

In the first example (let’s call this the “100 percent company use” example), we assume that an aircraft owner that uses its aircraft entirely or predominately for trade or business purposes

(regardless or the number of hours flown per year) will generally be entitled to utilize all or nearly all of the depreciation deductions as well as fixed and direct operating expenses as deductions to offset all types of income.

Several additional tax issues must be analyzed (such as whether such deductions are “ordinary, necessary and reasonable” and whether the owner “materially participates” in the trade or business activity) to ultimately reach and confirm this conclusion, but we will assume that those conditions have been met for purposes of this discussion. The deduction entitlements in this example would pertain regardless of the hours operated by the aircraft owner.

In the second example (let’s call this the “charter added” example), the same aircraft owner decides to place its aircraft on a charter certificate.

Thereafter, the aircraft is chartered on average 200 hours per year. If, in this second example, the owner had 100 hours of use of the aircraft in its trade or business, combined with the additional 200 hours that the aircraft was chartered, then the aircraft would be considered to have been utilized one-third of the time in the taxpayer’s trade or business, and two-third of the time in a passive leasing activity. Thus, instead of the aircraft owner being able to offset all types of income against the aircraft deductions as was the case in the first example, in this example twothirds of the deductions would be classified as passive and would only create a tax benefit for the owner if the owner had sufficient (i.e., offsetting) passive income. Although the charter rental income is considered passive income, it will undoubtedly be insufficient to take advantage of all of the passive tax loss, since two-thirds of the annual depreciation deductions will also be classified as passive losses.

In sum, while chartering the aircraft may generate positive cash flows, tax write-offs would be substantially diminished, resulting in a potential negative economic overall result for the owner. In fact, it is commonplace that the tax analysis of passive activity losses and their limitations will drive the decision whether or not to charter an aircraft to third parties. T

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Keith Swirsky continues his discussion of the many tax issues that arise when owners place their business aircraft on a management company’s charter certificate.

“...while chartering the aircraft may generate positive cash flows, tax write-offs would be substantially diminished...”

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Chartering your Company Aircraft: Have You Considered the Tax Issues?

(Part 3 of 3) What should owners know about placing their business aircraft on a management company’s charter certificate? Keith Swirsky concludes his three-part discussion series...

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he determination to charter an aircraft to third parties impacts eligibility for accelerated and bonus depreciation, the length of the depreciation schedule, and depreciation recapture.

With respect to accelerated depreciation under Internal Revenue Code (IRC) Section 280F, it is generally assumed that use of an aircraft to charter to unrelated third parties (i.e., the public) constitutes “qualified business use”. To be eligible for accelerated depreciation, an aircraft must be used more than 50% of the time in qualified business use. So, in the situation where an aircraft may not be used more than 50% of the time in a trade or

business activity, and therefore is ineligible for accelerated depreciation, adding charter hours to the aircraft’s usage profile may result in the aircraft’s aggregate “qualified business use” exceeding 50%.

While it is not significantly valuable from a tax perspective for an aircraft to be eligible for Modified Accelerated Cost Recovery System (MACRS) depreciation versus straight-line depreciation, MACRS nonetheless provides an accelerated write-off schedule. If an aircraft is new and the owner desires to take advantage of bonus depreciation, however, the aircraft must be eligible for accelerated depreciation (i.e., one of the

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requirements for claiming bonus depreciation is eligibility for accelerated depreciation). Accordingly, under the proper circumstances, placing an aircraft on a charter certificate (making it available for charter to unrelated third parties) may allow an aircraft to qualify for MACRS depreciation when it otherwise would not.

Conversely, when an aircraft is chartered to the public more than 50% of the time in commercial (FAR Part 135) operations, the aircraft is no longer eligible for the 5-year MACRS/6-year straight-line depreciation schedule and converts to the 7-year MACRS/12-year straight-line schedule. If the 50% commercial use threshold is met in the first year that the aircraft is placed in service by the owner, then the aircraft will remain on the 7-year MACRS/12-year straight-line schedule during the entire time such owner owns the aircraft.

Caution

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There is a trap here for the unwary; if the aircraft’s depreciation schedule commences using a 5-year MACRS/6-year straight-line schedule in the first year the aircraft is placed in service (or even continuing in the second, third, etc. years) and subsequently in any tax year, while the aircraft is still being depreciated, charter hours to the public exceeds 50% of the total use of the aircraft, then the owner must convert tax depreciation to a 7-year MACRS/12-year straight-line schedule.

Also, the owner must recapture that portion of the depreciation deductions previously claimed under the 5-year MACRS/6-year straight-line schedule that are in excess of those deductions that the owner would have been entitled to had the aircraft always been on the 7-year MACRS/12year straight-line schedule.

Many tax deductions related to the owner’s aircraft are also limited under the so-called “personal entertainment rules” of IRC Section 274(e). Under these rules, if an aircraft is used in a trade or business activity in a manner that allows for tax deductions, those deductions will be limited to the extent of any personal entertainment use of the aircraft. Personal entertainment use is tracked on a passenger-by-passenger, flight-by-flight basis. The rules for calculating the disallowance amount are beyond the scope of this article, but assume for purposes of this article that the lost deductions are roughly comparable to the percentage of the use of the aircraft for personal entertainment purposes.

Example

Recall the case presented previously in Part 2 where the aircraft owner uses its aircraft solely in its trade or business. The owner computes its personal entertainment disallowance and, in this example, determines that 40% of the use of the aircraft was for personal entertainment, and therefore 40% of its deductions are disallowed.

Assume the total annual usage of the aircraft is 200 hours for combined business use and personal entertainment use (meaning that personal entertainment use was 80 hours for the year). Now, let’s assume that the same 80 hours of personal entertainment use and 120 of trade or business use continues, but the owner also places its aircraft on a charter certificate and adds 200 hours of thirdparty charter use.

By adding the 200 hours of third party charter use, the total annual use of the aircraft is 400 hours in the aggregate, and accordingly only 20% of the aggregate hours are now personal entertainment hours, resulting in only 20% loss of tax

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deductions relating to the personal entertainment disallowance rules. So, in this example, by adding charter hours to the aircraft, the personal entertainment use disallowance is diluted, resulting in enhanced tax deductions.

Important Additional Consideration

Another issue that arises in the context of charter operations of an aircraft relates to the imposition of federal air transportation excise taxes under IRC Section 4261 et al. It’s common knowledge that when an aircraft is chartered to unrelated third parties, the charter operator must collect federal air transportation excise taxes (hereinafter FET) on

the amounts it charges for charter flights. In the past several years, however, the IRS has been challenging whether or not too much control of the aircraft is ceded by an aircraft owner to the aircraft management company by virtue of the aircraft being placed on the management company’s charter certificate.

More specifically, while it is not the “official” position of the IRS, as a practical matter in an IRS audit, if an owner’s aircraft is solely operated in FAR Part 91 operations for the trade or business of the company, it is unlikely (assuming the aircraft ownership is properly structured) that the IRS will assess an FET on payments made by the owner to the management company relating the owner’s use of its aircraft. The prior statement is again a gross generalization and does require significant planning to ensure that the Part 91 aircraft operations are correctly structured to avoid having “transportation services” provided, for compensation, by one party to another party.

If an aircraft is placed on a management company’s charter certificate, so that aircraft operations are conducted under both FAR Part 91 and FAR Part 135, the IRS may assert that an FET is applicable to the Part 91 operations (as well as the Part 135 operations) because “possession, command and control” of the aircraft have been ceded to the management company with respect to all flights of the aircraft. This is a hotly contested issue, but it is nonetheless a topic of concern for aircraft owners.

The potential additional tax liability for a 7.5% FET due on all payments relating to Part 91 operations would substantially impair the economic benefits of chartering.

With respect to IRC Section 4261, sophisticated planning will include relevant considerations with respect to management company documentation.

And, while the aviation industry has responded to the IRS’ misguided efforts with respect to this issue generally, by not collecting FET on an aircraft owner’s Part 91 operations, an aircraft owner may be liable for such taxes if they are assessed against the management company depending on the terms and conditions of the owner’s agreeT ment with its management company. Stay tuned.T Are you looking for more Business Aviation Tax articles?

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Differentiate Among Aviation Insurance Carriers 150

There’s Good News for Operators

In a crowded field, how do aviation insurance carriers set themselves apart from their competitors, asks Stuart Hope? f course every business is different, but in the highly regulated and mature field of aviation insurance creating something unique is exceedingly difficult.

The actual product being sold is simply a future promise to pay, should certain events occur. The physical product is a stack of papers most buyers don’t read.

Except for seasoned insurance professionals, it’s nearly impossible to pick up a policy and determine the quality of the written word inside. Yet there is a vast difference between insurers, their policy forms, their claims service, and their supplementary offerings. In the last few years, several of the top-tier insurance companies have leveraged those differences to pull away from the pack.

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Safety

Two of the oldest legacy insurers, Global Aerospace and USAIG, launched a cafeteria plan of safety serv-

ices several years ago that they continue to expand and improve each year. Global has branded its coverage ‘SM4’, and USAIG is calling its coverage ‘Performance Vector’. These offerings are for their insureds operating professionally-flown turbine business aircraft.

Global’s SM4 program focuses on four areas – planning, prevention, response and recovery. To that end, it has partnered with safety experts in each discipline including such well-known names as Convergent Performance for human factors training, Calspan for upset recovery training, Baldwin Aviation for helping flight departments implement an SMS or IS-BAO certification, and Fireside Partners for Emergency Response Planning and Delivery.

USAIG’s Performance Vector is similar, partnering with specialists including Convergent Performance, Aircare International (emergency procedures training in land and water evacuation as well as

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firefighting using aircraft cabin simulators), Alertness Solutions (fatigue management skills for the flight crew), and Prism (safety management systems solutions).

Other insurers have similar offerings although they don’t promote them to the same extent as USAIG and Global. Starr Aviation provides safety and loss control services free of charge to its insureds through its Safety & Loss Control team, which is comprised of three Board Certified Safety Professionals. AIG Aviation offers safety and loss control services that range from detailed risk assessment surveys and document manual reviews to mentoring of safety program management and employee training. Allianz Aviation partners with AeronomX to provide loss control services including SMS development, IS-BAO consulting, and flight ops manual review.

How it Works

The safety companies that partner with insurance underwriters provide their expertise and services on a fee basis to any aircraft owner. Insureds receive discounted rates that have been negotiated with the insurance provider based on volume.

With Global and USAIG, the insured can select one of the safety service modules offered each year from one of the providers and the insurance company will pay for the service. There are limitations, so check with your individual insurer to determine exactly what portion of the cost they will cover for a given safety offering. Of course, the insured can pay over and above for any additional services they would like at the insurance company’s lower negotiated rate.

“As a broker, I find these safety services a hard sell (even though it’s not a sell it’s ‘free’).”

Interestingly, even though the insurance companies are willing to pick up all or some of the tab for these fee-based safety services, the programs initially have received a lukewarm reception. As a broker, I find these safety services a hard sell (even though it’s not a sell—it’s “free”). I don’t know if it is difficult or confusing for the insured to cull through all the options and understand exactly what is being provided or how much the insurer will pay on the insured’s behalf.

Maybe it’s unclear how much time is required to complete some of these courses. Perhaps we are seeing a form of performance anxiety on the part of operators, fearing a safety expert may judge a flight department inferior – does this information then get back to the insurance company (it does not) with potential negative consequences. Maybe safety is somehow considered “not cool”, so operators are not interested.

Whatever the impediments, taking advantage of these free or highly discounted services is a nobrainer. If you are an aircraft owner who is insured with one of the insurance companies showing safety leadership, you should be jumping all over these features. The safety courses/offerings are given by some of the best minds in their respective fields, and most are available to you at little or no cost.

I’m here to tell you: Safety is the hallmark of professionals. It is interesting that the flight departments that are always trying to get better are the ones that have availed themselves of the insurance companies’ programs. Isn’t that what being a pro is all about? T Are you looking for more Business Aviation Insurance articles? Visit www.avbuyer.com/articles/category/ business-aviation-insurance

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Understanding Unexpected Curves:

Road Map for the Desired Resolution of an Insurance Claim

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There are curves in the course of the claims process that

if not explained properly can lead to a less than desirable claims experience. Stuart Hope recommends educating yourself

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et’s imagine an insured calls to report that an engine seized-up in flight due to a mechanical issue and will need to be replaced. His broker may be happy to turn in the claim, but mechanical breakdowns are simply not covered. It is no different than your car’s engine seizing due to some issue, such as lack of oil. When you pull over on the side of the road, you wouldn’t call your insurance broker and expect your policy to pay for the repair. If you can show the last service facility that worked on your car was negligent, you might have an action against the shop for a new engine; otherwise it’s simply an unpleasant maintenance bill you will be responsible for paying.

I suspect most clients understand this scenario, and it’s a case of wishful thinking that maybe the misfortune is somehow covered by insurance.

Cracked windscreens are common claims that often are not covered by insurance. If it can be shown that the crack resulted from a single occurrence rather than normal wear and tear, coverage would apply; otherwise it’s a no-go. You might ask how you could prove or not prove a crack was the result of a single occurrence, such as a bird strike.

There are labs that will analyze windshields to determine if the crack was due to a single event.

Betterment is Not Covered

Consider an owner’s aircraft is involved in a propstrike and the engine manufacturer recommends a complete engine teardown to look for internal damage. Engines have certain time-life components that are not to the end of their life cycle but are required to be replaced with new or ‘0’ time parts once the engine has been disassembled.

Since the aircraft owner is receiving new parts for old, he/she will come out ‘better’. This is the principle of betterment and is not covered by insurance.

This situation often creates an expensive surprise to an unsuspecting owner if not explained up front before the repair begins. For example, assume a certain time-life item forms a part of the engine,

has a life cycle of 1,000 hours and at the time of the loss had 500 hours on it. As part of the repair, the required ‘0’ time replacement part cost is $15,000.

Once the repair is complete, the insurer will pay 50% and the owner will be responsible for the other half.

The Bank Must Endorse

“This situation often creates an expensive surprise to an unsuspecting owner...”

The owner has a lien on the aircraft with a bank. As part of the loan agreement, the owner agreed to add the bank as a loss payee to the policy. In the event of a loss, this simply means in addition to the first named insured (e.g., the aircraft owner), the bank will also be listed as a payee on any check that is issued for a physical damage loss. What seems benign at first glance can turn into a major hassle.

Typically the shop completing the repair requests payment prior to releasing the aircraft back into service. The insurance company issues the check for the claim amount to the owner/named insured AND to the lienholder of record listed on the policy. The lienholder could be located in another city and time zone. In order to cash the claims check, the owner would be required to forward the check to the lienholder to endorse first.

Meanwhile the aircraft continues to be held hostage. A simple explanation to the owner at the beginning of the claims process with the suggestion the lienholder write a letter to waive their loss payee rights on partial claims, can save the claim holder considerable time. Everyone comes out much happier as a result.

Your aviation insurance broker can help guide you through the curves of the claims process. Often a good claims adjuster will also help educate you early on. The goal is for you to come away feeling you got a fair shake on your claim. T Are you looking for more Business Aviation Insurance articles? Visit www.avbuyer.com/articles/category/ business-aviation-insurance

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regarding the most common areas of misunderstanding.

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AVINCO was established in 2003 with the ambition to develop a unique combination in the aerospace industry: AVINCO Commercial Aircraft & Jets, and AVINCO Helicopters.

AVINCO offers a wide range of services to operators, private owners, financiers and investors in both the fixed-wing aircraft and helicopter sectors. Among those services AVINCO provides advice on making the right equipment selection; structuring efficient aircraft transactions; services to source, reconfigure, finance and remarket new and pre-owned aircraft; spare parts; and ongoing asset management for aircraft portfolios.

Over the years, AVINCO has developed specific expertise for VIP and governmental customers, and has been involved in large private jets (ACJ, BBJ, 747) and VIP/corporate helicopter transactions.

The AVINCO Secret If you ask AVINCO customers the secret to its success, they’ll all confirm AVINCO is first and foremost a team of remarkable and committed individuals.

AVINCO now has dedicated staff based in Monaco focused on the VIP market, and has an objective to expand in this sector. AVINCO's multinational team of experienced and dynamic industry professionals brings a unique knowledge of, and access to various markets and products - including Commercial Jets, Regional/ Turboprop Aircraft, VIP and Business Aircraft, Helicopters - and Aerospace Markets (Airlines, Owners, Financiers and Lessors).

Offering an extensive network of contacts within the aerospace industry, strong trusting relationships, the highest levels of professional and sound advice, AVINCO is proud to be a reliable partner for its clients throughout the world.

AVINCO is based in Monaco, Dublin, Moscow, Dubai and Singapore, and is present at most major industry tradeshows.

Contact AVINCO on +377 98 80 08 40 info@avinco.net

www.avinco.net

Section Contributors

Peter Agur is Chairman & Founder of VanAllen - a leading Business Aviation consultancy firm. He is a member of the Flight Safety Foundation’s Advisory Committee, NBAA’s Safety Committee and NBAA’s CAM Committee (emeritus).

Email: pagur@vanallen.com.

Jodie Brown has over 20 years’ Business Aviation experience, and more than 25 years of leadership and teaching experience. A consultant and executive coach to C-Suite executives, owners and directors of aviation companies and Flight Departments, she is founder and president of Summit Solutions. Email: Jodie@summit-solutions.com

George Dom USN(Ret) has over 30 years aviation leadership experience, was Sr VP of an industry-leading consulting firm and is president & founder of NFS Advisors, where he represents buyers of business aircraft and services.

Email: gdom@nfsjets.com

Fred Haap is an IS-BAO accredited auditor and past Chairman of NBAA. During his distinguished career in aviation, Mr. Haap also spent nearly 30 years as a corporate aviation department manager & pilot, logging more than 13,000 flight hours in a variety of aircraft.

Email: fhaap3@aol.com

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Flight Department Management

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Experience or Proficiency: Which Pilot Attribute Would you Choose?

George Dom challenges aviation managers to consider traditional attitudes regarding crew selection, prompted by his experiences as a hard-charging lieutenant flying FA-18As from the deck of the USS Coral Sea. n the mid-1980s, President Reagan ordered the Navy and Air Force to send Libyan revolutionary Colonel Gaddafi a stern message regarding his support for terrorism. Carrier Air Wing Thirteen, flying from the USS Coral Sea, was assigned targets in the now-famous city of Benghazi, and the USAF F-111 fighter wing based in England was assigned targets in Tripoli with aerial defense of the Air Force bombers provided by USN F-14s from the USS Saratoga.

While unverified, the story that filtered through the Navy squadrons involved selection of what USAF

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F-111 crews should fly the mission: Should they be older pilots with combat experience in Vietnam but with limited recent flight time since their current staff assignments restricted flight activities? Or should younger F-111 pilots who trained daily in the latest tactics but had no combat experience fly the mission? Alas, the USAF leaders sent experienced USAF pilots as well as highly trained but younger, inexperienced pilots.

Which group performed better? The reports we received stated that the younger pilots with frequent recent tactical flight training performed better in

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Research: Logbook Hours Don’t Always Make Safer Pilots For years, experts have wondered about the correlation–or the lack of one–between pilots’ flight-time experience and how they perform in the cockpit. Two Australian human-factors researchers–Matthew Thomas and Melanie Todd– have tackled the question. When studying first officers already flying for the airlines, the two researchers concluded that there was not much difference between relatively experienced versus less experienced pilots. The study was conducted much like a line-oriented-safety audit, in which evaluators observed flight crews in action from the cockpit jump-seat to evaluate their technical and non-technical skills, situational awareness, task management and decision-making. About the only difference the research did show between high-time and low-time first officers was that low-time pilots took longer to switch off the automation than their higher-time colleagues during stabilized approaches. Thomas and Todd concluded that low-time first officers were just as capable as their higher-time counterparts.

Selecting Crews

When asked by my clients to assess a candidate pilot, I observe that experience is critical provided it is relevant and relatively recent. Total number of hours is not as important as quality, relevance and recency of flight time, including simulator-based training in emergencies and malfunctions that cannot be safely simulated in the aircraft.

Research also touched on a growing concern that pilots have become too reliant on cockpit automation – flight management systems, auto-pilot, GPS, flight directors, auto-throttles, HUD, etc. – at the expense of basic flying skills and situational awareness when presented with an unusual situation and/or system failure.

As a Navy FA-18 carrier pilot, when the weather cooperated, I routinely flew night instrument approaches to the ship with the HUD and primary MFD turned off in order to challenge my instrument scan. I wanted to be up to the task should an actual system failure occur. Just like golf, 90% of instrument flying is mental and requires solid confidence to be done well when the chips are down.

Aircraft owners and their flight department leaders must embrace the training requirements to develop and maintain flying skills of the company’s crews. This ethos will require commitment and creativity on everyone’s part to make the most of pre-

“Total number of hours is not as important as quality, relevance and recency of flight time...” cious flight time and training opportunities.

I’m not suggesting aircrew should explore training scenarios when carrying passengers or encountering adverse weather conditions. Rather, positioning flights usually offer appropriate conditions for briefing, flying and debriefing some aspect of the flight that will contribute to honing skills. I know of one flight department that scheduled and paid for “back to basics” flying in tail-draggers at their local flight school. They are even considering adding a J-3 Cub to their hangar of jets!

Gray hair on the PIC in the left seat should only be comforting to the owner and passengers if it has been accompanied by recent and relevant flight training. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/ flight-department-management/

Search for the world’s best jets at

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target acquisition and accuracy of their bombs than the older pilots.

An article in AIN's Safety blogpost reminded me of that discussion. Two researchers have come to a similar conclusion regarding commercial airline pilots.

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Gaining Team Credibility A Strategic Approach to Individual Communication Jodie Brown offers practical advice for assessing employees and influencing behavior to achieve results. t all begins with credibility. If your employees don't find you credible, you have very little chance of getting them to support your ideas and direction. Establishing credibility means that you demonstrate your competence and expertise and that you're trustworthy. However, everyone views the world from different perspectives and is convinced to get on the bus by their own unique standards.

There is a misconception that personnel know what’s expected of them and that they trust the business judgments made by their leaders. Project assignments, equipment upgrades and departmental changes may have valid reasons. But those goals often aren’t well-communicated, are misunderstood or not explained based on rational, valid, relationship-centered business-based reasons.

Managers exhaust their energy in emphasizing

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what they want to achieve. However, what seems logical and influences the leader does not necessarily convince others.

When Don took over the flight department he realized a lot of change was required. In the first weeks and months on the job he tried to get everyone on board with his ideas. Expectations were high.

The more he pressed his case, however, the more resistance he encountered. There seemed to be a stalemate. His presence achieved one result; it created a solid coalition against him.

Newcomers are not the only ones who confront communication barriers. When people have worked together over a long period of time they develop lazy habits. They tune each other out, second-guess and assume what others are going to say. It’s very difficult to change old patterns within a static culture.

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Interests Self-interest is a powerful motivator. Maintenance, flight crews, dispatch and finance have different operating agendas, and interdependence often creates conflicting priorities. Your mission as leader is to have team members present a unified front and support each others’ goals. As a team, your flight department must constantly demonstrate its value to the corporation.

Within teams we find individual skills and personalities. People differ on what they deem important to their success, and their communication styles reflect that fact. Your relationship and knowledge of your staff’s individual preferences can bridge differences and move them to your side.

You may recognize three styles of behavior found in your own departments…

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What is the Cause of the current situation? Does the evidence resonate with the other person?

What are some of the potential Answers that the other person may need to support the idea?

What issues related to resources, turf, credit or seniority exist that prevent commitment?

What would the Net results be when action is taken?

Relationship-Centered: These employees depend on a predictable and constant environment. They respond favorably to high levels of concentration that allow them to work steadily at a task.

Relationship-centered employees are patient and sympathetic listeners who dislike conflict and confrontation.

When you are attempting to institute change, be sure to provide employees with clear instructions and empathy for their discomfort. Realize that relationship-oriented members of your team will require a high level of support, especially when employees are dealing with uncertainty.

Rational: This group of employees likes detail, fact and structure. Most often quiet, they will hesitate to speak out unless directly asked. They too prefer control over their environment but use structure and procedures, rules and regulations to achieve it.

Because they dislike being pressured, they will postpone action until it is absolutely necessary to respond.

When you are speaking with them, be thorough and respect their boundaries. Minimize uncertainty, and ask them to assist with standardization.

Strategic Checklist

We created the SCAN approach to help leaders communicate with personality differences.

1. What is the Situation you want to address?

Does the other person see the issue at hand in the same light?

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Direct: Independent-minded employees prefer control. They are assertive and like to maintain a measure of authority. As they aren’t naturally trusting of others, they conduct their own research and draw conclusions on their own.

In leading such employees, it is best to present facts as something for them to consider and provide supporting materials from an authoritative source.

Be clear and to the point. Keep your focus on the meaningful results and not on who owns the idea.

“Your relationship and knowledge of your staff’s individual preferences can bridge differences and move them to your side.”

Remove Barriers to Agreement

The more you push, the more your employees are likely to push back. People will be forever defending the status quo unless they can address their perceptions, ask difficult questions and see what’s in it for them. As their leader make your point logical and obvious, and therefore easy for the other person to support. Communication mismatches are very common. When you're trying to connect, tune into the preferred wavelength of your employee.

Sometimes you can’t influence everyone. And when you can’t get the whole team on the bus heading in the same direction, remember: It’s more important to be respected than liked. T

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Three Steps to Keep Service from Reducing Your Safety 160

If significant risk is taken in the name of Service, was the trip “Safe”? asks Pete Agur. Don’t let service get in the way of safety. he highest-risk flight Mike flew during his year in combat was in the name of “service”. His helicopter was diverted from a resupply mission to scoop up a critically wounded soldier who would bleed out if he did not get to a major medical facility fast.

After the pickup, Mike and his crew dashed for the hospital at the coastal air base. As they approached the destination, they encountered monsoon conditions. The rain was so heavy Mike could no longer fly visually... and Mike was not instrumentrated.

He only had a modest amount of instrument flight training. But, a life hung in the balance. Mike asked the crew chief how the passenger was doing.

Not well. Mike asked his co-pilot and two crewmembers if they were willing to push on or wanted to turn back. The vote was unanimous, without hesitation, to get this guy to the doctor ASAP.

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Mike called Air Force approach control to declare a medical emergency and to request a Ground Control Approach (i.e., the controller uses radar equipment to direct the pilot’s heading and altitude all the way down to the runway). The rain was so heavy the windshield wipers did no good. The last call the controller made was, “You are about to touch down, eight feet left of centerline.” With its metal skids, the helicopter made a rough landing, but as predicted the aircraft came to a stop just left of runway center.

Mike could not see to air taxi the helicopter to the ramp, where the ambulance waited. He called the tower to say he was shutting down on the runway and to request the ambulance and tow equipment be sent to him.

Within minutes the ambulance and a small parade of other vehicles arrived. The wounded soldier was hustled off (he made it). The next person to

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stick his head into the aircraft was the air field commander, an Air Force full Colonel. He was madder than a wet hen, literally. Mike and his copilot were ordered into the senior officer’s jeep.

The crew was told to stay with the aircraft.

Heroes or Rogues?

A Teaching Moment

The above scenario is typical of combat conditions. Now shift the scene to Business Aviation.

Here, the scenario is not a wounded soldier. It is key passengers on a critical trip. At dispute are violations of duty time, weather minimums, runway conditions or any number of other operational standards. How do you want your crews to respond? How will they behave?

At a glance the following three steps appear to be ridiculously basic. They are. Yet, they are the foundation for assuring significant risks are never taken in an effort to “serve”. The results of following these steps are dramatic reductions in your potential for a safety failure.

Step One: Policy – Establish a Safety Policy stating operational risk management will be maintained to industry Best Practices or higher. This safety bar matches what executives routinely

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For the next 30 minutes the two Army pilots stood braced at attention in front of the Colonel’s desk while being verbally assaulted in a manner they hadn’t experienced since Officers’ Candidate School. The base commander was dressing them down for exposing their crew, the aircraft and his air field to inappropriate risks.

Consider the irony of the situation. Mike and his crew chose to take exceptional actions in an effort to save a life. They had succeeded by landing “safely” near the only available major hospital. As the colonel gained momentum, however, he mentioned legal charges until being interrupted suddenly by a knock on his door. Barely breaking rhythm, he shouted, “Come”. In walked Mike’s brigade commander, also a bird Colonel; his operations people had been monitoring Air Traffic Control and alerted him when the emergency was declared. Anticipating challenges, the Army commander had hustled to the air base in the midst of monsoon conditions.

Mike and his co-pilot remained at attention for the next five minutes while the air field commander energetically briefed the Army Colonel on the recklessness of his crew’s behavior. At the end of the tirade Mike’s Colonel looked the senior Air Force officer in the eyes and said, “You want to court marshall them. I’m thinking of putting them up for Distinguished Flying Crosses.

With your indulgence, we’ll call it a draw and take our leave. Gentlemen, come with me.” The two pilots smartly saluted the Air Force commander, turned and followed their Colonel.

declare as their intent. It is a high standard that will continually rise over time.

“ How do you want your crews to respond?

How will they behave? ”

Step Two: Authority – The Safety Policy must have the power of the Boardroom. All situations are affected and included. Aviation Department Manager as well as pilot-in-command—in fact anyone tasked with managing risks as specified in the Safety Policy—has the power of the Boardroom, or its equivalent, behind them. No exceptions.

Step Three: Responsibility – “Safety is everybody’s responsibility”… a cliché with expansive meaning. It starts at the top… the Boardroom and passengers.

It includes leaders, managers, and operational staff.

Everyone walks the talk; always in all ways. No gaps. No variances. It requires consequences. For, if a variance has no consequences, it sets an unwelcome new standard… a reduced standard of safety. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/ flight-department-management/

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Creating a Flight Department (Part 1)

Basic Steps to Achieving Effective Transportation 162

Fred Haap, formerly Aviation Manager of a Fortune 100 flight department, past Chairman of the National Business Aviation Association and currently an accredited IS-BAO auditor joins forces with Jack Olcott to author AvBuyer’s new series on establishing a flight department... vBuyer recently received a reader request that mirrored an often cited question: How does a company create a Flight Department? What are the steps that must be considered when contemplating the operation of an acquired business aircraft?

Perhaps your firm has chartered business aircraft or purchased a fractional share, but now is considering full ownership or acquisition via a lease. Possibly your company aircraft is operated by a management company, but the time is right to bring all Business Aviation activities in-house. Or you may desire to benchmark your existing flight department’s structure against a proposed process AvBuyer will present during this series, which starts by identifying basic transportation needs and moves, step-by-step, through the creation of a flight department that functions as an integral unit of the corporation.

To address these questions as well as the inquiries of the first-time acquirer, AvBuyer launches its ‘Creating a Flight Department’ series. We trust that the topics addressed will prompt response from

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the many experts within the readership of AvBuyer, and we welcome your comments.

Focus on the Objective

First and foremost, Business Aviation is a transportation option. A company elects to use business aircraft to satisfy a travel need. Decisions regarding aviation department structure must address the company’s requirement for effective, efficient and safe movement of personnel and property. Thus the first step in developing a Flight Department is an objective analysis of need.

Companies need to travel more efficiently, spending less time navigating the maze of airline check-ins and connecting flights as well as using travel time productively. Today’s business aircraft, particularly those with links to the internet and other elements of cabin-ground communications, are truly “offices that move”.

Some travel needs are obvious, such as having several customers that require frequent face-to-face meetings at their location in an area where airline

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service is not suitable or non-existent, and charter is inappropriate. A typical example is a manufacturer of equipment used 24/7 to produce widgets; the provider’s ability to have maintenance specialists dispatched immediately upon receiving a customer’s call for help is an essential part of the firm’s ability to obtain and keep customers.

Another example is a series of client visits that must be conducted routinely, but the duration of each visit is such that scheduling is very difficult, if not impossible. A third use is a requirement to bring customers to the home office, which might be located in a rural area, in order to experience first-hand the culture and traditions of the provider.

Other needs are less obvious, but no less important—such as implementing a strategy of market expansion, or possessing the ability to respond to rapidly developing market opportunities before the competition is able to “pitch” the prospect. Don’t overlook the hassle factor of commercial travel as it exists now.

Even the most conscientious executive may find a latent excuse not to travel commercially, thereby slowing the firm’s ability to visualize and address new lines of business.

Perhaps the task is establishing a Flight Department for a high-net-worth individual or family for personal transportation.

The HNW person and relatives want the advantages that business aircraft provide; they understand the costs involved, and they wish to structure a Flight Department suitable to their requirements. The task of defining need is no less important simply because the cost will be borne by individuals rather than a corporation.

Develop a Plan

Management’s most powerful and meaningful tool is a short statement of Vision, Mission and Values (VMV Statement). Note: Values are referred to by some leaders as Governing Principles.

Most well-run corporations, regardless of size, expend considerable effort in establishing a meaningful VMV statement—a concise document, typically less than a page in length, that serves as an easily recalled directive and conceptual guide for addressing the objectives to be accomplished. When staff and management have the same Vision of what they aim to achieve, everyone will

be looking in the same direction and focusing their energies on satisfying the organization’s Mission.

When individuals understand and accept the same Values or Governing Principles, they know how to act when faced with challenging situations. Vision, Mission and Values form the basis for corporate culture, and culture is what the individual does when no one is looking.

Corporations establish the VMV statement and usually encourage individual business units to create their own directives that align the departmental VMV with the overall corporate ethos.

Such a statement provides the foundation upon which a well-run department can be built. All involved parties within the department and the broader corporation become aligned.

For a Flight Department to function at the highest level of effectiveness and efficiency, it must be integrated within the corporate organization as would any other business unit. Flight Departments that regard their function as separate from the corporation’s objectives, isolating themselves at the airport and maintaining a veil of mystery, diminish the true value of the company aircraft and risk elimination when top management changes.

Thus, care must be taken at the onset of departmental development to establish Vision, Mission and Values that align and support the corporation’s overall business objectives. Creating a meaningful and compelling VMV statement requires analysis of the transportation needs to be addressed by the Flight Department. The executives, managers and specialists who will be the department’s passengers should be consulted—remember, the Flight Department is designed to serve their obvious and not-so-obvious needs.

Departmental personnel—those who will be tasked to carry out flights and maintain the aircraft—also need to be part of VMV creation. At the end of the process, all parties who will contribute to the department’s success or demise should feel ownership of the VMV statement and agree to its direction.

Next time: The business plan, including how best to create a statement of Vision, Mission and Values. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/flight-department-management/

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(Part 2) Writing a business plan for your proposed Flight Department Regardless of size, a flight department should be structured as a business unit supporting the overall purpose of the organization. The starting point for such structuring is a business plan, note Fred Haap and Jack Olcott. ost organizations considering the formation of an in-house flight department are relatively small enterprises, often led by a dynamic entrepreneur. Thus it’s understandable why far too many efforts to add a business aircraft to the organization's list of available tools lack sufficient planning. As long as the boss wants an aircraft, little else is required, so goes the near-sighted reasoning.

Relying solely (or even mostly) on the desires of the CEO/Boss to use a business aircraft is building your flight department on a weak premise and an unstable foundation. The obvious fallacy of such reasoning is the high risk that the aircraft will be sold if there is a change of top management, owners or if shareholders seek quick solutions to disappointing quarterly financial results for a public corporation.

More significantly, however, failure to integrate the use of a company aircraft into the overall purpose of the organization significantly diminishes

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the value that Business Aviation can provide stakeholders.

A flight department should be aligned to the organization's objectives just as other business units are so structured. Its role is to serve the organization's transportation needs while maximizing productivity of personnel and time. Thinking of the entity aircraft as existing only to make travel more comfortable for the CEO, Boss or his favored colleagues is truly limiting the scope of what Business Aviation can do to facilitate organizational success.

The Business Plan

Management 101 calls for a Business Plan preceding the launch of any enterprise. The same reasoning applies to the enterprise’s components, such as the Flight Department. Your objective is to present a compelling argument to the enterprise's decision makers that they should authorize the acquisition of a business aircraft as well as formation and on-going support of a Flight Department.

Each dimension of that decision needs to be

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explored and resolved. Not unlike any investment in equipment and personnel, the case for a Flight Department requires rational thought and articulate presentation.

A Flight Department Business Plan (FDBP) clearly presents the reasons for operating business aircraft and specifies why the enterprise should invest in, and use Business Aviation. It stipulates the FD’s integration into the enterprise and describes how departmental outputs align with organizational objectives. As with other business units, metrics are established to track the FD’s output against anticipated results.

While the content of a FDBP may differ from that of a plan for the organization's finance department, for example, the general format is consistent with a classic Business Plan. Basic paragraph headings are as follows: • • • •

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• • • • • • • • • •

Table of Contents; Executive Summary; General Description of the Department; Departmental Organization, Assets & Personnel; Department Deliverables & their Value; Measurement of Deliverables & their Value; Users of Aircraft (executives, employees, customers, guests); Communications with Users; Operational Plan & Use of Established Industry Standards (i.e., NBAA Management Guide, IS-BAO); Management Plan (including reporting format and frequency to superiors within the organization as well as with regulatory authorities); Safety & Security Discipline (including Risk Management); Financials Plan (including startup costs, operating costs and tax considerations); Launch Plan & Periodic Performance Audits of the Flight Department; Appendices & Supporting Documentation.

A successful Business Plan for a Flight Department leaves no doubt in the reader’s mind that the activity is well conceived and will be well implemented.

Writing the Plan

Executive Summary: As tempting as it might be to generate the Executive Summary first, that element of the FDBP should be the last to be completed since it is a concise summary of the basic purpose of the Flight Department and why that purpose benefits stakeholders. As the name implies, the section summarizes the points you make in the FDBP, and does so in two pages or less. If you feel more than two pages are necessary for the Executive Summary, you need to refine the arguments you make in the subsequent sections.

The Executive Summary is the place to unabashedly assert

that Business Aviation can support the overall purpose of the company, and that the Flight Department should be included within the organization's matrix of business units.

General Description: The case for forming a Flight Department is made in the section labeled General Description of the Department, which immediately follows the Executive Summary. Lead this section with a concise Vision Statement— namely what you and your associates believe will be the overall achievement of the Flight Department when it is fully functional. Perhaps your department’s Vision is “To provide transportation by organization aircraft that minimizes travel time and maximizes productivity of personnel interfacing with clients and business partners.”

Most likely your Department’s Vision Statement will read differently since each department has its unique idea of how it can best serve the organization as it matures. One size does not fit all.

Vision Statement: Pay particular attention to crafting a Vision Statement that is embraced by all departmental and enterprise personnel. When there is genuine buy-in by all participants, everyone is looking in the same direction and visualizing what is possible. Much hassle and misunderstanding will be avoided when all parties have a common Vision for the Flight Department. Such buy-in requires that all relevant parties participate in the creation of the Vision Statement.

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Mission Statement: The General Description of the Department should also include a Mission Statement, which is more focused and less conceptual that a Vision Statement, but nevertheless is directive. An example of a Mission Statement might be…”Using the organization's aircraft, provide safe transportation that meets the specific needs of organization personnel, clients and business partners”. Like Vision, it should be constructed by those who implement the Department’s activities.

Governing Principles: A declaration of Departmental Values or Governing Principles rounds out the key concepts that form the Flight Department’s foundation. For example, a department might believe safe operations, effective use of time, responsiveness to passenger needs, versatile use of aviation assets, and efficiency are governing principles. Instilling such Values or Governing Principles within the description of the Flight Department adds context to what is being presented.

Like statements of Vision, statements of Mission and Governing Principles (or Values) each should be expressed concisely in a declarative sentence of as few words as possible.

Departmental personnel should be able to recall these governing concepts easily and apply them to their daily activities as Flight Department Staff.

General Description: A general description of who the Flight Department will serve, why the use of the organization aircraft should be available to all personnel with a compelling business

purpose, and how the department will be structured within the framework of the overall organization rounds out this section.

Specifics such as departmental organization and personnel, destinations to be served, measures of value delivered by the Flight Department, how the benefits of Business Aviation will be communicated to potential passengers, and how the department will be managed are addressed in subsequent sections of the FDBP. A well-crafted General Description of the Department is a powerful component within the FDBP for selling management on why your organization should form and maintain a Flight Department. And it sets the stage for subsequent sections within the Business Plan.

Next time, we address Departmental Organization, Assets and Personnel; Department Deliverables and their Value; and how best to measure the department’s contributions to the corporation. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/flight-department-management/

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Creating a Flight Department (Part 3)

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Garnering Support from Decision Makers and Stakeholders Leveraging statements of Vision, Mission and Guiding Principles described previously by Fred Haap and Jack Olcott, the person tasked with formulating a Flight Department should structure a business unit that serves the overall enterprise. usiness Aviation has matured since days long past when the CEO snapped his fingers and like magic a business aircraft appeared. Perhaps establishing a flight activity was never quite that simple, but there was a time when one or two key influencers would decide if the firm would use a business aircraft.

Now this form of air transportation is subject to far more scrutiny, especially from senior management and divisional heads likely to share in the allocation of costs for operating the Flight Department. Thus it is essential to present a

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business plan and Flight Department structure that garners broad support.

As emphasized in the preceding articles of this series, the person responsible for creating a Flight Department should prepare a comprehensive Business Plan that leaves no doubt that use of a business aircraft serves stakeholders and will be well-implemented.

The most efficient and ultimately effective tool for conveying that message is the Plan’s statement of Vision and Mission, which should have been generated from discussion and consultation with the individuals likely to benefit from the

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firm’s use of the aircraft. Such discussions enable the Plan’s author to build support for Business Aviation within the enterprise. The greater the participation from heads of company business units in the formulation of a Flight Department governing documents, the broader will be the understanding of what the Flight Department can do for the firm and its stakeholders.

WHO’S AVIATION WISHES WILL BE PRIORITIZED?

Business Aviation has matured sufficiently to offer a variety of delivery systems ranging from full ownership of a business aircraft to occasional charter. Aircraft can be purchased, leased, coowned with another, or shared.

Fractional ownership, a popular form of Business Aviation, is simply shared ownership allowable under the provisions of Federal Aviation Regulation 91.501 coupled with operational support provided by an aviation management company. Charter can be purchased by the mile or flight hour as required, or arrangements can be made to acquire a specific number of flight hours during a calendar year, thereby assuring aircraft availability.

A Flight Department can be structured to incorporate one or more of these delivery systems, depending on needs to be satisfied. Thus it is possible to serve the diverse requirements and expectations of stakeholders, provided those needs are identified and the Business Plan presents a Flight Department structure that is credible and cost-effective.

Such an approach, shaped by the Department’s Vision, Mission and Governing Principles, builds support throughout the enterprise. The broad array of options and the likelihood that the Flight Department could deliver such a menu of capabilities must be communicated to stakeholders, however. Never assume that the benefits of Business Aviation are obvious to the uninitiated.

Consider the following scenario: From interviews with decision makers and stakeholders (those most likely to use Business Aviation), the predominant need for a business aircraft is meeting with current and potential customers situated within 500 miles from company headquarters, many in remote locations. Additionally, management and division heads want to travel efficiently between the firm’s various manufacturing locations. Yet the CEO sees great opportunity for expansion overseas in Africa and possibly China.

Should the Flight Department be structured to serve the CEO’s need for flights across 10 time zones non-stop, knowing that a business aircraft capable of such international flights is not the best choice for the shorter flights that represent the bulk of demand?

Meeting only the CEO’s wishes is no way to

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Support through Structure

build support for Business Aviation throughout the company. Nor is it the best way to deal with shareholders demanding the best balance between opportunity and quarterly profits.

Support for the flight department can be broad by structuring a department that operates the aircraft most capable of fulfilling the majority of travel needs and chartering a long-range business jet for the limited times when special capability is required.

Business today—prompted somewhat by employees’ use of social media, a probing press and activist shareholders—no longer operates in a vacuum.

For Business Aviation to gain traction within an enterprise, there must be support for this unique form of transportation. A compelling Flight Department Business Plan is the key to developing that support.

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172 Dealing with Details

To use a business aircraft safely and efficiently requires specific knowledge of what is available as well as a modicum of experience with Business Aviation. Furthermore, preparing a compelling Flight Department Business Plan is in itself challenging. Thus it is not uncommon for an enterprise considering Business Aviation to either hire someone who has strong and relevant credentials to develop the Business Plan or engage one of the several competent consulting firms with a track record of Flight Department development.

Even firms with Business Aviation experience often turn to outside experts when restructuring an established Flight Department to acquire and operate a new model of business jet. For example, when transitioning from a turboprop to a business jet offered by the same manufacturer, a Fortune 100 company with more than a dozen years of Business Aviation experience prepared a strong case for restructuring its Flight

Department for jet operations and hired a seasoned aviation specialist with jet experience to provide assistance.

The individual, company or enterprise considering Business Aviation has a wealth of options that can be identified in the Business Plan and managed by the Flight Department. Designing insightful and compelling statements of Vision, Mission and Governing Principles through direct involvement with decision makers and stakeholders, and using that process to gain support for Business Aviation, you have the foundation on which a Flight Department can be formed. You can offer a structure that blends the best of each aspect of Business Aviation, thereby expanding the breadth of support.

Next time we’ll add additional specifics to complete your Business Plan and launch a successful Flight Department. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/flightdepartment-management/

“ The individual, company or enterprise considering Business Aviation has a wealth of options...�

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Creating a Flight Department (Part 4) Dealing with the Specifics

Fred Haap, former Aviation Director for a major industrial corporation and current IS-BAO auditor, continues his series with Jack Olcott on how to create a flight department from scratch... et’s assume that in responding to management’s request to examine the benefits of forming a Flight Department, you have interviewed or otherwise surveyed potential users of Business Aviation.

Based on their input, you have generated a concise and directive set of governing documents that included the proposed department’s Vision, Mission and Guiding Principles. Those directives were used to shape a draft Business Plan for the department (as outlined in Part 1 of this series).

Knowing that the definitive Business Plan requires a detailed examination of how a busi-

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ness aircraft would be used, your management has given the OK to proceed with formulating a final proposal. Now consider the following scenario: Your survey indicated that 90 percent of the firm’s trips involving a business aircraft would be to locations not well served by the Scheduled Airlines and within 1,000 statute miles or less of the firm’s headquarters. About 50 percent of Business Aviation travel would be to destinations between 250-750sm from home base; 25 percent would be between 750-1,000sm; and 25 percent would be less than 250sm. (Note: statute miles

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are used since management is more familiar with that metric).

Your plan should state a minimum trip length that would be anticipated—say 100sm—but make provisions for addressing very short distances if a person with appropriate authorization requires such travel as an extraordinary or emergency action.

The Business Plan should clearly identify the maximum radius of action and the complement of passengers that the business aircraft will serve. Far too many firms feel they need to fly non-stop to destinations that are rarely required or carry far more passengers than typical. While business travel involving multiple legs might exceed the recommended planning radius, the Flight Department should address the geography to be serviced and the anticipated trip length per travel segment.

Furthermore, the department should be structured to deal with the occasional ‘outlier’ trip (one of extraordinary length, or a passenger load exceeding the norm) via a pre-audited and vetted charter provider, or timesharing arrangement with a suitable source.

Interpreting the Data

For our example here, we assert that survey data revealed that 90 percent of the firm’s use of Business Aviation could be satisfied by one aircraft capable of carrying six to eight passengers over non-stop distances of 1,000sm or less with NBAA IFR reserves. (The survey data established a minimum passenger load of four adult passengers with luggage. In practice, this requirement dictates a need for a six to eight passenger aircraft. To average four passengers per flight, approximately half of the trips will have six to eight passengers. The four-passenger survey data will increase due to last minute add-ons and a host of other variables.)

Flight usage was estimated to be 400 flight hours per year, requiring only one flight crew consisting of two pilots approved to serve as aircraft captain plus a part-time co-pilot.

Subsequent analysis might indicate that a fulltime co-pilot should be hired while retaining access to a part-time crew member. Also, as stated earlier, provisions to obtain additional lift via charter or timesharing will be addressed in the Business Plan.

Assessing Choices, Seeking Advice

Our survey resulted in the assumption that one business jet with an operational range of 1,000sm was suitable, but there are several ways in which such a business aircraft can be acquired, ranging from outright purchase of a new or pre-owned model to various financing and leasing options.

Expertise is required to decide what route to take.

Your firm’s financial advisors should be consulted to access the ramifications of depreciation and the impact of a company aircraft on the corporation’s balance sheet. A pre-owned aircraft may present a great purchase opportunity, but new-aircraft warranties and accelerated depreciation also have a significant appeal to firms with strong profits.

Financing presents sophisticated possibilities.

Unless you are an expert in sources and uses of funds, seek advice from someone with relevant knowledge of your company’s financial situation.

His or her assistance will help identify the funds available for acquisition and add credibility to your Flight Department Business Plan.

Experts are available and beneficial for accessing which models of aircraft are suitable for meeting a company travel needs. The marketing departments of OEMs are staffed with capable performance engineers who are primed to answer all your questions, and brokers within the pre-owned arena also have the ability to provide knowledgeable insights. If those sources are not sufficiently transparent, there are firms that are unaffiliated with OEMs or brokers; they can provide objective third-party evaluations of aircraft selection and availability.

While many aviation professionals feel they are well suited to select an appropriate aircraft, checking with an expert in acquisition is an option to be considered seriously.

Experts are also available in designing the structure of the flight department, although the party authoring the business plan probably has ample credentials to recommend where the aircraft will be based for operational efficiency and how flights will be scheduled. It is essential, however, to seek input from a tax expert regarding sales and use taxes for the state where the

“Unless you are an expert in sources and uses of funds, seek advice from someone with relevant knowledge of your company’s financial situation. ”

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“Many a flight department has been shut down because costs soared out of control.”

aircraft will be purchased and hangared.

Deciding how and where the aircraft will be maintained may also require expert advice from a knowledgeable consultant. Effective maintenance is essential for safety and cost containment. Poor maintenance decisions, even if they do not impact safe operations, can be very costly. Many a flight department has been shut down because costs soared out of control.

Business Unit

A flight department should be a business unit within the firm’s organizational structure, with the same requirements for budgeting, reporting and accountability as other business units. Thus the departmental business plan must address how those routine managerial functions will be accomplished. When developing your Flight Department Business Plan, talk to those within your company who can assist in structuring an acceptable reporting system. Since most aviation leaders report to a member of senior management, it is essential to consult with that person as you proceed.

More so than other business units, the flight department must satisfy procedural requirements, some dictated by the FAA and others by industryderived standards and best practices. Those procedures are incorporated in the department’s Operations Manual. It is not unusual to seek outside expertise in generating such documentation.

At the end of the day, creation of a compelling Flight Department Business Plan is a process of irritation, starting with a survey of needs, assuming a geographical area to be covered, considering aircraft well suited to accommodate the passengers to be served and the cities to be reached, and deciding on a departmental structure that works effectively as a business tool for the corporation.

As elements of the plan unfold, adjustments become necessary and are made. Eventually, you zero-in on a plan that meets the needs of your company and provides a basis for effective management of a flight department. T Are you looking for more articles on Flight Department Management? Visit www.avbuyer.com/articles/flightdepartment-management/

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Section Contributors

Kevin Hoffman has amassed 30 years in Business Aviation having spent time with Gulfstream & Canadair. Today he’s president & CEO, Aerospace Concepts offering owners/operators of large-cabin business aircraft expertise in interior Design, Technical Acceptance, Completion Management & Engineering.

Email: khoffman@aerospaceconcepts.aero

Nadeem Muhiddin is the General Manager at Gamit, which specializes in Aviation Asset Management. Specifically, Gamit is an industry leader in aircraft and engine auditing and comprehensive technical management.

Contact Nadeem via n.muhiddin@gamit.co.uk or visit www.gamit.co.uk

Waleed Muhiddin is VP Strat.

Ops & Business Dev. at AMAC Aerospace, which is a market leader in Completions, Maintenance, Charter & Brokering, located at Basel EuroAirport, Switzerland. AMAC caters to every level of Aviation enquiry and/or consultancy. Email: info@amacaerospace.com or visit www.amacaerospace.com

Donald Ridge is a Senior Analyst for JSSI, the world’s largest independent provider of hourly cost maintenance programs. He began as a Gulfstream technician, working his way to Director of Maintenance 121/135 Air Carrier.

Contact him via www.jetsupport.com

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Aircraft on Ground!

Aircraft on Ground!

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MobileMobile Maintenance BringsBrings Maintenance Cures toCures the Stricken... to the Stricken...

Stuff happens, so the saying goes. Aircraft breakdowns, maintenance problems and associated issues that ground the company airplane definitely happen, notes Dave Higdon. How do you prepare for that?

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viation's three most-dreaded words, ‘Aircraft on Ground’ (AOG), can hit in varying degrees… The best AOG occurs on the home field. Next best would be an occurrence on an airport offering services qualified and capable of quickly resolving the cause. The worst-case scenario, however, might find an operator stranded somewhere without the facilities to resolve the failure.

The AOG cause may be relatively simple – a job almost any airframe maintenance technician learns such as brake fluid found pooled around one maingear truck; a collapsed main-gear strut; or a flat tire. It could, however, be far more complicated ranging from engine igniter failure to a pressurization valve unable to function.

Yet irrespective of the degree of difficulty, having people around with the appropriate skills and knowledge to fix the fault fulfills only half the need when the facility lacks the equipment to perform the work. Many aircraft need specialized tools or lifting capabilities...maybe a jack able to elevate a gear truck when the aircraft exceeds the capacity of any of the available lifts.

Perhaps it’s the lack of the correct electronic equipment to test and correct an avionics glitch that's delaying departure, or a failed starter/generator drive – and the part needed sits on a shelf in another part of the world, along with someone who’s qualified to make the swap. Until resolved, the aircraft is grounded.

You need only imagine the frustration of one

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cated and regulated level. It works like this: Are you powered by Continental or Lycoming?

Both build piston engines, and you can find support at pretty much any airport. But how about Pratt & Whitney, Allison, Rolls-Royce (there’s lots of them flying on Gulfstreams), Honeywell or Garrett? It's not as though they don't have plenty of approved and qualified shops available - collectively they boast hundreds – but North America offers thousands of airports with runways able to handle at least some business-turbine traffic.

In recent years maintenance service providers have created new capacities that are aimed at resolving AOG situations and focusing specifically on business aircraft, providing stranded operators a wealth of people qualified and capable of providing the required aid. What’s more, they make house calls - well, hangar calls.

These solutions provide the tools appropriate for the need – which is at least enough to ferry the stricken airplane to the nearest facility capable of finishing the work.

“These solutions provide the tools appropriate for the need – which is at least enough to ferry the stricken airplane to the nearest facility capable of finishing the work.”

So, Who Do You Call?

Assuming your aircraft is grounded and the airport FBO lacks the skills or tools to correct the fault, you should either call your maintenance manager back home, or the OEM's customer-support service.

Increasingly OEMs are enhancing their maintenance networks with mobile maintenance offerings – often based out of an existing factory or approved service center. The benefits of utilizing the aircraft OEM are the same as those prompting most business aircraft owners to stay with the factory service for their more-routine needs: Expertise, experience and access to the right parts. But let’s consider more specifically what is available to different makes of business jet operators today… turboprop owner/pilot when he returned to an urban 2,500ft runway from a nearby meeting and found his right main gear tire was flat. Much to his surprise, however, what might have been a lengthy AOG for him proved to be only a relatively brief delay because the airport owner knew where to find the correct replacement – and had a lift capable of raising the main gear of an 11,000pound aircraft.

Although the airport didn't stock that tire, a distributor in the area did, since it was a size and type used by a more-common propjet twin.

Hours were still lost, but location can make a difference.

Maintenance Facilities Vs. Available Runways Almost any city of size boasts enough car dealerships to provide qualified maintenance for almost every brand of automobile. Some more-exotic brands, however, lack the market penetration or affordability factor to land a dealership in every town. So it is with aircraft, but at a more-sophisti-

Bombardier: The Canadian OEM got into the mobile-maintenance system swing in 2012, launching its Mobile Response Party (MRP) units that work in concert with Bombardier’s North America-based network of Regional Support Offices (RSOs); 24/7 Customer Response Centers in Montreal and Wichita; and the company's wholly-owned business aircraft service centers in the US. These are supplemented with Customer Liaison Pilots, Customer Support Account Managers and Field Service Representatives.

Bombardier's MRP network began with units prepositioned in seven regions centered on Orlando, Fla; Atlanta; Van Nuys; Seattle; Denver; Chicago; and Teterboro. Similar to the company's fixed-location maintenance-support facilities, the MRPs perform scheduled and unscheduled maintenance for all families of Bombardier business aircraft at the location needed.

Cessna and Beechcraft: Aircraft owners enjoy myriad choices, both in the US and internationally. Each has

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access to more than 60 Mobile Service Units on the ground (and with Cessna's Air Response Team). That capability is in addition to the many factory service centers scattered across the US, Asia, Europe and South America.

Dassault: For Falcon operators, Dassault’s expanded portfolio of AOG support services around the world includes a 24/7 command center and its newly formulated FalconResponse, an expanded portfolio of AOG support services available anywhere at any time. The Falcon Airborne Support service provides mobile repair teams backed-up by two long-range, large cabin Falcon 900s carrying everything needed to put an AOG back into service or provide alternative lift for stranded passengers (www.dassaultfalcon.com).

And Dassault Aircraft Services operates a fleet of mobile service centers out of the company's airport-based network of factory service centers.

Dassault-owned Satellite Service Stations (SSS) increase the company's regional support for Falcon operators, each with its own GoTeams dedicated to AOG support. The DAS SSS network covers North America and international regions.

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Gulfstream: A mobile-service network has been offered by Gulfstream since 2002. Gulfstream Field and Airborne Support Teams (FAST) were created to provide operators with a swift, wellcoordinated response to AOG situations.

Gulfstream dispatches FAST members by both air and ground in response to maintenance issues in North America, Central America and the Caribbean.

The operation uses more than 20 US-based pilots and technicians working in round-the-clock shifts to be ready to respond. These teams have access to two Gulfstream G150s as their primary aircraft. Since beginning in 2002, FAST aircraft annually log nearly 1,300 flight hours in service to operators.

Gulfstream expanded on its FAST system in the US with a specially equipped 74-foot tractor-trailer equipped with enough technicians, parts and tools to assist multiple customers simultaneously. The FAST network includes an additional 20-plus vehicles, including specially outfitted response trucks covering the US and Europe. In the US, FAST trucks are based in the San Francisco Bay area, Houston and New York. In Europe, FAST is staffed with maintenance engineers in Paris; Athens, Greece; and Geneva and Altenrhein, Switzerland, to respond to maintenance requests across the continent. In Asia, FAST has positioned a maintenance engineer in Malaysia to assist operators.

Embraer: The newest entry into the mobile-service support system is Embraer, which launched its initial foray into the action in late 2012. Embraer

began with three new Mobile Response Units (MRUs) operated within a 400-mile radius of the Embraer-owned service centers in Fort Lauderdale; Mesa, Arizona; and Windsor Locks, Connecticut.

Embraer dispatches the MRUs to customers requiring either AOG or line maintenance work.

More Than a Factory Practice

Multiple independent maintenance providers also offer their own variations on mobile-maintenance services, with many familiar names in play and some less well-known names offering their own takes. For example, one unnamed independent offers mobile response services from 12 locations across North America. The company notes its locations are within 250 miles of over 2,500 business aircraft customers and recently handled its 5,000th service call since the launch of MST in the latter part of 2009.

By whatever name the company chooses, remotely staged, mobile-maintenance services can help restore a stricken aircraft and relieve the pressures of an AOG situation.

As one representative noted, being prepared with contact info for your company's factory-sponsored or third-party mobile-maintenance provider can save time and anxiety when aircraft trouble strikes. Checking availability of this contact information should be a regular part of pre-flight preparations – something your maintenance folks can help you find... before you need it. T View the latest prices for jets for sale at

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Swiss Excellence in Business Aviation Corporate and private aircraft maintenance, refurbishment and completion services.

Located at Basel EuroAirport, Switzerland.

AMAC Aerospace Switzerland AG Telephone + 4 1 58 310 31 31 info@amacaerospace.com Henric Petri -Strasse 35 www.amacaerospace.com 4051 Basel, Switzerland

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Understanding Spare Parts Support

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The A-Z Process of Parts Procurement Trading aircraft parts is a trader’s business, notes Gamit’s Nadeem Muhiddin. Working with someone who understands the market and knows the value of parts is essential. he price for a part can fluctuate on an almost weekly basis, based simply on supply and demand. For example a Hydro Mechanical Unit (HMU) in 2010 may have been worth up to $200,000 whereas in today’s market pricing for that part has dropped to circa $80,000. It pays to work with a management company that has its finger on the pulse.

Another factor at play is the timing of a parts delivery. If an aircraft is in the shop for scheduled maintenance, then a standard 3-4 day lead-time to receive a part is acceptable. However if the aircraft is AOG, the need for a part becomes far more urgent, and more effort is required to source the part to be delivered to the aircraft.

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Gamit was recently called to support an Airbus ACJ319. The aircraft was in Rome on the Saturday, due to depart on Sunday. An AOG call was received on Saturday at 4pm for a replacement windshield, including adhesives. That was a big ask: for starters, only limited personnel are available on a Sunday in Rome; the adhesives are considered hazardous material requiring special handling; and finally, the windshield would need to be crated in a wood palletised box due to its size and weight.

After much organization, the deadline was met: the parts were sourced from four different vendors, shipped on a dedicated flight and trucked directly to the aircraft.

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As you can imagine, this was all highly timeintensive, none of which could be handled by a regular courier service. It’s almost impossible for any single parts stockist company to hold inventory of every component for all aircraft types due to the volume of part numbers there are for each aircraft type. Thus, you are well advised to work with a management company that is plugged into a global supply chain network.

Transaction Types

With the available possibilities, operators are wise to discuss their options with somebody who

has a thorough knowledge of the parts industry, along with your specific need.

Certification

As with all aircraft maintenance, rotable and lifelimited components are no different - certification is essential! Without the component certificate, an engineer is not legally permitted to fit the part in the airplane. Gamit has a strict ‘Quality’ mentality to ensure only the highest standards are met. Thus procurement is only done through an approved vendor network.

All vendors should be vetted to ensure they can fulfil the supply agreement, that they are selling accurately, and that they are financially sound. It has been known for companies to go into

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There are a number of transaction types available where aircraft parts are concerned. Due to the high value of component parts, they retain a certain worth (even when unserviceable) and are not thrown away when they break. The typical industry transaction types are as below.

• Outright sale: This is a clear, black and white outright sale.

• Flat rate exchange: For a fixed-price the client will receive a serviceable part and send their unserviceable part back to the vendor. This is typically a more expensive but low-risk strategy because the client knows at the beginning what the costs are. [There have been cases of over and above charges for some solutions.

Suppliers may include a standard repair in the flat-rate cost with any other internal damage/work required incurring additional charges.]

• Exchange fee & cost of repair: In this scenario the client typically pays between 8-15% of fair market value for the exchange fee on the first invoice. The unserviceable part is then returned to the vendor who will send it for repair or overhaul. That shop visit cost is passed on to the client as a second invoice, thus representing a higher risk to the operator as the cost is variable, although the cost is typically cheaper than flat rate (above).

• Loan: If the option is available, a component can be supplied on a loan basis to be installed to the aircraft while the defective component is shipped to the workshop for repair. This can be costly as the loan component is charged at a daily rate (1%); plus the cost to repair the defective unit, to change the component out (twice), and test and re-certificate the loan unit once returned. On the plus-side, the client retains their component for the long-term.

• Repair: Remove the part from the aircraft and send to the repair shop for rectification and recertification. If the aircraft is in maintenance for a long period, it is possible to remove the component from the aircraft after establishing the component is defective, send for rectification and recertification, then ship back to be refitted all while the aircraft is in the hangar.

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administration mid-transactions, for parts to arrive with inadequate paperwork, or for parts simply not to arrive.

Vendor performance must be tracked in terms of delivery times, speed of response to price requests, and price trending, among other areas.

Ideally your selected management company would work with vendors to continuously improve customer satisfaction.

Shipping

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Logistics plays an important role in spare parts support. There’s no use in locating the best part available at a price that’s half that offered by all other vendors but being unable to receive it within the required time frame. Procurement will often come from outside of the continent where the aircraft is based, meaning shipping consistently plays an important part in the deal.

While the large majority of freight is done via air transportation, other issues are important to factoring the required timing of a part delivery – for example, within Europe road transport links are also good.

Furthermore, each country has its own protocols in terms of information required for goods to clear customs. In our experience some countries are very easy to trade in and out of, while others are exceptionally difficult - potentially resulting in lengthy delays.

Hazardous goods will typically add fees because the staff handling the goods must be correctly trained – and not all flights are permitted to carry hazardous goods on board. Thus it is essential to plan accordingly, working with somebody who has a thorough knowledge of the nuances of shipping globally.

Handling “Fail on Fit”

Due to the age and complexity of component parts there are occasional instances when the serviceable component fails on installation, or within the warranty period. Are you sufficiently experienced in handling suppliers and repair stations to ensure that any faulty components (when the fault is confirmed under the manufacturer’s test procedures) are repaired with no additional costs incurred?

It is, of course, preferable to minimize the chance of encountering premature failure of a part. Gamit’s QA approved suppliers policy – for example – ensures parts are sourced from OEMapproved, FAA/EASA certified repair stations, thereby reducing that risk.

Aging Aircraft Parts Requirements

With today’s economic climate whereby older generation aircraft are remaining in operational service longer, additional hurdles are experienced with spares supply. Parts that are available in the market have accumulated a high number of hours and

cycles, meaning that their MTBF is reduced.

In some circumstances, OEMs either no longer manufacture or are unable to support the component parts due to obsolescence. That situation reduces the number of available units in the marketplace, makes the repair of defective components difficult, increases costs, and is time consuming.

As with the other aspects of parts supply that we’ve covered, availability of aging components should be firmly managed to minimize the expense and disruption to your flight operations.

Expertise is readily available to help you navigate this complex area of the market should you choose to source it. T Are you looking for more articles on Maintenance? Visit www.avbuyer.com/articles/category/business-aviationmaintenance/

“Thus it is essential to plan accordingly, working with somebody who has a thorough knowledge...”

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Finding a Happy Home Who Should Perform Your Company’s Aircraft Maintenance?

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hy would any operator try to get by fulfilling their aircraft's maintenance needs on an ad-hoc basis? According to flight crews sampled, the reasons vary from owners who try to be frugal in all things; owners that change shops on a per maintenancecost estimate basis - ever shopping for the “best deal”; and shops picked for convenience purposes.

“Whoever is available on the boss’ schedule,” one pilot whispered.

These approaches may come at the expense of familiarity, trust and consistency (the things that make people stick with one doctor). To top it all, taking the airplane to a different shop each time may cost the owner more over the long run.

One pilot told us how his aircraft's owner stuck with factory service centers – but only until the factory maintenance deal expired. He then balked at the cost of enrolling in an hourly priced service plan, believing he was smart enough to save money using an “as-needed” approach and awarding the work to whichever shop bid lowest each time.

Flying an airplane maintained per the ‘lowest-bid’ philosophy provides precious little comfort – particularly when something goes wrong. It's the pilot, not the mechanic, who arrives first at the scene of the

event, and may have been the person who accepted the aircraft from maintenance and is technically responsible for its airworthiness.

A maintenance home brings stability and regularity to the aircraft's wellbeing, much as a good home helps human development.

Who's in Charge?

The Boss is rarely the best choice for maintenance manager. “First he started missing deadlines for recurrent work – like 100-hour inspections,” a former contract pilot for a Light Jet owner told AvBuyer.

“Next, he started losing jobs because his ad hoc approach didn't account for the lead-time of a major shop. So when he needed to show up for a bid conference or to sign papers, he found himself arguing with the A&P that he should have anticipated the owner's need. We never went back there.”

When the owner failed to schedule an inspection far enough ahead to keep the airplane available, he finally listened to his flight crew's input. “We make less when we don't fly,” the pilot said. “So his failures hit us, too. Now the aircraft goes back to its maintenance home. They can't handle everything, but at least we have one place - a single person who helps us stay ahead of upcoming needs,

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The Boss has a home; flight and cabin crew have homes - even the company airplane has a home-base, notes Dave Higdon. Just as important, however, is that a regular maintenance home be found for your aircraft.

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whether that relates to airframe, avionics or powerplants.”

This pilot and others stressed that the key criteria for shopping for a maintenance home was finding the right match between a shop's expertise and the aircraft and its systems.

When the Fleet Grows…

Perhaps your operation already has a maintenance home for its existing aircraft. Let’s imagine the operation gains an aircraft. Don’t assume that a new aircraft automatically fits at the existing maintenance home…

If a jet operator adds another version of the same make, it may well fit perfectly with the existing maintenance home – but only if the models are related, the engines are of a similar line, and avionics of the same make and type.

On the other hand, if you add a propjet to a jet operation (for example) or vice-versa, you can see why searching for a second home is necessary.

Priority 1: Airframe Knowledge & Experience

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Most turbine operators learn from their vendors that maintaining their aircraft takes specialized knowledge and experience; a shop experienced in Pratt & Whitney propjet powerplants still needs knowledge specific to the airframe. Far more than the number of engines differentiates King Airs from TBMs, Pilatus PC-12s, Piper Meridians and P-180 Avantis.

In advising clients, a long-time pilot/A&P turned broker suggested that the airframe is the home to all the other components and systems. “Find a shop experienced in the airframe,” he emphasized.

“Expertise in the other systems can be elsewhere, but the maintenance home should know the make, model, type and its overall needs and peculiarities.”

The shop may not perform hot-section inspections, but you can bet it works with a service provider that does. Ditto for the avionics.

Priority 2: Accommodating

Every aircraft flying should have a ‘last inspection’ note in the airframe and engine logs, a date from which the clock starts running to the next inspection.

Finding the desired expertise may come at the expense of adjusting a next inspection if the shop is popular with other owners of the same type.

“We get calls from owner/operators, in particular, who want to bring their airplane here,” said the owner and chief technician of a Midwest shop.

“They've heard through the owners' organization that their model is our primary focus.”

But these operators don't always become customers; some hang-up, angered or frustrated that their next inspection is due on a date before the shop's next opening. “When we suggest we could work them in if they don't mind resetting their inspection cycle to a few weeks earlier, some of them become upset,” he revealed. “‘But it's not due until...’, they tell me.” Time is a

“Expertise in the other systems can be elsewhere, but the maintenance home should know the make, model, type and its overall needs and peculiarities.”

finite commodity, however. “We don't ever promise what we can't deliver.”

Priority 3: Depth of Knowledge

While any shop you select should hold the approvals and training appropriate to the aircraft and its systems, there's no rule that says all of those needs have to come through the same maintenance facility.

While the home should be trained and approved on the airframe, supplemental homes can be established separately to deal with avionics and powerplant systems.

As mentioned above, many specialty shops exist, many of which already work closely with airframe-oriented shops. As for the shops with the airframe experience, those supplemental homes should be current in training and approvals for the specific avionics and engines.

That said, consider the opportunities inherent in finding a maintenance home that handles all three areas under the appropriate approvals. They'll typically not only have the training and approvals you want, but they'll already be equipped with the tools and testing equipment needed to return those systems to service.

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Building Blocks for Your Home-Sweet-(Maintenance)Home A) Airframe Knowledge & Experience This can be checked through the certificates held by the shop (both FAA and factory-training documentation).

B)

Accommodating Schedule Timing is critical to avoid missing deadlines; consider an earlier visit if it helps get you into your preferred shop. From there, you're a long-term customer.

C) Depth of Expertise Ideally, your maintenance home covers all your needs for the airframe, avionics and powerplants. If that’s not a viable option, find an airframe shop with established arrangements to cover the otherneeds.

“Cost obviously has to be a consideration,” our broker conceded. “It just shouldn't be the first concern, or the dominant concern. It goes last on my list.”

If you fail to pick a knowledgeable shop, you risk a) finding required work missed; b) work performed unnecessarily; and/or c) work taking longer than it would have at an experienced shop. These can all add up to a higher bill than a knowledgeable shop would have charged, even with a higher hourly rate.

Maintenance Red Flags

Finally, be sure to watch for some of the warning signs of an unhappy 'maintenance' home. Among those offered by veteran A&P technicians are: •

•

Failure to properly complete paperwork before returning the aircraft to the operator. (Relating invoices to log entries as proof of compliance with maintenance, service and airworthiness directives should trigger an inquiry by the operator.)

The operator should have access to the inspection document, work orders, parts receipts and other documentation. Failure to present those

E)

•

• •

Costs Competitive costs can be determined by shopping around – but remember, the lowest bid may not always deliver the highest quality.

and/or include them with the logs should be another sign to look more closely.

Signs of sloppy work: scratches; mixed-up fasteners; even foreign objects left in the aircraft. All should trigger a deeper examination of the aircraft and work performed.

Invoices that don't match up with the logs and other paperwork from the shop visit.

A maintenance shop that declines to fly with you on the acceptance flight. You should require the shop's pilot(s) to perform the shake-down flight – before they present you with the aircraft. Best of all is to have them deliver the airplane and then do your acceptance check.

Any of the above issues should raise an instant warning signal that the shop you’re with isn’t going to be a long-term, happy home for your aircraft’s maintenance needs. T View the latest prices for jets for sale at

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Priority 4: The Best Deal

“...be sure to watch for some of the warning signs of an unhappy 'maintenance' home.”

D) Convenience We'd all like to find the ideal shop covering all the bases right at home, but don't overlook excellent options because they may require taking – and leaving – the aircraft while you return home by another vehicle.

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Maintaining Aircraft Capability Making the Upgrade/Replace Decision David Wyndham examines when upgrading or replacement of the company airplane is appropriate.

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he owners of a 10-year old light jet were facing the possibility of a significant avionics upgrade in the next few years.

They were also considering replacing the aircraft during the same timeframe. While the upgrade would add value to the aircraft and might make it easier to sell, what path was best?

There are many types of upgrades available for popular aircraft that can change them from unacceptable burdens to mission-capable assets while reducing their costs of operation. When does it

work to do the upgrade, and when doesn't it?

Certain avionics upgrades may be required just to keep an aircraft flying. The FAA NextGen navigation system is requiring new avionics equipment be installed by 2020 to allow aircraft to use the air navigation system. Modifying the aircraft can be costly, especially for older models with low values. Some aircraft may require even more avionics upgrades to operate globally, especially in Europe.

Do you do only the FAA-required upgrade and avoid trips to Europe? Do you acquire a new

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aircraft? Your flight department must consider several options to evaluate the upgrade/replace decision.

When to Do the Upgrade

Upgrades fall into two categories: adding new safety features and adding new capabilities. Certain upgrades associated with the FAA’s NextGen program will be required by 2020 just to maintain the aircraft’s operational viability. Either you spend the money or sell the aircraft for parts. If you require new avionics but don't need the advantages of a new aircraft, such as more range, speed or cabin volume, the upgrade path may work.

Possibly you seek to add performance, such as better fuel efficiency or range. Companies like Aviation Partners, Raisbeck and Blackhawk have been quite popular for many years. They, and others, have aerodynamic and engine upgrades that allow your current aircraft to fly faster, further, or both. Sierra Industries offers Williams engine upgrades for older Citations that add speed and range.

Nextant Aerospace is remanufacturing older Beechjets into Nextant 400XTi's - complete with new engines, new avionics and a new interior. Nextant is being joined by an engine upgrade from Textron. Other companies offer engine modifications as well.

There are a number of avionic upgrades available from Avidyne, Garmin, Honeywell, Rockwell Collins and others. Third party specialists are also doing modifications that range from updated navigation gear to a full (glass) panel replacement.

When looking at new systems, consider what the current variant of your aircraft (or closest relative) has for its avionic system.

Done right, these systems enhance both safety and reliability.

For the passenger cabin, interior specialists offer all sorts of options for in-flight entertainment and airborne Internet as well as new seat designs and modern materials.

Before you undertake such a major project, however, there are some things to consider: • If you need "more" (as in seats, payload or room), your only true alternative is acquiring a larger aircraft.

• Aircraft age is also an issue. Older aircraft cost more to maintain than newer ones. Wear and tear items, aging aircraft issues, and engine overhauls all drive costs up. Your aircraft must be in excellent mechanical condition and essentially free of corrosion, otherwise don't consider the upgrades.

• Some upgrades add value to your aircraft while others add value only to you. With today's market, do the upgrade if it has value to you. If it has value in the market place, so much the better but do it primarily for you.

• Unique is great with art, not with aircraft. Stick with established programs with a successful track record. Do equipment upgrades that mirror the new models or closest equivalents. Those will tend to have the best impact on resale value and also maintenance supportability.

There is a trade-off between putting money into an existing aircraft and replacing it. A decade or two ago, you could always avoid the upgrade analysis and sell the aircraft to a buyer outside the US. That is not so easy anymore. Countries in South America, Africa and Asia are upgrading their air traffic and navigation systems. Many of them are looking toward Europe's

airspace as their model. In today's economic conditions, spending money on an upgrade may not result in a 100% return on the investment, especially on older turbine-powered airplanes.

For example: upgrading the engines on a King Air C90 can run to over $700,000. A 20-year old C90B sells for just over $1 million. Looking at today's market, it’s doubtful that the upgraded C90B can recoup 100% of the upgrade at resale. The engine upgrade will add to the aircraft’s value, but don't do it just to resell the King Air after the retrofit. The likelihood of recovering all your money is very low. Do it because it adds value to you.

If you are upgrading just for a specific mission, but that mission is infrequent, consider the alternative. It might be more cost effective to charter an aircraft for the occasional European trip rather than upgrade your company's existing aircraft.

Budget carefully and talk to other operators who have done the same upgrades. Ask your accountant to run the numbers, including all tax considerations as well as your cost of borrowing the funds needed to upgrade or replace.

As long as your current aircraft is in excellent mechanical condition and you plan to keep it for the next few years, the added utility and flexibility of the upgrade may add all the value you need. T Are you looking for more Business Aviation Ownership articles?

Visit www.avbuyer.com/articles/category/business-aviationownership

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It’s Personal

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Maintaining an Older Aircraft?

When Does Age Impact Safety and Efficiency?

A robust CAM program should keep an older airplane safe, but at what point does the need to keep it safe cross over with the need to replace it, asks Mario Pierobon. or purposes of operational effectiveness, ideally pilots should only worry about flying the aircraft. Likewise, maintenance staff should only think about the aircraft when in the shop – it’s in safe hands away from the hangar… Such confidence can only be possible through effective and thorough management of the aircraft’s airworthiness.

Continuing airworthiness management (CAM) is essentially

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the structured set of processes and tasks performed to ensure that an aircraft’s airworthiness requirements are met and the vehicle is in a condition that is safe for operation throughout its life. CAM is a necessary pre-condition for the safety of flight and is the responsibility of the aircraft operator, whereas any actual performance of maintenance is more often outsourced.

The principle of continuing airworthiness management and the appropriate execution of CAM tasks are meant to serve as

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• • •

• • • •

Any applicable reliability program; The management of the approval for modification and repairs; The assurance that all maintenance is carried out in accordance with the approved maintenance program and released in accordance with requirements on the aircraft’s release back into service; The assurance that all applicable airworthiness directives and operational directives with a continuing airworthiness impact are applied; The assurance that maintenance is performed by appropriately approved maintenance organizations as necessary; The management and archiving of all continuing airworthiness records and operators’ technical logs; and The assurance that the weight and balance statement reflects the current status of the aircraft.

“Theoretically, it’s technically possible, assuming an aircraft’s airworthiness is adequately and thoroughly performed, to keep an aircraft airworthy for an indefinite period of time,” notes Roberto Mario, a CAM professional working in the Business Aviation field. “That’s without prejudice to specific restrictions or life limits imposed by authorities or aircraft OEMs. “In practice, however, cost efficiency leads to fleet changes as business needs evolve and aircraft performance deteriorates over time. It’s also true that as aircraft assets age they become less reliable. This has obvious implications in terms of operational readiness, but may also impact safety performance…”

Maintenance Intensiveness

Business aircraft are maintenance intensive, and this only increases as aircraft age. “Life limits (i.e. hours or cycles of operation) of business aircraft are generally defined in the prototype stages as a result of fatigue tests,” Mario highlights. “These life limits are generally more restrictive than those of airliners.

“In some cases these life limits may be attributable to the assurance of performance even of specific installations or parts - but in most cases life limits are shorter for economic reasons.

“Concepts such as ‘Progressive Maintenance’, which sub-divides inspection phases to reduce aircraft downtime, or ‘Reliability/MSG-3-based Maintenance’, which applies statistical methods to increment the intervals for the off-wing

maintenance of components are more typically employed in CAM programs for the airlines, and are less common in Business Aviation CAM. Thus, Business Aviation maintenance becomes somewhat more intensive compared with commercial airliner maintenance.”

Navigate the ‘Safety Space’

The decision on whether making aircraft airworthiness management more intensive (with higher running costs), or acquiring a new aircraft (with necessarily higher ownership costs) exemplifies how to healthily navigate the ‘Safety Space’, a notion derived from the ‘Economics of Safety’.

Decisions are made within the ‘safety space’ so long as a condition of equilibrium is reached between the amount of resources made available for performing flying missions (‘Production’), and the resources made available for targeting the safety risks associated with flying (‘Protection’). A massive upfront investment - such as acquiring a new aircraft - is often justified in safety and economic terms in comparison with recurrent, expensive repairs and preventive maintenance, plus increasing uncertainty over equipment reliability.

Keeping Up Vs. Selling Up…

What methods should corporate flight department managers use when they need to keep up with the increasing maintenance needs of an aircraft?

Obviously the safety of flight should not be tradedoff in favour of short-term productivity gains.

Maintenance needs must continue to be performed in accordance with the approved maintenance program if the aircraft continues to be operated.

The case is more for trade-offs of a financial nature. In the face of increasing maintenance and operating costs (e.g. fuel efficiency) decisions may lean towards acquiring a new aircraft. This requires a monitoring of aircraft utilization to estimate when maintenance will start to become more expensive, as well as when the maximum number of flying hours (life limit) will be reached. This monitoring should support an advanced planning for alternatives.

Fleet planning decisions are never easy as fleet planning is far from a perfect science with several, often unpredictable variables. Currently low oil prices are making older aircraft economically viable that only a couple of years ago looked ripe to be scrapped.

In determining fleet needs and related timings, also consider frequency of operations, average sector length, seating capacity, crew qualification, performance requirements at frequented airports, and specific operational approvals needed.

Depending on the sophistication of the operation, the use of mathematical models can support fleet planning and decision-making. T

“What methods should corporate flight department managers use when they need to keep up with the increasing maintenance needs of an aircraft?”

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control mechanisms, ensuring that aircraft are always ‘fit to fly’. As a result of CAM, there should be no difference in aircraft safety performance that can be attributed to aircraft age.

CAM tasks include the development and control of a maintenance program for the managed aircraft, including:

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Modernizing your Aircraft 194

(Part 1) What should you consider?

Kevin Hoffman offers some technical considerations for whether the time is right to upgrade your aircraft.

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s it time to upgrade and modernize your aircraft? Let’s take a moment to review this decision from a technical perspective. When your aircraft was built, it was certified to the thencurrent certification standards. Since that time, new regulations have been added, primarily to enhance safety and secondarily to improve ATC efficiency.

These include: • Changes to burn criteria relative to materials used on aircraft interiors; • Environment regulations such as Stage 4 Noise and Emissions; and • Operational efficiency changes such as the Future Air Navigation System (FANS) and Reduced Vertical Separation Minimums (RVSM).

Aircraft that were manufactured in the late 1990s are more than 20 years older, and the technology in the cabin is certainly outdated or obsolete. If you own such an aircraft, how do you decide whether to modernize and upgrade or hit the reset button and purchase a new asset equipped with the latest technology and current on all regulatory issues?

There is a tipping point.

Availability

The first question to answer concerns what is available for your aircraft. This issue must be viewed from two perspectives...

1. Service Bulletins covering the aircraft’s airframe: A list of available airframe Service Bulletins may be obtained through the service

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At some point you will run into the law of diminishing returns. But how do you know when you are approaching this point? The answer is simple: If an STC is not available with respect to a contemplated major upgrade, such as an engine change, avionics change, wing or winglet redesign, it usually is too expensive for an owner to make these changes on a one-off basis, due to non-recurring engineering and certification costs that can easily exceed the value of the aircraft.

Selection

The next question to answer is how to select the best options and Service Bulletins to implement?

Consider the following check list: • Ask your pilots and maintenance personnel if there are any Optional Service Bulletins that would improve their ability to operate and/or maintain the aircraft.

• Look for Optional or Recommended Service Bulletins that enhance passenger comfort. For example, there are now premium noise and acoustic packages to reduce cabin noise and humidification kits to improve cabin air quality at altitude.

• Consider options that improve the overall efficiency of the aircraft. They range from seats that convert to flat beds, to cabin systems that provide Internet connectivity, high speed communications and/or high-definition video systems.

There are so many new options and Service Bulletins available that an extensive comparison between your aircraft and what is available may be required.

Financial Analysis

How will you know if your modernization plans have gone too far? This is the financial analysis part of the process, and the answer often hinges on the reason you are considering modernizing your asset.

Are you doing this work to operate the aircraft for at least another five years? Or, are you doing this work in order to improve the asset’s re-marketability?

Keep in mind that modernizing your aircraft will not alter its age, so consider your asset’s costs with respect to future maintenance requirements. Is the aircraft enrolled on any Hourly Cost Maintenance Program? If it is not, you may wish to include the cost of Program enrollment in your financial analysis. If your modernization effort is the result of a planned near-term sale of the asset, keep in mind that the cost of some STCs, especially those involving avionics or electronics, may be difficult to recover. So you may wish to reconsider your thinking.

In the next article in this series we will discuss the costs involved, detail the upgrade process, and introduce the ‘QUALITY–SCHEDULE–COST’ triangle, as well as the effect it has on any aircraft modernization project.” T

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provider that handles your maintenance tracking program. That organization can also compare the list of items relevant to your aircraft.

Service Bulletins are usually classified as Optional, Recommended and Mandatory. Mandatory Service Bulletins must be completed.

However, there are numerous Optional and Recommended Service Bulletins you might wish to consider that are able to improve reliability, comfort or operational efficiency. Needless to say, this step can be very detailed and involved, but it is a very important part of the upgrade and modernization process.

2. Supplemental Type Certificates (STCs) issued since your aircraft was manufactured: It is also important to review the list of currently available options to determine the ones you would like to install on your aircraft. Some of the options are simple kits that can be installed at any service center, while others will require obtaining an STC that may be costly and can only be performed by an Authorized Service Facility. The good news is that if an STC is available, so is the kit and a center to perform the work.

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Modernizing your Aircraft 196

(Part 2) Quality - Schedule - Cost

Kevin Hoffman outlines the interrelated key issues to consider when upgrading an aircraft... n our previous article we sought to answer how you decide whether to modernize and upgrade your aircraft or hit the ‘reset button’, purchasing a new asset equipped with the latest technology and up-to-date authorization on all regulatory issues. Assuming you’ve elected to upgrade, following are some of the key issues to consider with respect to Quality, Schedule and Cost.

Each project’s ultimate Cost is directly affected by the desired Quality and completion Schedule. Ideally, we would like to be in the middle of a triangle with each of these three factors at one of the points – but just how realistic is that?

Quality is a difficult subject to understand and even more difficult to measure. What makes a quality product? Can you design quality into a product? Who measures quality, and on what standard should it be based? When judging quality, the place to start is by understanding the areas and dynamics required to create a quality product.

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Design and Specification

Design and the specification are key components in securing a quality upgrade, and these are governed by: • Design and Installation practices and procedures. The aircraft upgrade specification should include very detailed information covering Design and Installation procedures, Quality Control and Inspections, Documentation, Quality and Certification as well as pre-delivery inspections.

• Conformity to the specification. Conformity means obtaining the exact interior you specified. This is a tedious, time-consuming process, but it can help avoid items ‘falling through the cracks’ because people rushed to deliver the aircraft or the work was completed based on out-of-date drawings. Conformity requires that someone stays on top of all drawings and specification revisions to ensure that changes are addressed in an efficient manner.

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Inspections Continuous inspections covering every aspect of the upgrade process, and especially during certain key phases, are critical to securing quality in the finished product. Inspection areas should include items such as the seats and leather, the seat build-up, as well as the cabinetry at all phases of build – starting with the basic monument build, through the veneer layup, the inspection following the varnishing, and finally inspecting the cabinetry for “fit, form and function”.

As an example, simply making sure adequate time is allowed for the veneer and varnish to cure (avoid cracks) can prevent costly problems down the road – sometimes a year or more following completion of the work.

Work Environment

Work environment and ambient conditions vary between modification facilities. Is the facility visibly ‘quality conscious’, or are inspectors willing to sign their name to a sub-standard product? Do they have the latest state-of-the-art paint and spray booths? If not, how are they compensating for this shortfall?

In general, modification facilities have extremely good working conditions and skilled staff who take great pride in their work. It is, however, naive to think that all modification centers are equal.

Critical Questions

Do people expect to pay more for higher quality and does quality trump schedule and cost? Based on our experience with customer expectation, quality is always the primary driver until either the schedule becomes unacceptable or the cost reaches the point of diminishing returns.

How should you approach this discussion with the aircraft’s owner, your project management team and the service facility? The answers come down to the owner’s expectations, the level of quality they expect, the price they are willing to pay, and the time it will take to deliver the final product.

If it were available, everyone would want the highest level of quality completed in the shortest time-frame – free of charge. Realistically, an owner can, and should, expect a very high level of quality; should be willing to sacrifice some time; and perhaps incur some additional cost, in order to obtain the desired quality.

How much additional time and cost is a decision the owner must make, and the point of diminishing returns is often the ultimate limiter.

“How should you approach this discussion with the aircraft’s owner, your project management team and the service facility?”

The Owner’s Expectations

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A key area of quality is understanding the aircraft owner’s expectations and delivering, if not exceeding them. This is an area where an experienced program management group that understands an owner’s expectations and the facility’s capabilities can effectively guide the upgrade process.

Program Management Team

Quality is highly dependent on the program management-team supervising the project. This team’s expertise should include various disciplines and specific skill sets. Furthermore, since they represent the owner’s interest, the management team should be physically present at the modification center to oversee the work with a positive, win-win approach that balances high-quality with a timely delivery.

The cost of any upgrade project depends upon the scope of work and, to a lesser extent, the delivery timeframe. As an owner, you need to have as many details as possible planned out in advance – before the aircraft enters the process. This means obtaining a detailed scope of work outlining everything - including the specification, design, bill of materials, options and service bulletins to install, as well as additional work related to updated certification requirements, etc.

This critical step in the refurbishment process is likely to require a great deal of work, but the details are important to gain a solid understanding of the cost and project schedule.

Aligning Expectations

When a project suffers a cost and/or schedule overrun, the primary culprit is usually the difference between what the client expected to receive and what the facility understood the client wanted.

The process of balancing Quality, Schedule and Cost can be complicated. Professional guidance and assistance in this area is critical to ensure the owner’s expectations are met, if not exceeded.

Fortunately, there are entities that can expertly guide you, and ultimately your aircraft, through an upgrade process. They can also help owners determine if their quality expectations are reasonable, or even realistic, and can usually save their clients more money than the fee they charge – not to mention reducing the owner’s stress during the upgrade process. T

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Modernizing Your Aircraft: Part 3 - Schedule

Kevin Hoffman concludes our series on modernizing and upgrading business aircraft with an examination of the primary drivers that affect schedule and timely delivery of the completed aircraft. ritical path items, which affect the entire completion schedule if not completed on time, range from engineering drawings, to timely procurement of parts, up to and including aircraft certification.

Completion schedules have four levels: Tier I through Tier IV. Tier I schedules provide a basic

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overview of the work to be accomplished, while Tier IV schedules deal with detail that is often several hundred pages in length. Understanding how the various tasks listed on these schedules relate and depend on one another is key to keeping the critical path items on track and the modernization project on time.

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Communication

Capacity

Completion center capacity has a huge impact on schedule. If the facility has too many aircraft in work at one time, no one benefits. The completion center is spread too thin, risking the quality of the product, and the customer is disappointed.

Capacity can be determined easily by the customer’s experts during the process of selecting a completion center. It is also vital that the customer understand what is included in the overall schedule, since the time in completion may not include other stages of the overall business aircraft modernization process, such as the infrastructure stage, or the time to complete required aircraft maintenance prior to being placed in service.

Flow

Work flow improvements have occurred over the past few years to positively affect schedule. For example, the pre-fit of the aircraft interior may be completed in a mock-up (rather than on the aircraft) to decrease the amount of adjusting when cabinets are installed in the aircraft.

In addition, exactly when the aircraft is painted or when the wiring harness is installed are tasks that have been optimized to improve schedule. This is an area where the major business jet OEMs usually have a better understanding and capability than smaller completion centers, but such capabilities may carry additional costs.

Penalties and non-excusable delays rarely have a positive effect on the schedule. In fact, the sales and contract departments usually have no communication with the completion center regarding these matters so, although written into some contracts, this mechanism is unlikely to have an aircraft completed any faster.

Customers may insist on obtaining such language in their contract documents, but they should realize the minimal weight such clauses carry with respect to the aircraft completion process. Better to establish a realistic schedule with few, if any, change orders than to seek redress due to the contract’s language.

Customization

“Better to establish a realistic schedule with few, if any, change orders than to seek redress due to the contract’s language.”

Customization and flexibility are sought by most customers modernizing their aircraft. They want their own unique style or brand that often requires changes to the baseline interior and influences the project’s completion timeframe—how much longer depends on the level of sophistication or customization.

Problems often arise when appointing an interior design firm. Not selecting an experienced interior designer can drastically affect the schedule.

It is also important to understand that a highly customized, one-of-a-kind interior will take longer to build than a production interior, as well as take longer to certificate since many issues (e.g., emergency egress, fire retardant material, smoke and evacuation, etc.) will need to be evaluated and addressed.

Size

Consider the size of the aircraft. A mid-size Citation Sovereign (for example) has less physical space, and hence less flexibility, when compared to a large aircraft, such as a Global Express, Gulfstream G650, Airbus ACJ or Boeing BBJ. Large aircraft can be a “designer’s dream”, offering great latitude to create a unique interior. What might look good on paper, however, may be a challenge to accomplish in terms of time and money, and it is the customer’s responsibility to decide what value, if any, a particular specification or option has to offer.

First of their Kind?

Finally, the customer needs to understand the modernization journey they are about to take. Has the client’s designer created an aircraft equipped with state-of-the-art features that are “the first of their kind”? The first time a Cabin Management System (CMS) is installed in an aircraft often requires the completion house to address unanticipated problems.

If your aircraft has new avionics, a new seat design or new technology features that have no history, original engineering drawings and procedures will be required to complete your aircraft - with a significant impact on the schedule. Additionally, if the certification basis has been altered, the completion center may need to re-certify the systems, seats, and/or burn tests.

If the interior is to be equipped with all-new technology, you would be wise to expect a longer completion cycle, no matter what estimates and assurances you receive at the start of the project. T

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Customer responsibilities include understanding and communicating to the completion center precisely what they are seeking by way of specification, design and options. Without such specificity, completing the desired program on schedule and on budget is unlikely.

It is the customer’s responsibility to know what is wanted before meeting with the completion center, and a detailed discussion with the center must be held to avoid “change orders” and other redirections that result in delays and usually higher costs.

Beware, change orders can also occur because an unanticipated option surfaced after the specification was drafted. Initially engaging experts who are able to review all available options, including the latest technology, and advise upon which completion centers are best qualified to execute the desired specification is a strategy worth considering. While the trade-off is the time required for the expert to educate the customer, the exercise is usually well worth the investment.

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Refurbishment Choices

Making Old Airplanes Equal to New...

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Keeping a faithful older airplane no longer means foregoing the capabilities and touches of a newer airplane, notes

Dave Higdon. Today’s refurbishment choices are plentiful…

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ithin Act 2, Scene 1 of Shakespeare’s The Tempest, Antonio's exchange with Sebastian hints at the characters' opportunities to control their future – the unchangeable past being only an influence.

Likewise, operators of older business aircraft can look to the recent past of BizAv equipage to embrace a future for their older aircraft. The Completions industry and the new aircraft equipment lists can serve as a guide since much of what goes into new aircraft can be retrofitted to most existing aircraft.

Many operators prefer the economics of upgrading their existing aircraft, with options that deliver

capabilities comparable – or identical – to gaining the abilities available with a newer aircraft purchase.

The upgrade path offers benefits and technologies unavailable when the aircraft first flew.

Options stretch from the cockpit through the cabin and, in turn, allow the operator to retain a proven airframe while providing passengers and crew new aircraft-comparable equipment and capabilities. Within the scope of this article we’ll focus on the cabin.

Regardless, in many cases the upgrade will cost significantly less than replacing the aircraft to gain the same level of capability. Across size categories, upgrade options are available from Small to Large Cabin aircraft.

Duncan.qxp_Layout 1 02/10/2015 10:19 Page 1

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Cabin Fever...

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Technology that allows busy workers and executives to maintain office-like connections to the world increasingly pervades new aircraft cabins.

They provide a new range of options for retrofitting and upgrading existing aircraft.

Consider this: Gulfstream's new Satcom Direct Router (SDR) is available on new G450 and G550 aircraft, but is also available as a retrofit system on the same airframes. Passengers can download an app on their smartphones to access Satcom’s GlobalVT service. And there's more in store: Gulfstream plans similar FAA STCs to add this cabin upgrade to its G650, G650ER, GV and GIV aircraft.

Yet this capability isn't merely a Gulfstream option. A number of similar options that are not OEM-specific or OEM-originated exist for other aircraft makes and models all the way down to piston singles. BendixKing's AeroWave SB100, for example, is a lightweight, Ka-Band system sized for everything from piston aircraft through Small-Medium jets and most turboprop airframes in between.

The Inside Job

The furnishings of a well-used aerial office signal the age and mileage of a business aircraft the

“The finance folks can help sort out the better approach – as long as they make an applesto-apples assessment.”

instant you step into the cabin. Adding or upgrading office hardware aboard the aircraft often involves removing and replacing furnishings in order to remove and install wiring and systems for the new hardware.

Such times, say refurb shops, are ideal to give the furnishing and finishings their own makeover.

The degree to which an operator pursues this upgrade varies widely. Some opt for incremental work, replacing and restoring bright work, carpeting and headliners for minimal-costs.

Others go further, sometimes as far as a complete cabin makeover including seats, foam, upholstery, lights, metalworks, sidewalls and headliners. New galleys and, of course, lavatories can all become part of the process.

The finance folks can help sort out the better approach – as long as they make an apples-toapples assessment with cabin touches, matching what a different aircraft provides.

Maintaining Transparency...

One often-overlooked improvement is the cabin window. Years of exposure – to sun, de-icing fluids and atmospheric pollution can render these ‘transparencies’ somewhat short of transparent.

New technologies in aircraft transparencies offer new functionality, including electronically

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dimmed windows and different types of shades.

Of course, a straight replacement with new versions of the originals may be all that's desired or approved. It's essentially a decision with both economic and comfort components attached.

Ditto for modernizing the curb appeal of older business-turbine aircraft with new external paint: such a project takes time and may be best done when the aircraft is already scheduled to be in the shop for other maintenance needs.

Comfort Zone

Among latest and most-popular of options available to older aircraft is in-flight entertainment.

The general capabilities include the ability for passengers to use their personal smartphones to make calls, surf the Internet and exchange email and files from, and to, virtually anywhere in the world with a connection.

Many avionics-and-airframe STCs exist to carry forward the digital revolution to many other analog and early digital-era aircraft, including inflight office capabilities, in-flight entertainment and global Internet access - thanks to satellite systems orbiting in the same space as GPS satellites.

Alternatively, an operator can opt for ways to bring a little R&R to the main cabin. Whether

“So what is needed to help fulfill your professional pursuits in-flight, or help you unwind en route home?”

Bombardier or Gulfstream, Citation or Learjet, Embraer, Falcon or Hawker, systems exist that allows passengers to watch live television or listen to music – both streamed from a satellite connection or via DVD, CD or a personal media player.

The Bottom Line…

So what is needed to help fulfill your professional pursuits in-flight, or help you unwind en route home? How much new utility would an upgraded cabin add? How much maintenance money and time would be saved? Sorting out the financial aspects should run parallel with deciding what's needed – and how to accomplish the desired upgrades.

Keeping that still-relevant aircraft no longer means going without today's modern touches and capabilities. It does mean deciding what's needed, how to finance the changes, and when to schedule the work.

And remember to plan alternative lift while the work’s being done to help staff stay mobile and efficient. T Are you looking for more articles on Refurbishment? Visit www.avbuyer.com/articles/category/business-aircraftrefurbishment

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Carbon Fibre & The Cabin The Pros and Cons of Using a Less Traditional Material in the Cabin

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Carbon fibre has been used in aircraft completions for some

time but is relatively new as decorative material in the outfitting industry, notes AMAC’s Waleed Muhiddin. What’s its potential, and why has it taken this long to catch on?

O

ver the last few years a trend to incorporate visible carbon fibre textures into VIP aircraft has emerged that is comparable to the interior designs found in high-profile sports cars. In some instances, owners who like the look of the carbon fibre in sports cars have requested a similar look within their aircraft cabins. It’s a very nice material to have inside a cabin, visually, but it does take a great deal of love and care to achieve the desired finish.

Decorative carbon fibre should be sourced selectively – ideally from vendors that also supply the high-end automotive industry. Samples should be closely analysed by the completions center with regard to age of the fibres, the weaves that are implemented, and batch production to ensure that

only the newest and best materials are used in completion projects.

Once the finest quality material has been selected, the application of decorative carbon fibre is comparable – although slightly different - to wood veneer application. Barely thicker than a sheet of paper, the visible carbon fibre is carefully glued onto the structural panel (typically honeycomb composite). Around 20 layers of varnish are then applied, following which the varnish is sanded to eliminate flaws (rising bubbles, speckling, cracks and/or blemishes).

You should speak to your completions/refurbishment center about the application process as well as the varnish formula used, as this needs to be tailored to the characteristics of the carbon fibre

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sheets. It took eight months of testing at AMAC to develop the best process and obtain the desired levels of quality of varnish that revealed the unique characteristic of the material.

After the process has been honed by the completions center, carbon fibre can be used in a variety of places within the cabin, and we have installed it on seat surrounds, decorative flat panels, and curved full-height panels and trims. A recent ACJ319 completion utilized a high amount of decorative carbon fibre, and, to our knowledge that completions project used some of the highest quantities of decorative carbon fibre yet.

Boundless Potential?

So does this mean that the potential for carbon fibre is without limits? Essentially, yes – provided that it fulfils the necessary certification requirements. But what is so special about carbon fibre, and why is its popularity growing as a decorative material?

Let’s consider some other, more traditional materials used for decorative purposes within the cabin.

Metal work, a more solid material than carbon fibre, requires more time to work than the refining finish applied to carbon fibre. Leather, another traditional material, has a different nature to its worked application and can be a time-consuming material to work with, depending on the complexity of the designs for the leather finish.

As such, carbon fibre is unlikely to replace any of the more traditional materials used in completions, but this material broadens the options for the aircraft owner - complementing the wood veneers, laminates and paints that are currently widely used in cabin completions. While lighter than wood veneer, the weight savings gained from carbon fibre are not

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significant – thus its use is all about its aesthetic value.

There is no overlooking the currently high cost of good quality carbon fibre along with the work required to perfect its finish. Unless significant gains are made in terms of the cost of the material, the likelihood of it replacing other materials is low.

Nevertheless, industry experience with carbon fibres may help drive the costs down gradually.

Having developed our process, we are producing applications more effectively and therefore at a lower cost than previously. The overall costs are still higher compared to traditional wood veneer, but that is directly related to the acquisition cost of the carbon fibre sheets.

Ultimately, I do predict a growing demand for carbon fibre, and we are responding by developing a seat incorporating a carbon fibre shell. While the overall structure of the seat won’t change (the skeleton structure is made using aluminium), the decorative areas of the seat are always open to development, and it is this aspect of the design that we seek to exploit. The business class seats in the airline world tend to have plastic shells, but in the Business Aviation world, those details are usually more tailored.

From Brief to Cabin

When a client speaks with a designer or a design

department, the brief is usually concise and very specific as to what a principle wishes to have within the cabin. We have seen completion projects for cabins using one type of wood and cabins that use a combination of materials. But increasingly today we see clients moving toward new materials that aren’t commonly used within aircraft cabins.

When a principle briefs the designer, the designer will try to approximate the levels of style and comfort desired, and that in turn is communicated to the completion center.

The complex part of this process comes with transferring the design package into something known as ‘X-Ref’, a working document that identifies where bulkheads are positioned, how curved panels bring two rooms together, and details such as lamps and lighting. Approximating the level of style and ambiance inside the cabin then filters down to the type of material requested, such as carbon fibre.

It is from the ‘X-Ref’ that engineers will be able to pinpoint where the carbon fibre should be applied, whether there are any curves required, and if stress lines need to be cut to accommodate seat controls and/or cabin controls.

Therefore carbon fibre, as with other, more traditional materials, is truly one that can be utilized anywhere. T

“Nevertheless, industry experience with carbon fibres may help drive the costs down gradually...”

More information from www.amacaerospace.com

SELECTED COMPLETION & REFURB CENTERS

Airbus Corporate Jet Centre

Toulouse, France www.airbuscorporatejetcentre.com

AMAC Aerospace

Basel, Switzerland +41 58 310 3131 www.amacaerospace.com

Associated Air Center Dallas, Texas, USA www.associated.aero

BizJet International

Tulsa, Oklahoma, USA www.bizjet.com

Comlux America

Indianapolis, Indiana, USA www.comluxaviation.com

Dassault Aircraft Services New Castle, Delaware, USA (302) 322-7500 www.dassaultfalcon.com

Duncan Aviation

Battle Creek, Michigan, USA (269) 968-8351 Lincoln, Nebraska, USA (402) 479-4298 www.duncanaviation.aero

Farnborough Aircraft Interiors Farnborough, UK +44 (0) 1252 377234 www.aircraftinteriors.co.uk

Flying Colours

Peterborough, Ontario, Canada www.flyingcolourscorp.com

GAMA Engineering

Surrey, UK www.gamaengineering.co.uk

GDC Technics

San Antonio, Texas, USA www.gdctechnics.com

Greenpoint Technologies Kirkland, Washington, USA www.greenpnt.com

Hillaero Modification Center Lincoln, Nebraska, USA www.hillaero.com

Innotech Aviation

Montreal, Quebec, Canada www.innotechaviation.com

Jet Aviation

Basel, Switzerland www.jetaviation.com

Lufthansa Bombardier Aviation Services Berlin, Germany www.lbas.de

Lufthansa Technik

Hamburg, Germany www.lufthansa-technik.com

PATS Aircraft Systems

Georgetown, Delaware, USA www.patsaircraft.com

RUAG Aviation

Berne, Switzerland www.ruag.com

SR Technics

Zurich, Switzerland www.srtechnics.com

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Aeria Interiors

San Antonio, Texas, USA www.aeriainteriors.com

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Maintenance the EASA Way:

Everything You Need to Know About CAMO Continuing Airworthiness Management Organization (CAMO) is a term

originating in Europe, but today is used across continents, according to Gamit’s

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Nadeem Muhiddin. So what is it, and what could it mean to an aircraft operator? ssentially CAMO is an approval given by a National Aviation Authority (NAA) to a maintenance company within its region that demonstrates the firm meets certain criteria.

The CAMO designation, also referred to as Part-M, was introduced in 2003 and slowly it became mandatory for all EU-registered aircraft to be supported by a CAMO-approved company.

The role of a Continuing Airworthiness Management Organization ultimately requires handling liaisons with authorities on behalf of an aircraft owner; finding solutions to maintenance problems with OEMs; delving into the aircraft manuals; assessing Airworthiness Directives and Service Bulletins; tendering management for maintenance input; and performing on-site aircraft surveys as well as record audits.

In certain scenarios the CAMO may be on-site during heavy maintenance as the aircraft representative overseeing the technical aspects. It’s common for aircraft owners to refer to a technical representative - the back office engineering department handling all of the planning and paperwork for engineering - as CAMO. Only a decade ago, any semi-retired aircraft engi-

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neer could take on the engineering planning and maintenance management for a client with a private aircraft in Europe. The introduction of CAMO has helped to regulate this niche, and today in order for an engineer to offer such services for an EASA-registered, mid-weight turbine aircraft, they must gain CAMO approval.

To obtain that CAMO approval an organization must establish that it has the required NAAapproved caliber of employees with the relevant level of training and experience; plan a training program for the staff; have adequate office facilities; and have a secure IT infrastructure with all necessary protocols in place - all of which may mean the semiretired engineer may want to reconsider how and when they retire!

Not Just for Europe

Since its inception, the concept of CAMO has been catching on, and slowly the authorities of other countries are following EASA’s lead, including the United Arab Emirates. In fact, most regulatory authorities are starting to align themselves with EASA rulemaking in this area.

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Having received approval from the UK’s CAA, Gamit can take responsibility of any EASA-registered aircraft within its approval list, and its CAMO approval is also recognized by many other National Aviation Authorities around the world that have followed the EASA rulemaking of Part-M. As an example, the Bermuda and Cayman Islands authorities have followed EASA with CAMO, and broadly speaking are very similar in their rules regarding Continued Airworthiness.

The fact that CAMO is mandatory for EASA-registered

aircraft does not mean that an N-Registered aircraft (for example) cannot have its engineering responsibilities covered by a CAMO-approved organization. The CAMO approval in this instance would simply show that the company that is handling the responsibility for the airworthiness of the N-Registered aircraft has been formally approved by EASA, while providing the operator peace of mind that there is an NAA performing regular audits on the service provider ensuring its practices remain at a satisfactory level.

Diagram A

Aircraft Owner

Operat or/ Aircraft Management C

CAMO

Maintenance Provider 1

Maintenance Provider 2

Maintenance Provider 3

Operat ional Responsibilities

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Not all CAMOs around Europe operate the same, and consequently different service-levels exist. Ultimately it’s up to the NAA to audit the CAMOs as often as required to ensure that a minimum acceptable level of support is provided by an approved organization. An operator interested in placing their aircraft with a CAMO should be asking how a facility not only meets the requirements set by the NAA, but looks to exceed them.

One factor that is becoming clear to the technical team at Gamit is the growing reliance on IT systems within aircraft maintenance. There are mainstream maintenance tracking systems in the Business Aviation industry that provide a very important tool.

As with all IT systems, however, the information is only as good as the last piece of data inputted.

We’ve found on occasion, when taking over the CAMO from previous providers, that quality control and attention to detail is sometimes lacking; never to a critical extent, but when operating an aircraft, maintenance is often one of the three most-expensive elements of operation. If maintenance tasks become redundant or can be consolidated into bigger checks, this will make for far more efficient maintenance input, and result in a cost and time saving to the aircraft operator.

As an example, last year we took on two aircraft for which we could amend the Maintenance Program to offer the customer a cost-saving. This was something the previous provider could have offered, but being a CAMO is a time-intensive requirement, and unless the time put into the maintenance planning and constant assessment is justified, maintenance costs can rise unnecessarily.

Summary of CAMO

The CAMO is employed by either the aircraft owner directly or by the operator, depending on how the owner wishes to handle their aircraft. In regards to the CAMO, it is their responsibility to plan and coordinate all maintenance activities and to keep the aircraft airworthy as much as possible. Broadly speaking this means: • Forecasting planned maintenance work; • Reliability assessment; • Ensuring the maintenance provider can begin and finish works within the planned down-time.

All of the above keeps the owner happy, safe in the knowledge they can use their aircraft as much as they like outside of maintenance downtime.

The CAMO should always maintain contact with preferred maintenance providers (Part 145 organizations) of which it is typical to have at least three-optional companies to go to at any one time (see Diagram A, left). In the event there is a fault on the aircraft, the CAMO should be in a position of knowledge as to where the aircraft can be referred to efficiently rectify the issue.

Ultimately, a good CAMO-approved company should be the eyes and ears for an aircraft operator, and know exactly what’s going on technically with the aircraft - past, present and future.

Significant levels of trust are afforded a company looking after the maintenance of an aircraft. If you choose to place your aircraft with a CAMO, you should ensure that your trust is well placed. T Are you looking for more articles on maintenance?

Visit www.avbuyer.com/articles/category/business-aviation-maintenance

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Are All CAMOs Equal?

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The Paperless Hangar Most pilots agree on the iPad’s importance - but from the aircraft maintenance side, the challenge of going totally paperless is still a work-in-progress, notes JSSI’s Donald Ridge. Here’s why… imilar to paperless cockpits, a paperless hangar needs to involve a well-considered process—one that takes the many aspects of aircraft maintenance into account. The paperless hangar can incorporate many forms and depending on the operation, it may require a hybrid of paper and paperless options.

Maintenance Manuals, Task Cards for Inspections, Discrepancy Tracking/ Resolutions, and Aircraft Logbooks all need to be considered, at a minimum when a flight department starts such a transition.

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Maintenance Manuals

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The easiest items to transition to paperless in the hangar are the Maintenance Manuals. Most OEMs offer their manuals in an online or CD-ROM based format. They started out as pdf versions of the printed manuals, but most today provide a degree of search and hyperlink functionality.

The benefit of having the manuals online is that they are easily accessed, and there are no manual revisions to worry about as the online versions are always the most current.

Typically, these digital manuals are easier to navigate, and most are compatible with today’s tablets.

One drawback to internet-based manuals is that you must be connected for access. If you’re parked on the ramp in a remote area, this is not guaranteed. How and where you operate your aircraft must be taken into account when considering the format of your maintenance manuals.

Many technicians like to have the paper copy of the manual to hand, and this is fine as long as the printed copy is clearly marked as to its revision status. The paper copy should be promptly discarded after use to ensure you do not reference outdated information in the future.

Task Cards

Most, but not all, aircraft manufacturers have developed Task Cards for accomplishing the various inspections on the aircraft. These cards are generally grouped into a larger inspection package. Turning this function into a paperless process can be harder than it looks on the surface.

While it is easy enough to read these cards on a laptop or tablet, most contain steps that must be either signed-off electronically or have a value of some sort recorded on them. You will need to have in place a system for handling these cards and, depending on your operation, the system must be approved by the FAA or other local regulatory agency.

There are various articles that can provide guidance on this subject, such as FAA AC 120-78, Transport Canada Advisory 571-006, and EU Directive 1999/93/EC.

Logbooks

I believe that most logbooks will always be paper bound. The best idea for your logbooks is creating an electronic copy. This will prove to be very valuable when soliciting bids for a major maintenance event and when you take the airplane to a service center, as you can just send the electronic versions to relevant parties for a quick review.

There are a multitude of different forms and tags that go along with the log entries that are sometimes stored separately from the actual logbooks, and these forms are at the most risk for getting misplaced. A very good practice is making sure that an electronic back-up copy is made and stored in a secure area so that if the unthinkable happens and the paper copies are lost, the electronic versions can be printed for proper rebuilding of the records.

Maintenance Tracking

Maintenance Tracking is typically done by one of several companies depending on the make of the aircraft. CAMP, Flight Docs, and Gulfstream’s CMP are a few of the largest and most robust offerings available. There are several other companies that provide tracking that may not be as robust but offer a lower price with the right amount of paperless offerings for many.

The tracking software can also be as simple as an Excel spreadsheet, developed just for your particular operation.

Whatever route you take, you need to look at how your operation and the maintenance of the aircraft will be best served by the software offerings, and whether or not you can take advantage of all it offers.

Most of the companies in this segment do a very good job at tracking the multitude of items that need to be organized and monitored in order to maintain an airworthy aircraft. Some systems will also provide paperless ways to create task cards, log entries and even electronic log books. Other systems even offer a work order module for tracking work in progress for inspections and discrepancies found through the normal course of operation.

Managing aircraft maintenance digitally will make operations more productive, increase dispatch rates and help ensure airworthiness compliance. Therefore, it is only a matter of time before we see more progress. For most of us today, however, it is still a work in progress. T

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Ownership

Yearbook Covers template 2.qxp_YearBook Template 30/09/2015 15:31 Page 8

Dave Higdon has covered all aspects of civil aviation over the past 35 years. Based in Wichita, he’s a renowned journalist, and an active instrument-rated pilot with more than 5,000 flight hours in everything from footlaunched wings to combat jets.

Contact him via Dave@avbuyer.com

Waleed Muhiddin is VP Strat.

Ops & Business Dev. at AMAC Aerospace, a market leader in Completions, Maintenance, Charter & Brokering, located at Basel EuroAirport, Switzerland.

AMAC caters to every level of Aviation enquiry and/or consultancy. Email: info@amacaerospace.com

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Section Contributors

David Wyndham is co-owner & president of Conklin & de Decker where his expertise in cost and performance analyses, fleet planning and life cycle costing are invaluable. He’s formerly an instructor pilot with the US Air Force.

Contact him via david@conklindd.com

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Ownership

New or Used?

Choosing the Option That’s Best for You (Part 1 of 3) Today’s Business Aviation user is sophisticated enough to explore the spectrum of available aircraft, new and used.

David Wyndham launches a three-part series on factors to consider when choosing between the options.

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usiness jets are certified to the same standards as commercial airliners, yet they typically operate a small fraction of the hours flown by the Scheduled Airlines. Airliners remain in service for decades and are commercially viable well beyond 50,000 flight hours. Thus it is understandable that a pre-owned business jet, properly maintained and updated with required avionics and safety features, is a plausible option when a company or entrepreneur is contemplating the multi-million dollar purchase of a business aircraft. Certainly the wise buyer looks at all possibilities open to them.

When evaluating a business aircraft, the best advice is to select equipment that fits your mission and can be acquired as well as operated within your budget. General wisdom also suggests that pre-owned aircraft cost more to operate, and new aircraft cost more to acquire. As always, there is more to the story. Over this series, we'll explore

B

factors to consider when contemplating purchasing new, considerations when evaluating preowned, and address what the analysis should involve.

One caveat: Aircraft are not like automobiles. A 15-year old family sedan with 250,000 miles is probably at or near the end of its useful life. A new set of tires probably doubles the used sedan's value, so economically it makes little sense to spend much money on its roadworthiness. Aircraft, by their design and by the fact they are maintained to exacting tolerances, have useful lives well past 50 years. An aircraft's life is measured in flight-hours and cycles (or landings). The typical life span of an aircraft can be 50,000 or more flight hours.

Why Buy New?

While the salesperson jokes nothing beats that new airplane smell, there are many reasons why new is

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aircraft with a common livery.

Maintenance monitoring systems and computerized features available on today’s models make troubleshooting the new aircraft a matter of looking up an error code. Line replaceable units make swapping out some equipment as easy as swapping a hard drive on your desktop computer. Cabin connectivity such as high-speed internet as well as anti-noise and anti-vibration technologies have evolved with smart cabins. Today’s aircraft are rapidly becoming an extension of the home office.

the way to go. New aircraft may be more capable than their predecessors. The Gulfstream G650 has a one-third larger cabin and greater range than the Gulfstream G550. It also provides an advanced cabin-pressurization system that makes those 14-hour long trips even more comfortable. If you need that G650 capability, the G550 business jet doesn’t suffice.

New aircraft also come with new technologies that make operating them less costly and potentially more versatile than models available a few years ago. Head-up guidance and synthetic vision can give the pilot the equivalent of a daytime view when landing in poor visibility (surely a safety advantage). Navigating in North America, Europe and across the oceans have evolving requirements for more accurate avionics equipment.

The US FAA "NextGen" navigation system requires new capabilities that come with new aircraft.

You also get to choose the options you need, along with interior layout, colors, fabrics and other appointments. While somebody may like the colors of that purple and green aircraft, you may not. This situation is also important if your aircraft needs to match the corporation’s colors or if you have several

New aircraft come with full warranties. While new equipment tends to be more reliable, it can be costly to replace. The warranty gives the owner peace of mind that if components fail prematurely, the repair or replacement is covered.

New aircraft have reduced maintenance costs. This fact is not just because of warranty and better technology, but also because of the manufacturer's continuing refinement of required maintenance schedules and reliability centered maintenance practices.

In order to maintain aircraft safety, as aircraft age they tend to require more intense inspections and preventative care, especially those that spend a lot of time operating in corrosive environments.

The lower required maintenance of new aircraft also means they can fly more. Aircraft Availability is defined as a percentage of days an aircraft is available for flight in an operating year. (Aircraft Reliability is the percentage of times an aircraft can be dispatched when available for service. This number is higher, sometimes measurably, than Aircraft Availability.) Keeping an aircraft reliable (not to mention, safe) requires maintenance. When the aircraft is in for maintenance, it is not available for flight. If an aircraft is down for maintenance three weeks in a year, its availability is 94% (i.e., 49 weeks out of 52 weeks per year).

As aircraft age, unscheduled maintenance increases, and more maintenance usually is required to keep a high rate of reliability once the aircraft has been determined to be available.

Obviously, time in the hangar or maintenance shop detracts from the aircraft’s availability for flight operations. Represented in Table A (below), data researched by Conklin & de Decker show that availability drops off as the aircraft ages.

For this reason a business aircraft operator should think carefully about keeping their aircraft beyond age 20.

Several of our clients replace their business jet aircraft within six years of purchasing new. With that policy, their aircraft are always in warranty and the aircraft's first time-intensive maintenance check occurs in year six. That practice easily provides for 600 to 700 hours of flight operations per year, per aircraft.

Next we will address factors when considering pre-owned business aircraft. T TABLE A: AIRCRAFT AVAILABILITY

AIRCRAFT AGE 0-20 Years 25 Years 30 Years

Data: Conklin & de Decker

MAXIMUM AVAILABILITY Up to 95% Up to 70% Up to 55%

Are you looking for more Business Aviation Ownership articles? Visit www.avbuyer.com/articles/category/business-aircraft-ownership

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Warranties

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New or Used Aircraft How can you Know which Option is Best for You? (Part 2 of 3)

David Wyndham continues his three-part series on evaluating options for achieving the benefits of Business Aviation. Previously he considered new aircraft, and this month his focus is on used.

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cquisition price is the biggest reason for selecting pre-owned versus new.

Since the 2008 recession, the spread between new and used prices has increased. For example, one popular mid-size business jet sells for $26.6 million in 2015. According to Vref Aircraft Value Reference, the 2010 model currently sells for under half that price, at $13 million, and a 10-Year old model value is $7 million (see Table A, below).

Rather than buying the same model aircraft new, another option is to upgrade to a large preowned aircraft using the same $26 million. We do

A

Table A

not normally recommend this option, however.

You should buy the aircraft that meets your needs and that you can afford to operate. Operating a large aircraft will cost more, sometimes much more.

Another advantage of the pre-owned aircraft is the time to put the acquisition into service. Popular new aircraft can have waiting times of 12 or more months between order and delivery. Even if the new aircraft is in stock, selecting interior appointments and equipment options will take time.

A pre-owned aircraft can be put into service relatively quickly, depending on the time needed for

MID-SIZE BUSINESS JET Price (New)

Five-Year Old Model

Ten-Year Old Model

$26.6million

$13 million

$7 million

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the financial, legal and contract processes, plus scheduling and accomplishing a pre-buy inspection. For a cash deal it may be possible to put an aircraft into service in a matter of weeks.

Budget to Refurbish

You may spend $300,000 to $500,000 in new avionics, repainting the aircraft, and perhaps refurbishing the interior, so budget accordingly. Paint is cosmetic and easy to change. As long as the interior is in good physical condition, new soft-goods (leathers, fabrics, carpets, etc.) are relatively inexpensive.

New avionics for an aircraft manufactured in the past 15 years or less, while not inexpensive, tend to be technologically feasible and able to meet all the future air navigation requirements. These upgrades to the used aircraft also add value when it comes time to resell.

Operating costs will be higher for the pre-owned aircraft compared with new. The used aircraft probably is no longer in warranty. If an item needs an unscheduled repair or replacement, you are likely to bear the full cost. New parts do come with warranties, but they are far shorter than the new aircraft warranty coverage. An aircraft's life is measured in flight-hours and cycles (or landings). Even a 10-year old aircraft with 4,000 hours is still young if it has been maintained properly.

Aging Effects

As aircraft age, they tend to require more maintenance. For example, one large business jet has routine scheduled checks every six months or 300 hours. These are relatively minor. Every six years there is a major inspection that costs upwards of $500,000. The likelihood for unscheduled maintenance also

increases with age. Conklin & de Decker data suggest that the maintenance costs for an older aircraft can be 25% to 50% higher if it has been in service for 5-10 years.

For a mid-size business jet, maintenance costs (excluding the engines) can add about $200-400 per hour to the averaged maintenance cost reserves, compared with a new aircraft of the same design. So for our hypothetical medium-cabin business jet, purchasing used adds about $300 per hour to the operating costs and requires $500,000 expense to put it into service.

How is this cost package still an advantage? Let’s consider.

The $13.6 million saved by purchasing pre-owned will easily cover the extra maintenance and refurbishment costs over the next ten or more years! The differences in the operating costs by themselves do not negate the pre-owned option. Part of the higher expense of the new aircraft does get returned when the aircraft is sold, however.

Do not overlook the fact that the well-maintained used aircraft also loses less in terms of absolute dollars in its market value. When looking at the costs to acquire, operate and dispose of the aircraft, a “clean” pre-owned aircraft can often have a significant cash advantage.

So in terms of cash, the pre-owned aircraft in the example presented here should stimulate thought, but the devil is in the detail. We always recommend a thorough life cycle cost analysis as the numbers can be very different for each case.

Next, we’ll bring together our discussions of advantages for buying new and pre-owned to conclude this series on intelligently assessing the options available to the prospective buyer of a business aircraft. T Are you looking for more Business Aviation Ownership articles? Visit www.avbuyer.com/articles/category/business-aircraft-ownership

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New or Used Aircraft How can you Know which Option is Best for You? (Part 3 of 3)

Having addressed advantages for buying new and pre-owned aircraft, David Wyndham concludes his series of pivotal considerations for Boards looking to acquire business aircraft‌

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reviously, we touched on only two aspects of the new vs. pre-owned question: acquisition cost and operating costs. While those are two significant areas in arriving at a purchase decision, we always recommend looking at the full life-cycle cost of owning and operating the aircraft.

Some fixed costs such as crew salaries, hangar and liability insurance may be unrelated to the new vs pre-owned question. But what about financing the acquisition? Are there more favorable terms for new aircraft? What about residual value of the aircraft at the end of your ownership? For business use, taxes and tax depreciation are also important.

P

Financing

When looking at the costs to acquire, operate and dispose of the aircraft, used aircraft can often have a significant cash advantage. Consider the new and five-year old mid-sized business jets we used as illustrative in Parts 1 and 2 of this series as an example.

Highlighted in Table A (top, opposite) is the total cash

outlay calculated for a five year ownership period.

New aircraft tend to secure better financing or leasing rates than pre-owned equipment. Post-2008, aircraft values took a major tumble, and they have not fully recovered. Newer aircraft remain on the market less time than older aircraft. Several aviation finance experts believe that the aircraft must be less than age 20 at the end of the finance/lease term for the deal to be financially safe. While that advice is a generalization, financing terms and rates support that position.

Financial institutions do not mind taking a residual value risk on an aircraft that is five or ten years old at the end of the lease or finance term. They are much more wary of 20-year and older aircraft, however. For a new business aircraft, 100% financing at low singledigit rates are available for the best credit risks.

Older aircraft tend to require 20% to as much as 50% down-payment to secure financing.

Lease rates and terms also favor the new business

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Table A

Table B

Table C

Depreciation

Tax Depreciation can narrow the new-versus-used price gap. But the tax advantages are greatest for the first-time buyer of the new aircraft. How? If the aircraft is 100% used for business, 100% of the acquisition price can be depreciated as a business expense.

The US Internal Revenue Service (IRS) allows full depreciation in as little as five years for non-commercial operators.

Depending on the tax law and whether you can qualify, there has also been a 50% bonus depreciation law that allows up to half the purchase price to be taken in the first year of use for the aircraft. That feature is not available for pre-owned aircraft.

So the tax depreciation in the first year of service may allow for a $13.3 million deduction for our new aircraft example (see Table C, above). The used aircraft does not qualify for other than the standard IRS allowance. Note: accelerated depreciation only changes the timing of depreciation, not the duration or amount of total depreciation.

At a 35% tax rate, the new aircraft with bonus depreciation can have a tax advantage of $3,745,000 ($10.7 million depreciation difference at 35% rate).

When You Sell?

There are two options when you sell, depending on your subsequent actions regarding aircraft ownership. There will be a capital gains tax on the difference between the sale price and the depreciated value of the aircraft that can negate a significant part of the early deduction.

In order to avoid having a capital gains tax on the aircraft sale price less depreciated value, you may be able to defer the gains tax with a 1031 Like Kind Exchange. But in deferring this gain, the basis of the next aircraft you purchase will carry the impact of the depreciated amount, thereby making you unable to depreciate the full value of the replacement aircraft. This can get quite complicated and requires the advice of a tax expert.

The huge depreciation advantage of the new aircraft is really only useful in the initial purchase year; its value lessens over time.

Tax planning overseen by a person knowledgeable in the ways of the IRS is required.

Returning to Table A and assuming 100% business use and a 35% tax rate, the pre-owned aircraft has a net after-tax advantage.

This benefit, however, may not always hold true. That is why we always recommend looking at the life-cycle costs for each option.

Taxes and financing/leasing options may favor one option under particular circumstances.

In summary, new versus pre-owned should take into account mission requirements, aircraft capability, owner preferences and life-cycle costs. It can be complicated, so having a consultant's help can make the decision easier. Remember to focus on the objective—safe and efficient transportation using a business aircraft. T Are you looking for more Business Aviation Ownership articles? Visit www.avbuyer.com/articles/category/business-aircraft-ownership

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aircraft: a 10-year lease on a new business jet is not a problem, while the bank may balk at longer than five years for a 15-year old business jet.

This fact of financing recognizes that selling a newer aircraft in excellent condition is easier than selling a much older aircraft, even when it is in very good condition. As one example, according to AMSTAT, older Challenger 601-3A models for sale take longer to sell than their new variant, the model 605 (see Table B, above). In general, newer aircraft sell quicker than their older brethren.

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End-Stage Care for Business Aircraft:

Recyclers Offer Safe, Legal, Profitable Disposal

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Recoup as much capital from a retired business aircraft as

possible, asserts Dave Higdon. Don’t just park and abandon it.

There’s ‘gold in the old’!

A

Multiple Systems Flying in Close Formation

To highlight the complexity and potential for parting out an end-of-life airplane, consider these areas in which an entire system operates, from the ground up: • Landing Gear System: Main gear legs; trunnions; wheels; brakes; down-locks; up-locks; gear doors; and the associated hardware needed to reposition the gear between down-andlocked and up-and-clean.

• Cabin Pressurization System: Plumbing to take bleed air off turbine-engine compressor sections; plumbing to route that air through an intercooler to the cabin; and an outflow valve to modulate the pressurization level in the aircraft.

• Cabin Amenities: Seats; tables; lights; fresh-air vents; galley and lavatory parts. In-flight entertainment equipment, and any cabin electronics (phones, Internet routers, and the like).

• Cockpit Systems: Flight crew seats (and in some cases jump seats); avionics systems; powerplant controls; flight and air-data instruments, radios and intercoms.

• Powerplants, Control Linkages & Associated Hardware: Even engines due an overhaul can have viable components – all of them expensive to buy, but less expensive to check against life limits for possible use in other engines.

• Trim & Fabrics: Aside from the furniture, the cabin also yields plastic or composite side panels, foam from seats...even the cabin windows can be salvaged.

• The Airframe: There’s lots of valuable metals in a modern business-turbine aircraft, most of it expensive aluminum, but also various kinds of steel, titanium and other exotic metals.

A salvager finds plenty of ‘gold’ after stripping the aircraft down to its shell. Depending on the aircraft the yield of aluminum alone can run into tens of thousands of pounds; copper wire, stainless steel tubing, and other metals all add up to help the salvager recoup the cost. Engine nacelles, flaps, ailerons, leading-edge cuffs, landing gear and more have value. As one active salvage-to-parts operator explained, “the value can vary with the number of that type still flying and the pool of similar parts available in the market.”

Meanwhile, the practice of stripping out aircraft for recyclable materials and viable components involves handling materials considered toxic to the environment, which tends to be highly regulated.

Failing to comply can pose significant penalties.

“...the items that can be recycled from an old business jet or propjet amounts to more than 90% of what’s in the airframe...”

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n acquaintance flies older business jets as a matter of routine practice. He buys knowing the airplane is with its final owner. Operating the aircraft until engines need overhaul – or other six-figure maintenance is required - he then disposes of the old jet and buys another older airplane.

A local broker supports the same approach, advising first-time business aircraft buyers to go cheap until they're sure an airplane works with the business. Then they can look to buy a long-term solution.

In each case the metrics are simple: When the cost of overhauling engines exceeds the value of the airplane, the airplane goes to salvage. Every year scores of near, or over-retirement-age aircraft are snapped up by experienced operators and users new to Business Aviation because they can be acquired for relatively little. And when those airplanes wear out, those same operators look to ship the airplane off to parts dealers and salvage companies.

“There is some gold in each of these old airplanes,” the low-cost operator acquaintance explained. “The gold is in the systems, airframe hardware - even the run-out engines. So we get a nice price from a salvager, who either ferries the airplane to its last airport or sends a truck to pull the wings and ship everything back to his salvage operation.”

This pilot thinks of the routine as an “airframe organ-donation program”, providing transplant components to other, still-viable airframes. As new airplane sales go these days, so goes the aircraft recycling business. It's not booming as it was a few years ago, but it's still solid and a viable option for anyone with an older aircraft edging nearer its retirement.

The salvage approach offers some notable appeal as opposed to simply parking the airplane and walking away. Undertaken properly, by knowledgeable, reputable salvage operations, the items that can be recycled from an old business jet or propjet amounts to more than 90% of what's in the airframe.

The key to maximizing the return for aircraft salvage is finding a salvager who understands the process, and applies best practices for protecting the environment and ‘extracting the gold from the old’.

These companies can also assess a value of the components and pay a reasonable price for an aircraft no longer worth the investment to keep aloft.

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“ Others, not recognizing the potential value of the salvageable materials, may simply abandon the airplane...”

Hydraulic fluids, fuels, oils and lubricants require special handling and disposal practices. And if an aircraft sports an installed lavatory, that means handling biological waste materials.

Some owners may not realize the complexity and responsibilities of handling these should they opt to try stripping out the airpane themselves. Others, not recognizing the potential value of the salvageable materials, may simply abandon the airplane far from view.

Ensuring a Sound Salvage

Scrapping a modern aircraft can involve regulatory issues similar to maintaining the aircraft in an airworthy condition. The FAA still has oversight of parts deemed worth returning to service, but it's the EPA and state environmental rules instead of the FAA that make the salvage business one that’s best left to the pros.

In some parts of the world finding the salvage operation may be as easy as looking up a used-parts purveyor; the chances are that much of their inventory came from run-out aircraft they purchased and processed for their re-usable parts and components.

Elsewhere it may be necessary to look further afield.

One good place to start is the Aircraft Fleet Recycling Association (AFRA), which sets accreditation standards, provides guides to responsible salvaging and a connection between its members and people in need of their services.

AFRA members are global leaders in the management of aging aircraft fleets, providing an international perspective and promoting greater cooperation among governments and industries. AFRA touts its membership as representative of every sector of the aviation industry, from manufacturing to materials recycling. “Leaders from every part of the value-chain have joined AFRA to develop end-of-life

solutions,” the association says. The association established and maintains the only industry-developed best practices guide for aircraft disassembly— its ‘AFRA Best Management Practices (BMP) Guide for Disassembly.’

Another source of information on aircraft salvage services is your aircraft insurance company that must pay-off “totaled” aircraft. Totaled aircraft are deemed unworthy of the costs of repairing to airworthy condition. When an insurer totals an aircraft – writing the owner a check for the insured amount – that insurer takes ownership of the aircraft and turns to aircraft salvage companies to buy it, often through an auction.

That process helps the insurer recoup some of the funds paid to the old owner and helps feed the pool of aircraft parts for either reuse or sale to the scrap yard.

Don’t Just Abandon!

As several companies noted, abandoning an aircraft that's worn out may still leave the owner liable for storage charges and any environmental issues stemming from fluids leaking onto the tarmac. In some cases, airports have sought out former owners of abandoned aircraft and served them with papers demanding payment for parking, storage, environmental damage and, occasionally, property taxes now due because the aircraft can no longer be claimed as a business tool.

The way to avoid that happening to you would be to find a salvager that works with your aircraft type and ask them to make an offer. You'll get back more that way than just walking away – and you’ll also avoid a pile of possible legal and regulatory hassles. T More information from http://www.afraassociation.org/

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Fixed-Base Operators: It’s a Highly Competitive World Out There!

The range of services available at FBOs can vary at every destination. How does an operator choose?

Waleed Muhiddin reviews the regulations affecting FBO pricing and ground handling to reveal a fine balance…

A

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s we see a recovery of the global Business Aviation industry ahead (there are optimistic signs in the US and continuously steady growth in Asia), the Fixed-Based Operator (FBO) landscape reflects the development of the aviation industry in general. But despite improvements in the US market, private jet traffic in Europe over the past year has remained largely flat.

The most recent ‘Departures, Arrivals, Internals and Overflights Report’ from the European Business Aviation Association (EBAA) and Eurocontrol shows that Business Aviation traffic in Europe is down approximately 1.8 percent over the past year. So in Europe particularly, the FBO industry is a highly competitive market.

World Leaders & Rising Stars

Before we look in more detail at the global FBO industry, let’s take a step back in time to where it all began, with opportunistic and unregulated private aviation activity after World War I in the US. In November 1918, Civil Aviation in the US essentially comprised "barnstormers", or transient pilots flying inexpensive military surplus aircraft from city to city, often landing in farm fields on the outskirts of a town as airports were scarce

at that time. Mechanics and early flight instructors of the time moved around with the aircraft and had no established business in any one location—i.e., at a fixed base.

With the passage of the Air Commerce Act of 1926 and its resulting mandate for the licensing of pilots, aircraft maintenance requirements and regulations in training standards, the transient nature of Civil Aviation was curtailed.

Thus a new Fixed-Base business model followed the fast evolution of commercial and private aviation in the 20th century, and soon spread beyond US shores into Europe. Fast-forward into today, and the FBO business is a truly diverse and global one serving the needs of aircraft crews and passengers just about anywhere they could wish to fly.

Besides the well-known market leaders and top-ranked FBO destinations, today we’re seeing a number of excellent new FBOs confirming their up-and-coming status within the industry. For example, speaking to the pilots who fly AMAC’s fleet of charter aircraft on routes all over the world, Istanbul Sabiha Gokcen International Airport and Milas Bodrum Airport in Turkey were noted for their extraordinary service, fast customs clearance and exquisite aviation catering.

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And regionally speaking, the Middle East currently has a very high standard of operations with short waiting times for refueling or comfortable FBO lounges for both customers and crew, bearing evidence that policy-makers understand the industry’s needs. Destinations like Dubai or Abu Dhabi have been on a steady climb up the world’s FBO rankings in recent years.

Balancing Act

Discussion with AMAC’s pilots also revealed two significant FBO developments have been evident recently.

Cost Increase – Firstly, increasingly burdensome regulatory requirements from local aviation authorities are forcing FBOs to expand their organizational procedures and handling rules.

One result is increasing prices for FBO services, and another is longer turnaround times for a stop-over.

We saw an example in Spain last year, where new rules for handling passenger and cargo documents almost doubled the operational costs to touch down and turn-over. On the flip side, several Spanish FBOs went out of business after cutting their prices too low for too long. So what’s an FBO to do? While they need to be price-com-

petitive, they must maintain healthy margins and ultimately do so by finding other ways to compete through differentiation from the services they offer over the competition. That leads us to the second observation…

Quality Increase - The second (positive) development is a distinct increase in quality at several destinations.

Thus, the operator in today’s Business Aviation world is walking an increasingly fine line between cost and quality of service when choosing an FBO. Given the growing competition among FBOs, when flying to a new destination an operator should ask plenty of questions to ascertain where they will get the best value, in particular ascertaining information on the following important service aspects...

• Line service: How does the competence of the workers meeting the airplane on the ramp and servicing it compare with other FBOs nearby?

• Passenger amenities: What is the quality of lounges and conference rooms available, and the availability of ground transportation?

• Pilot amenities: What is the quality and availability of pilot lounges, flight-planning

“...they must maintain healthy margins and ultimately do so by finding other ways to compete...”

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facilities, snooze rooms, crew showers, entertainment and recreation, and complimentary crew cars?

Facilities: Ask plenty of questions about the overall cleanliness, comfort, upkeep and convenience of the location in general.

Customer services: How does the friendliness and professionalism of the customer reps compare with those of other facilities?

How is their familiarity with the local area and their assistance with reservations and catering?

Be Well Prepared

The overall picture is what matters. Fast customs clearance is useless if you have to wait two hours for the refueling truck to arrive.

And a cost-saving FBO offering little more than a bench at the edge of the tarmac for crew to rest is not going to cut it either. Moreover, a large airport is not a promise for a customerfriendly FBO service. Waits can get very long even for business aircraft.

As an operator, the onus is on you to have the situation in your own hands and to maximize your experience with an FBO. You can help this by submitting complete and detailed information about your passengers and loading, in advance.

Ultimately, the operator and the FBO should have the same goal: the safe, efficient and successful completion of the trip. Some FBOs will surprise you by going the extra mile. After all, excellent service is priceless and crucial for client retention. What else do you need? T Are you looking for more articles on Operating Costs? Visit www.avbuyer.com/articles/category/business-aircraftownership

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Global & Domestic Flight Planning Long View Helps, Even on Short Legs 232

Whether a planned trip is a relatively straight-forward domestic leg, or a more complex international trip crossing multiple borders, Dave Higdon highlights the advantages of forward planning.

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t's not hard to assert that flying within the United States presents the fewest, most-easily met requirements of any region on the planet. A flight plan isn't even required unless the flight needs IFR services due to bad weather or flying above Flight Level 180 (for example).

And yet, for its relative simplicity, within the United States optional advance work can help preclude re-routings, ground holds and other diversions from the plan when traffic congestion rears its head. Also, there is the ever-present need to have no surprises when you reach your

destination, such as glitches in ground transportation or issues with catering for the next leg of the itinerary.

Private and commercial traffic within the US far exceeds that of any other country. The odds of ATC diversions increase with traffic density along your en route sectors, the level in terminal airspace, and at your destination. The terminal airspace areas where this is most-likely to occur are as easy to find as the 36 Class B airspace sectors and their 37 airports.

Avenues exist to minimize such route disruptions, and possibly inoculate a flight against

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any unacceptable changes. First-person help exists in the form of the NBAA's staffing of the General Aviation Desk; at the FAA's traffic-flow crossroads; as well as through a myriad of available commercial flight planning services. Capitalizing on these options requires more advance thought and planning – regardless of where in the world the airplane must go.

The most-complex planning and paperwork, however, involve trips across national borders where even after modern technology has streamlined much of the process there’s still a complex, overlapping series of pre-flight preparations to meet requirements that vary by country.

When flying internationally, a flight crew must know and adhere to the requirements of the destination nation. Failure to properly plan for an international trip could result in an unexpectedly quick return flight because a national requirement was not met.

Plenty of help exists to prepare a flight crew for an international flight – both at the flight planning stage, and for identifying and meeting international requirements that will be met en route.

Going Global

Beyond the US, Canada and Mexico in the Western Hemisphere, flight-planning and filing requirements typically come with the need to file further ahead of departure than for a domestic flight. Advance filing

requirements of 24 hours are not unusual - a few require more advanced notice. Many nations require not only advance flight plan filing but also airspace and landing permits, as well as departure permits. Nor should an operator forget to check on overflight requirements in which nations can expect flights to meet their regulations and pay their fees.

Since international trips seldom fall into the spurof-the-moment category, the time to start researching requirements for passengers/crew and airplane is the moment the trip becomes a possibility. Enlisting a professional trip-planning firm can excise much of the work and worry from arranging such an international itinerary. That firm can carry you through the entire process, up to and including obvious check-list items (hotels, cars and restaurants), as well as work needs (temporary office and secure computer access).

Don't forget to weigh any security considerations that may accompany the person or destination.

Ultimately, more documents, inoculations, equipment and notifications go into planning flights beyond domestic borders.

Europe, for example, requires documentation for the aircraft and people, as well as advance notifications and specifics on the cities you plan to visit when the trip is more than a simple fly in and fly away proposition. The UK has its own rules and fee schedules; it’s common to all the countries that accept private aircraft visitors. Thus, a checklist tailored to the nation of interest can help assure the

“Failure to properly plan for an international trip could result in an unexpectedly quick return flight...”

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crew of meeting all of the requirements for the trip.

But beyond each individual state's requirements, visitors may face a specific process for handling services (fuel, ramp or hangar parking, etc.).

Is The Airplane Ready?

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Don’t overlook the avionics mandates as they apply globally. ADS-B Out via 1090ES is already mandatory in most nations outside of the US (Canada and Mexico excepted). Australia and Europe are already on board. And if your plans include ocean crossings via the North Atlantic Track, well, you have more to consider for the higher altitudes.

February 5, 2015 marked the implementation of Phase 2 of the North Atlantic DataLink Mandate (NATDLM). This initiative aims to improve communication, surveillance and air traffic control intervention capabilities in the region and help increase the traffic flow and still ensure safety by reducing collision risk.

Phase 1 began in February 2013 by requiring all aircraft operating on or at any point along two specified tracks between FL360 and FL390 during the Organized Track System (OTS) validity period be fitted with, and use Future Air Navigation Systems (FANS) 1/A (or equivalent) Controller-Pilot Data Link Communications (CPDLC) and Automatic Dependent Surveillance-Contract (ADS-C).

Eurocontrol postponed the VHF DataLink (VDL)

Mode 2 Communications mandate in Europe until February 5, 2020, but starting in 2020, all civil aircraft operating IFR above FL285 in the Eurocontrol area must be retrofitted to support VDL Mode 2 data. Aircraft delivered before 2014 with FANS 1/A installed are exempt from this mandate, however. Europe's ADS-B Out requirement began on January 8, 2015, for aircraft manufactured on, or after that date; non-compliant aircraft must retrofit by December 7, 2017.

For flights within US borders, conversely, ModeC and Mode-S remain requirements for ATC surveillance – at least until December 31, 2019. On January 1, 2020, the US steps into line with the rest of the world requiring ADS-B Out for operation in its airspace.

Flight Planning, Domestically

As mentioned above, no advance notice is needed for domestic US operations. Open skies abound. No restrictions will be encountered... well, apart from TFRs, MOAs, Prohibited Areas and approximately three dozen cities.

For those sectors and cities, advance notice and some coordination with the FAA can help keep a trip on-track and allow an operator to avoid hearing those dreaded words, “Stand by...”

This is where some new FAA tools come into play to help minimize, or even eliminate surprise route changes.

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Collaborative Trajectory Options Program (CTOP) and Collaborative Airspace Constraint Resolution (CACR): the main difference between the current system (CACR) and what CTOP offers is the ability for the operator to file with multiple route options so, if the original becomes unavailable, you can avoid discussions about your amended route.

As part of CACR, CTOP is a traffic management initiative (TMI) that automatically assigns delay and/or re-routes around one or more flowconstrained area (FCA) airspace constraints in order to balance demand with available capacity. With CTOP, however, a cooperative operator can be lined up to get priority handling to avoid the constraint, providing of course that capacity exists at the arrival airport.

Furthermore, CTOP allows operators to pick a reroute, from their Trajectory Options Set – those filed alternatives – rather than taking a ground delay or rerouting per FAA dictates. Realizing the benefits of CTOP requires an operator to do a bit more advance planning, particularly on days and to regions impacted by constraints such as convective weather. And operators must be willing and prepared to accept any of the routes contained in their TOS.

CTOP is optional, with participation level left to the operator's discretion. Those who decline participation simply continue to file their single flight plan – considered a ‘single-option TOS’.

(Naturally, however, single-option TOS’ face higher odds of a ground hold or re-routing should their filed route becomes unavailable.)

To participate in CTOP, operators submit a set of route options – their TOS – along with their flight plan in advance of the flight. A number of popular flight plan service providers are working on enhancements to their systems that allow them to assist operators in creating TOS’ submitting them to ATC, and keeping those operators updated on changes.

Once the TOS has been submitted, the operator needs to be prepared to receive updates from ATC as conditions change. While one particular route might be assigned initially, that route assignment could change several times before departure. This is due to the fact the CTOP is constantly evaluating the constraint(s) and making adjustments to maximize capacity.

“...a cooperative operator can be lined up to get priority handling to avoid the constraint...”

Are you looking for more articles on ownership? Visit www.avbuyer.com/articles-guides/ business-aircraft-ownership T

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CTOP & CACR

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Profiles & Case Studies

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Rod Simpson is an experienced journalist and aircraft historian who specialises in Business Aviation. He is the author of more than a dozen aviation books and has worked as a consultant in the US General Aviation industry and contributed to many journals on both sides of the Atlantic.

Contact him via rod@aeroplan.freeserve.co.uk

Rani Singh writes about aviation. A sought after Journalist and author she also reports on news, foreign affairs, politics and business with the world’s largest news organization.

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Section Contributors

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High Flyers Interview

High-Level Food Provider Flies Privately If you run your business as a one-man band, how can Business Aviation work for you? Rani Singh asks Victor Girgenti, whose Longview Trading, Inc. deals in high-end deli products for supermarkets’ private-label programs... ictor Girgenti, 58, is an engaging individual who responds to requests and questions at lightning speed. He manages to do this while flying privately and running his successful food empire daily, singlehanded. His business supplies the finest supermarkets with very high quality cold cuts, deli cheeses and deli salads with their customer’s name on the label.

“For years most retailers would place the worst quality product in their label,” Victor highlights. “I started my business over twenty years ago – and changing the mindset of the deli world has been an experience!” The products Longview manufactures have the lowest sodium levels in the industry. “No fillers or extenders are ever used. MSG is not in any product we produce. No artificial flavoring,” he notes.

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All meat is from the US, and Victor processes it in a variety of different plants across the nation, keeping each species in separate plants to avoid cross contamination.

A decade ago, Victor’s business was doing well, so he started to make more use of his winter home in West Palm Beach, Florida (he lives in Sands Point, New York, a wonderful harbor town just outside New York City).

“The reason I started to take flying lessons was that when we used to charter a jet before I was able to fly, I would watch the pilots and worry that if they had eaten, let’s say a bad fish for dinner and had an attack of food poisoning, it might be helpful to know how to yell ‘HELP’ on the radio,” (Victor would charter a private jet to take his wife and two Labradors, Callie and Hobbie, to Florida).

“After the first lesson, and since my golf game

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had not improved for 20 years, I decided to keep taking flying lessons,” Victor recalls. “Of course had it not been for Callie and Hobbie, I never would have chartered a jet to begin with. Thanks to those two most wonderful dogs I came to realize that private flying would also change my life and business. I now do animal rescue missions with the Eclipse 500 I own, bringing dogs from kill shelters in the south to sanctuaries in the northeastern states.”

Victor never dreamt he would one day fly himself to Florida. But he stayed the course working his way from a Cessna T182T, to a Columba 400, to a Piper Meridian and for the last two years has owned an Eclipse 500 TE (Total Eclipse). Today, he flies to his clients along the eastern seaboard of the US, from Florida to Pittsburgh, Pennsylvania.

Victor doesn’t mass produce, and is happy trading with those who appreciate his level of quality.

“Being able to jump into the Eclipse, go, and return quickly makes optimum efficiency possible.”

Out and Home in a Day

Previously, Victor was flying commercially on a regular basis to one customer in Jacksonville, Florida. “I was flying too much. You would think from NYC to Jacksonville there would be many flights daily. That’s not the case, and most trips there required a departure the day before the meeting. If the meeting ran late, I had to spend another night in Jacksonville before flying home on the airlines.

“Now I wake up in my own bed, enjoy a workout, check the stock markets, check emails and drive to my local airport,” he smiles. “I put my car into my hangar and fly off to Jacksonville. Two hours later I am there in plenty of time for the meeting. Afterwards, I’m back home in another two hours and having dinner with my wife. Flying yourself is worth every penny.”

Working from home, every hour counts for Victor.

As we spoke, he was preparing to fly to Atlanta, Georgia for a convention, offering a ride to one of his larger customers. “They get so excited to see the airplane and can't believe I’m the pilot. They’re amazed that we walk onto the aircraft and go. No taking-off shoes or metal detectors.

“Being able to jump into the Eclipse, go, and return quickly makes optimum efficiency possible.”

The flight starts when we are ready. This blows them away!”

Highlighting the sheer flexibility afforded him by his business jet, Victor recalls, “Last year I needed to attend the same convention when it was in Denver, Colorado. I flew in on Saturday, dined with customers, attended the convention on Sunday, and quickly realized I had seen

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MR GIRGENTI WITH HIS ECLIPSE 500 TE, AND (BELOW, LEFT) AN EXAMPLE OF LONGVIEW’S DELI PRODUCTS

Giving Back To Aviation

enough. While originally I was planning to stay and attend the convention a few more days, because I have my own aircraft I got up Monday morning, called the airport and asked that my airplane be fueled and ready for departure within 30 minutes.

“If I was on an airline, the effort and added cost to do something like that would be huge. While everyone else was still in Denver, I was back at my desk doing important business.”

“While everyone else was still in Denver, I was back at my desk doing important business.”

Victor has a simple, but effective sideline business that he feels gives back to the industry that has helped him so much.

“Manufacturers such as Piper build aircraft that use the same airframe for both piston (gas burning) and turbine (jet fuel burning) airplanes,” he notes. “The folks that fill the airplanes with fuel at the airports don't always know which engine is installed - and if they make a mistake and place the wrong fuel-type in an aircraft the results can be deadly.

A simple warning system was needed to alert these line-people as to what type of fuel was needed in an aircraft. “I invented and market a product called FuelTape - a roll of tape that states the type of fuel that the aircraft needs, or should not be fueled with. The pilot, after landing, tears off a piece of this tape and places it over the fuel cap so the line people need to remove it before fueling.

“Today with diesel engines burning Jet A, FuelTape will be needed more than ever.

Check out www.fueltape.com to learn more.”

Victor feels that the Eclipse is his perfect vehicle. “It is fast at 375 knots, and able to fly way above the weather with a ceiling of 41,000’,” he enthuses. “It is comfortable, and very quiet - normal volume conversation is not a problem, and in fact no headsets are offered to the passengers.

“Best of all is the lack of fuel burn - trips from New York City to West Palm Beach, Florida only burn 190 gallons,” he adds.

Victor’s business philosophy is built on the belief that every call, email or text needs to be answered within minutes. Delaying an hour is not an option – thus he has taken care to select an aircraft with sufficient in-flight connectivity so that he can be productive while flying. “Being in touch in the air is a must,” he concludes. “Customers don't care where you are, as long as you respond quickly. Being able to do so, and the time savings made possible by flying to your schedule, are the ultimate advantages of Business Aviation.”

For more information on Longview Trading & its products, visit www.longviewtrading.com Are you looking for more Business Aviation Case Studies? Visit www.avbuyer.com/articles/categories/ business-aviation-interview-case-studies T

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Why the Eclipse?

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High-Flyers:

He Made His Bed in BizAv, and Now He Can Lie In It - Literally!

Rani Singh introduces us to Gary Bosstick, a man who started out with a love for

aviation, built his first business using that passion as a vital tool, and then built a second business providing a necessary source of comfort to the Business Aviation industry.

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his is the story of an entrepreneur who grew up fascinated by fast, noisy vehicles. As a teenager Gary Bosstick loved cars, motorcycles, boats and - of course - airplanes! He served in the US Navy following high school, but since airplanes had always been of interest to him, after his discharge learning to fly came high on the list of priorities – a priority he was able to meet using his GI benefits to pay for his private pilot’s certificate.

After leaving the Navy, a friend persuaded Gary to get a real estate license so as to move into that industry. People with a service background tend to be successful in real estate due to their self-discipline and organizational ability, and Gary was no exception.

Based in San Diego, California since 1963, he linked up with financial partners and began building various projects, from small retail strip centers, to industrial buildings and office buildings. And of course private aviation soon became indispensible to his business. He and his business partner soon bought a new Cessna Turbo 210.

Building a Second Business

Gary sold some buildings and was able to invest in a second business (although in real estate development, he explains, each new project is a new business).

This new business was based in Tampa/St. Petersburg, Florida, and because by now Gary had Business Aviation in his corporate structure, he could fly to Florida with more ease.

“The Florida-based company, Rutenberg Realty, was started by my brother-in-law, John Nestor, and currently has around 2,000 agents and is one of the larger Residential Brokerages in the country,” Gary explains. “Around 2006 I started selling various properties and used some of the proceeds to buy out John's founding partner.”

As business grew over the years, so did Gary’s use of aircraft. “My progress through various aircraft is as follows,” he recalls.

“The Cessna T210, Beech B36TC, Cessna 421C, Mitsubishi Marquise, Cessna Citation CJ1, a 2005 CJ3, and the current 2008 CJ3. Having a jet made more sense later.”

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Business Aviation Helped the Business

“Business Aviation has allowed me to cover a lot of ground,” says Gary.

“There were projects I simply would never have come across without the airplane and would never have considered doing otherwise.

“I recall one day I had meetings in El Paso, Texas; Colorado Springs, Colorado; Salt Lake City, Utah; and Fresno, California and needed to be home that evening. Things like that just can't be done using airlines.

“When doing work in Salt Lake, Utah, I could go there from San Diego, meet people, inspect building progress and be home in time for dinner. Without the aircraft I could not compete in those markets due to the distance.”

Natural Business Cross-Over

JETBED INSTALLED ON A GULFSTREAM

elaborates. “I asked them for a meeting to look at an idea I was working on. I expect they agreed to the meeting just because they wanted to be nice to a repeat customer and planned on giving me about a half hour. After a few minutes they asked if I would mind if they showed the JetBed prototype to a ‘couple more people’.

“The ‘couple more people’ kept growing until after lunch Jack Pelton, then-president of Cessna, showed up and was enthusiastic about the JetBed – and we agreed that Cessna would help me offer JetBed on their aircraft,” smiles Gary.

And the product is popular; customer demand and word-ofmouth for JetBed are the driving forces in most cases. Fortunately, there was no problem getting the JetBed certified for Cessna or any of the other jets that use it. “JetBed is ‘loose equipment’, like a pillow,” he explains. “Certification does not apply, but we build JetBed to even more rigid standards than would apply in any case.”

And while some would question the need for a bed in a smaller jet, Gary answers them patiently. “Many of the aircraft using JetBeds have long-range; some 7,000 miles or more. But even many light jets are able to fly non-stop for at least five hours – and five hours in the middle of the night is a long time not to be able to sleep comfortably – my CJ3 for example easily flies direct from California to Florida in about 4:45 hours and my wife sleeps the whole way.

“Large jet clients love my JetBed because prior to JetBed, there were no products even remotely as comfortable and easy to use,” Gary summarizes, adding, “Once a user tries a JetBed they insist on having them.” T More information www.jet-bed.com Are you looking for more Business Aviation Case Studies?

Visit www.avbuyer.com/articles/categories/ business-aviation-interview-case-studies

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Gary’s construction business was doing well, and he was using his passion for flying to help the business from different aspects. As you can imagine, he spends a lot of time in the air, which led to the concept for an additional business that has since proven to be a runaway success too—a special kind of light and portable inflatable bed called JetBed that fits neatly into jets, whether big or small.

Gary highlights “the beds are more comfortable than any conventional aircraft versions, taking only about one minute to install or remove. Without the jet I would never have conceived of the idea to start JetBed. “The stimulus to invent the JetBed was simply to make flying comfortable for my wife, who has put up with my love of flying all these years! The inspiration came from the desire to make a product so my wife would be able to sleep comfortably during our trips. My wife is asleep about 15 minutes after takeoff, and I wake her up during the landing approach. She thinks the California-Florida trip takes about a half-hour!”

As a matter of fact, JetBed has succeeded far beyond Gary’s expectations. The way he got the business off the ground is a salute to the drive of a determined entrepreneur. “I found a contract manufacturer in Corona, California that seemed to have the ability to make what I had in mind. I convinced them to meet me at Flo’s Airport Cafe at Corona Airport for lunch and flew my CJ3 up to meet them.

“Over lunch we signed a non-disclosure agreement on a napkin and started to discuss the idea. I asked for an estimate and was told it would take a few weeks to get a price. I asked for a quick, rough price along with an idea of the amount of time it might take to create.”

Gary didn’t want to wait, so he made a cheque out for twice the amount of the quote so he could get going quickly. The company realised that Gary meant business and produced the prototype immediately. But how did he build his market?

“Getting OEMs on board started when I first called people at Cessna who I’d gotten to know as a Cessna owner,” he

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High-Flyers

Business Aviation Makes Sanderson Farms Chicken Fly Fresher, Faster

One of Sandersons’ G150 aircraft

Sanderson Farms supplies poultry all over the US, and finds Business Aviation so indispensable that its aviation department has grown over the years. Rani Singh finds out more from Manager of Aircraft Operations, Zane Lambert.

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ane Lambert wanted to be a pilot ever since he was in high school. Today he’s running the aviation department for Mississippi-based Sanderson Farms, managing a sizeable aircraft fleet and several teams.

“Sanderson Farms has made a conscious decision to use business aircraft to effectively manage its business,” he told AvBuyer. “Our headquarters is 90 minutes from the nearest commercial airport with any reasonable airline options, as are most of our outlying facilities. One day on-site for a manager from the home office would require most of a day on either side of that for airline travel.

“This turns a one-day out-and-back on a corpo-

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rate aircraft into a three-day excursion at best if we used the Scheduled Airlines. After you’ve added in two nights in a hotel, extra meals, lost productivity and time away from home and family, those ‘expensive’ corporate jets become simply a piece of equipment that the company uses to efficiently carry out its operating plan.”

That service, adds Zane, is a top priority for the sales team when dealing with customers that carry Sanderson Farms products. Unlike some grocery items, fresh poultry has a finite shelf life, and when a customer has a question about, or a problem with a Sanderson Farms product, time can be of the essence.

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The Aviation Department

Sanderson Farms currently operates six aircraft within its fleet – including three Learjet 31As and three Gulfstream G150s. Before acquiring its first Learjet 31A in 1995, Sanderson Farms operated a Beechcraft Baron for about ten years, flying that aircraft 500-600 hours per year.

The Beech Baron and Learjet were operated until 2003, when a second Learjet 31A was added and the Baron was upgraded to a King Air B200 – and in 2008 the first G150 entered the fleet. Two years later the King Air was replaced with another Learjet 31A, and soon after that a second G150 was added. In 2013 a third G150 joined the fleet, bringing the number to the current mix.

While Sanderson Farms does fly to destinations throughout the US, more than half of the travel is within the southeast part of the country. Outside of Mississippi, Sanderson Farms has three poultry complexes in eastern Texas, one in southeast Louisiana, one in southern Georgia and one in eastern North Carolina. While Sanderson Farms does not operate a scheduled corporate shuttle, flights between the home office in Laurel, Mississippi and these other locations occur numerous times a week.

“Aircraft on these flights will usually be pretty full, with HR, engineering, audit, safety, training, and representatives from a host of other departments occupying the same aircraft,” Zane says with

Zane Lambert, Sanderson Farms

a smile. “Sanderson Farms’ G150s have an eight passenger seating configuration as well as a belted lavatory - it is not at all uncommon for there to be nine passengers on one of these flights to a plant location.”

“Most weekdays, anywhere from four to six of our aircraft will leave the Sanderson Farms hangar by 9am. Most of the time each of those aircraft will fly four to six legs, averaging about an hour each, in a 10-12 hour duty period.

“Some days are an out-and-back with a day of waiting in between, but those are becoming less and less. Weekend flying is less than Monday thru Friday, but it would be unusual to not have at least some flights on a weekend. All told, our aircraft average 600+ flight hours each per year.”

Matching Jets to Missions

So how does Sanderson Farms ensure that all six of its aircraft are used to their best effect at all times?

Office staffing consists of a flight coordinator and a department clerk, Zane outlines.

“Instead, using our Business Aviation tool, we were able to have a team in his office and in the store later that afternoon, before the weekend hit.”

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“If a customer calls at noon on Friday and needs help, we will be there before close of business that day,” he elaborates. “If a customer needs to better understand how their product runs through one of our plants, we can pick them up at an airport near their home or place of business, transport them to our facility using the local airport, and have them home that afternoon.

“Building customer relationships is vital to any business, and business aircraft are one more tool Sanderson Farms uses to forge and maintain the confidence that our partners place in us.

“Some years ago a customer in the Midwest found themselves on the local news at noon on a Friday, explaining why someone had had to return fresh chicken bought in one of their supermarkets not once, but twice in the previous two days,” Zane highlights. “As you would imagine, the first call he made after that interview was to Sanderson Farms, wanting to know what we were going to do about it!

“At that point airline options would have gotten someone there sometime on Saturday, meaning – perhaps - no face-to-face meeting with that executive until Monday, giving him the weekend to stew.

Instead, using our Business Aviation tool, we were able to have a team in his office and in the store later that afternoon, before the weekend hit.

In the end a business relationship was saved, with our biggest challenge being how to delicately inform the customer that their meat coolers were not being kept at the proper temperatures.”

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(Above) Sanderson Farms’ Corporate Office, and (below) Packaged Produce

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“The coordinator builds all trips and matches passengers and aircraft accordingly. While range comes into effect sometimes, it is usually the number of seats required that dictates which type aircraft will be used. The shorter-range Learjets will sometimes be tasked with a longer trip simply because the group needing travel is better served by the G150 with its two extra seats and baggage space.

“If we have a long trip out west, or northeast like Boston, we will try to use the G150 because of its non-stop capability. However, those trips are usually not crowded so if we need the extra seats and baggage space that the G150 provides, we will put a Learjet on the longer trip and just make a stop if necessary. The usual exception to this would, of course, be a trip in support of the CEO.” And for Business Aviation effectiveness to be at its highest, Sanderson Farms made its aircraft available to any employee with the need to travel. To get an aircraft ‘on the board’ in the scheduling office, it must be approved by a department’s upper management; however, once on the schedule anyone may add on as long as there are open seats. “This opens the availability to travel between plant locations to just about anyone in the company with a need to do so,” Zane explains.

Maintaining a Growing Aviation Department

Maintaining the safe operations of a busy flight department requires some ground-rules, and Sanderson crews are limited to six legs in a 14-hour

duty period, Zane highlights. Pilots are required to have 12-hours rest between duty periods.

“Our pilots average about 17 flying days per month, with six guaranteed days off and the remainder being ‘on call’.” Staffing has grown over the years as aircraft have been added. “Until last year our department was maintaining a ratio of three pilots per aircraft,” Zane reveals. “So six aircraft equaled 18 pilots (I am a pilot, but as manager don’t fly a full schedule. I do, however, bring the total to 19). As operations have continued to increase we have added to that and are now at 21 pilots (including me).

“Three others of the pilot staff are management pilots. We have a safety manager, training manager and standards manager. In addition to managing their respective disciplines, each has an equal number of line pilots who they administratively supervise.”

Maintenance staffing is currently at five – a maintenance manager and four maintenance technicians.

“Heavy maintenance is contracted out, while in-house we perform line maintenance, lesser inspections and pre- and post-flight inspections/maintenance,” said Zane.

Thus Sanderson Farms has grown responsibly and steadily into Business Aviation – and the rewards have been clear. One visible sign of its continued growth is a second facility currently under construction in North Carolina. When open for business, it will be fully connected with staff daily moving between it and the other plants, efficiently using the company’s Business Aviation fleet. T www.sandersonfarms.com

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Dassault: A Century of Innovation (Part 1 of 4) In this first part of our overview of Dassault Aviation, Rod Simpson looks back at the early days of Marcel Dassault and his many achievements during the formative days of what is now one of the world’s major providers of business aircraft.

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s Business Aviation became accepted as a necessary form of transportation for corporations and entrepreneurs, airframe OEMs embraced advanced technology to serve the growing demand for ondemand mobility. Today’s sophisticated business aircraft are testimony to Business Aviation’s role as a respected and reliable travel option.

That has not always been the case, however. To appreciate the integral role Business Aviation plays in today’s fast-paced domestic and global marketplace, it’s important to understand how far business aircraft have progressed in the past 50 years.

Today’s business aircraft reflect their evolution from unique to necessity. Prior to World War II, manufacturers of aircraft for the military and scheduled airlines seemed disinterested in what became known as General Aviation. Consequently, most aircraft available to companies and entrepreneurs prior to the 1950s possessed little new technology and were limited in performance.

As war-surplus aircraft were converted to civilian use, however, companies found access to fast transportation available on demand to be an effective business tool. Thus the arena we know as Business Aviation came into being. Eventually major manufacturers entered the market for business aircraft, thereby introducing a level of technology and sophistication previously available only to the military and airlines.

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DASSAULT’S FALCON 7X, 2000S AND 900LX BUSINESS JETS AND (INSET) THE MAN WHO STARTED THE STORY, MARCEL DASSAULT

One of the first providers of airframes to address the needs of Business Aviation was Dassault Aviation. Under the visionary leadership of Marcel Dassault, the French manufacturer introduced the Falcon 20 in the early 1960s and set the stage for a series of business aircraft that embody advances in aerodynamics. Today’s Dassault designs such as the 5X and 8X are heirs to the culture of technology that shaped earlier models.

During the years following World War II, however, Dassault was primarily a manufacturer of military jet fighters with little experience of the civil market, although the company had manufactured airliners prior to the war.

In many ways, the emergence of Dassault’s first Mystere 20, which was announced in January 1962 and would become the Falcon 20, was astonishing - and represented a huge gamble for the company. While the Jetstar and Sabreliner, both designed originally as military liaison aircraft, were starting to establish the modern corporate jet concept, the market for this class of aircraft was still uncertain. Grumman, for example, would not proceed with the Gulfstream II for another three years, and first flight of the Hawker Siddeley 125 did not occur until August 1962. Despite this, Dassault had the vision to launch a costly development program that would have a decisive influence on the whole of Business Aviation.

Subsequently, Dassault’s wide range of civil and military jet aircraft has consistently moved aviation engineering to new levels - and today’s Falcon family are the legacy of a man whose first manufacturing activities started a century ago.

This series will trace the history of Dassault’s commitment to Business Aviation and document the passion and technology implemented in today’s Falcon 2000 Series, 900LX, 7X, 8X and 5X business aircraft. The involvement of aerospace OEMs such as Dassault is testimony to the importance of Business Aviation and the acceptance of this form of transportation by industry leaders and aviation policy-makers, worldwide.

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Bold Moves into BizAv

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The Falcon 5X, the latest globe-trotting business jet from Dassault to have rolled-out on June 2nd, 2015. Visit www.falconjet.com for further details.

The Rise of Mr. Dassault

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Marcel Dassault was born in Paris on 22 January, 1892 as Marcel Bloch (he changed his name to Marcel Dassault just after the end of World War II). As a young man, he trained as an electrical and mechanical engineer and, after a period at the Ecole Superieure d’Aeronautique in Paris, his compulsory military service saw him based at the Aeronautical Laboratory at Chalais Meudon.

With the Great War in full swing, Bloch was tasked with design development of the Caudron G3 biplane before working with Maurice Farman on flight testing of his new military aircraft. By 1915, Bloch had amassed considerable experience in aircraft design and he turned his attention to improving the performance of aircraft propellers. With the help of furniture manufacturer, Marcel Hirch, he produced his Eclair propeller; obtained approval from the French test centre at Villacoublay; and launched his first manufacturing venture with a contract for 50 propellers.

The furniture workshop became the first of several factories and his “Helice-Eclair” went on to equip many types of combat aircraft, including the famous SPAD flighter. By 1917, Bloch and his friend Henri Potez moved on to aircraft manufacture, building a two-seat combat aircraft, the SEA.IV, at a factory in Suresnes.

The end of the war in 1918 found the French people with other things on their minds, and there was little demand for Bloch’s aircraft design skills - so the young entrepreneur turned his efforts to house-building, allowing him to accumulate capital. But his love of aviation persisted and in 1930 - aged 38 - he negotiated a French Government contract for a three-engined mail-carrying aircraft for use in the French colonies.

Forming Avions Marcel Bloch, he assembled a small team of designers and engineers. Existing light transport aircraft of that time such as the Potez 29 and the de Havilland Dragon were built of wood with fabric covering, but Bloch realized metal construction would be the future in aviation and his MB120 proved to be a strong and effective performer.

Building on Success

Bloch had a rare talent for motivating and inspiring his small design teams that made his factories very productive. As air transport in Europe was starting to take-off, Bloch designed the new modern 16-seat twin-engine Bloch 220 for service with Air France, followed by larger transports (including the three-engine Bloch 300 and the luxurious four-engine Bloch 160), which would ultimately become the Sud-Est Languedoc.

By 1938 the company had been nationalized, coming under the SNCASO (Sud-Ouest) umbrella. It incorporated Bloch’s factories at Villacoublay, Courbevoie and Chateauroux together with the Bleriot and Liore-et-Olivier plants - with Marcel Bloch in overall charge.

With war on the horizon, he and his team designed and built aircraft such as the MB.174 multi-role bomber/reconnaissance aircraft and the MB.152 single-engine fighter. While these were sophisticated aircraft for their time, few were actually produced before the German occupation.

Marcel Bloch refused approaches from the Germans to work for them, as a result of which he was arrested and sent to the concentration camp and factory at Buchenwald where prisoners were forced to build V-1 and V-2 rockets.

Marcel recounted that this was the occasion when his “Talisman” was created. Just before the war he found a four-leaf clover that he put in his wallet. The wallet was confiscated at Buchenwald - but returned to him after the war, still with the clover inside, which explains why a four-leaf clover is the Dassault trade mark symbol to this day.

Bloch was eventually liberated and returned to Paris - and a new chapter opened in the life of this extraordinary designer.

The post-war years were to bring him rich rewards in both civil and military aviation, as we’ll explore next time when we trace the legacy of Marcel Dassault that lives today in the technology of the Falcon 900LX and 7X, in production for the foreseeable future, and the imminent emergence of the 8X and 5X. T Are you looking for more Business Aviation Profile articles? Visit www.avbuyer.com/articles/category/business-aviation-interviews-case-studies/

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Avions Marcel Dassault: From Fast Jets to the Falcon Era (Part 2 of 4)

252 TODAY, DASSAULT IS PROMINENT IN MILITARY AND BUSINESS AVIATION

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series on Dassault Aviation’s transition to the design and

manufacture of business jets.

M

ay 4th, 1963 was a momentous day for Avions Marcel Dassault. Not just because it saw the first flight of the Mystère XX business jet - but because it changed Dassault from a manufacturer of military combat jets to one that embraced the very different civil commercial world and committed the company to sizeable investment in the largely unknown field of Business Aviation.

With World War II over, the 53-year old Marcel Bloch returned to his aviation empire and changed his name to Marcel Dassault.

While he had great experience in building successful commercial transports during the 1930s, there was little demand for new airliners in the years immediately following WWII, so his company's focus became firmly directed to military programs.

Marcel Dassault quickly acquired land adjacent to the airfield at Merignac near Bordeaux and erected a new 5,000 sqare-meter factory that was used to assemble a batch of 300 Flamant twinengined transports for the French Air Force, with major components bought in from French manufacturers SNCASE, SNCASO and Morane Saulnier. However, these were the days when the ambitious plans of Josef Stalin would expand into the Warsaw Pact and establish what Churchill dubbed “Cold War”.

Under French President Charles de Gaulle, France was gearing up its military power, and Dassault grasped a large slice of the emerging market for combat aircraft. Thanks to his energies, Mr. Dassault’s company became the sole source provider of fighters for the French Air Force - and remains so today.

Vision of the Namesake

None of this would have been possible without the personal technical expertise of Marcel Dassault and his willingness to take risks. Jet fighters were in their infancy with early U.S. types including the Lockheed Shooting Star and the Republic Thunderjet.

Stalin's designers, notably Mikoyan and Gureyevich, were producing a range of new fighters that would be stiff competition for North American's Sabre when hostilities erupted in Korea.

In December 1947, despite a lack of interest from the French Defense Ministry, Dassault started work on the Ouragan singleseat fighter as a company-funded private venture and, fortunately, the French Government soon recognized the project and contracted for three prototypes. Dassault's grasp of the most advanced design features was evident in the fighter jet’s pressurized cabin, the thin-section high-performance wing with its tapered leading edge, and in the swept tail surfaces equipped with a cruciform tailplane.

With a top speed of Mach 0.75, the Ouragan became the standard French Air Force front line fighter with 57 in service by March, 1953 and 250 on strength two years later. Slightly more than 100 examples were exported to India, and the aircraft was also sold to the Israeli Air Force where it saw combat in late 1956 against the Egyptian Air Force's MiG-15s.

With his reputation well established, Marcel Dassault moved into politics, becoming a deputy in the French National Assembly in 1951; but his technical vision in aeronautics remained and he kept close contact with his designers, while his son, Serge Dassault, took an increasingly important role in the Société des Avions Marcel Dassault.

Dassault's technical team went on to extract even more performance from the Ouragan airframe. They fitted its fuselage with a 30% swept wing, creating the Dassault Mystère I. The production Mystère II, which replaced Ouragans in French Air Force service, became the first French aircraft to break the sound barrier

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Rod Simpson continues his

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125 was under development to meet the needs of companies seeking to replace old generation DC-3s and Lockheed Lodestar piston-engined transports.

Thinking laterally, Dassault understood that the company's accumulated skills in advanced fighter design could be applied to a world-beating business jet and that aircraft was the Mystère XX, which used essentially the same wing as the Mystère fighter and took to the air in 1963. It would become the Falcon 20 and would later inspire today's Falcons - the Falcon 900, 2000 and the X-series.

Launching an Era

Marcel Dassault knew only too well that effective marketing of the aircraft in North America was the key to its success. Following a visit to Bordeaux by the famous Charles Lindbergh, acting on behalf of

DASSAULT’S OURAGAN

in a dive. A further improved wing design with 32% sweep was used on the Mystère IV and, finally, the Super Mystère B2 fighter bomber, which had a wing sweep of 45-degrees and took advantage of the new technique of engine afterburning to deliver low-altitude supersonic performance, was developed.

THE FANJET FALCON

Technology’s Payoff

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The 1950s found Dassault moving at breakneck speed with new fighter designs including the Etendard carrier-borne fighter and the Mach 2 Mirage IV strategic bomber, which served as France's delivery system for its nuclear weapons program. Arguably the most famous of its combat aircraft was the Mirage - a delta winged fighter introduced in 1956 that could achieve Mach 2 speeds and was produced in many variants and sold to air forces all over the globe.

Every one of these aircraft benefited from meticulous engineering and adoption of the latest thinking in aerodynamics and systems; the Mirage airframe became the basis for exciting experimental designs.

Dassault created the first VTOL jet fighter, the Mirage IIIV, which is still the only VTOL combat aircraft to have delivered Mach 2 speeds, and Dassault pioneered variable geometry wings with the Mirage G, flown in 1967.

With its dominance in the French governmental sector and an exclusively military mindset, it seems astonishing that Marcel Dassault would take the initiative of launching into a completely new civil market—Business Aviation. However, in the early 1960s there were the first signs of a softening in military sales. Although the military would continue to provide major business for Dassault, the company founder, who still had a firm hand on the controls, had the foresight to realize that there was emerging demand in Business Aviation, which offered a route to diversification.

Lockheed's Jetstar and North American's Sabreliner had recently flown, and the Hawker Siddeley

“ It would become the Falcon 20 and would later inspire today's Falcons.”

Pan American's Juan Trippe, Dassault moved to establish Pan American Business Jets. It was led by James B. Taylor (who would later head up the Cessna Citation program as well as Challenger for Canadair).

Dassault and Pan Am named the aircraft Fan Jet Falcon. Later renamed Falcon 20, the aircraft achieved its type certification on 9th June, 1965, and Pan Am's demonstrator was delivered later that month. Early customers included Continental Can, FMC Corporation, Sinclair Oil and Johns Manville with foreign customers including Caminos y Estructuras in Venezuela.

However, as we will see in the next part of the Dassault story, the major coup was Pan Am's sale of aircraft to small package start-up, Federal Express.

This was the start of the Falcon Era. T Are you looking for more Business Aviation Profile articles?

Visit www.avbuyer.com/articles/category/business-aviationinterviews-case-studies/

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Dassault Builds the Falcon Family: Technology and Passion Join Forces to Serve the Needs of Business Aviation (Part 3 of 4) In our look back at the rich history of

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Avions Marcel Dassault, Rod Simpson explored the company’s progress

following the war years, including

its first steps into Business Aviation.

How would Dassault build on its entry into the BizAv arena?

ollowing the visit of Charles Lindbergh to Bordeaux in May 1963, Avions Marcel Dassault joined forces with Pan Am to form the airline’s Business Jets Division. In July, 1963 Pan Am placed its first order for 40 Mystère 20s with options for a further 120, and two years later the aircraft was certificated with the first green airframe already sitting at Burbank, California for outfitting.

Directed by James B. Taylor, Pan Am Business Jets marketed the aircraft, initially as the Fan Jet Falcon and subsequently as the Falcon 20. Orders rolled in from US Corporations and other entities throughout the aviation world. Several air forces, including the Royal Canadian Air Force and the Royal Australian Air Force, ordered the Falcon 20, and early deliveries went to Fortune 500 companies such as FMC Corporation, Johns-Manville, Atlantic

F

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Richfield, Bechtel and Pepsico together with private owners such as Winthrop Rockefeller and the Aga Khan.

If the Falcon was the right size for corporate aviation, it was also the right size for FedEx whose founder, Frederick W. Smith, had a solution for an American banking problem. In the 1960s, long before computer networks facilitated instant transactions, the banks faced a week-long truck journey between New York and Los Angeles before their checks and other documents could be “cleared” for financial value. For the banks, time was money, and Fred Smith’s plan for a fleet of fast jet freighters, which could reduce delivery time by several days and significantly reduce transaction “float”, was compelling.

He chose the Fan Jet Falcon as the freighter and placed orders for 33 aircraft, engaging Product Design Group, a small firm

based in Rose Hill, Kansas, run by Gomer Jones and Willard Bashaw, to engineer the large port-side freight door. Soon the purple and orange Falcons became a familiar sight across the USA. Federal Express, with its huge distribution center in Memphis, Tennessee, would go on to outgrow the Falcons - but these aircraft proved the small package concept copied by UPS, DHL and many others, and also brought unique visibility for the new jet.

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Building on Success

In the late 1960s, back in Bordeaux, Dassault engineers were busy on several fronts. They developed prototypes of the twin engined Spirale for ground attack roles and the elegant Hirondelle twin-turboprop business aircraft. In 1971 Dassault launched



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into the airliner market with the Mercure 150-passenger transport, eleven of which were built for Air France’s domestic airline, Air Inter, fitted with advanced features such as a head-up display.

Dassault also added to its fighter line with the Mirage F.1, over 650 of which were built for eleven countries and, in the late 1970s, the very successful Mirage III delta-winged jet fighter grew into the Mirage 2000 that has been built in large numbers at Bordeaux-Merignac and exported to countries such as India, the UAE, Peru and Brazil. All these aircraft are noted for their precise and reliable designs, and Marcel Dassault insisted systems should be engineered within the company, rather than outsourced.

Dassault’s Equipment Division, based at Argonay in Eastern France, was formed for this purpose. Dassault also merged with Avions Louis Bréguet in 1968, which brought aircraft such as the Alizé and Atlantique patrol aircraft and the Alpha Jet and Jaguar into the company family.

Meanwhile, Dassault engineers were also working on new versions of the Falcon. First to emerge was the “Mini-Falcon” (later known as the Falcon 10) which was a smaller business jet for seven passengers, with two Garrett AiResearch TFE731-2 turbofans, the first production example of which flew in April 1973. Its excellent performance, which attracted many corporate customers, was thanks to pioneering work by Dassault engineers who were the first to incorporate supercritical airfoils in business aircraft.

The Falcon 10 was later upgraded with a new flight deck, extra cabin windows and a higher gross weight as the Falcon 100; overall 229 having been built when production of the Falcon 10/100 series ceased in 1990.

The Falcon theme then took on a much larger variant dubbed the Falcon 30, which was a 29-passenger commuter airliner with Falcon 20 wings and an enlarged fuselage. It first flew in 1973, but the ALF502 engines available at the time could not give the required performance and Dassault reluctantly abandoned further development.

Nevertheless, many Falcon 20 customers wanted more range and speed, so Dassault moved on to a new aircraft with a 3,470 mile intercontinental range using a stretched Falcon 20 fuselage and three Garrett TFE731 turbofans. The new 8-9 passenger Falcon 50, which featured an area-ruled rear fuselage profile, flew in November 1976 and went into production less than three years later. Once again, it was a major success in North America and production continued with various improvements until 2007, by which time 352 had been produced.

Second Generation Falcons

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By the early 1980s, a second generation of Falcons was on the drawing board to meet customer demand for more internal space and more range, the first being the three-engined Falcon 900, which flew in September 1984. Its development was a product of the CATIA (Computer-Aided Three-dimensional Interactive Application) system that was created by Dassault Systèmes during the 1970s. The use of this outstanding computer design methodology has allowed Dassault to create highly efficient Falcon airframes with light structural weight and advanced aerodynamics.

The Falcon 900 was intended as an inter-continental 3,800nm alternative to the Falcon 50, with more powerful TFE731 turbofans and a substantially larger 13-passenger cabin. Progressive improvements have seen the Falcon 900 grow with upgrades in gross weight, engine power, fuel capacity and range. The latest Falcon 900LX, which can fly 4,750nm, has Dassault’s advanced

THE 1963 MYSTERE 20 INTERIOR (ABOVE) AND TODAY’S SPACIOUS, TECH-SAVVY, COMFORTABLE FALCON 2000LXS CABIN (BELOW)

EASy flight deck incorporating a HUD, Synthetic Vision and sophisticated crew management systems.

The other second generation Falcon, developed in the late 1980s, was a replacement for the venerable Falcon 20 as the aircraft neared the end of its production run. Dassault’s new model would, like the Falcon 900, have a larger cabin and a 3,000nm range but be powered by two turbofan engines. First flown in March 1993, the twin-engined Falcon 2000 has proved to be one of the most popular of the Falcon family and nearly 400 had been delivered by the end of 2014.

The initial version used a pair of rear-mounted 6,000 lbst CFE738 engines and gained its type certificate in February 1995, with later versions having more power, longer legs and increasingly more modern equipment. The current variants are the 4,000nm Falcon 2000LXS and the 3,350nm Falcon 2000S, which features improvements to its wing devices to provide much enhanced short field performance.

In our next installment, we’ll continue our Dassault profile series with the fourth and final part: ‘Generation Three - The X-Planes’… Stay tuned! T Are you looking for more Business Aviation Profile articles? Visit www.avbuyer.com/articles/category/business-aviation- interviews-case-studies/

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The X-Planes:

Generation Three at Dassault

(Part 4 of 4)

As we have seen in Rod Simpson’s history of Dassault, the company has had a profound influence on Business Aviation.

Now we are experiencing a new series—the X-Falcons…

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ince adopting the name Avions Marcel Dassault in 1947, the design and manufacturing organization we know today as Dassault has produced approximately 8,000 aircraft, the majority (71 percent) being business jets. During the first decade of the 21st Century, the company delivered nearly 700 of its Falcons to a worldwide customer base.

Indeed, with the new Millennium came a brand new generation - led by the Falcon 7X announced at the Paris Air Show in 2001. The tri-jet Falcon 7X, which made its first flight in May, 2005 was new from nose to tail and was to become the flagship of the Falcon fleet. Its ferry range of 5,840nm took it

S

into a new category where it could challenge the dominance of the long-range Global Express and Gulfstream G550. Dassault’s advanced computerized design skills took the 7X from first flight to first delivery in just two years, and 90 had been built by the end of 2009.

As a clean-sheet design, the Falcon 7X had flyby-wire controls and an entirely new wing that used 20% fewer parts than previous Falcons. Compared with the rival Global 5000, the Falcon 7X’s basic operating weight is 28% lighter and its combined 19,200 lbs engine thrust is 10,000 lbst less than the two engines of the Global. With a maximum takeoff weight about 20,000 lbs less than the Global 5000,

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“...the aircraft company’s application of technology is greatly helped

by Dassault’s very wide range of aviation endeavors...”

unveiled in July, 2000 when the “Petit Duc” proof of concept vehicle made its first flight, followed by the larger “Grand Duc”. Today, this effort has grown into the nEUROn flying wing stealth UAV, which may be the basis for a new generation of unmanned fighters for use by European nations.

But - returning to business jets, the Falcon 7X was only the first in Dassault’s new generation and has been joined at the head of the Dassault family by a new ‘big brother’ - the Falcon 8X. While it is externally almost indistinguishable from the 7X, the Falcon 8X has many changes including a redesigned wing and a longer cabin that gives customers more than 30 different optional floor-plans including various sizes of galley.

There is more than 500nm additional range (6,450nm), which will take eight passengers and three crew at Mach 0.80 from Paris to Los Angeles or Singapore, and the Falcon 8X has a completely new cockpit incorporating the latest generation of the EASy system, including a head-up display. 

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the 7X offers 240nm more range, flies within 10 knots as fast as the Global, uses 3% more distance for takeoff, and has about 8% less executive payload, according to B/CA’s 2015 Purchase Planning Handbook.

Over the previous chapters of this story, we have seen that the aircraft company’s application of technology is greatly helped by Dassault’s very wide range of aviation endeavors - from the Rafale fighter to Space Exploration. (It’s not commonly known, but Dassault was the prime contractor for the Hermes “spaceplane” project launched in 1985. Closely resembling the American space shuttle, Hermes was intended to be launched on an Ariane rocket and take three astronauts on missions of up to 90 days. The Hermes was never built, but a key feature was its flight controls based on the high technology system developed for the Rafale fighter.)

Dassault also launched into the unmanned aircraft field at a very early stage, and its first UAV was

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Newest Falcon

And there is yet another new Falcon, the 5X, which has followed hard on the heels of the 8X and, according to Dassault “sets the standard in the 5,000mile-range category and is the most efficient business jet now in the market”. Powered by two 11,450 lbst Snecma Silvercrest turbofans, the first of four prototypes of the 13-passenger Falcon 5X was expected to be airbourne in 2015.

Certification is planned for the end of 2016, with entry into service early in 2017. Again, the new Falcon drives Dassault’s technology forward with an advanced Digital Flight Control System and redesigned wing that includes a flaperon and three leading edge slats. Notably, the Falcon 5X has the same cabin length as the 7X, but it is wider with 14% more volume and bigger windows to give it the largest passenger accommodation in its class.

Health monitoring is a very important feature of the 5X, using Dassault’s advanced FalconScan system that monitors and diagnoses 10,000 key parameters so that technical issues can be resolved as soon as the aircraft lands.

The Future

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So, where does Dassault’s future lie? For many years, the company has considered building a supersonic business jet (SSBJ) and, in 1997, it unveiled the Falcon SST project that would have been the world’s first SSBJ. It would have a range of 4,000nm and a 1.8 Mach cruise speed; would be powered by three non-afterburning engines in the 12,000 lbs class; and would carry eight passengers in a 23ft-long cabin. Significantly, the aircraft would have had a gross weight of 85,826 lbs (35% less than the Aerion SBJ and fully in line with the company’s emphasis on efficient lightweight airframe design).

The Falcon SST did not get to prototype stage and, for now, Dassault is reticent about supersonic prospects in light of continuing sonic boom issues.

However, one can be certain that a supersonic aircraft is still under review and that Dassault’s innovative approach to technical development may bring such an aircraft to market in due course.

Clearly, Dassault is neither perfect nor infallible but, as long ago as 1973 a key investigation by The Rand Corporation said that “to some unmeasurable extent, the company and its products are expressions of the personality of its founder, owner and principal manager”. And that characteristic lives on.

Marcel Dassault’s energy, drive and quest for technical excellence was outstanding, and his commitment to achieving his aims with the smallest teams and the most austere facilities has created a unique organization with leaders and a loyal workforce whose culture makes them a part of the Dassault “family” for life. We await with anticipation the exciting offerings they can bring to Business Aviation in the future. T More from www.dassaultfalcon.com

THE CUTTING EDGE AVIONICS (TOP) AND WIDE, SPACIOUS CABIN OF THE FALCON 5X

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Safety

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Mario Pierobon is a safety management consultant and content producer. He currently is working on a research project investigating aircraft ground handling safety.

Contact him via marioprbn@gmail.com

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Section Contributor

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Safety

The Effects of Poor CRM How Will You Manage your Flight Department?

Don’t let Crew Resource Management violations manifest within your flight department, warns Mario Pierobon. Be proactive; nip them in the 266

bud before an incident occurs that everybody regrets.

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Poor CRM

As part of the investigation, the German aircraft accident investigation body (BFU) stated that the pilots were not trained in aerobatics, nor was the airplane designed or approved for aerobatics.

Contributing to the loss of control was the fact that night-time conditions caused a lack of visual references outside the airplane.

Most importantly the BFU concluded that the personal relationship between the two pilots led to a lack of professional behaviour on the flight-deck. The behaviour of the crew on-board the crashed Citation Bravo was very poor from a Crew Resource Management (CRM) perspective, a discipline that the crew members should have been familiar with.

The Dirty Dozen

So how can a Flight Department identify and eliminate poor Crew Resource Management within their own cockpits? One of the most popular ways to perform CRM and Human Factors (HF) training is via the so called ‘dirty dozen’, a list of HF precursors that can lead to accidents or incidents, as originally developed by Gordon Dupont in 1993 when working for Transport Canada: 1. Lack of communication; 2. Complacency; 3. Lack of knowledge; 4. Distraction; 5. Lack of teamwork; 6. Fatigue; 7. Lack of resources; 8. Pressure; 9. Lack of assertiveness; 10. Stress; 11. Lack of awareness; 12. Norms.

With regard to the Citation Bravo accident it’s possible to identify how several of the items played their part in the occurrence (although the protagonists of this event were most certainly aware of them).

First was a lack of teamwork: the captain was weak in her leadership function and the co-pilot, who should have been a follower, overstepped the boundaries of his function as second-in-command.

The captain exhibited a lack of assertiveness.

Perhaps she knew that a roll with a business jet was just not right, but allowed her standards to be compromised by the attitude of the co-pilot.

Additionally, workplace norms were such that highrisk attitudes such as that of the co-pilot were not effectively captured and dealt with.

IS-BAO & CRM

Global standards govern the delivery of training on, and application of, CRM. The International Standard for Business Aircraft Operations (IS-BAO), based upon the International Civil Aviation Organization (ICAO) Annex 6 Part 2 (international General Aviation), requires crew members to be trained in, understand and apply CRM. IS-BAO further recommends that schedulers, dispatchers, maintenance personnel and others connected with the operation receive HF training, and that recurrent CRM and HF training should be provided at least every 24 months.

One of the benefits of HF and CRM training is the opportunity for an organization capitalizing on the content to improve communication and better appreciate human (and team) performance limitations. Walking the talk of CRM and HF training has proven to enhance workplace and safety performance of both commercial and noncommercial operators.

Indeed, with the advent of Safety Management Systems (SMS), there’s an opportunity for the thoughtful and proactive organization to earn significantly from a by-product of CRM and HF training. The awareness of HF is an important precondition for the development of an SMS, which heavily relies on individuals being supported, and not penalized, for filing air safety reports. These allow aviation organizations to better manage their safety performance, based on the risk-levels of identified issues.

An operation-wide appreciation of human and organizational performance limitations works as an enabler of effective reporting, and thus improved safety performance. This goes beyond the traditional effectiveness of CRM and HF training in preventing accidents, and enters more subtly into the domain of promoting inherently safe working practices.

The cockpit should be a professional environment with no room given for CRM or HF violations. Capitalize on the tools and training available today to prevent violations from springing up within your flight department, to the detriment of everybody... T

“ ...the co-pilot, who should have been a follower, overstepped the boundaries of his function as second-incommand.”

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n February 2010, a Czech-registered Citation Bravo departed Prague international airport on a night-time IFR flight to Karlstad airport, Sweden. While the airplane was climbing to cruising altitude, the copilot asked the captain if she had ever flown a roll at night.

The conversation developed. Reaching FL260 the co-pilot rolled 30° to the left and immediately 20° to the right, following which ATC gave clearance to climb from FL260 to FL330.

At FL270, the captain asked the co-pilot if their altitude was high enough to perform a roll. The copilot confirmed that the altitude was sufficient. Five seconds later with the nose pitched up to 14° a roll to the right was initiated. Within four seconds the airplane was flying upside down. It rolled a further 90° in the next four seconds, and as it did so, the heading changed.

The nose dropped in an almost vertical dive of -85°. The computed airspeed increased from 240 knots at the initiation of the roll to 380 knots during the descent. The flight crew lost control of the airplane and it crashed in a forest below.

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Safety

When ‘No’ is Necessary:

How Do You Re-enforce an Unpopular Safety Call?

Standing up to undue pressure is the trademark of a competent, safety-conscious pilot notes Mario Pierobon. How can you handle external expectations to fly where safety could become compromised?

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ften non-aviation personnel have little idea of the safety sensitivities of flying.

An executive who needs to be at an important meeting – the outcome of which could secure a multi-million dollar contract for the corporation; or an engineering team with a critical repair to make to a customer’s product will tend to see only their need to be in a certain place, at a certain time. Their case can seem compelling.

For the purpose of this article, we will refer to the resulting pressure placed on a flight crew to fly against their better judgment as ‘production pressure’. By considering the safety management framework of the International Civil Aviation Organization (ICAO), with a specific focus on latent conditions and active failures, it is possible to ascribe production pressure to the category of so-called ‘normalization of deviance’, which explains why managers and operators gradually accept substandard safety performance. These latent, very

subtle conditions only need a small triggering factor - such as a slip in the accomplishment of a delicate mission - to manifest their deadly potential.

The particularly deceptive nature of production pressure placed by customers on speedy mission accomplishment – no matter what – is revealed by the fact that it also blinds decision-making within small flight departments. In theory, a flight department should have very high levels of safety awareness as to whether a mission is a ‘go’ or a ‘nogo’, due to the fact that management personnel are also heavily involved in operations.

So how could a safety-conscious flight department seek to distinguish the deceptive power of the ‘normalization of deviance’ from acceptable levels of safety due to the inability to say ‘no’ when really necessary? There is a need to consider this problem both at the level of the safety awareness of the single pilot and more comprehensively as an organizational issue involving flight crews.

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• •

Pilot Awareness

Since the final decision as to whether to undertake a mission or not lies in the hands of the pilotin-command, it is important first and foremost to educate pilots to recognise the pressure mechanisms they can face when asked to fly, when it’s known it would be safer not to. These include instances that will inconvenience the passengers – such as when an important business meeting will be cancelled due to expected severe weather conditions, or when landing at airports with runways of barely acceptable length is a necessary part of mission accomplishment.

The pressure mechanisms the pilot will face can be either internally generated, such as when a pilot plays down the reality of the situation in his/her mind for the sake of customer satisfaction - or externally generated, such as in cases of heavy, perhaps even unpleasant and disrespectful corporate passenger pressure.

Organizational Awareness

An increased, or perhaps renewed, awareness in recognising production pressure mechanisms by pilots should embrace and re-enforce the decisionmaking power of the pilot-in-command, and this should be the focus of an effort to nurture a ‘safety first’ culture within an organization.

This effort should also empower others within a flight department to make safe decisions every time, even in areas other than aircraft operation (such as withstanding time pressures to properly oversee maintenance tasks).

When contracts are negotiated, and When a decision to cancel a flight is necessary.

Negotiation?

In the effort to secure business safety, ‘negotiation’ can easily become an overlooked item. However, it is a crucial part of establishing ultimate authority on the decision of whether a mission can be flown safely or not.

When, for example, a charter contract is made it should be clear from the very beginning that no safety caveat shall be tolerated by the air operator, and this step in the contract process should make the best diplomatic case to stress the importance of safety.

The reality is that the aviation industry includes players that do compromise safety, but the professional organization will highlight its differentiation as a sound selling point, and it should be ready to walk away from a business negotiation when it becomes apparent that a customer simply does not buy into safety.

Even if the best effort is made to avoid customers that are likely to place undue pressure, it may still be the case that such customers are brought on board and that a hazardous situation is generated in the case of a mission cancellation.

On top of recognizing the exclusive ownership of the final decision by the pilot-in-command - as stated above - toughness and courage need to come out up to the point of ‘firing the owner’, a practice that is reported by a large corporate aircraft charter and management company as a last resort decision in cases of blatant disregard by customers for the importance of safety. T

“...it is important to create a ‘safety first’ culture that is acceptable to the corporate customers served by the department.”

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It is essential for all Business Aviation users within a corporation to recognize the eminence of the decision-making power of the pilot-in-command, and support those mechanisms that will allow for the recognition of mental traps that may lead to accepting undue production pressure.

In order to achieve this, it is important to create a ‘safety first’ culture that is acceptable to the corporate customers served by the department. For example, how do you justify the cancellation of a significant business meeting because of a storm en route? The typical reasoning of the non-aviation-knowledgeable passenger is that the anti-ice system should deal with any icing conditions faced. It is thus an organizational effort for the flight department to establish the appropriate connection with their corporate passengers and help them understand the rationale behind a ‘no-go’ decision.

The only practical way a flight department can work with a corporation to ensure it understands and endorses the department’s decisions to fly or not to fly is to establish a tough and brave attitude with corporate customers. Toughness and courage are needed at two main stages:

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Safety S

Thinking Thinking Outside Outside the the (Tick) (Tick) Box: Box: Getting the the Most Most from from your your Safety Safety Audit...

Audit...

Getting

How move needtotomove You’llneed audits?You’ll safetyaudits? takeitsitssafety departmenttake flightdepartment yourflight doesyour seriouslydoes Howseriously beyond unnoticed. accumulatingunnoticed. fromaccumulating breachesfrom safetybreaches serioussafety stopserious boxestotostop theboxes tickingthe beyondticking

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he word ‘audit’ traces its root to the ancient Latin verb ‘audire’ which means ‘to hear’, or ‘to hear well’. In essence, an audit is a structured set of activities performed to get sufficient appreciation of [to hear well about] how an organization is performing in comparison to a given set of requirements.

It’s important to note that the audit function is only effective if it is undertaken properly. That means avoiding the mere ‘box-ticking’ exercise that demonstrates formal compliance with standards and regulations. For this to happen it’s absolutely necessary that the organization is committed to best practices and that it turns to professional auditors.

The reason that audits are performed and have such significance and frequency is management’s desire for high-quality results and continuous improvement. Management principles and the ISO standards for quality management (developed in the 1980s), are built around the ‘Plan–Do–Check–Act’ quality circle. Audits are the means to accomplish the ‘Check’ function.

From a safety and operational point of view Business Aviation operations have traditionally been audited against national requirements on aviation safety, which are derived from ICAO Annex 6, Part 1 or 2 - depending on whether the organization is involved in charter operations or in non-commercial operations (including corporate flight departments).

With an almost exclusive focus on safety regulatory requirements, until recently safety audits in Business Aviation have been used eminently as a means to ascertain the degree of compliance of operators with

“The reason that audits are performed and have such significance and frequency is management’s desire for highquality results and continuous improvement.”

applicable aviation safety regulations. With the advent of safety management concepts and precepts, however, during the last ten years safety auditing has started to take an additional approach. Audits will continue to be performed to monitor compliance with prescriptive regulatory requirements, but auditing efforts will increasingly focus on performance-based safety management to verify that operations are inherently safe, and move beyond pure compliance.

SMS Integrity

According to ICAO’s safety management manual (Doc. 9859, 3rd edition 2013) audits are an integral part of a safety management system (SMS). More precisely they are part of the safety performance monitoring and management element (which itself falls under the safety assurance component).

“Audits focus on the integrity of the organization’s SMS and its supporting systems. Audits provide an assessment of safety risk controls and related quality assurance processes. Audits may be conducted by entities that are external to the service provider or through an internal audit process having the necessary policies and procedures to ensure its independence and objectivity. Audits are intended to provide assurance of the safety management functions, including staffing, compliance with approved regulations, levels of competency and training.”

(Document 9859).

In the SMS framework there is also an increasing need to audit (check) for performance (or risk) based requirements. This task is also accomplished with the safety assurance function of the SMS, which allows the

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organization to select its own safety monitoring (performance) indicators.

Safety Performance Indicators

Learning to define, interpret and monitor safety performance indicators is the next challenge of safety auditing as part of performance-based safety management in Business Aviation.

Safety performance indicators serve to continuously track the safety performance of the organization against its safety targets, which need to be set by the organization in agreement with the oversight authority. “Parameters for such performance tracking may be occurrence outcomes, deviations or any event types that reflect the safety, quality or risk level of the process,” ICAO clarifies.

Safety performance indicators to be defined and targeted by Business Aviation operators can refer to both higher-level consequences, such as individual/combined fleet monthly serious incident rates (e.g. per 1,000 flight hours), and lower-level consequences, such as percentages of findings per audit; voluntary reports rates; and dangerous goods incident report rates.

Monitoring & Measurement

With regard to performance-based monitoring and measurement, ICAO stresses that data trending charts should be used to track outcomes defining safety performance. “Outcome occurrences should normally be tracked as occurrence rates rather than absolute numbers,” ICAO outlines. “In conjunction with such indicators, alert as well as desired

improvement target levels should be set for each indicator. These will serve as markers to define what the abnormal/unacceptable occurrence rate is as well as the desired target (improvement) rate for the indicator.”

On top of setting safety performance targets, ICAO also underlines the importance of setting alert levels serving as the demarcation line between the acceptable the unacceptable region for a safety indicator.

“So long as the occurrence rate for a process does not trend beyond or breach the set alert level criteria, the number of such occurrences is deemed to be acceptable (not abnormal) for that monitoring period,” ICAO highlights. “On the other hand, the aim of a targeted improvement level is to achieve the desired improvement level within a defined future milestone or monitoring period. With such defined alert and target settings, it becomes apparent that a qualitative/quantitative performance outcome can be derived at the end of any given monitoring period. This may be done by counting the number of alert breaches and/or the number of targets achieved for an individual indicator and/or a package of safety indicators.”

Ultimately, auditing for performance-based requirements needs time to be developed as an individual skill and a corporate function, even if it is already required as part of the SMS. Its effects may not be fully evident yet, but we can expect it will eventually lead to an industry that is better aware of the risks faced, and learns to manage them better. T

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Fatigue Management Tips Managing Fatigue Better in the BizAv Flight Department

Considerable efforts are being made to tackle aircrew fatigue both by individual business aircraft operators and by organizations representing the industry as a whole, notes Mario Pierobon.

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Safety Policy & Objectives

Fatigue risk management ultimately needs to be a top-down initiative led by company management.

With regard to fatigue there needs to be recognition that it is a hazard worthy of management’s attention as well as employee action.

This can be difficult to achieve due to the very nature of the business, and admitting to fatigue can imply additional operational complexities. For example, a standby crew may not be available in the case of a smaller operation. Unlike the commercial airlines that consider an admission of fatigue to be a responsible and professional approach, Business Aviation might regard concerns about fatigue with suspicion and perceptions of laziness.

A ‘just’ culture, which also recognizes the damaging potential of fatigue on the safety of an operation, should serve to draw the line between the professional, safety-conscious way to recognize oneself as fatigued and acceptance of unacceptable, lazy behaviours.

Safety Risk Management

The risk management part of fatigue management is meant to assess and mitigate the consequences of fatigue, which include impaired performance on the flight deck and subsequent impact to safety of flight. Risk levels depend very much on the company and its operational context. Factors include staffing levels and the types of operations performed (short-haul, night operations, long-haul).

In developing mitigation actions, safety practitioners should take into account what is most

likely to cause fatigue in air operations. A summary of identified work-related fatigue causes (derived from NASA field studies 18) is contained in the draft version of ICAO’s Document 10033.

Although the list is not exhaustive, NASA has identified the following causes of fatigue: • • • • • • • • • • •

Restricted sleep due to short rest periods; Restricted sleep due to early duty report times; Multiple high workload periods across the duty day; Multiple sectors; High-density airspace; Long duty days; Extended wakefulness on duty days; High workload during low sleep periods; Circadian disruption (due to night work and/or crossing multiple time zones); Split sleep patterns and short sleep episodes on layovers; Circadian drift following extended patterns.

Safety Assurance

The draft of Doc 10033 reports that for assessing the effectiveness of implemented mitigations there’s a need to set safety performance indicators. The document recommends schedule-related indicators and proactive/reactive fatigue indicators. Examples of the former are the number of crew duty day exceedances including into allowable excesses (as determined through risk assessment – i.e., longer than 14 hours), and the number of reduced rest breaks between duties (by more than a specified number of minutes).

According to Doc 10033 proactive/reactive fatigue indicators could be the number and severity of fatigue reports, the number of fatigue-related incidents, flight operations quality assurance (FOQA) indications of reduced pilot performance possibly due to fatigue, measured data on sleepiness ratings, sleep diaries, or inadequate layover sleep duration and fatigue calls.

“...safety promotion should also include instructions to develop habits to prevent the risk of fatigue emerging.”

Safety Promotion

On top of training and communication on the overall fatigue management system, which may consist of instructions to line-employees on how to submit fatigue reports and develop sensitivity to fatigue as a safety hazard, safety promotion should also include instructions to develop habits to prevent the risk of fatigue emerging.

Education should be given on the importance of sleep, on respecting the circadian body clock as well as on the strategic use of caffeine.

Education on fatigue has the effect of improving individual performance and safety, but it is also an opportunity for a company to demonstrate its commitment and genuine interest to the well-being of its people. T Are you looking for more articles on Safety? Visit www.avbuyer.com/ articles-guides/business-aviation-safety

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arge operators of business aircraft are implementing sophisticated tools such as bio-mathematical models to monitor fatigue of its aircrews, while the International Business Aviation Council (IBAC) has co-authored ICAO Document 10033, ‘Fatigue Management Guidance Manual for General Aviation Operators’, to be jointly released by the International Civil Aviation Organization (ICAO), IBAC and the Flight Safety Foundation (FSF).

Unlike the larger organizations, smaller flight departments tend to have less sophisticated organizational structures for managing crew fatigue, even though the fatigue risk is perhaps higher within their operational context. For example, there is likely to be less redundancy in replacing a fatigued pilot at relatively short notice.

Thus, some short guidelines on managing fatigue risk in Business Aviation may be of help to consider ways to implement a simplified fatigue management system.

A fatigue management system (FMS) is simply a subset of a safety management system (SMS) focussing on the management of fatigue hazards. As such an organizational system for managing fatigue is characterised by the same components and elements as the overarching SMS of the flight department.

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Safety

Complacency: A Subtle and Constant Concern Aviation in itself is not inherently dangerous. But to an even greater degree than the sea, it is terribly unforgiving of any carelessness, incapacity or neglect – Anonymous.

W

eather at the departure airport that fateful February morning was good: visibility 10 miles, skies clear, winds calm. The captain of the Challenger 600 was experienced, with over 16,000 total flight hours and nearly 3,400 hours in type. Yet what was anticipated to be a routine charter from Teterboro Airport (KTEB), near New York City, to Chicago Midway (KMDW) with eight passengers ended in a rejected takeoff at excessive speed, a demolished aircraft and extensive injuries as the CL600 overran KTEB’s Runway 06, careened through the airport’s perimeter fence and across a busy highway, slamming into the loading ramp of a nearby warehouse.

The cockpit crew as well as two occupants of a car struck by the Challenger were seriously hurt. All eight passengers plus a cabin attendant and a warehouse worker received minor injuries.

The crew arrived at KTEB about 0520 to conduct pre-flight duties and oversee FBO personnel as they fulfilled the pilots’ written order to “top off” all tanks on the Challenger, thereby bringing the aircraft’s fuel load to approximately 16,634 pounds and its calculated takeoff weight to 41,320 pounds (about 70 pounds above the allowable takeoff limit, but not dangerously excessive considering the performance capabilities of the Challenger on a cold winter day). Passengers were boarded by 0705 and the aircraft taxied toward Runway 06.

Takeoff clearance was issued at 0717, power levers were advanced and the aircraft accelerated quickly through its takeoff decision speed (V1 was 127 knots), and within the blink of an eye through its rotation speed, Vr, of about 135 knots. With both hands on the yoke, the captain applied back pressure to achieve the takeoff attitude, but the aircraft’s nose wheel did not lift off the runway. Rather, the aircraft continued to accelerate through 160 knots without achieving its takeoff attitude.

At that point, estimated to be roughly five seconds after

accelerating through Vr and with about 2,100 feet of runway remaining, the captain aborted the takeoff, reversed thrust, applied maximum braking and deployed spoilers. The NTSB estimated that the Challenger ran off the departure end of KTEB’s Runway 06 at about 110 knots and was travelling 85 knots shortly before striking the warehouse loading ramp.

Probable Cause

As stated in its Accident Report issued October 31, 2006, “The National Transportation Safety Board determines that the probable cause of the accident was the pilots’ failure to ensure the airplane was loaded within the weight-and-balance limits and their attempt to take off with the center of gravity [cg] well forward of its forward takeoff limit, which prevented the airplane from rotating at the intended rotation speed.”

Why, we need to ask ourselves, would an experienced captain fail to determine balance prior to this charter flight, a procedure required by the FARs and demanded by safe practices?

The crew calculated the Challenger’s weight, but neglected to note the aircraft’s center of gravity was positioned at 12.47 percent Mean Aerodynamic Chord (MAC), which exceeded the allowable forward limit of 16 percent MAC by one-fifth of the aircraft’s allowable cg range!

Although the accident in question triggered an extensive examination of FAR Part 135 operations by the Federal Aviation Administration and the Department of Transportation that resulted in unique regulatory changes regarding Operational Control, the role that complacency played in this singular tragedy unfortunately is all too common.

How many takeoffs had the accident pilot conducted in his thousands of flight hours? Probably a number approaching 8,000. Without strict attention to procedures, best practices and a professional’s dedication to process, the risk of tragedy stalks those who take safety for granted. - JWO T

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