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NBAA Update #04-43
Monday, October 25, 2004

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 Send your comments about NBAA Update to Send address changes to

Business Aviation News & Issues
Two Aviation Accidents Mar Weekend
On October 24, a Beech King Air 200 operated by Hendrick Motorsports crashed in southern Virginia while enroute to a NASCAR race that afternoon, killing all 10 aboard. Reports indicate that the aircraft was making its second approach when it crashed about seven miles west of the Martinsville airport in the Bull Mountain region of southern Virginia. Conditions at the time were reported as cloudy with mist and poor visibility due to fog conditions. Early on the morning of October 24, a Learjet 35 operated by Med Flight Air Ambulance crashed shortly after takeoff in southern California, killing all five people on board. The jet crashed into mountainous terrain shortly after taking off from Brown Field in San Diego. The aircraft was not carrying any patients, but its two pilots and three medical staff died in the crash enroute back to its base in Albuquerque, NM. NBAA will be monitoring both accident investigations as they progress. For more information, contact NBAA at

President Signs JOBS Act of 2004 Tax Bill
On October 22, President Bush signed into law H.R. 4520, the American Jobs Creation Act of 2004, which contains, among other provisions, the bonus depreciation extension for aircraft to be used in Part 91 operations, as well as limits expenses a company may deduct when there is personal use of an employer-provided aircraft. The limitation on deductions when there is personal use applies for expenses incurred after the date of enactment. Effective as of the date it was signed, the legislation for practical purposes reverses the Sutherland Lumber decision, a case used extensively as a basis for tax treatment of personal flights on business aircraft. For more information, review related articles by Edward H. Kammerer and Richard Belas, members of NBAA's Tax Committee, at:

Tax Depreciation: Year-End "Green" Aircraft Deliveries
Many potential purchasers of business aircraft are anxious to acquire their aircraft before the end of the calendar year. They are motivated by a desire to begin depreciation of the aircraft in the 2004 tax year and to accelerate bonus depreciation benefits into 2004. In an effort to satisfy the IRS's placed-in-service requirement, some potential buyers of business aircraft seek to schedule a "green delivery" of an aircraft in 2004. Green delivery involves taking delivery of an aircraft in some degree of completion short of a finished aircraft. Does a green delivery aircraft satisfy the IRS requirement that it be "placed in service" in the year in which it is delivered? Under ordinary circumstances, probably not. For more information, review a related article at:

TSA Responds to NBAA Concerns on Alien Flight Training Rulemaking
On October 19, the Transportation Security Administration (TSA) issued a clarification on its September 20 interim final rule dealing with new security requirements for the training of aliens by flight schools/instructors. The rule contained a number of issues that were of concern to NBAA and the general aviation community. NBAA submitted comments to the TSA outlining Member concerns with a number of the requirements contained in the original rule. The TSA clarification limits the application of the rule to aliens seeking initial flight training. All "recurrent" training requirements in the original rule have been removed. Onerous flight candidate record keeping requirements on flight schools also have been revised. To review the TSA's clarification to the interim final rule, NBAA comments to the interim final rule and other related information, visit:

TSA Issues New Security Requirements for Part 125 Operators
The TSA has published new security screening requirements for aircraft operators certificated pursuant to 14 CFR Part 125. The new requirements impose an operational security program for Part 125 operators not currently covered by a TSA regulatory security program. These new requirements become effective on November 18. Download the TSA regulatory notice as it appeared in the October 19 Federal Register, in PDF format:

Expected TFRs for Upcoming VIP Travel
As the President and Vice President continue to campaign throughout the country, operators should anticipate more temporary flight restrictions (TFRs) for VIP travel over the next several weeks. Operators should anticipate TFRs on October 26 for the following areas: West Palm Beach, FL; Dubuque, IA; and Onalaska, Richland Center and Cuba City, WI. On October 27, expect TFRs in Lancaster County, PA; Detroit, MI; and Youngstown and Findlay, OH. Since TFRs are announced shortly before they go into effect, Members must continue to use all resources to prevent flying into restricted airspace. Operators are urged to review NOTAMs carefully prior to every flight. For more information, visit:

Retiring EBAA President Fernand Francois Receives Silk Scarf Award
NBAA has awarded Fernand Francois its Silk Scarf Award, traditionally given to individuals as recognition for their special contributions to the business aviation community during their careers. Francois has been the chief executive of the European Business Aviation Association (EBAA) and has guided that organization during its past 12 years of growth. In cooperation with NBAA, he was instrumental in 2001 in establishing the European Business Aviation Convention & Exhibition (EBACE), the premier business aviation event in Europe. Though he will retire at the end of October 2004, Francois will continue to publish BART International, a business aviation trade journal. His successor at EBAA will be Brian Humphries. For more information, contact NBAA's Bill Stine at

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Regional News
FAA Issues SFAR for Proposed Reservation System for ORD
On October 20, Special Federal Aviation Regulation (SFAR) No. 105, "Proposed Reservation System for Unscheduled Arrivals at Chicago's O'Hare International Airport," was published in the Federal Register. The proposed reservation system would restrict the number of unscheduled aircraft arrivals at O'Hare (ORD) during the hours of 7:00 a.m. through 8:59 p.m., Central, beginning November 1 and continuing through April 30, 2005. NBAA urges Members to submit comments in accordance with the instructions in the SFAR as soon as possible, but no later than November 1. For more information, visit:

NBAA Offers Testimony on Peak Period Pricing Proposal at Boston Logan
On October 14, NBAA testified before the Massachusetts Port Authority at a hearing on Massport's proposed peak period pricing regulation for Boston Logan International Airport. The proposed regulation would permit Massport to use computer modeling to predict future periods (known as "peak periods") in which overscheduling will result in operational delays at Logan exceeding certain defined thresholds, and to impose a surcharge on takeoffs and landings at Logan during such "peak periods," subject to certain exemptions. Initially, the surcharge would be $150 for each "peak period" operation. For more information, visit:

Avoid Travel Delays in Atlanta This Week
There are four weeks left in the NASCAR season. This week's race will be held in Atlanta, GA. Most related aircraft operations will be conducted on Thursday, October 28 and Sunday, November 1. One of the more congested airports is expected to be Tara Field (4A7) in Clayton County, GA. For more information contact NBAA's Dean Saucier at

New Local Group Forming in Maine
In response to NBAA Member interest in the formation of a local business aviation group in Maine, a meeting will be held in Portland, ME, on November 4 at 11:00 a.m. If formalized, this local group will address local, regional and state issues affecting aviation in Maine. For more information, including venue details, contact NBAA's Dean Saucier at

New Local Group for Northeast Florida, Southeast Georgia
Operators are forming a First Coast Business Pilots Association (FCBPA) in the Jacksonville, FL, area. Membership is open to business aviation pilots from northeast Florida and southeast Georgia. To join, contact Randy Donaldson of the FCBPA at, or for more information, contact NBAA's Harry Houckes at

Dallas Business Aviation Regional Forum Details Now Online
The next NBAA Business Aviation Regional Forum will be held November 18 at Business Jet Center on Dallas Love Field (DAL) in Dallas, TX. NBAA's Regional Forums are day-long learning and networking experiences designed to meet the needs of regional business aviation operators, those wishing to learn more about this form of transportation, and vendors across the United States. NBAA is accepting Attendee registrations and Exhibitor applications for this event. For more information, including an Exhibitor Prospectus, current Exhibitor list, registration instructions and preliminary agenda, visit:

Four Cities to Host NBAA Business Aviation Regional Forums in 2005
In 2005, NBAA will host Business Aviation Regional Forums in the following cities: Morristown, NJ, in April 2005; San Jose, CA, in July 2005; Denver, CO, in September 2005; and Atlanta, GA, in October 2005. A call for speakers and Exhibitor Prospectus for the 2005 series will be released soon. For more information, visit:

First Winner of Avfuel Michigan Business Aviation Scholarship Announced
The first recipient of the Avfuel Michigan Business Aviation Scholarship is William Merriweather, who will receive $500 toward his studies at Western Michigan University in Kalamazoo, MI. In cooperation with corporate sponsor Avfuel Corporation, NBAA offers the Avfuel Michigan Business Aviation Scholarship to benefit a student pursuing an aviation degree at an eligible Michigan college or university. For more information, visit:

Deadline for Barden Aviation Scholarship is Nov. 8
Through the Janice K. Barden Aviation Scholarship, NBAA annually awards $5,000 to five undergraduates studying aviation-related curricula at NBAA and University Aviation Association (UAA) member institutions. Each student receives $1,000. The deadline to apply for the 2004 scholarship is November 8. Several other NBAA scholarships also have upcoming deadlines, including two scholarships benefiting business aviation schedulers and dispatchers, the new Corporate Aviation Management Scholarship and the International Operators Scholarship. For more information or to download application forms in PDF format, visit:

NBAA Members Urged to Take Part in Compensation & Benchmarking Survey
The NBAA Compensation & Benchmark Survey was developed to help NBAA Member Representatives and their company salary administrators evaluate their flight departments by providing a comprehensive review of aviation department personnel salaries and operational data. The 2004 edition of this survey is now underway, and all NBAA Member Representatives for companies that operate aircraft are eligible to participate. Participants will receive free online access to survey results once compiled. For more information, contact NBAA's Sarah Dicke at or visit:

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Upcoming NBAA Events
Business Aviation Regional Forum
November 18, Dallas, TX

IS-BAO Implementation Workshop
November 19, Dallas, TX

SPDP Course: Elements of Corporate Aircraft Scheduling
February 12, 2005, Reno, NV

SPDP Course: Effective Written Communications
February 12, 2005, Reno, NV

SPDP Course: Developing a High-Performance Team
February 13, 2005, Reno, NV

SPDP Course: Weather Planning
February 13, 2005, Reno, NV

16th Annual Schedulers & Dispatchers Conference
February 14–16, 2005, Reno, NV

32nd Annual International Operators Conference
March 14–17, 2005, Colorado Springs, CO

March 31–April 2, Sao Paulo, Brazil

Review the Full NBAA Events Calendar

Review Future NBAA Convention Dates

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Business Aviation Regional Forum

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