TAC Air: from Flight Department Convenience to Major Chain Board of Directors by Paul Seidenman and David J
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1st Quarter 2010 TTACAC AAir:ir: FFromrom FFlightlight DDepartmentepartment CConvenienceonvenience ttoo MajorMajor CChainhain Also Inside • FFourour AirAir CCharterharter VVeteranseterans LLookook DDownown tthehe RRoadoad • FFBOBO LeadersLeaders OfferOffer PPerspectiveserspectives onon DownDown EconomyEconomy • TThehe 22009009 NATANATA AviationAviation BBusinessusiness RRoundtableoundtable Permit No. 1400 No. Permit • WWellnessellness PPrograms:rograms: GGoodood FiscalFiscal Silver Spring, MD Spring, Silver PAID SSense,ense, GGoodood PhysicalPhysical HHealthealth U.S. Postage Postage U.S. Standard PRESORT PRESORT • CCashingashing OOutut YYourour HHiddenidden BBusinessusiness AAssetsssets 1307*%*/('6&-"/%4&37*$&4505)&(-0#"-"7*"5*0/*/%6453: $POUSBDU'VFMt1JMPU*ODFOUJWF1SPHSBNTt'VFM2VBMJUZ"TTVSBODFt3FGVFMJOH&RVJQNFOUt"WJBUJPO*OTVSBODFt'VFM4UPSBHF4ZTUFNT tXXXBWGVFMDPNtGBDFCPPLDPNBWGVFMtUXJUUFSDPN"7'6&-UXFFUFS There’s No SUCH THING As Routine FLIGHT SUPPORT 3V^LY`V\YHPYZ[HPYZH[HU`VMV\Y^VYSK^PKLSVJH[PVUZHUK`V\»SS PTTLKPH[LS`UV[PJLV\Y^HYTWLYZVUHSNYLL[PUN0[»Z[OLMPYZ[P[LTPUV\Y :PNUH[\YL:LY]PJL7YVTPZL-VSSV^LK\W^P[OZHMLYHTWYLHK`OHUKSPUN PU]P[PUNMHJPSP[PLZWLYZVUHSH[[LU[PVU[VWHZZLUNLYZHUKJYL^HUKH]HPSHISL X\PJR[\YUZLY]PJL(KK[V[OH[V\YHS^H`ZMHPYJVTWL[P[P]LWYPJPUNHUK `V\»SS^HU[[VTHRL:PNUH[\YLHWLYTHULU[WHY[VM`V\YMSPNO[WSHU -PUKZWLJPMPJPUMVYTH[PVUHIV\[PUKP]PK\HSSVJH[PVUZH[:PNUH[\YL-SPNO[JVT The pleasure of your company is requested. The Avitat Network is led by a team of elected FBO general managers known as the Avitat Council. Avitat Council members shown above include: Front: Prajeet Pareparambil - Royal Jet (AUH), David Mills - Business Jet Center (OAK), Back: Bill Hudgens - Montgomery Aviation (MGM), Donnie Zachary - Louisiana Aircraft (BTR), Bert Marks - Central Aviation Services (YWG), John Langevin - Jet Aviation (TEB, BED, Alain Champponois - Skyservice (YYZ, YUL, YYC), Rhonda Hughes - Avitat Boca Raton (BCT), PBI, DAL), Tim Ward - Alliance Aviation (AFW) Wally Seipp – Avitat Westchester (HPN), Andreas Becker - Frankfurt Aviation Service (FRA) Avitat invites you to join the premier network of ExxonMobil Aviation FBOs. You are cordially invited to join the Avitat family, a global network of independent FBOs. Avitats are world renowned for service that excels in every minor detail and providing an outstanding buying experience for each and every customer. When you become a part of our elite network you receive industry-leading tools to help set your facility apart: PremierCare, PremierSpirit, Pilots+Rewards, print and online advertising, tradeshows, and the Avitat Networking Initiative, which are all designed by FBO operators like you to help you succeed in providing exemplary service, to make your FBO the best on the field. If you think your operation has the potential to become part of the network of FBOs that’s one of the best in the industry, please contact Maryann Bowman, Avitat Development Manager at 281.360.1058 or [email protected]. 1sstt QQuarteruarter 20102010 Aviation IISSUESSUE 1 | VOLUMEVOLUME 8 Business Journal Offi cial Publication of the National Air Transportation Association Chairman of the Board President Kurt F. Sutterer James K. Coyne Midcoast Aviation, Inc. NATA Cahokia, Illinois Alexandria, Virginia Vice Chairman Treasurer James Miller Bruce Van Allen Flight Options BBA Aviation Flight Support Cleveland, Ohio Orlando, Florida Immediate Past Chairman Dennis Keith Jet Solutions LLC Richardson, Texas TAC Air: From Flight Department Convenience to Major Chain Board of Directors By Paul Seidenman and David J. Spanovich 15 Charles Cox Chairman Emeritus Not every FBO operator gets into the business by design. In fact, TAC Northern Air Inc. Reed Pigman Air, one of the most successful FBO chains in the U.S., was started Grand Rapids, Michigan Texas Jet, Inc. because the fl ight department of a large corporation needed better Fort Worth, Texas service at its Texarkana Regional Airport home base. Today, TAC Air Todd Duncan operates at 13 locations and employs 300 employees. Duncan Aviation Ann Pollard Lincoln, Nebraska Shoreline Aviation Marshfi eld, Massachusetts Four Air Charter Veterans Look Down the Road Immediate Past Treasurer By David W. Almy 27 John Lotz Mark Willey By most accounts, activity in the charter market is down about a Monterey Bay Aviation Bridgeford Flying Service third over last year’s levels, with some reporting—or whispering Monterey, California Napa, California about—even greater reductions in an industry that has long been Frank Milian cyclical, with good times and bad. So what will the charter industry ACM Aviation look like at the end of the recession? Aviation Business Journal looks San Jose, California for answers. FBO Leaders Offer Perspectives on Down Economy Publisher Contributing Editors By Colin Bane 31 James K. Coyne Michael Ancell With sales volumes down throughout the industry corresponding to Amy Hornaday national economic trends, Aviation Business Journal asked aviation Editor Linda Pylant business leaders for their perspective on how FBOs are responding to Shannon Chambers the downturn and anticipating its rebound. Turn to page 31 to learn Art Direction/Design more. Editorial Director Tim Wagner Eric R. Byer Advertising Sales Cheryl Stratos President’s Message | By James K. Coyne 7 Victoria Geis Advertising Inside Washington | By Eric R. Byer 9 For advertising information, call 703/212-4967 or e-mail [email protected]. ACSF News | By Jacqueline Rosser 11 Produced by The 2009 NATA Aviation Business Roundtable 23 103 Oronoco Street, Suite 200 • Alexandria, VA 22314 Establishing a Wellness Program | By Lindsey McFarren 35 703/212-4967 • www.ias-online.net Cashing Out Hidden Business Assets | By Rhona Sacks 38 Advertiser Index 40 IRS-Based Debt Collection | By Ben Ricci 41 NATA Safety 1st News 43 4226 King Street • Alexandria, VA 22302 800/808-6282 • Fax 703/845-8176 www.nata.aero New NATA Members 45 THE UNDISPUTED CHAMP FltPlan.com With over 4.3 million flight plans created in 2009, no other flight planning service is a contender. We continue to enhance user services with new Flight Planning and Flight Tracking features, FAA-Approved Weather Briefings, our Flt Deck Airport/ FBO Guide, our eAPIS Service and much, much more. Go a few rounds on www.FltPlan.com and see for yourself! Contact Our eAPIS Specialists at 1-888-358-3375 PROFESSIONAL FULL-SERVICE FLIGHT PLANNING [email protected] or call 1-800-FltPlan PRESIDENT’S MESSAGE Do You Know What You Don’t Know? By James K. Coyne y youngest child fi nally fi nished his have an FBO in education in May (or at least the part California, but that I pay for), and now he’s march- you’d be sur- ing off into the real world with all the prised what you confi dence and preparation that 27 can learn from years of parenting and schooling can someone with Mprovide. After his fi rst week on the job, he called a similar busi- to share his excitement, but also to admit that he’s ness in Texas or amazed by how much he doesn’t know. It’s been 40 North Carolina. years since I fi nished my formal education, but a Of course, there day never goes by that I don’t reach the same con- are also formal clusion. To do our jobs well, not to mention to fulfi ll audit fi rms that our other responsibilities to friends and family, work directly takes a commitment to lifelong learning that none with NATA or of us can ever escape. with the Air As we enter this century’s second decade, our Charter Safety need for new knowledge and expertise is more criti- Foundation who cal than ever. The government seems committed to can advise you changing everything it can touch, the marketplace on everything from safety management systems to is transforming itself every day, fi nancial and legal fi nancial software, but no one will understand your institutions are modifying most of their traditional business as intimately as someone who actually procedures, the internet is reinventing the way runs a similar operation. If you’d like to fi nd a fel- we communicate, politics is redrawing the lines low NATA member to contact about a possible audit between business and the bureaucracy, and the (or even a reciprocal audit), give me a call, and I’ll recession is making it impossible to predict where connect you with a few candidates. To my mind, the economy is headed. If ever there was a time for this kind of “education” is better than anything they admitting that you have a lot of new things to learn, teach at the fi nest business school. this is it! Second, take advantage of the internet. NATA So how’s a busy aviation business executive best recently launched a series of webinars, free or able to “school” himself or herself in these hectic low-cost online seminars covering specifi c topics times without dropping the ball at the offi ce or like minimum standards or ramp safety that ap- breaking the bank? Each of us, of course, have ply directly to your business. If you have ideas for different opportunities and techniques for staying other webinar topics that you’d like us to produce, ahead of the pack, but whatever you do, consider send me your suggestions. NATA’s website offers how NATA’s resources and members can be part of other resources that can round out your business your ongoing education. education, with downloadable publications, reports, First, ask yourself if an audit of your business and links to FAA documents that can help you fi nd would be useful. For years, scores of NATA mem- quick answers to queries that might even stump bers have subjected themselves and their busi- your FSDO. nesses to audits carried out by friendly (though Third, enroll in NATA educational and train- sometimes brutally frank) colleagues they’ve come ing programs at our various meetings around the to know and trust at NATA meetings. You might Continued on page 8 Aviation Business Journal | 1st Quarter 2010 7 President’s Message Continued from page 7 country throughout the year.