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NBAA Update #06-06
Monday, February 06, 2006

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
As Airline Association Chief Calls for User Fees, NBAA Again Urges Members to Contact Congress
Following a recent address by Air Transport Association President Jim May, in which May advocated for the implementation of a user fee system to fund the Federal Aviation Administration (FAA), NBAA President and CEO Ed Bolen renewed his call for NBAA Members to write Congress in opposition to user fee proposals for general aviation. Under the user fee model outlined in May's address, every aircraft would pay the same amount, "whether the aircraft is carrying 3 or 30 or 300 passengers." In response to May's comments, Bolen said: "Clearly, Jim May is advocating a funding system for the FAA in which all aircraft pay the same user fee regardless of size, and such a system would be untenable for our industry. I hope NBAA Members who have not previously alerted their federal officials of our opposition to user fees will do so as soon as possible." Members can voice their opposition to user fees by visiting NBAA's Contact Congress resource at:

Tax Relief Act of 2005 Slated for Further Consideration; Members Urged to Oppose Harmful Legislative Proposals for Industry
Last week, the Senate cleared the way for further consideration of S. 2020, the Tax Relief Act of 2005, which contains two very harmful proposals for business aviation. One provision expands limitations on entertainment use of business aircraft to all employees, rather than just senior executives. A second provision substantially increases taxes for some uses of a company plane. With possible House and Senate meetings as early as next week, NBAA urges Members who have not yet voiced opposition to the proposals to do so by visiting:

Briefing Available for New ATC Initiative: Airspace Flow Program
As first reported in January, NBAA, in conjunction with FAA and industry representatives, has been involved for many months in a Collaborative Decision Making Workgroup to develop a new traffic flow management tool, called the Airspace Flow Program (AFP), to better address delays associated with the upcoming severe weather season. NBAA presented an advanced session on this topic on January 26 at the 17th Annual Schedulers & Dispatchers Conference, and a PowerPoint briefing from that event is now available. Future issues of NBAA Update will provide details about a soon-to- be-released FAA training video and Advisory Circular on this topic. For more information, contact NBAA's Jo Damato at, or view the introductory AFP video released last month and the AFP PowerPoint presentation online at:

NBAA Announces New Web-Based Distance-Learning Course
Through its Conventions, Seminars and Regional Forums, NBAA offers business aviation professionals a myriad of courses relevant to business aircraft ownership and operation. NBAA, partnering with StreamCenter, now is using technology to bring courses to the industry via a distance-learning program. The first course offering is the Tax, Regulatory and Risk Management Conference that was offered face-to-face in conjunction with the NBAA Annual Meeting & Convention last November. View the video of the presenters and their PowerPoint slides side-by-side in the comfort of your home or office. This course is offered for an introductory price of $500 for NBAA Members and $625 for non-Members. The course materials, as an electronic download, are included in the price. Paper copies of the course materials are an additional $125. To learn more, visit:

NBAA Commitment to High-Value Events Reflected in Attendance
NBAA's Conventions, Seminars and Regional Forums are designed to bring together people involved in all aspects of business aviation to view the latest products, share information about industry trends and explore professional-development opportunities. NBAA's commitment to providing high-value events for its Members has been reflected in the strong attendance and support for NBAA's Annual Meeting & Convention in Orlando, FL, last November, the Association's Business Aviation Regional Forum in Boca Raton, FL, in mid January, and NBAA's 17th Annual Schedulers & Dispatchers Conference in San Antonio, TX, in late January. The February issue of NBAA Exhibitor Update outlines the latest news on forthcoming NBAA events, as well as other developments of interest to Exhibitors at NBAA events. View the issue at:

SIFL Rates Announced for First Half of Calendar Year 2006
The U.S. Department of Transportation recently released Standard Industry Fare Level (SIFL) rates for the six-month period from January 1, 2006, to June 30, 2006. 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:

Has the SIFL Method Been Changed as a Result of the Jobs Act?
When an employee uses an employer-provided aircraft for personal use, the company still may use either the SIFL method or the fair market value method to determine the value of the flight. The American Jobs Creation Act of 2004 did not change the SIFL method of computing the value of a flight for taxable fringe benefit purposes. What did change, however, was the amount of expenses a company may deduct for entertainment use of the aircraft. NBAA has multiple resources available to Members explaining the Jobs Act provisions and IRS Notice 2005-45, which sets the IRS's expectations for how companies will comply with this provision of the Jobs Act. For more information, visit:

European Aviation Insurance Requirements: Update on War Risk
Air carriers and aircraft operators are responsible for ensuring that the necessary insurance coverage exists for each and every flight, regardless of whether the aircraft operated is owned by them, leased to them or is the subject of another form of joint or franchise operation, code-sharing or similar agreement. The European Union set forth specific insurance requirements that affect aircraft operated to, from, within or over the European Union and member state territories. Furthermore, there are pending developments in the insurance community related to the exclusion of weapons of mass destruction (WMD), such as chemical or biological attacks. To learn more about these European insurance issues, read the new article posted on the NBAA web site at:

Cutter Aviation

Regional News
Ohio Luncheon to Address NBAA's FERMS, Security and Jobs Act Ramifications
At its next meeting on February 17, the Ohio Regional Business Aviation Association (ORBAA) will provide briefings on NBAA's Forum for Enhanced Reliability and Maintainability Standards (FERMS), aviation security and the impact of the American Jobs Creation Act on business aviation. FERMS is NBAA's new web-based maintenance performance tool, available online at The luncheon speaker will be Delta AirElite Business Jets' Chairman Dave Siebenburgen, who will discuss the changing roles in the aviation industry. The luncheon meeting, sponsored by Delta AirElite, will be held at 10:00 a.m. at CVG's Comair General Offices. For more information, visit ORBAA web site at, or contact ORBAA's Phil Roberts at or NBAA's Dan Burkhart at

Regional Business Aviation Groups Listed Online
Local business aviation organizations facilitate both regional and nationwide communication among business aviation professionals. These independent organizations promote the safety, efficiency and acceptance of business aviation in their home communities as well as provide useful guidance for NBAA Standing Committees. NBAA encourages Members to "get local" by contacting their NBAA Regional Representative or by joining or starting a local group. For more information, visit the NBAA Regional Business Aviation Groups web page at:


Nominations for NBAA's Two Highest Awards Due This Month
NBAA is accepting nominations for its two most prestigious awards, the 2006 Meritorious Service to Aviation Award and the 2006 John P. "Jack" Doswell Award. NBAA Members are strongly encouraged to submit nominations for both awards to NBAA by Friday, February 24. Award winners will be officially recognized at the NBAA 59th Annual Meeting & Convention in October 2006. For more information about both awards, including nomination guidelines, visit:

Presentations From Boca Regional Forum Available Online
Attendees at the January 19 NBAA Business Aviation Regional Forum in Boca Raton, FL, learned about current safety, regulatory and legal issues facing business aircraft owners and operators. Presenter materials, distributed to those at the event, are now available on the NBAA web site for all to review. Session presentations include: Legal and Regulatory Issue Spotting for Aircraft Owners and Operators; Safety Spotlight: Hypoxia Awareness Training Using the ROBD (Reduced Oxygen Breathing Device); New Requirements for Aircraft/Engine Registration: The Cape Town Convention. To view the materials, visit the NBAA web site at:

Leadership Conference Opens in Dallas in Two Weeks
When should we lead and when should we manage? What are the differences, and what are some of the best techniques for each? These are some of the questions to be addressed by NBAA's Leadership Conference, to be held February 22 and 23 in Dallas, TX. This interactive event offers practical guidance that can help current and aspiring managers lead and manage more effectively. The event's keynote speaker will be Alan Klapmeier, head of Cirrus Design Corporation, the world's second largest manufacturer of single-engine, piston aircraft, who will reveal how the company became a success while challenging conventional assumptions. Other Conference offerings include two full days of informational sessions, networking opportunities and a new Leadership Mini Fair. Online registration and agenda details are available online at:

Professional Development Program Course to Be Held in Dallas, Feb. 21
NBAA will host a Professional Development Program (PDP) Course titled "Strategic Leadership" on February 21 in Dallas, TX, in conjunction with the NBAA Leadership Conference. Designed to improve one's leadership skills and performance, this PDP Course incorporates case studies, interactive team activities, role-playing, group and individual work, and experiential exercises. Emphasis is placed on the participant's ability to exercise leadership by being a role model, building effective teams and making sound decisions in order to achieve flight department goals and promote corporate objectives. This one-day course meets PDP Learning Objective L3. For more information or to register for both the PDP Course and the Leadership Conference, visit:

Workshops Address Operations Manuals and Management Fundamentals
In the coming month, NBAA will host two Professional Development Program-approved Workshops in Dallas, TX. The NBAA Flight Operations Manual Workshop on February 27 and 28 uses the International Standard for Business Aircraft Operations (IS-BAO) as the basis for providing participants with all materials needed to develop or update a flight operations manual custom-tailored to their operations. And for current and aspiring managers, the NBAA Management Fundamentals for Flight Departments Workshop on March 1 and 2 will offer new ways of achieving excellence. Practical, proven techniques are presented and discussed to make flight departments more effective and efficient. To learn more or register for either event, visit:

NBAA2006 Housing/Airfare Reservation System Now Open
NBAA will return to Orlando, FL, this October 17 through 19 for the Association's 59th Annual Meeting & Convention (NBAA2006). Housing for this event is now open, with hotel rates and airfare discounts negotiated by Travel Planners. Those planning to attend or exhibit can book their hotel and airfare reservations online in real time, 24/7. For more information, visit the Housing & Travel section of the official NBAA2006 web site at:

Advertising Opportunities in NBAA Membership Directory
NBAA is accepting insertion orders for the 2006 NBAA Directory of Member Companies, Aircraft & Personnel. The 2006 edition will be available online and in print and will be delivered to NBAA's more than 7,000 Members. The insertion order deadline is Wednesday, March 8, and the artwork deadline is Monday, March 20. For more information, contact NBAA's Benjamin Schwalen at, or download the Directory rate card online at:


Upcoming NBAA Events
Professional Development Program Course: Strategic Leadership
February 21, 2006, Dallas, TX

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

Regulatory "Hot Topics" Forum
February 24, 2006, Dallas, TX

Flight Operations Manual Workshop
February 27–28, 2006, Dallas, TX

Management Fundamentals for Flight Departments Workshop
March 1–2, 2006, Dallas, TX

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

IS-BAO Implementation Workshop
March 30, 2006, St. Louis, MO

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

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

Maintenance Manual Workshop
April 20, 2006, Dallas, TX

Professional Development Program Course: Applied Economics and Marketing
April 20, 2006, Dallas, TX

6th Annual European Business Aviation Convention & Exhibition (EBACE2006)
May 3–5, 2006, Geneva, Switzerland

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

Federal Tax Forum
June 2, 2006, San Francisco, CA

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

IS-BAO Implementation Workshop
June 9, Washington, DC

11th Annual Flight Attendants Conference
June 23–24, 2006, Denver, CO

Review the Full NBAA Events Calendar

Review Future NBAA Convention Dates

Upcoming NBAA Seminars


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