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4 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:24 AM Page 5
EDITOR/PUBLISHER MIDWEST FLYER Dave Weiman DECEMBER 2006/JANUARY 2007 MAGAZINE PRODUCTION DIRECTOR Peggy Weiman
Serving Midwest Aviation Since 1978 PRODUCTION ASSISTANTS Jenifer Weiman Stacy Weiman
Encourage A Friend To Fly & Help Keep Yourself Airborne! PHOTO JOURNALIST Don Winkler by Dave Weiman CONTRIBUTING EDITORS ur aviation community will be stronger if Randy Arneson Allen Penticoff Dr. John Beasley Judy Peterson there are more pilots, and no one knows this Jim Bildilli Ben Redman better than our national pilot organizations – Bill Blake Greg Reigel O Rose Dorcey Ray Rought AOPA, EAA and NBAA – which are actively lobby- Robb Gessert Pete Schoeninger ing on our behalf. Jim LaMalfa Geoff Sobering George Larson Jeffery Taylor Right now we are in the fight of our lives with the Ed Leineweber Tom Thomas airlines lobbying Congress to pass “user fees” that Dan McDowell would hit general aviation the hardest. While we are hopeful our national organizations will be success- ADVERTISING PHONE: (608) 835-7063 ful in keeping user fees as they are currently in the FAX: (608) 835-7063
ue form of a federal fuel tax, we could be facing a fee E-MAIL: [email protected]
g every time we file a flight plan or use ATC servic- WEBSITE: www.midwestflyer.com es. ISSUE CLOSING DATES There is no doubt we all need to work to inform DEADLINE ISSUE dialo our Washington representatives of the adverse November 1 December - January January 1 February - March effects of a user fee-based air traffic control system on flight safety, the March 1 April - May aviation industry, and the economy. Obviously, they listen more when a May 1 June - July July 1 August - September large number of their constituents are affected, and even with 600,000 September 1 October - November pilots, our special interest group is small in comparison to the general pub-
lic and concerns which affect a majority of the population. COPYRIGHTS To increase our numbers, the Aircraft Owners & Pilots Association has MIDWEST FLYER MAGAZINE is published bimonthly by Flyer Publications, Inc. with offices in Oregon, Wis. and Aero Insurance_Redocreated “Project 5/21/05 Pilot,” a3:52 pilot PM mentoring Page 1 program which is being led by Appleton, Minn. Copyright 2006 by Flyer Publications, Inc. its spokesman, Erik Lindbergh. All rights reserved. Nothing in whole or in part may be reproduced without the written permission of the publisher. Read more in this issue of Midwest Flyer Magazine beginning on page 6, and visit www.aopa.org for details on how you can get involved. K SUBSCRIPTIONS $15 per year, or $25 for two years. AIRCRAFT FBO AIRPORT DISTRIBUTION Readership consists principally of aircraft owners, fixed base operators, and airport management in Wisconsin, Minnesota, North Dakota, South Dakota, Illinois, Iowa, Michigan, Aero Insurance Indiana, Missouri, Kansas, and Nebraska. SERVING MIDWEST AVIATION SINCE 1968 Representing All Major Companies MAIL ALL ORDERS & Lloyd’s of London & CORRESPONDENCE TO: MIDWEST FLYER MAGAZINE “Give Us A Call Before You Renew P.O. BOX 199 Your Current Policy!” OREGON,WI 53575-0199 USA (262) 251-9460 EXPRESS SHIPMENTS TO: MIDWEST FLYER MAGAZINE or FAX (262) 251-7769 [email protected] Tom & Renee Watry 6031 LAWRY COURT Aero Insurance, Inc. • N94 W15652 Ridgeview Drive • Menomonee Falls, WI 53051 OREGON,WI 53575-2617 USA
DECEMBER 2006/JANUARY 2007 MIDWEST FLYER MAGAZINE 5 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 6
AOPA Expo Opens With A Parade… Closes With A Record!
Story & Photos by Dave Weiman alm Springs, California is one of few convention sites where AOPA can have a “Parade of Planes” taxi from the airport to the conven- Ption center. One hundred and eight (108) aircraft taxied down the streets of Palm Springs from Palm Springs International Airport for thou- sands of onlookers the day before Expo got underway, November 8. As far as this pilot is concerned, that was the first day of Expo! AOPA President Phil Boyer officially kicked off AOPA Expo 2006 with the opening session on November 9 featuring the presidents and CEOs of the other major aviation organizations who discussed the topic “User Fees: the Threat to GA!”
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Academy College of Aviation ...... 6 INDEX TO ADVERTISERS Morey Airplane Company ...... 46 Adventure Seaplanes ...... 50 NationAir Insurance Agencies ...... 36 Aero Insurance, Inc...... 5 & 36 National Air Transportation Ass’n ...... 36 Aeronautical Adventures, LLC ...... 24 Diamond Aircraft ...... 11 & 21 NewView Technologies, Inc...... 21 & 36 Aircraft Owners & Pilots Association ...... 17 Duncan Avionics ...... 4 OMNNI Associates ...... 19 Aircraft Propeller Service, Inc...... 26 E-Z Heat, Inc...... 13 & 50 Orr, Minnesota (Hangar Sites) ...... 50 AircraftInsurance.com ...... 50 Eagle Air ...... 34 Pat O’Malley’s “Jet Room” Restaurant . . . .21 airpac.com ...... 12 Eagle Fuel Cells ...... 32 Phillips 66 ...... 50 Air-Portage ...... 50 Eagle River Union Airport ...... 32 Piper Aircraft, Inc...... 4 ARMA Research, Inc...... 50 Edina Realty ...... 50 R.C. Avionics ...... 10 ASI Jet Center ...... 11 Elliott Aviation, Inc...... 3 Racine Commercial Airport ...... 36 Avemco Insurance Company ...... 3 Exclusive Aviation ...... 2 Rapco Fleet Support Services, Inc. . .23 & 36 Avfuel Corporation ...... 51 & 54 Facer Insurance Agency, Inc...... 35 Rare Aircraft ...... 27 B2W/Win Air ...... 45 Field of Dreams ...... 34 RE/MAX Mid-Michigan ...... 50 Basler Turbo Conversions, LLC ...... 36 Fond du Lac Skyport ...... 36 Red Wing Aeroplane ...... 31 Beaver Aviation, Inc...... 15 & 36 Future Aviation ...... 2 Regent Aviation, Inc...... 45 Beechcraft ...... 3 Garmin ...... 2, 11, 30, 46 & 51 Reigel & Associates, Ltd. (Aviation Law) .8 & 45 Bemidji Aviation ...... 50 Gran-Aire, Inc...... 36 & 50 Schweiss Bi-Fold Doors ...... 34 Bolduc Aviation Specialized Serv. .36, 45 & 55 Hartland Fuel Products ...... 56 Short Elliott Hendrickson, Inc...... 9 Brackett Aircraft Co., Inc...... 30 & 36 Iowa County Airport ...... 32 Six Lakes Realty ...... 50 Brenco IA Training ...... 50 Johnson Aviation Insurance ...... 19 & 36 Skycom Avionics, Inc...... 56 Bresson Flying Service, Inc...... 37 Lake Country Aviation, LLC ...... 36 & 50 Socata (EADS) ...... 51 Central Aviation ...... 26 Lakeshore Aviation ...... 47 & 54 Southern Wisconsin Regional Airport . . . . .50 Cessna Aircraft Company . . .2, 7, 36, 50 & 51 Langer Aviation, Inc...... 4 Sylvania Aviation Services, Inc...... 37 Chicago Piper ...... 4 MN Aviation, Inc...... 25 Tanis Aircraft Products, Inc...... 55 Reigel_Attorney 5/20/05 5:22 PM Page 1 Cirrus Aircraft ...... 51 Maxwell Aircraft Service ...... 29 Thunderbird Aviation ...... 7 Columbia Aircraft ...... 51 & 54 Mead & Hunt, Inc...... 4 Trimcraft Aviation ...... 36 D.W. Davies & Co., Inc...... 22 Mid-Continent Aircraft (Cessna C-Star) ...... 50 Voilamediagroup ...... 53 Dawley Aviation Corp...... 36 Mid-Continent Insurance ...... 50 Wentworth Aircraft, Inc...... 56 Dekalb Taylor Municipal Airport ...... 15 Midwest Aircraft Appraisal ...... 50 West Bend Air, Inc...... 36 Des Moines Flying Service, Inc...... 4 Midwest Flyer Magazine .8, 20, 36, 45, 50 & 52 Willmar Air Service, Inc...... 54 Minnesota Aviation Trades Ass’n ...... 44-45 Winona State University ...... 29 SubscriptionWebMinnesota A7/24/06viation Maintenance 9:39 PMConf. Page . . . . 71 Wisconsin Aviation, Inc...... 30, 36 & 51 Minn. DOT Office of Aeronautics . . . .7, 42-43 Wisconsin Aviation Trades Ass’n ...... 34-37 AN ATTORNEY THAT KNOWS AVIATION! Minnesota Petroleum Services ...... 12 Wisconsin DOT Bureau of Aeronautics . .40-41 For aviation legal matters, Mooney Aircraft ...... 54 Wright Aero, Inc...... 45 don’t waste time and money educating an attorney about aviation, when you can hire a pilot /attorney with experience. Sign Up For A FREE Introductory Subscription To MIDWEST FLYER MAGAZINE At www.midwestflyer.com Greg Reigel – Aviation Attorney Reigel & Associates, Ltd. Click On “FREE INTRODUCTORY SUBSCRIPTION” # FAA Regulatory/Certificate Actions # Aviation & Commercial Transactions # Licensed In Minnesota & Wisconsin Neither MIDWEST FLYER MAGAZINE, nor its parent company FLYER PUBLICATIONS, INC., accept responsibility for late delivery of issues or unsolicited articles or photographs. Materials must include SASE # Member, AOPA Legal Services Panel to be returned. Articles by aviation organizations and information therein submitted for publication consideration do not necessarily reflect the opinion of MIDWEST FLYER MAGAZINE, FLYER (952) 238-1060 PUBLICATIONS, INC., nor staff or officers. Articles are presented in the interest of flight safety, education Email: [email protected] and for personal enjoyment, and are purely advisory in nature. Neither MIDWEST FLYER MAGAZINE, FLYER PUBLICATIONS, INC. nor staff or officers, assume any responsibility for articles, nor any liability WWW.AEROLEGALSERVICES.COM arising out of reliance upon them. 8 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 9
Present were Tom Poberezny of the Experimental Aircraft Association VOL. 29, NO. 1 CONTENTS ISSN:0194-5068 (EAA), Ed Bolen of the National Business Aviation Association ON THE COVER: 1953 Piper Pacer PA 22/20 (N3383A), powered by a Lycoming 0-320-B2B (NBAA), and Peter Bunce of the (160 hp) engine with a cruising speed of 140 mph. It took owner Frank P. Sperandeo III of General Aviation Manufacturers Fayetteville, Ark., 4,200 hours and nearly 5 years to completely restore the aircraft he has nick- Association (GAMA). Joining these named “Ms. Pearl.” The aircraft has been willed to the Piper Aviation Museum in Lock Haven, Pa. leaders was Congressman Sam Read about Piper’s newest model, the “PiperJet,” on page 22. Photo by Robb Gessert Graves of Missouri’s 6th Congressional District. In Congress, Graves serves COLUMNS on the Agriculture, Small Business, AOPA Great Lakes Regional Report – “System Funding To Be Major Debate In 2007” and Transportation Committees which - by Bill Blake ...... 16 matches his credentials as a sixth gen- Aviation Law – “State Sales & Use Taxes On Aircraft” – by Greg Reigel...... 18 eration farmer, a small businessman, Dialogue – “Encourage A Friend To Fly & Help Keep Yourself Airborne!” - by Dave Weiman ...... 5 and an active pilot and aircraft owner. Let’s Fly & Dine – “Corner Cupboard,” Boyceville, Wisconsin – by Donna I. Bennett ...... 46 Pilot Safety – “Keep Your Head On A Swivel!” – by John Chmiel ...... 38 (Graves owns a 1947 Piper Cub.) Ed Bolen (NBAA): Starting in 1997, HEADLINES “the big six airlines raised the ticket tax AOPA Expo Opens With A Parade… Closes With A Record...... 6 to try and squeeze out Southwest FAA Can’t Run A Business, Inspector General Audit Indicates ...... 14 Airlines to make their own ticket prices No User Fees: Congressional Leaders Advise President Bush...... 14 Bolen Blasts ATA For Unfounded Comments On VLJs ...... 15 look more attractive. Today, the airlines Former Northwest VP Searches For Missing WWII Flight Crews, are looking more alike.” & You Are Invited To Join Him...... 27 Bolen believes an increase in user Former Aviation Explorers Form New Post – by Jim Bildilli...... 47 fees would benefit the airline indus- try’s air traffic control needs, not FEATURES The Best of Times! – by Dave Weiman ...... 26 GA’s. Bolen said that if new user fees Do The Math, Before You Buy! – by Samuel L. Miller ...... 18 were enacted and use of the airspace Buying By The Seat of Your Pants – by Karen Workman...... 30 system declines, user fees will have to Eagle River Improves Airport & Services To Meet Increasing Northwoods Demand go up to cover ATC services. – by Dave Weiman...... 34 “The next generation ATC system SECTIONS Industry News ...... 15 has already begun, but we don’t know Aircraft ...... 19 Insurance ...... 49 what it will look like in the end,” said Airports ...... 39 Minnesota Aeronautics Bulletin ...... 42-43 Bolen. “What’s the program? How Calendar ...... 33 Minnesota Aviation Industry News ...... 44-45 much will it cost to implement? We Classifieds ...... 50 People & Awards ...... 24 should demand answers from the Conferences ...... 33 Travel ...... 52 Fly-Ins & Air Shows ...... 53 WATA Difference ...... 34-35 FAA and not give them a blank Government Affairs ...... 14 Wisconsin Aeronautics Report ...... 40-41 check! The FAA does not know what DPODFOUSBUJPO ZPVSOFFETPVSTFSWJDFT BQFSGFDUNBUDI
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system it wants. If proposed see a lot of potential, but user fees went into effect, these aircraft will not be at “the FAA will need a new the hubs where a majority bureaucracy just to collect of ATC services exist. (In the money,” said Bolen. fact), we have the FAA on “The cost of administering record stating that VLJs will user fees would be cost- not swamp the system.” prohibitive for General Tom Poberezny Aviation. (If passed) add (EAA): “The current sys- $100.00 to every flight. The tem is not broke. It may current gas tax user fee sys- need tweaking only.” tem works well, and we Rep. Sam Graves: should keep it.” “How are we going to col- (L/R) Phil Boyer (AOPA), Ed Bolen (NBAA), Peter Bunce (GAMA), Tom Pete Bunce (GAMA): Poberezny (EAA), and U.S. Congressman Sam Graves. Poberezny said: lect new user fees unless “The airlines say that the “The current system is not broke. It may need tweaking only.” everyone is required to file same ATC services are used a flight plan? Pilots could for each plane, regardless of be fined if they don’t file a size. However, the economic flight plan (if user fees are impact of 200 people on a enacted). Talk to your con- plane going to Disney World gressman directly and edu- is greater than two people in cate them on the issue of a Cessna 172. The General user fees. (As a con- Fund contribution should stituent), you have a great reflect this economic impact. deal of influence.” (As for Very Light Jets), we Phil Boyer (AOPA): “We are the combined FAA Administrator Marion Blakey: “The user fee issue goes beyond forced of General Aviation yours truly!” organizations on this issue. We will overcome this. Your help will be needed!” On Friday, November 10, Phil Boyer welcomed FAA Administrator Marion Clifton Blakey to the podium to address members and answer their questions. Blakey first presented AOPA Air Safety Foundation Executive Director Bruce Landsberg with FAA’s first Thomas H. Wardleigh Award for advancing the cause of air safety. She then talked on the improved safety record of aviation (its lowest accident rate ever recorded), and finally got to the topic on everyone’s mind, “user fees,” which the White House sup- ports. Contrary to the Bush Administration’s position on user fees, Blakey said: “The Next Generation System does not have to include user fees. But the system has to be cost based. I support a robust General Fund contribution.” Okay, what does she mean by those comments? Blakey said that the Next 10 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 11 Dave Weiman Cessna Aircraft Company Photo AOPA President Phil Boyer introduces his executive staff Pictured here is the actual prototype of Cessna’s new “Next (L/R): Jeff Myers (Communications), Andy Cebula Generation Piston” aircraft. Cessna is keeping the plane (Government Affairs), Karen Gebhart (Non-Dues Revenue), under wrap until they know exactly what the final product will and Bruce Landsburg (Air Safety Foundation). be.
Generation ATC System does not have He then told her that General Aviation to include user fees, but someone has to is already paying user fees through a pay for it, and she would like to see a federal gas tax. The member – a major contribution come from the lawyer, and for a moment, a rock star General Fund, but as you will read, for General Aviation – repeatedly she’s not calling the shots, and she does requested clarification concerning not rule out user fees. Blakey’s position, not buying her polit- In response, one member first com- (L/R) Bob Pond and his wife, Jo, owners of the “Palm Dave Weiman ical, carefully crafted speech. Springs Air Museum,” with AOPA President Phil Boyer plemented the administrator on min- and his wife, Lois, during AOPA’s Friday Night Hangar Blakey’s response: “The user fee gling with members in the exhibit hall. Party. issue goes beyond yours truly,” admit-
DECEMBER 2006/JANUARY 2007 MIDWEST FLYER MAGAZINE 11 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 12
ting that it is not her decision to for the better.” have every make, but rather the White House’s. In the third and final general ses- AOPA mem- She concluded by saying: “Fees can sion on Saturday, November 11, ber find and be adjusted… taxes cannot!” Boyer introduced his executive staff, mentor at least “What is the FAA doing to prevent and showed a video of President Bush one new pilot. closing airports? Grant assurances?” during his campaign pledging his sup- It’s a matter of asked another AOPA member. “Three port of general aviation funding, then identifying airports have already closed in the froze the video and displayed written someone you Dallas area alone.” Blakey offered her statements beneath Bush’s image, not- know who condolences, and pledged that the ing his failure to keep those promises. either has FAA will enforce grant assurance pol- There seems to be relief among gen- expressed Erik Lindbergh icy and their newly created fines to eral aviation organizations that the interest in the fullest in the future. democrats took back Congress in the learning how to fly, or who you think Another member expressed con- November elections held that week. could utilize an aircraft. Then contact cern that Blakey lacked an aviation AOPA’s top executives vowed to AOPA so they can send that person background… that experience as a continue to offer alternatives to pro- additional information. Your job as a pilot and user of the system are posed user fees by the airlines, and to mentor is to follow up and make sure important credentials for the job. In lead member lobbying efforts. In your friend meets with a local flight other words, the member felt that the addition, AOPA will focus on stronger instructor, and takes an introductory administrator of the Federal Aviation airport advocacy through its Airport flight lesson, and to keep tabs on Administration should know some- Support Network, and work to keep his/her progress in becoming a pilot. thing about the industry she is admin- aircraft insurance premiums afford- The grandson of Charles and Anne istrating! He asked Blakey: “How able through an accident forgiveness Morrow Lindbergh, Erik Lindbergh is much PIC time do you have?” program for insurance policies under- determined to make his own mark in Blakey replied stating that when written by AIG Aviation. aviation. In 2002, he retraced his the president asked her to take the Boyer then led a discussion on grandfather’s solo flight from New job, she likewise expressed concern “The Future of AOPA,” announcing a York to Paris in a Columbia 300. This that she was not a pilot and should new membership record of 409,318. epic personal journey documented by not take the job, “but I am committed Sounds good, but what does this the History Channel, raised over $1 to General Aviation,” she said. mean to you? million for three charities, garnered Boyer lent support to Blakey: It means more clout on Capitol Hill half a billion media impressions for “The number one prerequisite of the and more leverage for keeping mem- the XPRIZE Foundation, and prompt- FAA Administrator’s job is not to be a bership dues low, says AOPA. ed a call from President Bush for pilot, but rather (the ability) to listen, When Boyer became AOPA president inspiring the country after the tragedy understand, budget and administrate 15 years ago, he vowed to keep dues at of September 11. are more important.” $39. He’s succeeded in that goal, but it Lindbergh also serves as Vice Blakey continued: “The FAA is your didn’t come without a huge infusion of Chairman of the Lindbergh
advocate concerning TFRs (Temporary creativity byAIRPAC_Ad AOPA staff. 1/27/05 One of those 12:40 PMFoundation, Page 1 a non-profit organization Flight Restrictions) and security, but we initiatives is “Project Pilot.” dedicated to furthering his grandpar- do not make the decisions.” As the newly appointed spokesper- ents’ vision of balancing technologi- Boyer: “With a change in son for AOPA Project Pilot, Erik cal advances with environmental Congress, security issues may change Lindbergh will lend his celebrity to preservation. He serves on the board PlanePlane CDCD™ Over 20 aviation databases including U.S. Aircraft Owners, Pilots, New Students, Airport Managers and Aviation Businesses on one CD. Files are CASS Certified to cut mailing costs by up to 13%. Includes Windows software for searching and printing lists, labels, letters and envelopes 1-800-654-2066 www.airpac.com 1231 E. 9th • Edmond • OK • 73034 [email protected] 12 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 13
of trustees of the XPRIZE before acting. now delivered its 500th aircraft. Foundation, works in public relations “The pilots (Lidle and Stanger) for Columbia Aircraft, and is a found- were more worried about breaking Awards & Recognition ing board member of the “Aviation airspace, than flight safety,” said High School” in Seattle. Lindbergh Klapmeier, who serves on the AOPA AOPA paid has also just agreed to become one of Air Safety Foundation Board of tribute to U.S. four founding X-Racer pilots in the Directors. “We have set students up Congressman Rocket Racing League. for the wrong goals.” Instead of push- Harold “Hal” More than 225 people signed up as ing students to solo in record time, or Rogers (R- mentors and prospective pilot recruits within the minimum number of hours Ky.) at the for the AOPA Project Pilot program at required, we should set more realistic closing ban- Expo. If you would like to find out goals, noted Klapmeier. quet for his more about the AOPA Project Pilot Klapmeier announced that Cirrus dedication to program or sign up as a mentor, visit is working on a “Personal Jet” or PJ, general avia- www.aopa.org. which will use one Williams FJ33 jet tion, awarding Harold Rogers engine. In other news, Cirrus deliv- him the presti- Manufacturers Meet The Press ered its 3,000th aircraft on November gious J.B. “Doc” Hartranft Award for 16th to Alan Klapmeier, himself. The 2006. As chairman of the House Among the press conferences I 1,000th aircraft went to Dale appropriations subcommittee on attended were ones hosted by Cessna, Klapmeier, and the 2,000th Cirrus is homeland security, Rogers is respon- Piper, Cirrus and Columbia. being flown by air show performer, sible for funding and oversight of the Jack Pelton, President and CEO of Patty Wagstaff, to air shows to pro- Department of Homeland Security Cessna Aircraft Company, noted that mote Cirrus. Still in other news, the (DHS). He has been an advocate for Cessna’s jet manufacturing business Turbo SR-22 has been STC’d by the reasonable approaches to GA security remains strong, and that the company FAA… 27 percent of Cirrus Design’s and supported AOPA’s 2002 petition is still committed to small General business has been international… to require pilots to carry a govern- Aviation aircraft. Pelton said that Delta Connection Academy ordered ment-issued photo ID. And as a senior Cessna’s new Light Sport Aircraft 50 SR-22s, and you can now order an member of the full Appropriations was developed in just 9 months, SR-22 in sterling silver. Committee, Rogers has been tena- EZ HEAT 11/29/06 3:03 PM Page 1 Cessna’s new Next Generation Piston Bing Lantis, President and CEO of cious in ensuring that much-needed Aircraft is under development, and of Columbia Aircraft, announced that resources paid into the aviation trust the 250 orders for the new Mustang after significant delays in getting the fund reach GA airports across the Very Light Jet, half are from Europe. Garmin G1000 certified in the country – especially important this Jim Bass, President and CEO of Columbia Turbo 400, Columbia has year, as more than $400 million of Piper Aircraft, talked about the new PiperJet under development. The PiperJet will use the Williams AIRCRAFT ENGINE HEATING MADE EASY! International engine, despite Piper’s new relationship with HondaJet, E-Z HEAT, Inc. “because the Williams engine is the right engine for this aircraft.” – America’s Finest Preheat System Since 1984 – Apparently, HondaJet liked the AIRCRAFT ENGINE PRE-HEATER From leather interior of the PiperJet so $169.95 much, that the company will be using End your cold weather starting problems and reduce the same interior in its jet. A mockup pre-mature engine wear with PROVEN E-Z Heat Engine Pre-Heater • Heats ENTIRE engine in about 4 hours, through conduction, the safest means of heat transfer available. of the PiperJet was on display. • FAA accepted, No STC or 337 form required. Alan Klapmeier, Chairman and • Easiest to install of any pre-heat system. CEO of Cirrus Design, expressed • Thermostatically controlled, compared to concern with flight safety, not only other preheaters which are not. because of the Cory Lidle accident No danger of oil carbonization. involving an SR-22 which Lidle and • NEW Double insulated engine blanket & prop covers now available. his flight instructor, Tyler Stanger, E-Z HEAT, Inc. flew into a 42-story building in New 779 Lakeview Dr., Chetek, WI 54728 For more information, call or see website York City on October 11, but because Fax: 715-924-4401 1-800-468-4459 www.e-zheat.com pilots are not stopping and thinking 11 MODELS – BECAUSE EACH ENGINE IS DIFFERENT! DECEMBER 2006/JANUARY 2007 MIDWEST FLYER MAGAZINE 13 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 14
funds targeting GA airports were at event may have out-grown Palm In a report on “Top Management risk for airports across the country Springs. Challenges — Department of under the president’s budget proposal. AOPA Expo 2007 is slated for Transportation,” the inspector general Felix October 4-6 in Hartford, Connecticut, notes that there is “intense controver- Maguire of an easy half-day flight for almost all sy regarding what type of fees should Alaska earned Midwest pilots. Visit www.aopa.org/ be charged, who should pay what, and the 2006 expo for details and enjoy a colorful how — if at all — the current over- Laurence P. fall flight to New England! K sight of FAA spending should be Sharples altered.” Perpetual In order to justify a switch to a OVERNMENT FFAIRS Award from G A user fee system, “the FAA would need AOPA for his to demonstrate clearly and convinc- selfless com- FAA Can’t Run A Business, ingly why the current excise tax mitment, tire- Felix Maguire Inspector General Audit Indicates financing mechanism is not adequate less leadership, and how its proposed solution would and commitment to general aviation WASHINGTON, D.C. – Immediately fix this problem.” It hasn’t. in Alaska. From improvements for following AOPA Expo, AOPA The IG also listed the challenge of VFR pilots – including the unprece- released information about a recent determining how much the Next dented establishment of a VFR route audit of FAA’s books by the U.S. Generation Air Transportation System across the Bering Straits to Russia – Department of Transportation inspec- (air traffic control modernization) will to the cutting edge of instrument tor general (IG), indicating that if the cost, which will determine what kind flight using ADS-B [automatic FAA is supposed to be run like a busi- of funding the FAA needs. So far, the dependent surveillance-broadcast], ness, it still has a long ways to go, FAA has just an “estimate” for a sys- Maguire has used his broad aviation says AOPA. tem that has yet to be designed and background to improve safety. The FAA can’t properly account spec’d. For that matter, the FAA does- Brian Dary, a commercial pilot for almost $5 billion in assets and n’t even yet know what it will cost to who captured an idyllic scene of a de property, most of it attributed to the replace retiring air traffic controllers, Havilland DH-2 Beaver on floats, is new Air Traffic Organization, which according to the IG. the winner of the Grand Prize in the runs the air traffic control system. Nor “If you don’t know your costs, first-ever AOPA Pilot general aviation does the FAA yet have a fully func- how can you possibly say that you amateur photography contest. Dary’s tional cost accounting system, some- don’t have enough revenue?” asked photo was of the DH-2 Beaver at the thing the agency has been struggling Boyer. “Everybody would like more Juneau float pond next to Juneau to create since 1997. money and the freedom to spend it International Airport. He received a “This audit report underscores that without anybody looking over their cash prize of $1,750. the user fee debate is about more than shoulder,” said Boyer. “The FAA sure Other memories of AOPA Expo policy,” said AOPA President Phil can’t make a business case for that, as 2006 for me include: meeting Boyer. the audits clearly demonstrate.” Minneapolis and Palm Springs pilot, “How in the world can they price The FAA audit was actually con- industrialist, philanthropist and the their ‘product’ — air traffic control ducted by one of the leading interna- owner of the “Palm Springs Air services — if they can’t track their tional accounting firms, KPMG, for Museum,” Bob Pond and his wife, Jo, assets or their costs?” the inspector general. The firm and thanking him for making his air- In fact, the agency’s financial con- returned a “qualified” audit, which, as craft collection accessible to the rest of trols are so weak that it will cause the anyone who runs a business knows, is us through the museum and in motion entire Department of Transportation bad news. K pictures… and seeing many friends. to be in violation of the federal ver- Renowned illusionist and mentalist sion of the Sarbanes-Oxley Act if not No User Fees: Congressional Leaders Jason Randal wowed AOPA members fixed before September, an interna- Advise President Bush during AOPA Expo’s closing banquet tional law firm that reviewed the audit Saturday, November 11. But his tricks has told AOPA. WASHINGTON, D.C. – The biparti- were no match for the exciting news Meanwhile, another report from san leadership of the Senate and AOPA President Phil Boyer the inspector general says that the House Appropriations committees has announced: AOPA Expo reached an FAA and the airlines have yet to asked President Bush not to send all-time record high of 12,973 atten- prove that the current funding system them any user fee proposals when he dees! Expo also sold out of exhibit needs to be changed in favor of a user submits his next budget to Congress. space, which raises concern that the fee system. The joint letter says that such a pro- 14 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 15
posal is outside of their jurisdiction tem is continued, changed, or interfering with the operations of the and would have “little or no chance of scrapped for a user fee system to fund commercial airlines. being enacted into law,” and would be the FAA. K “The unfounded comments by the a “major impediment to Congress ATA fly in the face not only of public completing its appropriations (spend- Bolen Blasts ATA For Unfounded statements by Federal Aviation ing approvals) work on time.” Comments On VLJs Administration Administrator Marion “While there is currently little overt Blakey, but also congressional testimo- support for general aviation user fees WASHINGTON, D.C. – The National ny by top FAA officials,” said NBAA in Congress, we can’t relax,” said Business Aviation Association President and CEO Ed Bolen. “The Andy Cebula, AOPA executive vice (NBAA) strongly disputes allegations fear-mongering by the airlines may be president of government affairs. “We made by representatives from the lob- part of their broader strategy to pay understand that the airlines have a bying group for the commercial air- less for air traffic services even as they lobbying war chest of millions of dol- lines that the emergence of very light try to seize control of the system.” lars, and they view this as the BIG jets (VLJs) would impose a burden on In July, Blakey told NBC Nightly fight when the new Congress takes the nation's aviation infrastructure. News: “I think the people who are over. There will be a lot of arm-twist- On September 28, Bloomberg anticipating congestion problems ing and a lot of favors called in before news quoted an Air Transport [from VLJs] way up at high altitude Congress writes the new FAA reau- Association (ATA) official’s con- are probably anticipating a problem thorization bill next year.” That bill tention that VLJs would be a “signifi- that we don't necessarily expect to will determine if the current tax sys- cant burden” in the aviation system, have.” K INDUSTRY NEWS “Merging the two companies and provider for Rockwell Collins, Garmin, repair stations was the final step inDeKalb a Honeywell,Illinois Avidyne,11/29/06 Shadin, 3:13 L3PM Page 1 consolidation process,” said Jim Communications, Sandel, Meggitt, Sweeney, President. “The streamlin- Narco, Mid Continent Instruments, S- ing of both companies will enhance TEC, Century Flight Systems, Sigma- and improve our efficiency in provid- Tek, JPI instruments, and David Clark.K ing maintenance and avionics services Fargo Jet Center & Way-Point Avionics to our clients.” Merge Into One Repair Station Fargo Jet Center, Inc., the region’s DeKalb Taylor largest aviation service organization, is FARGO, N.D. – Fargo Jet Center, consistently ranked among the top Municipal Airport (DKB) Inc., and sister company Way-Point FBOs in North America. Fargo Jet Avionics, Inc., have merged repair Center is a ChevronTexaco fuel dealer, station certificates in an effort to aircraft maintenance repair station, air DeKalb, Illinois streamline company operations. Way- charter operation, Cessna Pilot Center, Point Avionics is now part of Fargo and new Cessna aircraft dealer. Jet Center’s FAA certified repair sta- Way-Point Avionics has been serving NEW, UNHEATED, tion. Way-Point Avionics will contin- the upper Midwest as an avionics sales, ue as the trade name representing the service and installation facility since ERECT-A-TUBE department of Fargo Jet Center, Inc. 1976. Way-Point is a dealer and service T-HANGARS STARTING AT $285/MONTH
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DECEMBER 2006/JANUARY 2007 MIDWEST FLYER MAGAZINE 15 2007_Dec06Jan07_2 11/30/06 12:25 AM Page 16
towards curing this problem. has been declining. There have been Another big funding issue that is discussions about raising the avgas being discussed across the nation is to state fuel tax. I think a better solution implement “user fees” to pay for the would be to dedicate part of the state GREAT LAKES REGIONAL REPORT federal aviation infrastructure. This sales tax on aviation products to sup- alternative is being promoted by the port the state aviation fund. by Bill Blake AOPA Great Lakes Regional Representative airlines. AOPA Executive Vice Some good things happened at the President Andy Cebula made a pres- state level in Michigan recently. entation to the Minnesota Aviation Those of you from Michigan may System Funding To Be Trades Association (MATA) on remember that the state Bureau of Major Debate In 2007 September 22 in the Twin Cities Aeronautics was merged with the pointing out that the airline proposal Bureau of Public Transportation in have would take funding control away from 2002 into the Bureau of Multi-modal attended Congress and place it in the hands of Services. AOPA was opposed to the Ifour state the airlines, allowing them to develop merger, believing it would dilute state aviation con- a system that only serves airline aviation effectiveness, and has con- ferences in the needs, not all aviation. Reputable tinued to work, along with other avia- last month. sources indicate that the federal avia- tion interests in Michigan, to try to There were tion trust fund, under its current fund- reverse that decision. In late August, two issues ing scheme, will be able to continue to the Michigan Department of that predomi- fund the federal aviation infrastructure Transportation did separate the avia- nated discus- with its historic yearly budget increas- tion and public transportation func- sions at all Bill Blake es and, at the same time, continue to tions, forming the Bureau of four confer- grow. Mr. Cebula went on to state that Aeronautics and Freight Services. In ences. Both issues had to do with the FAA has not submitted any plan to September, the Michigan Aeronautics “funding.” Airport managers, state show why more money (or how much Commission elected Jim Collins from officials, FAA personnel, and aviation more money) will be needed than has Marquette and Joyce Woods from system users are concerned about been necessary in the past, or what Linden, Chairman and Vice enough funds being available to efforts have been made to control Chairman of the Commission. Both maintain the aviation infrastructure, costs. AOPA believes that the current are enthusiastic AOPA members. and the possible alternate sources of system of funding the federal system I attended the annual fall confer- funds to meet those needs. is appropriate and efficient… general ences of the Illinois Public Airports As most of you that live in aviation contributing through the fed- Association and the Aviation Minnesota know, the Minnesota legis- eral fuel tax, airline passengers con- Association of Indiana recently. lature borrowed $15 million from the tributing through the ticket tax, and all Attendees at these conferences had state aviation fund a few years ago to taxpayers contributing by way of a similar concerns regarding national cover a shortfall in the state’s general 25% contribution from federal general funding as those attending the revenue fund and has not repaid it yet. revenue, since all taxpayers, whether Minnesota and Michigan conferences. Since that time, the state aviation fund they fly or not, benefit from the sys- In Illinois, the series B bond fund, has become dangerously low, and tem. I urge all of you to become which is used to match federal grants without replenishment, will require familiar with this issue. It appears that for airport improvements, is almost cutting some state aviation programs. it will be the major debate in 2007. completely committed. What has Last year, AOPA and other aviation I attended the Michigan been a very effective state/local grant supporters worked to have these funds Association of Airport Executives program for general aviation airports restored. Unfortunately, the legislature annual conference, also in September. has not been funded for the last two adjourned without having acted to Airport managers and state aviation years. The state legislature will need accomplish that goal. AOPA has con- officials were concerned about the to provide a funding source of sistently supported these dedicated airline proposed alternative for fund- approximately $15 million in the next aviation funds in other states, and will ing the federal system through user session to meet estimated matching work in the coming session to see that fees. They were also concerned about funds necessary to receive federal these funds in Minnesota are fully the dwindling state aviation fund. The airport improvement grants. restored, without imposing new taxes state will be looking at alternatives To learn more about these and on pilots. In my view, the restoration after the first of the year. Revenue other aviation issues see: of these funds would go a long way derived from the state tax on avgas www.aopa.org. K
16 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:26 AM Page 17
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Just imagine if every AOPA member were to sign up and Our research also indicates that there are two million successfully mentor just one new student pilot. In a year people who want to become a pilot. You need to find we’d have more than a million pilots. That would be a just one. Talk to them about flying. Get them to the air- huge boost for the future of GA. port. You don’t have to be a CFI—introduce them to one. Schedule their first lessons and be there for them during Right now the US pilot population is in a seri- their flight training. ous decline; there are 25% fewer pilots today than just 25 years ago. What’s more AOPA Project Pilot makes it easy. When alarming is that student starts are falling you sign up at twice as fast. Your help is needed to build www.AOPAProjectPilot.org we’ll send tomorrow’s GA – today. you and your student exciting new kits filled with helpful resources. You’ll both AOPA’s new Project Pilot. have everything you need to make flight It’s good news for GA. training fun, easy — and highly successful.
We’re relaunching our highly successful Could we have a million pilots in the US Project Pilot mentoring program for one simple reason: it next year? Sure, but only if you do your works. We’ve learned that a student with an AOPA part. Join AOPA Project Pilot today. Project Pilot Mentor is three times more likely to get their ticket. So we’re providing you, our member, with Helping a new pilot get their wings just got more exciting new resources so that you can find a future rewarding. For every new student you nominate, we’ll pilot and help him get his pilot certificate. give you two additional entries in this year’s Win a Six in ’06 Sweepstakes*.
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* NO PURCHASE NECESSARY. A PURCHASE WILL NOT INCREASE YOUR CHANCES OF WINNING. Void where prohibited. See www.AOPA.org for eligibility, methods of entry, Official Rules and other information. 2007_Dec06Jan07_2 11/30/06 12:26 AM Page 18
AVIATION LAW chase the aircraft and take delivery in a state that charges sales tax, but you then relocate it to another state right after State Sales & Use Taxes On Aircraft the sale? Well, many states have a “fly-away exemption” that allows an aircraft purchaser to take delivery of the air- by Greg Reigel craft within the state and not pay that state’s sales tax, pro- was recently asked a question vided the aircraft is immediately removed to another state. regarding the payment of sales However, even though the purchaser is able to avoid pay- Itax on an aircraft. The scenario ing the sales tax in the state of delivery, when the purchas- presented was this: A Minnesota er then registers the aircraft in the purchaser’s home state, resident receives an aircraft as a the purchaser pays use tax to the purchaser’s home state. gift from an out of state relative The difference between the amount the purchaser would and then the Minnesota resident have to pay in sales tax in the state of delivery versus the bases and registers the aircraft in amount the purchaser will have to pay in use tax to register Wisconsin. Does the Minnesota the aircraft in the purchaser’s home state, could be signifi- resident pay tax on the aircraft and cant. Additionally, other exemptions from sales and use if so, what type of tax does the Greg Reigel tax beyond the scope of this article may be available to the individual pay and to whom is it purchaser (e.g. purchase for resale or rental, etc.). To the paid? extent possible, an aircraft purchaser must carefully plan Before answering the question, we should first review the aircraft purchase in order to minimize the sales or use the very basics of sales and use tax. tax that will be owed on the purchase. A “sales” tax is a tax assessed against your purchase of Now to our scenario: Based only upon the basic facts personal property that is subject to sales tax. A “use” tax is presented, it appears that the Minnesota resident would not a tax you pay on personal property that you purchase and pay sales or use tax in either Minnesota or Wisconsin use and for which sales tax was not collected at the time because the aircraft was a gift from a relative. However, you purchased or acquired the personal property (e.g. a pri- keep in mind that if any of these facts changes at all, the vate sale or purchase made out-of-state). Both the sales and tax analysis may also change. Each transaction is unique use taxes are usually assessed at the same rate (e.g. 6.5% in and application of the sales and use tax laws can be very Minnesota and 5% in Wisconsin). complicated. You should contact an attorney familiar with With respect to aircraft, ordinarily if you purchase an both aircraft and the tax laws applicable to aircraft to prop- aircraft and take delivery within a state that charges sales erly identify and minimize any taxes that may be due in tax and you keep the aircraft within that state, you would your particular situation. pay sales tax on the purchase of the aircraft to that state. EDITOR’S NOTE: Greg Reigel is an attorney with Reigel & Unless you are purchasing from an aircraft dealer or some- Associates, Ltd., a law firm located in Hopkins, Minnesota, one else who is required to collect sales tax on the pur- which represents clients in aviation and business law mat- chase, you typically pay the sales tax to the state at the ters (www.aerolegalservices.com, 952-238-1060, time you register the aircraft. But what happens if you pur- [email protected]). K
Do The Math, Before You Buy! aircraft you are thinking about purchasing. If you are trad- ing your current aircraft, make sure the current aircraft tax by Samuel L. Miller basis is carried forward and the purchased aircraft depreci- efore you become emotionally involved in an air- ation is calculated correctly. craft purchase, take the time to do the math. When comparing different types of aircraft, compare the BEveryone should know the projected cost before aircraft operating cost by having all aircraft fly the same making a large financial investment. The place to start is number of “miles” per year. This means that each aircraft answering the question: How will a specific aircraft purchase flies a different number of “hours” per year if the aircraft impact your after-tax cash flow? speeds are different. So you end up with an apples-to-apples If you currently own an aircraft, start by preparing a comparison, make sure you use the average fuel flow and projected after-tax cash flow for your current aircraft for block speed on each aircraft for your average stage length. the next five years. This cash flow should include all pro- Another factor that dramatically impacts ownership cost jected expenses associated with the ownership and opera- is aircraft “resale value.” Different aircraft have different tion of the aircraft. Since aircraft depreciation provides a resale value percentages. Do your homework on the esti- tax benefit to your cash flow, it is important to include the mated resale value of each aircraft in your comparison. correct aircraft depreciation in your cash flow projection. Many aircraft on the market today are over 20 years old. Next, prepare a projected after-tax cash flow for each The purchase price on these aircraft might appear to be a 18 MIDWEST FLYER MAGAZINE DECEMBER 2006/JANUARY 2007 2007_Dec06Jan07_2 11/30/06 12:26 AM Page 19
great deal, but these lower aircraft prices should be a warn- AIRCRAFT ing to investigate further. The aircraft technology and oper- ation cost of these great price deals will probably have a First Cessna Mustang Delivered dramatic impact on operating cost and lowering the resale WICHITA, KAN. value when you are ready for your next aircraft. – Cessna Aircraft By doing the math first, you have a lot more confidence Company deliv- in your decision. You also save time by eliminating aircraft ered its first that don’t meet your budget requirements. You can concen- Citation Mustang trate all of your other comparisons on aircraft meeting your business jet on financial requirements. November 22, fol- The “AircraftCostAnalysis” program can be used to lowing award by prepare after-tax cash flows on any type aircraft. To obtain the Federal Cessna Citation Mustang more information, go to www.AircraftCostAnalysis.com, Aviation Administration (FAA) of the production certificate click “Request Information.” (PC) for the aircraft’s Independence, Kan., assembly line. Answer your aircraft cost questions: The first Citation Mustang was delivered to Mustang What is the projected cost of continuing to operate your Management Group (MMG), based in Fresno, Calif., which current aircraft? will allow Cessna to lease the aircraft for 10 months as a What is the before and after tax cash flow on the opera- demonstrator. MMG then plans to use the Mustang in its tion of your current aircraft? Scott Aviation subsidiary for flight training. How does the cost of keeping your current aircraft com- It will cost an estimated $2.06 per nautical mile to operate pare to trading for another aircraft? the Mustang, bringing the speed, range and comfort of owning How does the cost of Aircraft “A” compare to the cost a jet less than the cost of today’s turboprop aircraft. The six- of Aircraft “B” if both aircraft fly the same number of place Citation Mustang has a top speed of 340 ktas (nearly miles per year? 400 mph), a range of 1,150 nm (1,323 sm with reserves), and Does the time savings justify the difference? a service ceiling of 41,000 feet. Full FAA type certification How much will your ownership cost be reduced by was awarded Sept. 8, making the Mustang the first of a new chartering/renting your aircraft? category of entry level jets to also be certified. K How many hours must your aircraft be chartered/rented to break even? 9 ; H J ? < ? ; : How does the cost of total aircraft ownership compare to the purchase of a fractional share? BWJBUJPOJOTVSBODF What annual hourly utilization is required on an aircraft to justify total ownership versus the purchase of a fraction- QSPGFTTJPOBMT al share? How does joint ownership cost compare to fractional ownership cost? How does ownership of a managed aircraft with charter income compare to fractional ownership cost? How much will joint ownership of your aircraft reduce total ownership cost? How does investment return vary with different char- ter/rental rates and annual hourly utilizations for C[[jm_j^W9[hj_\_[Z7l_Wj_ed?dikhWdY[Fhe\[ii_edWb m^eYWd^[bfoekZ[i_]dWd_dikhWdY[fhe]hWcje\_j chartered/rented aircraft? oekhd[[Zi$ Omnni 10/8/04AircraftCostAnalysis 5:12 PM Page may 1 be able to provide these =[d[hWb7l_Wj_ed 7_hfehji answers for you. 9ehfehWj[7_hYhW\j ;cfbeo[[8[d[\_ji EDITOR’S NOTE: Samuel L Miller owns SLM, Inc. of 9^Whj[hH?IJ?7DB?; @;<<H7ICKII;D 9>H?I