Business & Commercial Aviation

By David Esler
So, you're thinking about buying into a fractional ownership program. Perhaps you're an individual of some means looking to use a private jet for business and personal travel. Or maybe you're an aviation manager with a major corporation seeking a supplemental airlift solution for your employer's overworked flight department. In either case, have you considered your liability -- or that of your employer -- in the multiple-ownership, managed operation of an aircraft?

Edited by James E. Swickard
Cessna Aircraft Co. announced that Delta Aero-Taxi has ordered seven Citation Mustangs that will be used for a new fractional ownership service based in Florence, Italy. Delta Aero-Taxi is a long-time Citation customer and currently operates a Citation X. The new Citation Mustang will be certified as a FAR Part 23 aircraft, with cruise speed of 340 knots, and maximum operating altitude of 41,000 feet. Certification is expected in mid-2006 with first customer deliveries in fourth quarter 2006.

Staff
Keystone Helicopter, West Chester, Pa., has appointed Steven Weinert as division maintenance manager, flight services. He will oversee all maintenance, repair/refurbishment and overhaul activity for the 30 twin-engine medical helicopters managed by Keystone.

Edited by James E. Swickard
According to data from wildlife-mitigation.tc.faa.gov., from 1990 to 2001 there were 28,493 known bird strikes, 64 percent occurring during the daytime, 4 percent at dawn, 5 percent at dusk and 27 percent at night. Beyond bird strikes, during the reporting period there were 676 mammal (mostly deer and bats) strikes by airborne aircraft and 46 confirmed reptile strikes (species unspecified). In addition to all the above, there were 10,684 strikes by ``unknown'' critters.

Edited by James E. Swickard
Smaller airports are losing more service than larger ones, according to an Oct. 7 report on airline industry metrics from the DOT's Office of the Inspector General (OIG). From September 2000 to September of this year, the OIG said, non-hubs lost nearly 16 percent of scheduled passenger seats vs. a 9-percent cut for larger airports. The disparity could be reduced by the end of this year. The OIG said airline schedules project that by this month, non-hubs will be down 10 percent and larger airports down 7 percent compared with December 2000.

Edited by James E. Swickard
A new Web site facilitates tracking of new U.S. DOT regulations. Online reports, updated at least once a month, summarize the status of all the department's ``significant'' new regulations. The reports are available at: http://regs.dot.gov.

Edited by James E. Swickard
The FAA has issued a type certificate for the Airbus Corporate Jetliner. With the FAA approval Airbus can begin deliveries of the ACJ -- a version of the A319 airliner -- to U.S. customers. The ACJ is equipped with up to six auxiliary fuel tanks in the hold and has built-in airstairs. It's also certified to 41,000 feet. Airbus said it has delivered 14 ACJs, 12 of which are now in service with customers.

Edited by James E. Swickard
The Transportation Security Administration eased the compliance deadline for the ``Twelve-Five Rule'' from Dec. 1 to Feb. 1, 2003, realizing ``a large number of affected operators will not be able to meet the Dec. 1, 2002, compliance date.'' Many of the affected operators -- those with aircraft that weigh 12,500 pounds or more -- are having difficulty meeting requirements for a fingerprint-based, Department of Justice (DOJ) criminal history record check on their employees.

Edited by James E. Swickard
Jet-A and Avgas Per Gallon Fuel Prices November 2002 Jet-A Region High Low Average Eastern $3.76 $2.45 $3.11 New England $3.60 $2.15 $2.69 Great Lakes $3.62 $1.89 $2.86 Central $3.06 $1.96 $2.57 Southern $3.71 $2.35 $3.08 Southwest $3.19 $1.78 $2.57 NW Mountain $3.17 $2.14 $2.69 Western Pacific $3.68 $2.19 $2.84

Edited by James E. Swickard
Despite pleas from the helicopter industry, TSA Chief James Loy isn't offering much encouragement about lifting temporary flight restrictions at large sporting events like auto races. During a meeting between senior TSA officials and members of the General Aviation Coalition in early November, advocates said helicopter operators needed access to race venues to pick up and deliver VIPs, sponsors and drivers at the tracks.

Edited by James E. Swickard
U.K. air traffic controllers are threatening a 15-minute strike in protest of bonuses paid to two directors of the cash-strapped National Air Traffic Services (NATS). Around 50 delegates of the controllers' union voted unanimously for the action, but a ballot of all 2,000 controllers has to occur before the action can go ahead.

By Dave Benoff
It's been decades since business aviation began its eager embrace of the turbine engine, and now today's fleet is largely powered by Jet-A, a plentiful and largely uncontroversial fuel also used by airline and military aircraft the world over. However, piston-powered aircraft fueled with aviation-grade gasoline still represent a significant portion of the business aviation fleet. Of the aircraft operated by NBAA membership companies alone, 1,649 -- 18 percent of the total -- are piston singles and twins worth an estimated $250 million.

Edited by James E. Swickard
Pinnacle Airlines plans to open a fourth Canadair Regional Jet maintenance facility, in Fort Wayne, Ind. The Fort Wayne-Allen County Airport Authority approved the terms of a two-year sublease for 24,000 square feet of hangar and office space, along with the associated ramp and parking area formerly occupied by Mercury Air Center at Ft. Wayne International Airport (FWA).

Staff
To best appreciate the chemical complexity of avgas, a little background on the making of fossil-based fuels is in order. It all starts with crude oil. Crude is in fact a soup of chemicals called hydrocarbons that, to be made useful, must first be separated into groups of specific chain lengths. For example, CO2 (carbon dioxide) is a simple carbon chain. When carbon is combined with multiple compounds the chain can be as long as 70 or more carbon atoms.

Staff
Universal Weather&Aviation, Houston, has hired Steve Lassetter as vice president, sales and marketing.

By Robert N. Rossier
Managing an airplane's descent is a relatively simple science that forms a cornerstone of safe flight. Although an approach sometimes might call for a precipitous descent that reminds us of a bad day on Wall Street, we tend to prefer more gentle returns that keep us clear of obstacles while not too rapidly closing the gap between us and Mother Earth.

Edited by James E. Swickard
The TSA chief was much more enthusiastic about the NBAA's proposed Transportation Security Administration Access Protocol (TSSAP) idea, however. Loy reiterated earlier comments that TSSAP procedures -- under which pilots who met certain requirements could be pre-cleared -- seemed like a reasonable approach for permitting flights into airports covered by a TFR or instead of the current waiver process for international flights (see Intelligence, November, page 15).

Staff
Duncan Aviation, Lincoln, Neb., has named John Slieter vice president of completions and modifications marketing. Slieter, an 18-year Duncan veteran, has now assumed day-to-day leadership of the interior, paint and modifications sales staff.

Edited by James E. Swickard
The airport industry is watching for signals from the Transportation Security Administration about how it plans to implement legislation to arm pilots and how those weapons would be transported through terminals. Concern about how such a law would affect airport operations surfaced when TSA acting chief James Loy reversed ousted agency Under Secretary John Magaw's policy that no weapons would be permitted inside aircraft.

Staff
Piedmont Hawthorne Aviation, Winston-Salem, N.C., has hired Robert Hudson as aircraft service manager. In addition, Howard Henry has been appointed customer service manager of aviation maintenance.

Edited by James E. Swickard
Air Security International (ASI) has acquired Sheldon Little Associates in the United Kingdom. ASI, headquartered in Houston, specializes in travel and security intelligence, ground transportation and executive protection services. ``The addition of Sheldon Little enables ASI to better support our clients' interests in Europe, Africa, Asia and the Middle East,'' said ASI President Israel (Issy) Boim. David Little will manage the U.K. office as well as act as director of ASI's worldwide crisis management teams.

Staff
As part of a prospective fractional share purchaser's due diligence, it's a good idea to consider with personal or corporate legal counsel possible liability situations that could leave an owner exposed either to suit or regulatory action. B/CA polled three of the aviation lawyers interviewed for this report for a selection of possible ``situations'' shareholders would want to look out for and protect themselves against prior to purchase.

Edited by James E. Swickard
Air Methods completed its acquisition of Rocky Mountain Holdings for $33.6 million, making the company the largest provider of air medical services in the United States. The purchase agreement includes a $2.6 million earn-out provision, which would be paid over the next several years.

Edited by James E. Swickard
Charter operators suffered two fatal accidents -- one claiming the life of Sen. Paul Wellstone (D.-Minn.) -- within a recent two-week period. At about 10 a.m. on Oct. 25, a King Air A100 carrying Wellstone, his wife, daughter and three political aides crashed during an approach to Eveleth-Virginia Municipal Airport (EVM) in northeastern Minnesota. The aircraft, operated by Aviation Charter, Inc., was flown by Richard Conry -- who had apparently flown Wellstone before and had just completed a proficiency check -- and copilot Michael Guess.

Staff
DeCrane Aircraft has named Trey Bryson vice president and general manager of DeCrane Cabin Interiors, a new DeCrane Aircraft subsidiary headquartered in Tucson, with satellite operations in Fort Lauderdale, Fla., and Montreal.