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NBAA Update #05-32
Monday, August 08, 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 Send your comments about NBAA Update to Send address changes to

Business Aviation News & Issues
NBAA Releases Aircraft Charter Consumer Guide
Today NBAA unveiled a new product to educate air charter users about the safety, operational and consumer issues related to flights conducted under Part 135 of the Federal Aviation Regulations. The guide, titled the Aircraft Charter Consumer Guide, is another in a series of NBAA products for Members and non-Members alike to enhance the safety and efficiency of their flight operations. "As more companies and individuals turn to on-demand air travel to meet their transportation needs, NBAA's clear and comprehensive consumer guide will help air-charter customers become educated consumers," said NBAA President and CEO Ed Bolen. To accompany the new guide, NBAA also has developed an Internet-based resource site for charter consumers at For more information, visit:

ABACE2005 Opens This Week in Shanghai
The Asian Business Aviation Conference & Exhibition (ABACE) will debut this week at Shanghai New International Exhibition Center in China, with a Static Display at nearby Hongqiao Airport. On August 9, the Opening General Session will be moderated by NBAA President and CEO Ed Bolen, who will be joined by guest speaker Jason Liao, president of the Asian Business Aviation Association. The three-day event will showcase more than 50 Exhibiting Companies from around the world and display 11 aircraft in current production from several major business aircraft designers. Informational sessions will address the safety culture of business aviation, business aviation security, airspace/air traffic infrastructure, airport handling and support, and more. Visit the official ABACE web site at:

FAA Publishes Proposed Rule on DC Airspace
Last Thursday, August 4, the FAA published a notice of proposed rulemaking (NPRM) that seeks to codify the existing airspace restrictions surrounding the Washington Capital area. Currently, the FAA uses notices to airmen (NOTAMs) to restrict flying in and around Washington, DC. "We're still reviewing the FAA's proposal to make permanent what had been temporary aircraft access restrictions to the Washington region," said NBAA President and CEO Ed Bolen. "Nevertheless, we are concerned about any proposal to permanently restrict aircraft access to airports and airspace, and we will be looking at the proposal with an eye toward its impact on security, economic activity and basic freedom of mobility." NBAA believes this formal rulemaking process will reveal the significant economic impact that these restrictions have had on aviation in the Washington area. NBAA encourages Members to submit comments on this proposed rule by the November 2 deadline. For more information, contact NBAA's Doug Carr at Download the NPRM at:

NBAA Releases Fact Sheet on DCA Access Rule
NBAA has developed a fact sheet on the recently published interim final rule on access to Reagan National Airport (DCA). The fact sheet outlines the requirements necessary for aircraft operators seeking to operate into or out of DCA. NBAA will update this fact sheet as the Transportation Security Administration (TSA) releases additional guidance. On August 18, the TSA will permit aircraft operators to begin the process outlined in the fact sheet. For more information, contact NBAA's Doug Carr at Download the fact sheet at:

Highway Bill Includes Some Positive Federal Excise Tax Changes
The highway spending bill (H.R. 3) passed by the House and Senate at the end of July contained four provisions regarding Federal Excise Taxes (FET) of benefit to very specific operators: (1) certain seaplane transportation has been exempted from passenger and cargo air transportation excise taxes; (2) exemption from taxes on air transportation has been extended to sightseeing flights conducted by small aircraft; (3) timber operations exemption from air passenger tax applies to air transportation by fixed-wing aircraft (as well as by helicopter); and (4) airports not connected by paved roads to other airports can be rural airports for purposes of the exception to the $3.20-per-domestic-flight-segment excise tax for flights to or from a rural airport. For more information, contact NBAA at

Second-in-Command Pilot Type Rating Final Rule Issued
On Thursday, August 4, the FAA released a final rule on a new second-in-command (SIC) pilot type rating. The new rule, effective on September 6, will bring the U.S. Federal Aviation Regulations into compliance with international standards on pilot certificates. The SIC final rule requires pilots who plan to fly outside of U.S. airspace and land in foreign countries to obtain the SIC pilot type rating. The final rule provides two means for obtaining the SIC rating: SIC familiarization training and an SIC training program, both detailed within the rule. NBAA commented on this proposal in November 2004, resulting in the FAA clarifying certain aspects of this rule, specifically limiting the rule to only international operations. For more information, contact NBAA's Operations Service Group at or download the final rule at:

Revised Aircraft Equipment Suffix Table for FAA Flight Plans
Effective September 1, new aircraft equipment suffixes will be used on FAA flight plans to indicate Advanced RNAV and RVSM capabilities. Use of new suffixes prior to this time may result in flight plan rejection. For a full explanation of the changes, see FAA Notice GEN05003 online at:

SIFL Rates for the Second Half of Calendar Year 2005 Released
The U.S. Department of Transportation recently released Standard Industry Fare Level (SIFL) rates for the six-month period from July 1, 2005, to December 31, 2005. These data are necessary when applying the IRS's aircraft valuation formula to compute the value of non-business transportation aboard employer-provided aircraft and impute the income of the employee as required by the Internal Revenue Service Rules Section 1.61-21(g). The new SIFL rates and NBAA's Personal Use Calculator, which assists flight departments with valuation of personal trips, are accessible via the NBAA Tax, Finance & Insurance web site at For more information, contact the NBAA Operations Service Group at or visit:

Aviation Insurance Update: Non-Owned Aircraft Liability Insurance
If your company or its employees ever charter aircraft when your airplane is unavailable, your company might be exposed to liability in the event of an accident or incident. Insurance coverage, known as non-owned aircraft liability insurance, is available to manage that risk. Non-owned aircraft liability insurance provides coverage in the event a corporation becomes legally liable for injuries and property damage to third parties as a result of a loss involving a corporation's or employee's use of a non-owned aircraft. Liability coverage would be provided to the corporation as long as the aircraft is not partly or wholly owned or registered in the name of the corporation. Ensure your company is appropriately covered by learning more about non-owned aircraft liability insurance online at:

Perspectives on IRS Notice 2005-45, Entertainment Use of Business Aircraft
In light of the mostly unfavorable guidance the IRS provided to the business aviation industry in Notice 2005-45, Entertainment Use of Business Aircraft, many operators are wondering how the notice impacts them. NBAA is pleased to provide several articles that discuss the notice and strategies for companies that are impacted by the entertainment use deduction limitations. View the articles online at:

FAA Notice Addresses New Part 135 Weight and Balance Requirement
On August 2, the FAA released Notice 8400.84, which addresses weight and balance operations specifications for Part 121 and 135 certificated operators. The notice states that certificated operators must comply with the newest revision of the weight and balance Advisory Circular (AC 120-27E) and develop an approved weight and balance program. Operators not in compliance with the AC will be required to use actual passenger and bag weights in their weight and balance calculations. Certificate holders have until this Thursday, August 11 to comply with the notice. For more information, Part 135 certificate holders may contact their principal operations inspector (POI) or NBAA via Download the notice and AC online via the NBAA FAR Part 135 web page at:

FAA Corrects Part 135 Maintenance Program Guidance
The FAA corrected guidance on inspection programs authorized per section 91.409(f) of the Federal Aviation Regulations (FARs). Effective July 27, Flight Standards Handbook Bulletin for Airworthiness (HBAW) 05-05 addresses a conflict between FAR sections 91.409, 135.411 and 135.419 and the FAA Inspector Handbook 8300.10, Vol. 2, Chapter 83, with regard to maintenance programs for Part 135 aircraft with nine seats or less. The Inspector Handbook contains language that requires a Part 135 air carrier using large turbine-powered aircraft subject to section 135.411(a)(1) to use an Approved Aircraft Inspection Program (AAIP). The FARs permit Part 135 certificate holders to select a maintenance program under section 135.411(b) or an inspection program from the listed options in section 91.409(f), or an AAIP under section 135.419. The HBAW was distributed to FAA principal maintenance inspectors on August 3 and is accessible at:

Visit for Airborne Internet Survey
To understand how emerging communications technologies could be used to enhance safety, improve operational efficiencies, lower overall system costs and increase passenger productivity while traveling, researchers at the FAA Technical Center are conducting a survey, which is available on the NBAA web site. Members of the business aviation community are invited to read a brief description of "Airborne Internet" – datalink technology and information handling that could significantly benefit all National Airspace System users – and to take a 15-minute survey. Access the online survey at:

Regional News
VICA Board Votes to Support NBAA User Fee Position
The Los Angeles area's Valley Industry Commerce Association ( Board of Directors has voted to support NBAA's position on fuel taxes. NBAA recently addressed VICA's Aviation Committee requesting VICA support and the committee voted unanimously in favor. At their summer congressional briefing, VICA will encourage Congressmen Howard Berman, Brad Sherman and others to support this position. VICA, one of the most influential non-profit, non-partisan business advocacy organizations in the Southern California area, has been a strong proponent of business aviation at Van Nuys, Burbank and Los Angeles International as being an integral part of the nation's economy. Direct questions to NBAA's Dan Burkhart at

Fort Lauderdale International to Utilize All Runways
The FAA is attempting to mitigate delays at Fort Lauderdale International Airport (FLL) by utilizing all three runways in compliance with informal runway use plan in affect for the airport. When operationally necessary, Runway 13/31 will be utilized for departures in sequence with arrivals to Runway 9L/27R. Operators should be prepared to depart on Runway 13/31 when calling for taxi instructions. In addition, FLL is requesting all aircraft with wingspans less than 78 feet and approach speeds of less than 121 knots to request Runway 9R/27L upon initial contact with Miami Approach Control. Aircraft will be approved for the south parallel runway only when significant enough operations to the north parallel warrant use of the south parallel in compliance with the informal runway use plan. For more information, contact NBAA's Bob Lamond at or Harry Houckes at

Operators Encouraged to Participate in DFW RNAV Departures Testing
Dallas/Fort Worth Air Traffic Control will be testing new RNAV departure procedures and is requesting that operators departing DFW on Tuesday, August 9 between 1100 UTC and 1630 UTC file to fly the new RNAV SIDs if the aircraft is appropriately equipped. A second test is being planned for the afternoon of August 17. The safety and success of these procedures require that pilots fly them precisely. After monitoring ground control during your taxi, you will be handed off to another controller, who will verify with you that the correct runway and initial departure fix are correctly entered into the FMS, and then handed off to tower control. For more information, contact NBAA's Mark Larsen at

Business Aviation Regional Forum Comes to Denver on Sept. 15
NBAA's next Business Aviation Regional Forum will be held Thursday, September 15 at the TAC Air facility on Centennial Airport (APA) in Denver, CO. This day-long event will feature briefings on topics of interest to the Denver-area business aviation community, such as safety, current events in business aviation, management tools, aircraft ownership issues and maintenance management. It also will showcase approximately 40 aircraft on Static Display, 60 indoor Exhibitors and hundreds of Attendees. For more information or to register, visit:

FPM Foundation Golf Classic to Take Place in Michigan, Aug. 19
Aerodynamics Inc. (ADI) will host the 8th Annual FPM Foundation Golf Classic on Friday, August 19 at Bay Pointe Golf Club in West Bloomfield, MI. The FPM Foundation has funded more than $180,000 toward aviation scholarships and flight safety training to benefit students with exemplary performance at Michigan universities. Aircraft owners, aviation suppliers and all other industry professionals are invited to participate. To make golf or dinner reservations, contact ADI's Joan Cyman at; for more information, contact NBAA's Durwood Heinrich at

Chicago-Area's CABAA Charity Golf Classic to Be Held Aug. 25
The Chicago Area Business Aviation Association (CABAA) will host its 2005 Charity Golf Classic at Prairie Landing Golf Club, West Chicago, IL, on August 25. CABAA also will fund two $2,500 scholarships for aviation students at Lewis University in Romeoville, IL. Now in its seventh year, the charity event is conducted by CABAA to bring together Chicago's business aviation community to support a philanthropic organization that delivers an essential service to those in need in the greater Chicago community. This year's recipient, Shepherd's House, is a residential facility established to provide a safe place for expectant mothers who do not have a place to live and are experiencing a crisis pregnancy. For more information or to register, visit or contact NBAA's Durwood Heinrich at

Ohio Groups to Co-Host Annual Scholarship Golf Outing on Sept. 16
The Professional Pilots Association (PPA) and the Central Ohio Professional Aviation Maintenance Association (COPAMA) will jointly host their Third Annual Golf Outing at The Landings at Rickenbacker Golf Course in Groveport, OH, on September 16. Proceeds from the event will benefit the COPAMA scholarship fund and the PPA. To date, the event has raised more than $8,000, and over the past 12 months, COPAMA has awarded $5,000 in scholarships to students choosing careers in aviation maintenance. To register, visit or For more information, contact Jeff Gruber at or NBAA's Durwood Heinrich at

South Florida Business Aviation Golf Classic Is Sept. 23
The South Florida Business Aviation Association (SFBAA) will hold its annual golf classic on September 23 at the Royal Palm Yacht & Country Club. Both members and non-members of SFBAA are invited to attend. A portion of the proceeds from the event will be donated to a local charity and a local aviation scholarship fund. For registration and tournament details, contact Debbie Anderson at or visit For further information, contact NBAA's Harry Houckes at


Latest NBAA Management Guide Revision Now Available Online
The NBAA Management Guide is designed to assist existing corporate aviation departments with their operational, maintenance and administrative requirements and to provide useful guidance for establishing and operating a flight department. Revision IV of this publication was mailed to Members in July and also is available in the Members-only section of the NBAA web site. Members may direct publication requests to or view the Management Guide online at:

Second Edition of CAM Study Guide Now Available
The Certified Aviation Manager Study Guide, 2nd Edition, is now available. Designed to help prepare individuals to take the Certified Aviation Manager (CAM) Examination, this guide includes a testing domain outline, reference lists and a 30-question practice exam. The CAM Study Guide is available for a fee by contacting NBAA's Sarah Dicke at

November CAM Exam Applications Due by Sept. 28
The Certified Aviation Manager (CAM) Program identifies qualified professionals to lead corporate flight departments and companies using business aircraft. Whether you are an existing or an aspiring aviation manager, you can prove your knowledge and management skills through the successful completion of a certification exam. The next CAM Exam will be administered on Monday, November 14 in conjunction with the NBAA 58th Annual Meeting & Convention in New Orleans, LA. Applications for the November 14 CAM Exam should be submitted to NBAA no later than Wednesday, September 28. For more information, e-mail or visit:

Contact Congress

Upcoming NBAA Events
August 9–11, Shanghai, China

Business Aviation Regional Forum
September 15, Denver, CO

9th Annual Chairman's Charity Classic Golf Tournament
November 13, New Orleans, LA

14th Annual Tax, Regulatory and Risk Management Conference
November 13–14, New Orleans, LA

Pre-Convention Seminars
November 13–14, New Orleans, LA

Certified Aviation Manager (CAM) Examination
November 14, New Orleans, LA

58th Annual Meeting & Convention
November 15–17, New Orleans, LA

Post-Convention Seminars
November 18–19, New Orleans, LA

Review the Full NBAA Events Calendar

Review Future NBAA Convention Dates


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