business aviation advisor november/december 2015

NOVEMBER / DECEMBER 2015

W W W.BIZ AVADVISOR .COMA Business Aviation Media, Inc. Publication

TAXATION WITH REPRESENTATION

FOR THE RECORD

TAKE ME TO THE PILOT

RISE OF THE MACHINES

That Unpleasant Smell Might Be Hazardous

to Your Health

Every Breath You Take

In An Emergency, You Need a Plan

When You Can’t Just Fly Home

Trusted to deliver excellence.

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The Business of Business AviationThe Information You Need, From Experts You Can Trust

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FE ATURE S

06 Every Breath You Take That unpleasant smell might be hazardous to your health by JUDITH T.L . ANDERSON, MSc, CIH

08 For the Record Reliable recordkeeping reduces risks by GEORGE KLEROS

10 Rise of the Machines Can UAS and your airplane fly together safely? by RICHARD H. HEIST, PH.D.

12 Take Me to the Pilot Know your options when hiring supplemental crew by GEORGE KYTHREOTIS

DE PARTME NTS

05 Publisher’s Message “Six in the Green” by GIL WOLIN

18 Washington Report Disrupting ATC Modernization by DAVID COLLOGAN 18

14 When You Can’t Just Fly Home In an emergency, you need a plan by CHRISTOPHER SIDFORD, MD

16 Taxation with Representation NBAA is working for you by SCOTT O’BRIEN

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OPERATORWINGMAN

N o v e m b e r/ D e c e m b e r 2 0 1 5 B U S I N E S S AV I AT I O N A D V I S O R 5

PUBLISHERGil Wolin

[email protected]

CREATIVE DIRECTORRaymond F. Ringston

[email protected]

MANAGING EDITORG.R. Shapiro

[email protected]

EDITORIAL ASSISTANTMichael B. Murphy

[email protected]

WASHINGTON EDITORDavid Collogan

[email protected]

CONTRIBUTORSJudith T.L. Anderson, MSc, CIH

Association of Flight Attendants-CWA, [email protected]

Richard H. Heist, Ph.D.Embry-Riddle Aeronautical University

[email protected]

George KlerosJet Support Services, [email protected]

George KythreotisJet Professionals

[email protected]

Scott O’BrienNational Business Aviation Association

[email protected]

Christopher Sidford, MDEmergency Black Bag

[email protected]

BUSINESS MANAGERJoAnn O’Keefe

[email protected]

BUSINESS AVIATION MEDIA, INC.PO Box 5512 • Wayland, MA 01778

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When on final approach to landing, the co-pilot monitors the instrument panel and will at some point turn to the captain and report, “Three in the green.” Translation: three green lights have illuminated, indicating that the nose gear and two main gear are extended and locked and thus it’s safe to put the air-craft down on the runway.

I’ve often written this column from wherever my frequent travels take me: sales trips and conferences, a family cruise, and from the annual National Business Aviation Asso-ciation convention. NBAA2015, which takes place Nov. 17-19 in Las Vegas, will be the 43rd I’ve attended. A world-class event, it will bring together 46,000 aviation colleagues and friends from around the globe, including aircraft and avionics manufacturers, FBOs and other service providers, and finance and insurance suppliers, among others – includ-ing many of you.

But travel is not without risk, a fact of which I am at the moment acutely aware. You see, this time I’m writing to you from the ICU of our local hospital, where I was admit-ted after an infection suddenly worsened and laid me low. Not to worry, I’m making steady headway on the path to full recovery.

Moreover, the attending nurses are caring and competent and have a wonderful human touch. And, as with your aircraft, all my “systems” – blood pressure, pulse, oxygen, tem-perature, meds, and fluids – are being carefully and constantly monitored electronically. If any go in the wrong direction, the computer beeps loudly, the medical team responds instantly, and the proper adjustments are made. Turns out, an ICU operates much like a flight deck, but with crash carts and needles at the ready instead of checklists and a fire ax.

You think a mishap or malady can’t happen to you – until it does.When and if illness or injury should befall you during your travels, heading out imme-

diately aboard your aircraft often is not your safest option. In this issue, Dr. Christopher Sidford tells why you need to plan ahead – and what to do when medical emergencies oc-cur in “When You Can’t Just Fly Home Again.”

In our cover story, “Every Breath You Take,” Industrial Hygienist Judith Anderson explains why that unpleasant smell in your cabin may be not only irritating, but actually hazardous to your health. She describes what you can do to help protect you, your crew, and your passengers from cabin air pollution.

And Richard H. Heist of Embry-Riddle Aeronautical University describes the poten-tial risk to your aircraft and your own safety posed by the rapidly growing fleet – there are hundreds of thousands of them out there already – of remotely-piloted Unmanned Aircraft Systems in “Rise of the Machines.”

The issue’s focus on health and well-being was intended from its conception to help protect all. But considering my unexpected circumstances, the theme resonates espe-cially with me.

Right now, all my vital signs are showing improvement – I’m “six in the green” – and hope you are too! Let’s toast to good health at NBAA2015.

Thanks for reading,

“Six in the Green”

Gil Wolin — Publisher [email protected]

PUBLISHER’S MESSAGE ■

6 B U S I N E S S AV I AT I O N A D V I S O R N o v e m b e r/ D e c e m b e r 2 0 1 5 w w w. B i z AvA d v i s o r. c o m

BY JUDITH T.L. ANDERSON, MSc, CIH Association of Flight Attendants-CWA, AFL-CIO / [email protected]

Have you ever been aboard your aircraft, and wondered whether your passenger might have forgotten to bathe?

Chances are good that body odor is not to blame for the unpleasant cabin odor. Rather, “dirty socks” is the most common descriptor in aircraft maintenance manuals for the smell of en-gine oil fumes that can be pumped into the cabin and flight deck through the vents above your head.

Because of the way that turbine aircraft are designed and oper-ated, oil fumes can and sometimes do contaminate the cabin ven-tilation air supply, whether because of a failed or imperfect engine oil seal, a ruptured line, or an over-filled oil or hydraulic fluid res-ervoir. And that poses several health risks to you, your passen-gers, and flight crew.

Filtering the air you breathe in flight is challenging, because it enters the aircraft through engine intakes, moving at speeds up to 500 mph, and is then bled off into the cabin. The first stage

engine compressor accelerates the air even further – there’s no paper or fabric filter that could withstand that pressure. Conse-quently, all turbine aircraft use centrifugal water (cyclonic) fil-tration systems, spinning the incoming air and particulates with water condensation, which is then expelled from the aircraft. While this system catches most large particulate matter, it will not catch either fumes or smaller particles. Ensuring a clean ven-tilation system requires more filtration down stream.

Most engine oils and fluids today are synthetics, complex chemical mixtures expertly designed to lubricate moving parts and reduce wear. They are specifically formulated to withstand the conditions in an operating aircraft engine. But these synthet-ics are not intended for human consumption. Concerns about the safety and health implications of breathing these fumes inflight has been mounting since the 1950s, when these “fume events” be-gan to be documented on nearly every type of aircraft, including business jets.

The presence of malodorous oil fumes coming from the air SH

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Every Breath You TakeThat Unpleasant Smell Might Be Hazardous to Your Health

■ AIRCRAFT SAFETY

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supply vents needs to be addressed prior to departure. This is be-cause the oils contain 2-5% organophosphate toxins, and the fumes likely will contain carbon monoxide, both of which are be-yond the cyclonic filtration system’s capabilities.

And unfortunately, the only sensors currently onboard are the noses of every person on the aircraft.

The risk of experiencing acute symptoms caused by breathing oil fumes is generally recognized, given the various irritant com-pounds such as formaldehyde and acrolein, plus carbon monox-ide, in such fumes. Those symptoms initially include irritated eyes and sinuses, later followed by dizziness, disorientation, headache, fatigue, and slowed reflexes from extended exposure, none of which are conducive to conducting business or meeting family upon arrival.

Additionally, a still-applicable 2004 Airworthiness Directive by the Federal Aviation Administration (FAA) described inflight ex-posure to oil fumes as an “unsafe condition,” because inhaling oil fumes can “impair the operational skills and abilities of pilots.”

These same flight safety concerns have been echoed by many accident investigators, in addition to industry safely organiza-tions. Long-term neurological symptoms also have been docu-mented globally after onboard exposure to oil fumes. Because the onset of symptoms – such as chronic deficits in memory, speech, concentration, and balance – typically can be delayed by one to two weeks post-exposure, you may not think to associate your failing memory with the foul smell in the cabin two weeks earlier.

So what can you do to help protect you, your crew, and your passengers from the potentially serious impact of exposure to oil fumes onboard?

The answer to this question is fourfold.

1If You Smell Something, Say Something – Pay close at-tention to your immediate environment. Learn what you can ignore and what you can’t. More often than not, oil in

your cabin air supply will smell bad but will not be visible, so don’t wait for smoke or haze to get your attention. Oil fumes sometimes are described as smelling “oily”, but more typically they are de-scribed as the aforementioned “dirty socks,” “smelly feet,” “musty, moldy or foul odor,” or “wet dog.” If you smell something unusual and unpleasant on the ground, direct your crew to stop departure procedures and quickly ascertain the apparent source.

Are the fumes coming from the air supply vents? If there’s ei-ther an obvious source in the cabin, or an obvious source outside the cabin (like a deicing operation), then it’s not likely to be oil. And while odor is subjective, it does provide some useful insights. Be aware that oil fumes can smell electrical, so if there’s no

obvious electrical source, your maintenance crew also should troubleshoot the bleed air system. Hydraulic fluid fumes also can contaminate the air supply. They too are toxic, but not as toxic, and their distinctive acrid odor makes them easier to recognize.

2 Use Oxygen – If you have reason to believe you are breath-ing oil or hydraulic fumes while in flight, then you, your passengers, and flight crew should start breathing oxygen

through the drop-down masks over each seat. If the pilots can’t isolate the source, they should land the aircraft as soon as safe and practicable.

3 Prevent Rather Than Remediate – Before you fly, direct your aviation manager to be sure that your maintenance technician has defined and implemented procedures to

prevent over-filling of the engine oil and other fluid reservoirs, and that he or she inspects aging parts more frequently than rec-ommended. Those cabin smells often are a result of failing oil seals in the engine compressor module, allowing oil to leak into the compressor air path, thus contaminating the air bled into the

cabin. Evidence of such failure may be an oil film just behind the fan in the first stage compressor. Frequent examinations of the engine inlet will enable technicians to identify and replace bad seals before you experience problems with your cabin air.

4 Use Your Influence – Reducing or avoiding oil fumes ul-timately will depend upon as-yet-undeveloped engineer-ing solutions – like sensors, filters, and less toxic oils. For

example, sensors in the bleed air stream could provide an early warning of relevant contamination and enable pilots to more ef-ficiently locate and isolate the source of the contaminants. Less toxic aviation oils already have been under production for years in France, but need market and regulatory pressure to find ac-ceptance and regulatory approval in the U.S. and elsewhere. Pro-mote the need for engineering solutions to ensure clean supply air with 10,000 other corporate and individual aircraft owners and operators in the National Business Aviation Association, (www.NBAA.org), a 68-year-old business aviation advocacy group based in Washington, D.C.

Until manufacturers develop better filtration systems, or newer and less toxic lubricants and fluids, it’s up to you and your flight crew – and your noses – to monitor potentially hazardous cabin air pollution, and so, to fly safely. BAA

FILTERING THE AIR YOU BREATHE IN FLIGHT IS CHALLENGING, AS IT ENTERS THE AIRCRAFT THROUGH ENGINE INTAKES,

MOVING AT SPEEDS UP TO 500 MPH

JUDITH ANDERSON is an Industrial Hygienist on staff with a major flight attendant union (AFA-CWA, AFL-CIO) since 1999. She researches health issues in the aircraft cabin, including oil fumes, pesticides, contaminated employee uniforms, and radiation.

■ AIRCRAFT SAFETY


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BY GEORGE KLEROSJet Support Services, Inc. / [email protected]

While your flight logs and aircraft maintenance records likely are in the capable hands of your flight crew, you should understand the importance of these records,

and the risks you take – legal, financial, and safety – if they are in-complete, inaccurate, or missing.

The Flight LogMost aircraft have a recording device embedded in an electronic control unit, or a simple electronic “Hobbs” meter, which mea-sures the time the aircraft is in use, with engines running. How-ever, the declared legal aircraft total time and landings are recorded in the flight log by the pilot, using the honor system. When the aircraft is delivered new with an airworthiness certifi-cate, it receives a flight log, either paper or electronic. The pilot re-cords every destination leg flown point to point, capturing hours and landing on each leg. Some flight logs record mechanical dis-crepancies and corrective maintenance actions as well.

The Maintenance RecordsEvery aircraft is built to certain requirements established by its country of origin’s governing aviation authority, such as the FAA or the European Aviation Safety Agency (EASA).

Once all the requirements are met, the aviation authority issues a type certificate (TC) specifically for that model, which allows it to go into production. Every aircraft then must be built to the same blueprint and requirement to be in compliance with the TC.

In order to maintain airworthiness, the aircraft must conform to the original TC at all times after production, proven via inspec-tions, service checks and established life limits on critical safety of flight parts. The aircraft owner is responsible for maintaining and retaining these records until the next inspection or check, or until the part is replaced.

The aviation authority also issues Airworthiness Directives (ADs or AD notes). The aircraft is not legally airworthy unless it complies with all ADs issued to it. These ADs are similar to service bulletins for cars, which notify the owner of a hazard or safety con-dition that must be monitored or corrected.

Every inspection, time remaining or life-limited component, and AD must be recorded by time and date accomplished, and any recurring inspection requirement noted.

Why are these records important?■■ To Ensure Public Safety – FAA and EASA inspectors

perform random periodic surveillance, by reviewing records for all aviation operations. Any violation, such as a missing inspection or an AD not complied with or overflown, can result in a heavy fine or even grounding of the aircraft.

■■ In Case of Incident or Accident – Whether inflight or on the ground, these records will be thoroughly examined by the aviation authority and the adjuster for the hull insurance carrier.

■■ Insurance – If there are any questionable or missing inspection entries, or if a critical life limit component is overdue, the insurer has the right to deny the claim as the aircraft is not considered airworthy at the time of the incident.

■■ Hourly Cost Maintenance Program – If your aircraft is covered under an engine or airframe extended warranty program, the contract will require that records be monitored carefully for accuracy, and that the aircraft is legally airworthy.

■■ Selling the Aircraft – Prior to sale, the flight log will be reviewed to determine accuracy of the time recorded, and to understand where the aircraft flies or frequently parks. A thorough inspection will check the weight and balance records and verify that equipment installed matches the records. The maintenance records are compared to the inspection require-ments, and ADs and service bulletins for compliance. Any gaps are a red flag that the aircraft is poorly managed or that the seller may be hiding something.

Your Director of Maintenance or Chief Pilot knows how impor-tant good recordkeeping is to the well-being of your aircraft oper-ation, and will keep the records up-to-date, stored in a fireproof cabinet, and ready for your inspection whenever you ask. BAA

For the Record Reliable Recordkeeping Reduces Risks

GEORGE KLEROS , Senior VP, S t rategic Event Management , & F leet Suppor t at Jet Suppor t Ser v ices , Inc. , has 30+ years exper ience in av iat ion maintenance, management , and f ield suppor t ser v ices for business jet s . He ser ves on several industr y associat ion boards .

■ AIRCRAFT MAINTENANCE

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Rise of the MachinesBY RICHARD H. HEIST, PH.D.

Embry-Riddle Aeronautical University / [email protected]

They can be smaller than a child’s tricycle, or as large as a compact car; they can resemble a small four-bladed heli-copter, or a windowless low-wing piston aircraft. “They”

are remotely-piloted Unmanned Aircraft Systems (UAS), popu-larly known as “drones,” and they are creating a revolution that could have a dramatic impact on safety within the U.S. National Air Space (NAS) and worldwide.

Estimates for drone operations during the next two decades sound like science fiction. In a 2013 U.S. Air Force report, public sector drone use was estimated at 55,000 by 2035, up from roughly 2,000 today, and jumping to a staggering 175,000 un-manned systems by 2055. The U.S. Department of Defense esti-mates it will be operating 18,000 drones by 2035, up from 8,000 today, with more than half of all military aircraft flying with UAS technology.

The U.S. commercial and public sectors are awaiting new rules for their commercial operations. In 2012, Congress mandated the Federal Aviation Administration (FAA) to develop a plan to inte-grate civil drones safely into U.S. airspace and to establish opera-tional and certification requirements for public use by 2015. It looks like that plan is still years away.

While the U.S. leads the world in drone technology develop-ment, other countries have granted commercial permits to more than 1,000 drone operators for safety inspections of private infra-structure such as railroad tracks, commercial agriculture, aerial surveying, and photography.

There is growing pressure in the U.S. to expand the use of UAS, so as to take advantage of the new technology. Current rules allow public entities to apply for an FAA Certificate of Authorization (COA) to operate UAS, and organizations can apply for an exemp-tion to allow commercial use. While model aircraft operators do not require a COA or the exemption, they must satisfy all existing regulations, and be operated only for recreational use.

With increasing usage comes increasing chances of accidents, as well as other problems:

■■ The number of COAs and special exemptions continues to increase, but so does the number of unregistered users.

■■ In the five-year period beginning in the fall of 2009, more than 270 accidents and incidents were reported, and were due primarily to lost communication and lost command-and-con-trol links. Fortunately, most did not involve manned aircraft.

■■ But several recent incidents in which manned light aircraft and helicopters were struck by, or had to take evasive action from, a UAS were reported.

■■ Commercial pilots are reporting sightings of nearby UAS when on approach.

■■ As UAS devices become capable of operation at higher altitudes (significantly greater than 400 ft.), without appropriate deterrents, the potential for damage to business aircraft will continue to increase. And that will put your flights at risk for a midair collision.So, what needs to be done?If adopted, the rules proposed by the FAA last February would

be a significant improvement. But they may not be sufficiently stringent. For example, the National Agricultural Aviation Asso-ciation (NAAA) strongly recommends the requirement of on-board tracking technology, such as ADS-B Out. (See “For the Safety

of Our Skies,” BAA March/April 2015), strobe lighting, and high visibil-ity contrast markings, to help with “see and avoid.” It also recom-mends increased operator preparedness, training, and requiring a secondary UAS observer.

Even if incomplete, the FAA’s proposed rules need to be imple-mented. An open dialog between the FAA and those recommend-ing safety improvements and additions to those rules is a good next step.

Clear rules and procedures, consistently enforced, are key to minimizing the possibility of UAS/manned aviation accidents and maximizing the huge potential of those UAS. But until all us-ers of UAS believe that violating these rules will have conse-quences, you, your crew, and your passengers remain at risk. You can lobby Congress now to encourage the FAA to meet its man-date sooner rather than later. BAA

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RICHARD H. HEIST is Senior VP for Academic Af fairs and Research at Embry-Riddle Aeronautical University. A professor of engineering, he has held senior leadership roles at the university, and holds a private pilot license.

Can UAS and Your Airplane Fly Together Safely?

■ AIRCRAFT SAFETY

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SARAH A. MESPELT Vice President of Design T (1) 912.433.5933 [email protected] www.freestream.com/cabin-designs

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BY GEORGE KYTHREOTISJet Professionals / [email protected]

Your aircraft is always on call, ready to fly you and your ex-ecutives any time, any place. You likely have a permanent crew of two to five pilots at the ready. And even though

most of your trips may be scheduled, a last-minute opportunity or change in plans sometimes requires spur-of-the-moment travel, and your pilots may not be sufficiently rested. (See “Good

Nights Equal Good Flights”, BAA, April/May 2015).Plus, mandated twice-yearly, two-week recurrent training,

sick time, short- or long-term disability, maternity/paternity leave, or vacation time may leave you with a pilot shortage.

So for 24/7/365 coverage, you’ll want a bank of “on-call” substi-tute pilots, trained and ready to serve you at a moment’s notice.

What are your options to find such qualified, experienced con-tract pilots, better known as “supplemental crew”? Whether you run an independent Part 91 flight department, or are a client of a large or smaller regional aviation management company, you have two options: hiring an independent contract pilot, or hiring a con-tract pilot who is an employee of an aviation staffing company.

There are both similarities and differences between them, and benefits and drawbacks to each:

■■ Availability – With either option, the arrangement is “at will” by both parties: that is, should you not be satisfied, you simply don’t engage the pilot again. But the opposite also is true: an independent may not always be available; however, the staffing company will provide another pilot.

■■ Insurance coverage – Your insurance company may not offer coverage for – or may impose an extra premium to cover – an independent contractor, while the staffing company provides insurance coverage.

■■ Liability – While you always should consult your own attorney, generally, you may not be liable for any negligence caused by the independent contractor. Conversely, you would be responsible for injuries to the independent incurred on your aircraft or in your office, whereas an employee of a staffing company would be covered by its liability and workers’ compen-sation insurance.

■■ Taxes and benefits – When you hire a temporary contract pilot, you are not required to withhold taxes, pay Social Security, or any benefits: these will be paid by the individual (if independent), or by the staffing company.

How should you select a qualified pilot? You can find a contract pilot either through a reputable aviation staffing company (the National Business Aviation Association has such a list), or through a personal referral. While either may be a good option,

that pilot should meet three important criteria: ■■ Technical skills – Type ratings, hours, and current medical

needed to satisfy both your own and your insurance company’s requirement that your aircraft will be flown safely.

■■ Suitability – Personality and “culture fit” with your perma-nent crew. You want your entire flight crew to get along, so look for skill and reliability, plus compatibility.

■■ Likeability – Your own “gut reaction” to the candidate, as well as the reaction of your frequent passengers: your executives and perhaps your family. A brief personal interview often will give you more useful information than a battery of behavioral tests.

Whichever option you choose, either you, your HR depart-ment, or a reputable staffing company will:

■■ Identify, screen, and interview candidates. ■■ Review their documents – You’ll want to see successful

completion at an FAA authorized training facility, validated training records, total flight time in a specific aircraft type (normally 200+ hours’ time in a type of airframe), medical certificates, applicable licenses, and FAA forms.

■■ Oversee behavioral assessments, compliance checks, applicant scheduling, administrative management, and post-hiring supervision.

Hiring a contract pilot who is properly trained and vetted, and who meshes well with you, your permanent crew, and your com-pany culture, means that you have an asset on board, not a liabil-ity. Protect yourself, your crew, your passengers, and your aircraft by making the proper choice. BAA

Take Me to the PilotKnow Your Options When Hiring Supplemental Crew

GEORGE KYTHREOTIS is VP and General Manager of Jet Professionals, a wholly owned subsidiary of Jet Aviation, a General Dynamics company. Before joining the company in 2000, he held multiple senior positions in human resources and operations.

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■ FLIGHT OPERATIONS

D E D I C A T E D T O H E L P I N G B U S I N E S S A C H I E V E I T S H I G H E S T G O A L S .

When “Lucky” Lindy made his transatlantic crossing, he didn’t have to deal with an ocean of congressional

wrangling (maybe that’s why they called him “Lucky”). The prevailing winds blew in his favor. But today,

those winds have changed. Flying for business is more scrutinized than ever. Luckily, there’s NBAA.

We’ve made a home on the Hill, so that our members can make a living in the sky. Because business aviation

enables economic growth. And at NBAA, we enable business aviation.

Join us at nbaa.org/join.

C R O S S I N G T H E AT L A N T I C WA S E A S Y

C O M PA R E D T O N AV I G AT I N G C O N G R ES S .


BY CHRISTOPHER SIDFORD, MDEmergency Black Bag /[email protected]

Flying on your own aircraft saves time, and provides optimal security and flexibility. When plans change or go awry, your aircraft stands ready to transport you to that next des-

tination, or back home. But if illness or injury strikes, heading out immediately often is not your safest option. What can you do now to recognize, prevent, and prepare for those contingencies?

Before You Depart:■■ Secure evacuation insurance. With aircraft standing by,

many owners assume they don’t need this coverage. But using your own aircraft may not be the safest option, as explained below.

■■ Get a complete health evaluation. In addition to your routine annual physical by your primary doctor, if you are traveling to an exotic destination, it’s advisable to get an evaluation well in advance of your trip by a travel medicine specialist.

■■ Travel with a short and accurate summary of your medical records. This should include any chronic conditions or allergies, as well as the generic names of your medications.

■■ Get immunized. The U.S. Centers for Disease Control and Prevention (CDC) offers general guidelines for immunizations based on your destination and planned activities. Some immunizations require six weeks between doses, so plan ahead.

■■ Engage expert medical help to identify the key health risks at your destination, such as infectious diseases, water quality, or dangerous animals and insects. Expanding on CDC guidelines, your specific immunizations and prophylactic medications will vary, depending on your age, medical conditions, and factors such as the time of year, altitude, and even your choice of hotel (an infectious disease might be more prevalent in one area of a city than another).

■■ Pack medications. Bring all the medicines you will need during your trip, including extra in case of travel delays. In some locales, both prescription and over-the-counter medicines may be counterfeit or substandard. In others, your routine medica-tions may be illegal (see “Getting In the Zone: Managing Medications

When You Travel,” BAA, April 2014).

■■ Learn first aid and CPR. Be sure your flight crew is trained in emergency procedures. Unfortunately, such training may be absent even in the world’s best hotels and resorts. Consider if an AED makes sense for your aircraft.

■■ Bring a first aid kit, with both basic and destination-specific supplies, and know how to use them.

■■ Locate the nearest competent medical facilities, specifically emergency care, and a comprehensive trauma center.

■■ Unless a member of your crew not only speaks the local language, but is expert in medical translation, look into hiring such a specialist.

If You Are Injured or Feel Unwell:■■ Seek an expert medical evaluation before you board. That

“minor stomach bug” you picked up could hit your pilot in four hours – or it could be the first sign of something serious. That broken rib could cause a punctured lung – a potentially fatal injury, especially at altitude.

■■ The best solution is not always to “get back home” at any cost. Many parts of the world offer superb care, which might be closer than you think.

■■ Call the local medical facility before you arrive. Ideally, this call will be made by your travel medicine specialist, who can brief the staff on what you might need.

■■ Use the safest mode of travel. Your aircraft likely is not equipped to offer appropriate medical care by an accompanying doctor and/or nurse, nor is it able to transport you safely in a medical crisis. Unless you own an older model Learjet with clamshell doors, a stretcher cannot even make the turn into the cabin without tipping the patient to one side! Needing a stretcher is one good indication that alternate emergency evacuation transport is required.

Your aircraft keeps you on schedule and ahead of the competi-tion. Planning ahead helps ensure that you stay in shape to enjoy those advantages. BAA

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BY SCOTT O’BRIENNational Business Aviation Association / [email protected]

From the FAA to the IRS, business aviation is a highly regu-lated industry. Aircraft owners constantly must be on the lookout for new rules and regulations that can have an im-

pact on your carefully planned ownership and operating struc-tures. Understanding federal and state tax policies, and being prepared for potential audits should be a critical part of your op-erating strategy.

The National Business Aviation Association (NBAA), based in Washington, D.C., represents the more than 10,000 companies and individuals who rely on general aviation aircraft to help make their businesses more efficient, productive, and successful, and to advocate for fair and equitable tax treatment for the industry. Here are three ways NBAA is working for you:

Seeking Regulatory Solutions to Tax Challenges Through a Tax Committee made up of 30 highly regarded avia-tion attorneys, CPAs, and advisors, NBAA works to identify tax challenges for business aviation. For example, the association succeeded in securing inclusion of two issues on the IRS and Treasury Department’s Priority Guidance Plan, which identifies and prioritizes federal tax policies. The first item urges the IRS and Treasury to develop guidance on the application of federal excise taxes to aircraft management fees, which continues to be a complex and confusing issue for the industry. The second re-quests guidance to address the “leasing company trap,” which un-fairly penalizes aircraft owners who lease an aircraft to related parties for legitimate business reasons. NBAA regularly meets with these agencies on both matters, and progress is being made toward addressing these concerns.

Advancing Tax Policies on Capitol HillIn addition to advancing positive tax policies at the regulatory level, the association is actively engaged on Capitol Hill. Recently, NBAA secured introduction of legislation that makes clear that management services provided to assist aircraft owners in the operation of their aircraft are not subject to the ticket tax im-posed on commercial air transportation.

Introduced by Rep. Pat Tiberi (R-12-OH), House Bill 3608 would exempt from the ticket tax component of federal excise tax, any amounts paid by the aircraft owner for maintenance and sup-port of his/her aircraft by a management services company, such as for crew scheduling and dispatch, flight planning services, in-surance, and aircraft maintenance. The exemption is limited to non-commercial flights by the aircraft owner on his/her aircraft or an aircraft obtained through a qualifying lease.

NBAA also continues to advocate for the extension of bonus de-preciation, which allows aircraft owners and owners of other

capital assets to realize the depreciation benefits of an eligible as-set more quickly. Bonus depreciation delivers long-term stimulus to industries like general aviation, which provides high-skill, high-paying jobs for more than 1.2 million Americans, and gener-ates $150 billion in economic activity annually in the U.S.

Current legislation allowing 50 percent bonus depreciation ex-pired on Jan. 1, 2015, and bills have been introduced in the House and Senate to either make 50 percent bonus depreciation perma-nent or extend it for another two years. NBAA strongly supports both efforts, and recently joined more than 2,000 organizations in urging Congress to take action on bonus depreciation and other expiring tax extenders.

Providing Educational Resources to Members Through seminars and website resources, NBAA works to pro-vide its members with the latest information on tax policy issues. For example, the State Aviation Tax Report details the aviation-specific tax rules and regulations in each of the 50 states. The re-port is updated by NBAA’s Tax Committee on a yearly basis.

On Nov. 15 and 16 in Las Vegas, NBAA will host its Tax, Regula-tory and Risk Management Conference, which provides two days of education focused on how effective tax and regulatory plan-ning drives successful aircraft transactions and leads to efficient business aircraft operations. The association is proud to have Business Aviation Advisor as its media partner for this event. BAA

Taxation With RepresentationNBAA Is Working for You

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SCOTT O’BRIEN , Senior Manager, Finance & Tax Policy, NBAA, manages the organization’s interactions with regulatory agencies, including the IRS, Treasury Dept., and SEC. The staff liaison to NBAA’s Tax Committee, he is a licensed pilot.

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BY DAVID [email protected]

Congress waited until Sept. 29 – one day before the end of the fiscal year – before finally passing legislation to keep the Federal Aviation Administration operating. Passage

of the Airport and Airway Extension Act of 2015 means the agency is good to go…until March 31, 2016.

The “hope” is that six months will provide sufficient time for congressional leaders to finally reach agreement on a long-term, multi-year FAA reauthorization bill. But no one in the aviation community is willing to bet that will actually happen by the end of March.

That’s because Congress has shown an appalling inability in re-cent years to accomplish much of anything in a timely manner.

The last time a multi-year FAA reauthorization measure was pending before Congress, our national legislature responded with an epic fail. Legislators fiddled and futzed for two years, passing a series of 23 – yes, 23 – short-term extensions before finally enact-ing the FAA Modernization & Reform Act of 2012. And here we are again, just three years later, mired in the same process.

Daniel B. Fisher, vice president of legislative affairs for the Aeronautical Repair Station Association, put the latest short-term extension into sharp perspective.

“This extension does little to change the situation facing our nation’s aviation community. We can turn back the clock as often as Congress wants, but time will continue to run out. Until we have a responsible, long-term bill that adequately funds the FAA and guarantees the competitiveness of aviation companies, we’re all running out of time. Further delay is unacceptable and the men and women who work every day to ensure aviation safety de-serve better than endless patches and punting that has character-ized prior reauthorizations.”

FAA managers, and a dedicated cadre of air traffic controllers, found ways to keep air traffic flowing safely despite uncertainty over long-term agency funding, even during a partial govern-ment shutdown caused by the budget sequestration battle a few years ago.

But those uncertainties and funding delays have been terribly disruptive of FAA’s top long-term priority, implementation of the NextGen air traffic control modernization program. By Jan. 1, 2020 aircraft flying in controlled airspace are supposed to be equipped with ADS-B Out technology. ADS-B Out will broadcast an aircraft’s position to other aircraft and the Automatic Depen-dent Surveillance-Broadcast network on the ground.

Some air carriers, and a few early adapters in business and gen-eral aviation have installed that technology, eager to take advan-tage of the safety benefits and preferred routing/reduced ATC

delays available for properly equipped aircraft. But the approxi-mately 10,000 aircraft that had ADS-B installed by early 2015 represent only a small fraction of the 100,000 to 160,000 aircraft that FAA estimates will need to have that equipment.

Congress should be looking for ways to accelerate ADS-B equi-page, not spurring speculation about whether that 1/1/20 dead-line might slip.

A principal reason an FAA reauthorization bill has not passed is that Rep. Bill Shuster (R-PA), chairman of the House Transpor-tation & Infrastructure Committee, bit off way too much. Instead of focusing on what is doable, Shuster wants to create a private corporation to operate the nation’s ATC system. His plan also would establish an entirely new system of user fees to fund it, abandoning the ticket and fuel taxes that have reliably and fairly generated sufficient revenue for more than four decades.

Shuster’s over-reaching approach encountered strong opposi-tion from the business aviation community and other segments of the industry, resulting in rancor and delay instead of results. The fractious and fragmented 114th Congress can’t do the routine stuff, let alone agree on such radical changes. A straightforward, multi-year reauthorization bill that maintains the current struc-ture and governance of FAA, along with the existing tax mecha-nisms to fund it is what’s needed… now! BAA

Disrupting ATC Modernization

DAVID COLLOGAN has covered aviation in Washington, DC for more than four decades. This award-wining journalist is known as one of the most knowledgeable, balanced, wary, and trusted journalists in the aviation community.

The Inability of Congress to Adopt Long-term FAA Reauthorization Is a Disservice to Everyone

■ WASHINGTON REPORT

Disrupting ATC Modernization

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business aviation advisor november/december 2015

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