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NBAA Update #05-41
Monday, October 10, 2005

NBAA Update is the National Business Aviation Association's weekly e-mail newsletter, providing the latest operational, regulatory and political news for the business aviation community. Subscribe for free or review the archives at www.nbaa.org/update. Send your comments about NBAA Update to [email protected]. Send address changes to [email protected].


Business Aviation News & Issues
NBAA and Its Members Will Raise Funds for Katrina Relief During NBAA2005
Several fund-raising initiatives are planned for the Association's 58th Annual Meeting & Convention (NBAA2005) to help New Orleans citizens impacted by Hurricane Katrina. The fund-raising measures reflect a commitment NBAA made last month to help New Orleans citizens after the Association was forced to move its Convention from New Orleans to Orlando, FL, because of Hurricane Katrina's devastating impact. "In the time since Hurricane Katrina struck the Gulf Coast, the business aviation community has been generous in providing assistance for the people of the region," said NBAA President and CEO Ed Bolen. "We are pleased that the Convention will help our industry build upon relief efforts to date with fund-raising initiatives targeted specifically to New Orleans citizens." Learn more about the planned fund-raising measures at:
http://www.nbaa.org/news/pr/2005/20051005-055.php

NBAA Mourns the Passing of Ray Siegfried
Ray H. Siegfried II, friend to general aviation, died on October 6 after a four-year battle with ALS, also known as Lou Gehrig's Disease. Siegfried was chairman of The NORDAM Group, an international aviation service and manufacturing company headquartered in Tulsa, OK. His career with the company began in 1969 when he acquired it out of bankruptcy. Starting with only eight employees, Siegfried rebuilt NORDAM into a leading manufacturer with thousands of employees worldwide. NBAA honored Siegfried with its First Century of Flight Award in 2003, which recognized him for his significant contributions to the advancement of aviation. He also had served as General Aviation Manufacturers Association chairman and was presented with that association's Distinguished Service Award.

New IRS Revenue Ruling Affects Some Business Aviation Structures
IRS Revenue Ruling 2005-64 considers whether the losses incurred by an individual who engages in an air transportation activity in the circumstances described below are passive losses within the meaning of Sec. 469 of the Internal Revenue Code and whether the amounts paid for the air transportation services described below are subject to the tax imposed by Sec. 4261. The IRS decided that the lease of an aircraft by an S corporation, without a pilot or maintenance crew, to a related C corporation for its air transportation needs was a rental activity and, therefore, subject to the passive activity loss limitations. However, it was not subject to the Code Sec. 4261 excise tax on air transportation. On the other hand, another S corporation's lease of an aircraft, with pilot and maintenance crew, to a related corporation for its air transportation needs, wasn't a rental activity subject to the passive activity loss limitations, but was subject to the air transportation excise tax. Download the Revenue Ruling at:
http://www.nbaa.org/member/admin/taxes/federal/passive-activity-loss/2005-064.pdf

FAA Issues Notice on Reevaluation of De-Icing Programs
In Notice 8000.308, the FAA provides guidance and information for aircraft operators regarding the evaluation of deicing/anti-icing programs. This notice applies to Part 125 and Part 135 certificate holders that have elected to operate with a program approved under Part 121.629(c). The notice stresses the need for reevaluation by each certificate-holding district office and certificate holder of the holder's deicing/anti-icing program and outlines specific areas of concern. Using the system safety principles and risk assessment process, the FAA determined that programs requiring FAA approval, such as ground deicing/anti-icing programs, would have the highest degree of inherent risk and, as such, were determined to be the most critical due to the approaching 2005–2006 winter season. Download the notice at:
http://www.nbaa.org/ops/N8000-308.pdf

NASA Develops New Online De-Icing Training Course for Pilots
Ground icing accidents are often preventable. With winter approaching, NASA is providing pilots with a free, online course called "A Pilot's Guide to Ground Icing" to help them avoid the hazards of ice contamination while their planes are on the ground. The course, intended primarily for professional pilots who make their own deicing and anti-icing decisions, is the eighth in a series of training aids developed at NASA's Glenn Research Center and the first on ground icing. Developed by an international team led by NASA researchers, this new educational tool is available online at:
http://aircrafticing.grc.nasa.gov/courses.html

NBAA APIS Submission Service No Longer Available
NBAA's Advance Passenger Information System (APIS) Submission Service was taken out of service on October 4 when the new APIS reporting standard went into effect. Originally created in 2002 as a temporary stopgap measure until the Customs and Border Protection (CBP) could develop its own system, the NBAA APIS Submission Service processed over a quarter of a million submissions in its three years of service, all at no cost to the public. Operators may find the history of APIS, some tips for using CBP's new eAPIS system, and current reporting requirements on the NBAA web site at:
http://www.nbaa.org/apis

With Respect to Federal Excise Taxes, Are Flights to Puerto Rico Domestic?
Federal excise tax (FET), or air transportation tax, on commercial transportation of persons includes three elements: a percentage tax, a head tax on domestic segments and a head tax on international transportation. Simply stated, an operator will collect a percentage tax and a head tax for domestic operations (with a few exceptions) or just a head tax for international transportation. From an IRS FET perspective, flights to Puerto Rico and even the U.S. Virgin Islands are considered international air transportation. In this case, the operator would collect just the international head tax. More information about FET and taxes on air transportation may be found in the NBAA Federal Excise Tax Handbook, available to Members online at:
http://www.nbaa.org/fet

Cutter Aviation

Regional News
Bolen to Speak at Ohio Group Meeting in Dayton, Oct. 19
NBAA President and CEO Ed Bolen is scheduled to speak at the Ohio Regional Business Aviation Association (ORBAA) gathering on Wednesday, October 19, at Stevens Aviation on Dayton International Airport (DAY). The day's events will include a networking luncheon, membership meeting and several morning and afternoon sessions on local government, maintenance best practices, ATC and Indianapolis Center, tax and icing/de-icing issues. Durwood Heinrich, Bob Lamond and Mike Nichols of NBAA's Operations Division also are slated to participate in the sessions. To RSVP, visit http://www.orbaa.org or contact Lisa Gorman at (937) 454-3408. For more information, contact ORBAA's Phil Roberts at [email protected] or NBAA's Durwood Heinrich at [email protected].

New Procedures for Arrivals/Departures at CVG/SDF/LEX
A new runway opening at Cincinnati/Northern Kentucky International Airport (CVG) is cause for several changes in arrival/departure procedures for not only CVG and its satellite airports but also Louisville-Standiford (SDF) and Lexington-Bluegrass (LEX). Several SIDs and STARs will be changed or become "Not Applicable" for CVG and its satellite stations. Additionally, ATC has reestablished routings from several cities from the north to CVG. Along with these changes, SDF and LEX also have new arrival/departure routes established. ATC will begin implementing these changes on October 27 in anticipation of the new runway opening at CVG on December 22. For more information, contact NBAA's Sue Ashley at [email protected] or view the full briefing at:
http://www.nbaa.org/ops/airspace/cvg200510.php

Extended Customs at FXE to Be Made Permanent
U.S. Customs and Border Protection (CBP) has announced it will make permanent the extended hours of 9:00 a.m. to 9:00 p.m. at Fort Lauderdale Executive Airport (FXE). This decision, which went into effect on October 1, will assist both FXE and Fort Lauderdale/Hollywood International Airport (FLL) in meeting demand and reducing ground delays. NBAA commends CBP, local and federal officials for facilitating this change. For more information, contact NBAA's Harry Houckes at [email protected].

Runway Construction in Atlanta at Fulton County Airport
The Fulton County Airport-Brown Field (FTY) Runway 8-26 rehabilitation project is underway and will continue for the remainder of the month of October, limiting weekend and nighttime operations at the airport. Operators should contact their FBO of choice or airport operations for the latest information on runway closures. For more information, contact NBAA's Harry Houckes at [email protected].

Westchester Aviation Association Seminar at HPN, Oct. 14
The Westchester Aviation Association (WAA) will hold a breakfast seminar on October 14 from 7:00 a.m. to 9:30 a.m. at the Skytop Restaurant located at Westchester County Airport (HPN). Attendees will have an opportunity to meet HPN's new airport manager, Peter Scherrer. Other guest speakers will be Tom Cahill, HPN Tower manager, and Steve Bergner of NBAA's FMS Subcommittee. Both WAA members and non-members are invited. For more information, contact Jeff Lee at [email protected] or NBAA's Dean Saucier at [email protected].

Southern Colorado Business Aviation Group Update
At the recent Southern Colorado Business Aviation Group meeting held in Colorado Springs on October 6, attendees learned about ongoing airport changes and had an opportunity to preview a new NBAA DVD focusing on the importance of community dialogue in addressing challenges and opportunities at regional airports. This group draws members from as far south as Pueblo and as far west as Grand Junction. To contact or join the Southern Colorado Business Aviation Group and learn about upcoming meetings, contact Aaron Wood at [email protected]. For more information about business aviation groups in the Southwest U.S. Region, contact NBAA's Paul H. Smith at [email protected].

Honeywell

NBAA News
NBAA Gala to Benefit Victims of Hurricane Katrina
In conjunction with its 58th Annual Meeting & Convention (NBAA2005) in Orlando, NBAA will host a Benefit Gala the evening of Thursday, November 10, that will feature a silent auction benefiting Hurricane Katrina relief efforts. NBAA invites Convention Attendees to attend and participate in this unique charitable event. The Association already has collected many donated items for the silent auction and continues to solicit contributions, including items such as flight jackets, logo sports apparel, sporting items, jewelry, and aviation-related art and books. Companies or individuals donating items of value will be recognized in the Gala program and throughout the three days of the Convention. To make an auction donation, please contact NBAA's Deb Hanson at [email protected] or Sandy Wirtz at [email protected].

Benefit Gala Also to Honor Award Winners, Feature World-Class Entertainment
In addition to the silent auction, the NBAA Benefit Gala will honor Edward W. Stimpson, 2005 Meritorious Service to Aviation Award winner, and Ronald J. Guerra, 2005 Doswell Award winner, as well as the recipients of the 2005 Flying Safety Awards. Also during the evening will be entertainment by both the Doobie Brothers and the Pointer Sisters. For more information about the Benefit Gala, including location, ticket prices and more, visit:
http://www.nbaa.org/cs/amc/2005/gala.php

NBAA2005 Provides Many Opportunities for Learning
NBAA invites Members to take advantage of the many professional development opportunities being offered this November in conjunction with NBAA2005. Seminars will include the 14th Annual Tax, Regulatory and Risk Management Conference, Emergency Response Planning Workshop, Management Fundamentals for Flight Departments Workshop, Human Factors Workshop, Inspection Authorization Renewal Course and Flight Operations Manual Workshop. In addition, three different Professional Development Program (PDP) Courses will be offered on the topics of corporate aviation ethics, communication and decision making, and applied economics and marketing. The Pre-Convention Seminars will be held November 7 and 8, and the Post-Convention ones from November 12 and 13. A separate payment, which includes registration for the Convention, is required for Seminars. For more information, visit:
http://www.nbaa.org/events

14th Annual Tax, Regulatory and Risk Management Conference
Significant regulatory activities have impacted the business aviation industry just in the past year alone. Changes prescribed by IRS, FAA and DOT are impacting many flight departments, charter operators and air charter brokers. The NBAA Tax, Regulatory & Risk Management Conference is designed to provide flight department personnel and their accountants, attorneys and advisors a basis for understanding how various tax laws and aviation regulations apply to business aircraft operations. This event will be held November 7 and 8 in conjunction with NBAA2005. For more information or to register, visit:
http://www.nbaa.org/cs/taxconf/

Book NBAA2005 Housing Now
Any NBAA2005 Attendees who originally booked their New Orleans housing through Travel Planners already should have received an e-mail confirming their Orlando hotel reservations. The housing reservation system is now open to anyone wishing to make a new reservation in Orlando. To learn more or make a reservation, visit:
http://www.nbaa.org/cs/amc/2005/housing.php

NBAA Headquarters Closed for Columbus Day Holiday
NBAA's Washington, DC Headquarters will be closed today, Monday, October 10, in observance of the Columbus Day holiday.

NBAA2005 in Orlando

Upcoming NBAA Events
IS-BAO Implementation Workshop
October 19, 2005, Cleveland, OH

NBAA 14th Annual Tax, Regulatory and Risk Management Conference
November 7–8, 2005, Orlando, FL

Pre-Convention Seminars
November 2005, Orlando, FL

NBAA 58th Annual Meeting & Convention
November 9–11, 2005, Orlando, FL

Post-Convention Seminars
November 2005, Orlando, FL

Business Aviation Regional Forum
January 19, 2006, Boca Raton, FL

17th Annual Schedulers & Dispatchers Conference
January 25–27, 2006, San Antonio, TX

Leadership Conference
February 22–23, 2006, Dallas, TX

33rd Annual International Operators Conference
March 20–23, 2006, Tampa, FL

Business Aviation Regional Forum
April 13, 2006, Dallas, TX

Maintenance Management Conference
April 17–19, 2006, Dallas, TX

EBACE2006
May 3–5, 2006, Geneva, Switzerland

51st Annual Corporate Aviation Safety Seminar
May 9–11, 2006, Phoenix, AZ

Business Aviation Regional Forum
June 8, 2006, Washington, DC

11th Annual Flight Attendants Conference
June 2006, Denver, CO

Review the Full NBAA Events Calendar
http://www.nbaa.org/events

Review Future NBAA Convention Dates
http://www.nbaa.org/conventions/futuresites.htm

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