Sunday, October 12, 2008

More on NBAA and Operational Control

Admittedly, NBAA was a little less exciting this year for the aviation enthusiast and the official attendance numbers demonstrate that it was less attended than last year. From an air taxi perspective, the buzz and excitement of the past two years was missing. No significant announcements, no exciting new air taxi entrant and no new aircraft on display. However, it was still a great show with some highly informative seminars. Here are some of the highlights:

As previously mentioned, the air taxi seminar/panel included leaders from Linear Air, SATSAir and Open Air. What I found most encouraging from all three of those operators was that all of them were experiencing more demand and more calls for their air taxi services than their existing capacity. Additionally, 2 of the 3 stated that they were making money and the third recognized not doing so yet was simply a result of growth and expansion efforts. There was still a lot of enthusiasm with this group and a belief in the product and the vision.

From the seminar entitled "Meet the Regulators," the senior FAA personnel acknowledged what I have discussed before here, that the wait and time to get a Part 135 certificate is increasingly long. Driven in large part by the demand and the limited FAA personnel and assets, I do not foresee any significant improvement in this regard any time soon. The only possible relief might be that the FAA is considering a Part 135 qualified certification consultant program similar to what currently exists in the Part 121 air carrier certification process. Such professional consultants, while not required, are approved by the FAA. With their paid services, they can assist in hopefully streamlining the certification process. Apparently, such a similar program might evolve for Part 135 approval. As noted on the NBAA website discussing this seminar: "Some operators are disappointed with the pace with which the FAA is processing the backlog of applications for Part 135 certificates. Agency officials said they are developing a certification consultant rule that would enable designees to take on some of the tasks associated with gaining Part 135 approval."

There was also a good discussion on "operational control." It is apparent to me that "operational control" continues to be a source of confusion among some Part 135 and Part 91 operators and aircraft owners. It is critical that an operator and an owner understand and comply with this regulation and concept. The seriousness with which the FAA considers compliance with operational control is clear from its enforcement activity the past few years. If you are unfamiliar with that enforcement activity, the FAA's Associate Administrator for Air Safety and 30 year veteran Nick Sabatini was bluntly clear:

"Separately, Sabatini warned that Part 135 operators who want to put an aircraft on another operator’s certificate but still essentially exercise operational control would be dealt with 'swiftly and summarily.'"

Albeit somewhat more subdued this year than in the past, NBAA is always a good show. This year was no exception. As NBAA President Ed Bolen stated: ""This year's show comes amidst spikes in the cost of fuel, tightening credit markets and a challenging economy . . . Business aviation has been impacted by adverse economic trends like every other industry, so we're pleased that our Convention continues to offer a valuable marketing and networking opportunity for our Member Companies." That was true for me and over 30,000 attendees.