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NBAA Update #06-20
Monday, May 15, 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
Congress Strikes Onerous Language for BizAv from Tax Bill; NBAA Thanks Members for Mobilizing With 'Contact Congress'
Last week, Congress completed consideration of the Tax Relief Extension Reconciliation Act of 2005, striking two onerous provisions for business aviation in the process. One proposal would have expanded limitations on entertainment use of business aircraft to all employees, rather than just senior executives. A second provision would have substantially increased taxes for any personal use of a company plane. NBAA strongly opposed both measures in Washington, and NBAA Members used the Association's "Contact Congress" resource to voice opposition to the proposals with their members of Congress. "I commend NBAA's Members for their grassroots mobilization to stop onerous legislative proposals targeted to our industry," said NBAA President and CEO Ed Bolen. "This type of activism will continue to be essential in making NBAA and the business aviation community an effective political force." To learn more about how you can contact your federal representatives about issues of concern to business aviation, contact NBAA's Dan Hubbard at, or visit:

NBAA Board Chairman Emerick Issues Letter to Membership
In a letter sent to NBAA Members last week, Chairman of the Board Ken Emerick outlines the measures the Association is taking to understand and respond to Member concerns. "Guided by NBAA's Strategic Action Plan, which calls for the Association to serve all Members with excellence, regardless of size, NBAA is working hard to ensure that the concerns of the Membership - whether they are related to Membership services, NBAA's trade shows, or other matters - are understood and acted upon by the Association's Board of Directors and professional staff." Review the full letter online at:

FAA Solicits Industry Comment on Part 135 Flight Time and Rest Rules
Recently, FAA has received several requests for interpretation of sections 135.263(d) and 135.267(b), (d), and (e). The FAA intends to clarify two issues on which it has previously stated an opinion, namely: (1) Whether late arriving passengers or cargo may be considered an unforeseen circumstance or circumstance beyond the certificate holder's or crewmember's control under section 135.263(d); and (2) whether the rest period under section 135.267(d) must be received in a timely manner. FAA will consider whether to recede from statements or suggestions in prior interpretations that late arriving passengers or cargo are an unforeseen circumstance, because such statements or suggestions may not represent good safety policy. FAA also will reconsider interpretations related to the 14-hour rest period, because some statements or suggestions may not represent a valid interpretation of section 135.267(d). For more information, read the Federal Register Notice at:

Aviation Insurance Spotlight: Diminution of Value Claims
When an aircraft owner has a hull loss, repair costs are fairly straightforward. There may be differences of opinion with the insurer, for instance, on whether a certain item should be repaired, rebuilt or replaced; but the disputed amounts are still subject to fixed references such as parts and labor. Far more complex issues concern the loss in future market value for the aircraft - known as "diminution of value." While it may be difficult to quantify what impact an accident will have on the market value of an aircraft, owners know, either intuitively or from past experience, that sale price will be influenced by whether an aircraft has been in an accident. Learn more about diminution of value claims by reading "An Objective Look at Diminution of Value Claims," a new aviation insurance article available to NBAA Members at:

FAA Releases Special Emphasis Item Notice for RNAV SIDs
The implementation of RNAV SIDs at Dallas-Fort Worth International Airport and Hartsfield-Jackson Atlanta International Airport has been a general success; however, a small number of improper pilot actions in conducting published RNAV SIDs at these locations have resulted in incorrect flight paths and, in some instances, less than standard aircraft separation resulted. As a result, the FAA released Notice 8000.321, titled Special Emphasis Items for Area Navigation (RNAV) Standard Instrument Departure (SID) Operations The Notice suggests that emphasis is needed in standard operating procedures and training for RNAV SIDs, and provides guidance for operators and inspectors on those issues. For more information, contact NBAA's Mark Larsen at Review the notice at:

Registration Open for FAA Operational Control Briefing Sessions in Fort Lauderdale and Atlanta
As part of a series of information and feedback sessions on operational control and wet leases, the FAA will host free meetings in Fort Lauderdale, FL on Tuesday, May 23, and Atlanta, GA on Thursday, May 25. Recent accidents and investigations have focused significant FAA attention on the exercise of operational control by Part 135 certificate holders and aircraft owners. These one-day meetings will provide an in-depth analysis and discussion on recent issues, pending changes to operations specifications and enforcement action. NBAA and NATA have partnered to produce these events for the industry; NBAA is handling meeting planning logistics and NATA is processing registrations. NBAA encourages all Part 135 certificate holders, aircraft owners engaged in managed charter relationships and FAA principal operations inspectors to attend. Register on-line via NATA's website at For more information visit:

What is a Landing Rights Airport?
United States Customs and Border Protection (CBP) defines a landing rights airport as "any airport, other than an international airport or user fee airport, at which flights from a foreign area are given permission by CBP to land." Prior permission must be given by CBP for an operator to clear through a landing rights airport, and CBP may deny processing at a landing rights airport. Aircraft arriving at international airports do not need to request permission to land; however, an advance notice of the estimated time of arrival, in local time, must be transmitted to CBP for each flight. More information about entry and clearance requirements, including a list of the different types of airports available, may be found in the CBP Guide for Private Flyers at:

Cutter Aviation

Regional News
FAA Presentation Regarding LAS Traffic Management Now Available
FAA Las Vegas Tower/TRACON has released a PowerPoint presentation that provides an overview of traffic management challenges in the Las Vegas area. To review the presentation, and latest letters to airmen from the Las Vegas Tower/TRACON, visit:

NBAA's Steve Brown to Speak at PNBAA Meeting This Week
The Pacific Northwest Business Aviation Association (PNBAA) will host a luncheon on Wednesday, May 17 at Boeing Field's Museum of Flight. NBAA Senior Vice President Operations Steve Brown and Washington State's King County's Executive Ron Sims will highlight the importance of community involvement in aviation issues. Lunch will be provided courtesy of Boeing Business Jets. The event will begin at 11:30 a.m. Please RSVP to Gene Clow at or (425) 985-0155. For more information, contact NBAA's Dan Burkhart at

NBAA to Host DC-Area Regional Forum on Jun. 8
Hundreds of Attendees are expected for NBAA's Business Aviation Regional Forum on June 8 at Dulles International Airport near Washington, DC. Attendees will have an opportunity to visit indoor exhibits, examine state-of-the-art business aircraft or attend compelling informational sessions on the topics of procedural intentional non-compliance (PINC) and how it affects your company safety culture; the contracting process when purchasing an aircraft; and legal issues related to aircraft ownership. For more information or to register, visit:

Introducing GLOBTRAN

NBAA Annual Meeting & Convention Rises in the Ranks of Largest U.S. Trade Shows
The NBAA 2005 Annual Meeting & Convention has risen to 37th place in the ranking of largest U.S. trade shows based on square footage occupied by exhibits, according to Tradeshow Week 200. The 2004 Annual Meeting & Convention was in 39th place. The Tradeshow Week 200 ranking does not include the approximately 500,000 square feet of space used by the NBAA Static Display of Aircraft that is held in conjunction with the Convention. If the Static Display's outdoor space were included in determining the ranking, the NBAA Convention would rank in the top 10 largest shows in the United States. The 2006 Annual Meeting & Convention will be held in October 17-19, 2006, in Orlando, Florida. For more information, visit:

Business Aviation Taxes Forum to Be Held Jun. 2 in San Francisco
NBAA and its Tax Committee will host a Business Aviation Taxes Forum on June 2 at the Crowne Plaza Union Square in San Francisco, CA, to address tax and related issues affecting business aircraft ownership and operations. In particular, this seminar will provide an overview of the Federal Aviation Regulations that bear on tax planning; the tax implications of lease and loan transactions; tax depreciation and avoiding recapture/capital gains through a like-kind exchange; current federal aviation excise tax challenges; passive activity losses; state aviation taxes; and non-business use of employer-provided aircraft. Issues will be discussed at an intermediate-to-advanced level. For the full agenda and registration information, visit:

IS-BAO Workshop Will be in Dulles, VA on June 9
Learn more about the International Standard for Business Aircraft Operations (IS-BAO) by attending this full-day workshop. The IS-BAO Workshops are designed to assist operators who are in the process of implementing, or considering implementing, the IS-BAO. Following a presentation of background information on the IS-BAO, there will be a detailed discussion of the IS-BAO standards and how an operator can go about implementing them in their own operations. For more information, contact IBAC Standards Manager Ray Rohr at, or visit:

Flight Operations Manual Workshop Comes to Denver, Jun. 19-20
All flight departments should have an up-to-date flight operations manual setting forth policies and procedures designed to ensure safe and effective flight operations. NBAA requires its Corporate Members to have a manual, and many insurance companies also insist on one. The NBAA Flight Operations Manual Workshop to be held June 19 and 20 in Denver, CO, uses the International Standard for Business Aircraft Operations (IS-BAO) as the basis for providing participants with all materials needed to develop or update an excellent flight operations manual, custom-tailored to their operations. This Workshop also meets NBAA Professional Development Program (PDP) Objective AM1. To learn more or register, visit:

NBAA 11th Annual Flight Attendants Conference to Promote Crew Excellence
The 2006 Flight Attendants Conference will be held June 23 and 24 in Denver, CO, keynote speaker and former United Airlines pilot Denny Fitch will recount the details of the United Airlines crash at Sioux City, IA, highlighting the importance of crew resource management in such situations. The Conference also will feature sessions on safety, career development, FBOs and international handlers, effective communication, the future of cabin crews and catering. In addition, NBAA President and CEO Ed Bolen will speak during the opening session; NBAA Flight Attendants Committee Chair Mike Hesslink of FlightSafety International will report on Committee activities; and both winners and sponsors of the 2006 Flight Attendants/Flight Technicians Scholarship will be recognized. For full details, visit:

Contact Congress

Upcoming NBAA Events
Business Aviation Taxes Forum
June 2, 2006, San Francisco, CA

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

IS-BAO Implementation Workshop
June 9, Washington, DC

Flight Operations Manual Workshop
June 19–20, 2006, Denver, CO

Management Fundamentals for Flight Departments Workshop
June 21–22, 2006, Denver, CO

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

4th Annual Latin American Business Aviation Conference & Exhibition (LABACE2006)
August 10–12, 2006, São Paulo, Brazil

Review the Full NBAA Events Calendar

Review Future NBAA Convention Dates


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