The effort to repeal the highway diesel fuel tax on business aviation took a notable step forward with this week’s introduction of the so-called Plane Act (S.2198). Jointly introduced on Monday by Sen. James Inhofe (R-Oklahoma) and Angus King (I-Maine), the bill would roll back the “fuel fraud” tax measure enacted in 2005 as an attempt to discourage truck drivers from purchasing aviation jet fuel to avoid paying the 2.5-cent per gallon higher tax levy on highway diesel fuel.
That law requires noncommercial jet fuel to be treated as highway diesel fuel, taxed at the same rate and deposited into the highway trust fund until aviation vendors demonstrate that the fuel was used for aviation purposes. In 2016, the Government Accountability Office estimated the aviation trust fund had lost between $1 billion and $2 billion “or more” in revenue and fuel vendors have overpaid by as much as $230 million in tax revenue as a result of the fuel fraud law.
The National Air Transportation Association (NATA) praised the measure in the Plane act to lift the tax. “[It] would undo an ill-founded policy that has taken money away from the aviation system for over a decade,” said NATA president Gary Dempsey. “This legislation will enable NATA’s members to keep fuel prices competitive, and ensure the tax revenue from jet fuel sales supports aviation system users.”
U.S. Bizav Fleet Reaches 77 Percent ADS-B Equipage
With the FAA’s mandatory ADS-B equipage deadline less than half a year away now, industry data provider and flight tracker FlightAware is reporting that the U.S.-registered, turbine-powered business aircraft fleet has achieved a 77 percent equipage rate. The numbers in its just-released June report show 13,352 of the jets and turboprops, out of the 17,319 registered, are now compliant with the 2020 ADS-B mandate, representing a 22 percent increase over the total a year ago.
Among the highest percentages of equipage are light jets such as the Cirrus Vision and the HondaJet, both at 97 percent of their fleet totals; Gulfstream’s G150 and G650 at 93 percent; Cessna’s CJ4 at 92 percent and Latitude at 91 percent; and the Beechcraft King Air 300 at 90 percent.
The only models with less than 50 percent equipage rates currently are the Gulfstream III at 43 percent and the Learjet 55 at 49 percent.
“Thousands of aircraft are on track right now not to make it, that’s the key thing,” business aviation analyst Rolland Vincent told AIN, adding that he doesn't see the deadline moving. “I think there are going to be a lot of people scratching their heads on January 1."
Offshore helicopter services company CHC announced yesterday that long-time CEO Karl Fessenden is resigning effective August 2 to accept a position outside the oil and gas industry. He will be replaced on an interim basis by Dave Balevic, CHC senior v-p for engineering and operations.
CHC’s board has initiated a search for Fessenden’s successor. “This was a difficult decision that I reached after much reflection. It has been a privilege working shoulder-to-shoulder with the best team in the business. I am proud of all we have accomplished together. I want to thank the team and the board of managers for their support,” said Fessenden. “CHC is in a strong position both financially and competitively in the marketplace, and the course to a bright future is set by continuing to execute our strategy.”
Fessenden oversaw the bankruptcy reorganization and recapitalization of CHC in May 2016 following the April 29, 2016 crash of a company Airbus Helicopters H225 that killed 13 after the main rotor separated from the aircraft in flight. The accident led to a worldwide grounding of the fleet, a redesign of key elements of the helicopter's main gearbox, and large multi-million dollar payouts from Airbus to operators.
Subsequent to CHC’s reorganization, other offshore operators also filed bankruptcy including PHI and Bristow Group. During CHC’s reorganization it slashed its helicopter fleet from 220 to 137.
FAA Moving To Smooth Aircraft Certification
The FAA is working to tear down the “titanium silos” within its operating organizations in an effort to make the aircraft certification process more user friendly. That was the message from Earl Lawrence, the head of the FAA’s aircraft certification organization, on Sunday at a CAFE Foundation urban air mobility (UAM)/electric aircraft symposium at the University of Wisconsin-Oshkosh. Lawrence said the agency is currently using its UAS office to coordinate urban mobility activities, but the agency could create a new office of innovation to “focus on those activities.”
According to Lawrence, the glut of proposed UAM/eVTOL designs—now numbering some 175—does not present a challenge to the FAA per se, but rather the inter-agency gauntlet that proposed new aircraft designs, with new ideas for aircraft operation and control, must navigate on the road to certification. “We know how to certify aircraft,” he said. “That is not where the struggle is. A lot of people who come to us are looking to change the way the operation is conducted. They don’t want pilots to have certain certificates; they want to move around airspace differently."
As for the “titanium silos” at the agency, he said the FAA is “working very hard to make sure we are talking to each other. We are forming agreements with companies that are coming in, including executives, across all of those silos."
Copeca Jet Center, one of two FBOs at Puerto Rico’s Rafael Hernandez International Airport, is the latest to join the Paragon Network. Located on the northwest corner of the island, the airport is the southernmost U.S. port of entry with Customs & Border Protection service available 24/7. At 11,300 feet, its runway is also the longest in the Caribbean.
Copeca has 36,000 sq ft of open ramp space and specializes in quick-turn tech stops. Its terminal offers a conference room, pilot lounge, showers, concierge, on-site car rental, and a courtesy van. The FBO has a 16,000-sq-ft hangar that can accommodate up to a Gulfstream V, with available on-site maintenance.
To join the network, which was founded in 2011 and now numbers 57 locations worldwide, FBOs undergo a facility audit conducted by Paragon. Each member FBO must also comply with a set of core standards to remain in the group. Clients using the network are eligible for Paragon Preferred status, which includes access to custom fuel pricing, dispatching of fuel requests to network locations, and reservations through the group’s website.
“We are thrilled to have Copeca Jet Center in our network,” said Paragon Aviation Group president Megan Barnes, adding the facility is a welcome addition to its growing list of FBOs worldwide. “Their commitment to delivering customer service makes them a perfect fit for the group.”
KlasJet Adds Two Boeing 737s for VIP Charter
Vilnius, Lithuania-based KlasJet now has a fleet of seven aircraft after adding two more VIP Boeing 737s. It already had three VIP Boeing 737-500s, a Bombardier Challenger 850, and a VIP Bombardier CRJ200.
The operator, a subsidiary of the Avia Solutions Group, said this “strengthens its position” in the business aviation market, adding that its fleet is “designed to meet demands of various business customers—from small VIP delegations to whole sports teams with tailored services.”
KlasJet noted that one of the new aircraft, registration LY-FLT, is “a uniquely designed Boeing VIP 737-500 with a versatile business-class cabin, transformable between 68 and 104 business class seats,” while the other (LY-BGS) is “an economy-class Boeing 737-300 with 148 seats [which] is painted to look the same as KlasJet’s LY-KLJ.” CEO Justinas Bulka confirmed that, after the summer season, the latter aircraft’s interior will be modified and turned into a 68-seat business-class cabin.
“We introduced aircraft with refined economy class cabins as we see increased demand in charter flight, ACMI, AOG, and other segments. In autumn, these will be upgraded to 56- and 68-seat business-class cabins,” added Bulka. Further, he said being part of the Avia Solutions Group helped in its ability to acquire aircraft, with the added advantage of having maintenance companies in the group—FL Technics and Jet Maintenance Solutions—as well as leasing subsidiary AviaAM Leasing.
More Safety Training For Primary Helo Students Urged
A marked upshift in the U.S. fatal helicopter rate in recent months has prompted at least one member of the U.S. Helicopter Safety Team (USHST) to advocate for incorporating the safety tools generated by the organization into initial and recurrent helicopter pilot training. Embry-Riddle associate professor Scott Burgess, a former U.S. Army helicopter pilot and current rotorcraft CFI, told a forum audience Thursday at EAA Airventure that “We in the industry have to do our part to educate those who come behind us. We have to implement these things [safety tools] in training early on. It is important for flight schools in particular.”
Burgess said this will require a cultural shift when it comes to primary helicopter flight training. “We find ourselves so restricted timewise in the training room that we just cover what is required by the FAA,” he said, but clearly more is required. “Ab initio training is where we create that mindset for the new pilot that safety is important and [the pilot] needs to pay attention to this. Showing...statistics is a hell of a lot better than showing...a pool of blood.”
Safety tools that are easily integrated into a training program get students “chewing on that steak” and make it more likely that they will “carry that lesson forward,” Burgess said.
Dominvs, a London-based company with interests in hotels, real estate, and private equity, has launched Dominvs Aviation, a business aircraft management, charter, and trading business. The company was founded by Chris Mace, who is CEO and previously founded Norwich-based charter operator SaxonAir, along with Dominvs Group chairman Sukhpal Ahluwalia. Mace is also a council board member of the Air Charter Association.
“While the company’s core focus is aircraft acquisitioning and sales, it also provides a ‘turnkey’ asset-management service providing clients with comprehensive aviation solutions; including operations, finance, ownership structure, importation, and crewing,” said Mace.
Dominvs Aviation will “trade aircraft, building up its own stock, taking opportunities from around the globe to recognize aircraft that represent value and potential for their clients,” said the company, which was officially formed last month. Mace said its services would include project management including any required maintenance, refurbishment, and upgrades “before being placed back into the marketplace for resale.”
The company has already taken on the management of a Bombardier Challenger 605 for SaxonAir Charter and said it is “working with clients to bring more aircraft into the operation as part of [our] asset management services.”
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