Business Management

BM1 Objective 1

Communicate strategic value of business aviation.

1. Identify unique capabilities of business aviation to achieve company goals (e.g., time savings, safety/security, access capability)
2. Identify the characteristics and needs of the internal and external stakeholders
3. Apply various communication techniques and tools to convey message of value to a broad audience (e.g., community, peers, team members, executives)
4. Methods to promote discussion regarding key issues (e.g., appropriate operational structure, security, compliance, safety, tax requirements)

BM2 Objective 2

Implement the appropriate aircraft ownership, tax considerations and operational structure.

1. Recognize applicable Civil Aviation Authority (CAA) requirements and issues (e.g., cost sharing, operational control, foreign registered aircraft)
2. Recognize applicable international and federal tax implications (e.g., international value added taxes, federal fringe benefit rules, expense disallowance rules, characterization of employee for tax calculations)
3. Recognize applicable state and local tax implications (e.g., registration fees, property taxes, sales and use taxes)
4. Recognize risk management considerations (e.g., applicable liability, property and worker’s compensation insurance coverages, acceptable risk tolerances and mitigation, principles of valuation, business continuity)
5. Identify components necessary to develop and implement corporate policies and strategies (e.g. time share agreements, SIFL)
6. Describe the applicable aviation authority, tax and risk management considerations to company subject matter experts

BM3 Objective 3

Create, implement and manage budgeting and financial processes.

1. Recognize and apply generally accepted accounting principles (e.g., valuation and depreciation, use of general ledger)
2. Identify aviation department budget components including immediate and forecasted (e.g., life cycle, maintenance, training, depreciation, fixed and variable costs)
3. Create budget based on accounting principles, budget components and forecasted aircraft use
4. Implement strategies to align the aviation department budget into the overall company budget and financial systems
5. Utilize periodic financial and accounting reports to monitor budget progress (e.g., budget vs. actual, run rate, profit & loss, balance sheet) and implement strategies for controlling revenues and expenses
6. Identify permitted cost allocation and recovery plans (e.g., charge backs, warranty)
7. Determine applicable regulatory requirements (e.g., Sarbanes-Oxley, Foreign Corrupt Practices Act [FCPA])
8. Determine and apply internal and external controls and audits using expertise within department and company

BM4 Objective 4

Manage aviation department in line with strategic and tactical goals.

1. Identify necessary elements, resources and strategies for implementing aviation department goals
2. Incorporate a series of tactical plans to achieve strategic goals
3. Apply principles of benchmarking for goal and business plan achievement
4. Compare department results to goals and benchmarking data
5. Identify any required modifications to tactical plans

BM5 Objective 5

Implement procedures using company policies to safeguard information and intellectual property of the company.

1. Recognize necessity for maintaining a high degree of integrity and personal accountability (e.g., code of conduct, ethics, discretion, social media)
2. Identify key elements and intent of confidentiality requirements (e.g., nondisclosure agreements, contractual obligations, personal electronic devices)
3. Apply internal and external policies and procedures regarding safeguarding relevant information (e.g., record retention, document security)
4. Identify legal requirements and protections governing intellectual property and proprietary information

BM6 Objective 6

Employ methods to optimize overall aviation department asset utilization and efficiency.

1. Identify principles of cost-benefit analysis (e.g., net present value, internal rate of return, capital investments)
2. Conduct travel analysis (e.g., company-owned aircraft, airline, charter, fractional ownership programs)
3. Measure, evaluate, and report on use of assets (e.g., aircraft, personnel, facilities, equipment, technology)
4. Identify principles in a comprehensive asset utilization audit (e.g., tax, corporate governance, fleet analysis)
5. Recognize benefits of utilizing applicable transaction and business resources (e.g., brokers, tax and regulatory counsel, maintenance representation at pre-purchase inspection, supply chain)
6. Identify applicable contract terms, conditions, and clauses in support of vendor negotiation strategies

BM7 Objective 7

Manage the aviation department in a sustainable responsible manner.

1. Identify environmental impact and abatement (e.g., emissions, noise, hazardous materials)
2. Recognize importance of managing community relations (e.g., educate, advocate, communicate, volunteerism, charity, careers in business aviation)
3. Identify the value of engagement with local/regional aviation groups and airport authorities

BM8 Objective 8

Identify, develop and describe steps to implement an organizational risk management strategy.

1. Recognize basic risk management principles (e.g., history of risk management; types, assessments and responses to possible risks)
2. Identify and categorize specific risks potentially facing an organization with respect to the aviation function (e.g., civil-liability risks; regulatory compliance risks; tax planning risks)
3. Develop specific responses available to address each identified risk (e.g., avoid, reduce or mitigate, share or insure against, accept, exploit)
4. Determine organization’s existing risk management structure and communicate aviation risks and responses