As the usual suspects gather, converging on the Orlando’s Orange County Convention Center by the tens of thousands for the
National Business Aircraft Association, which starts Monday, questions remain about the impact of the recession on the sector, the lingering impact of the political skewering the industry took earlier this year and, despite a plethora of mouth watering products, whether there will be financing available to turn that desire into a reality.
Last year, attendees felt a stunned, deer-in-the-headlights undercurrent as they carried on wondering what the impact of the economic implosion will be on their business. Little did they realize that the fiscal debacle would not be the worst to come. That crisis has since been replaced by a steady drumbeat against business and general aviation that has had surprising staying power despite industry efforts to educate the public, policy makers and the press as to the value of the sector. It took the industry a long time to respond to the withering criticism and this is the first convention since then. So, for the present, next week’s event will largely be about proving the case for business aviation.
Sadly, it remains an uphill battle, despite independent analysis by
NEXA Advisors that business aviation makes money for corporations, their employees and their stockholders, published earlier this month.
Commentary: New NEXA Study Confirms Competitive Advantage of Biz Aircraft
Even as NEXA Advisors was releasing its study, which got little play in the mainstream press, industry criticism continued with USA Today’s examination of Pew Trust’s report on what it termed wasting money on small airports, which
General Aviation’s Charlie Spence duly reporting as showing the group knows nothing about the importance of general aviation. Aviation veteran Spence wrote:
One example of the organization’s lack of understanding of the value of airports is this statement: “Subsidyscope analysis also reveals that a number of small airports that accommodate as few as one paying passenger each year received significant amounts of federal funding from AIP.” Statements such as these show Subsidyscope officials are under the impression that airports are only for passenger service and never used for air ambulance, fire fighting, business travel, air taxi, and a myriad of other missions.
The obvious lack of understanding of airport financing revealed in the study confirms what people who conduct studies and surveys know: “Tell me what you want to show and I’ll get the research to prove it.”
Ironically, on the day the study was released, general aviation received a boost from Georgia Governor Sonny Perdue, who issued a strong proclamation recognizing the important role that aviation plays in Georgia’s economy and for towns and communities across the state.
What is most disturbing about the level of reporting and consternation over the industry tells only one side and that side isn’t even accurate. It makes no acknowledgement of the contribution to the economy or how important it is for the jobs on Main Street. The study – from
Subsidyscope, an initiative of the
Pew Economic Policy Group of the Pew Foundation – begs the question of how other industries fared in their shelf-ready projects in the stimulus package. Did they go to major metropolitan projects or were they focused on where the rubber really meats the road in the rest of the country. If the other funding went to major metro areas, then shame on the government for allowing that to happen.
"Improving a runway safety area at one airport or extending a runway at another may score less than a 62 on the
FAA's priority scale,” said
American Association of Airport Executives President Chip Barclay, in defense of the projects. “But that doesn't mean that these and other projects are somehow unqualified or ineligible for stimulus funds. These projects have been determined to be necessary for improving the nation's air transportation system, and they are putting people back to work as quickly as possible, which is what Congress had in mind when it passed the stimulus package."
Green Shoots from Washington
Two events this week promise hope as delegates gather in Orlando. Aviation interests in the
House are circulating a letter calling on President Obama to reject user fees in the 2011 budget saying it would distract from passing reauthorization and actually getting to NextGen. The team, which called such a debate a useless time waster, includes House Aviation Subcommittee Chair Jerry Costello and Ranking Minority Member Thomas Petri. The letter is being signed by House members and reminds Obama that user fees would not “be received well in the House” just as they haven’t in several previous attempts. Indeed, the industry’s arguments over user fees – with airlines wanting business aviation to pay more, have stalled reauthorization for several years.
And news came last night that U.S. Congressman Todd Tiahrt is introducing a bill to boost general aviation sales. The
General Aviation Jobs Act extends the bonus depreciation allowance that has been so good for the industry for another two years extending it beyond its expiration at the end of this year. In addition it changes the recovery period for non-commercial aircraft property from five to three years.
Despite news of a
GA Coalition in Congress and governmental proclamations on the importance of general and business aviation to states, which also get little play in mainstream coverage, the issue continues to have traction as uninformed press take their easy shots as yesterday’s editorial in the South Carolina’s
The State column
Bolton: Airline passengers funding wasteful airports.
Having checked my 280
Google Reader subscriptions this morning, I noticed that, with the singular exception of
Joe Sharkey’s High Anxiety column, few general assignment media have picked up the story of a study published by NBAA and the
General Aviation Manufacturers Association on the eve of the show. The new survey “showing conclusively that some of the recent portrayals of business aviation are inconsistent with the true nature of the industry.”
The survey, conducted for GAMA and NBAA by
Harris Interactive, depicts an industry in which the typical company is a small or mid-sized business flying a single aircraft that is used by a broad mix of employees to make business trips utilizing community airports, often with little or no airline service. That confirms the
testimony Raytheon Chair Clayton Jones before the House Aviation Subcommittee in February at the height of the controversy – which by the way, got no play in the mainstream press.
“These findings stand in stark contrast to recent mischaracterizations of business aviation operators,” said GAMA President and CEO Pete Bunce. “The reality is companies of all sizes rely on many different types of aircraft to be more competitive, productive, efficient and successful.”
NBAA President and CEO Ed Bolen agreed, adding: “Although the manufacture and use of business aircraft contributes significantly to the national economy, the industry is often not well understood. This important study will help people see the real face of business aviation and underscore its importance to citizens, companies and communities across the U.S.”
The survey, based on actual interviews conducted with pilots and passengers involved in business aircraft flights, finds:
1. Small companies operate the majority of business aircraft. Most companies (59%) operating business aircraft have fewer than 500 employees, and seven in ten have less than 1,000 employees.
2. Companies using business aviation typically operate only a single aircraft. The majority (75%) of companies operate only one turbine-powered aircraft.
3. Managers and other mid-level employees are the typical passengers on business aircraft. Only 22% of passengers on business aircraft are top management (i.e., a company’s Chairman, Board Member, CEO or CFO); the majority is other managers (50%) and or technical, sales or service staff (20%).
4. Employees use their time onboard company aircraft more effectively and productively than when they are on airline flights. Some passengers even estimate that they are more productive on the company aircraft than they are in the office because of fewer distractions.
5. A large majority of flights (80%) are made into secondary airports or airports with infrequent or no scheduled airline service.
The survey was conducted online and by mail within the United States by Harris Interactive on behalf of GAMA and NBAA between June 1-October 6, 2009 among 350 Pilots, flight department managers, and directors of aviation of business aircraft and 289 passengers of business aircraft.
Interestingly, this morning, I was reminded that surface transportation is covered more by mainstream press. Could it be the old adage “if it bleeds it leads” coming into play? Wired had a story saying entitled
Washington Fiddles as Infrastructure Burns. It mentioned collapsing bridges, which, of course, has killed hundreds over the last few decades. Is it comforting the note that, despite such coverage, the infrastructure issues surround surface transport are also ignored?
Proving the Case
Regardless, this year’s show will likely provide answers to some burning questions which will be be put under the microscope along with what it all means as part of Aviation Today’s post-show webinar
Business Jets: Separating the Reality from the Hype.
Of particular interest is the number of companies offering products providing metrics on aircraft operations and how they relate to the bottom line. Of course, the entire show will be about proving the worth of business aviation after the political fallout this year.
NBAA itself, noted the last few years drew record attendance, is not so sure this year but does expect strong attendance despite the industry woes. At least this will be one venue where we can talk business aviation without having some policy wonk condemn users for profligacy.
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