Inside this report: lack of transparency is expected As an executive at one charter and • Part 135 in gray and black: illegal charters…page 21 Part 135 in gray and black: illegal charters to be addressed in the DOT’s management company said, “Occa- anticipated proposed charter sionally we’ll run across an airplane • Charter operators fighting a losing battle…page 21 by James Wynbrandt broker regulations. owner who says, ‘I have a couple of • Why bizjet travelers fly privately…page 22 buddies who buy 50 hours per year • Pilot unions gain traction…page 22 Clandestine tarmac activity, because its providers can avoid brokers the department con- Part 134 1/2 from me.’ As an FBO, you have to “crime stopper”-type hotlines and the costs of regulatory compli- tended were holding themselves Another form of illegal char- turn a blind eye. We sell [the aircraft • ACSF touts single audit standard…page 24 federal prison terms: Welcome to ance, according to industry pro- out as operators of the aircraft ter results from owners “lending” owner] hangar space, fuel, mainte- • Part 135 gets mixed reviews…page 24 the underside of today’s Part 135 fessionals. Moreover, accidents in violation of DOT rules. their aircraft for use to friends or nance, and you really hate to jeop- on-demand air-taxi market–ille- arising from corner-cutting ille- The Montrose accident associates, and charging them ardize that piece of the business • Training guidance could cost charter ops thousands …page 26 gal charters. No one knows the gal charter flights give the entire brought to light lack of due dil- DOC (direct operating costs) or because a client decides to sell a trip • Air charter to the rescue…page 26 scope of the activity, yet all agree industry a bad reputation. igence performed by some bro- some other figure that exceeds to a buddy of his.” it’s a continuing problem. The problems the accidents kers and lack of transparency the reimbursement allowed by the But these flights can also jeop- • Air charter broker regulations…page 28 “Illegal charter is really a per- cited above laid bare remain in charter arrangements. Unbe- FAA. This is called charter’s “gray ardize the careers of the pilots who • Victor bypasses charter brokers…page 30 sistent issue, and it’s difficult areas of concern. In the case of knownst to the customers, the market,” or Part 134 ½. crew them. to police,” said Jacque Rosser, the Teterboro accident, the pri- flight had been double bro- “Generally speaking, Part 134 ½ “Individual pilots get nailed NATA’s director of regulatory mary issues are the use of air- kered: the operator contracted flights take place on a pretty reg- for flying aircraft illegally, affairs. “The biggest challenge craft and crews that are not Part to perform the charter brokered ular basis,” said Mike Nichols, even if they were told it’s a le- FAA oversight remains an [in] going after illegal charter, in 135 certified; charter provid- the flight to a second opera- NBAA’s vice president for oper- gal flight by the operator,” said a broad context, is that it’s hard ers holding out that they are in tor that in turn brokered it to a ations, education and economics. attorney Paul Lange of Strat- ongoing issue for 135 ops to put a stop to people doing operational control of aircraft third operator, which had lost its “Basically, aircraft owners just ford, Conn., whose practice spe- something illegal if they’ve when they are not; and opera- Wyvern rating and thus was not don’t know about FAA require- cializes in aviation law and en- by Matt Thurber shown a willingness not to fol- tors failing to exercise proper qualified to perform the charter ments for commercial operations.” forcement actions. “They could low the law.” operational control over aircraft under the conditions specified Some in a position to report this lose their licenses, which are There has always been a ques- for much less than it was worth, Indeed, historically there has on their certificates. The NTSB in the charter agreement. That activity are reluctant to take action. Continues on page 30 u tion about FAA oversight of to preserve whatever value been little to make shady char- blamed the FAA in part for the charter operators, in particular remained in the company. And ter providers reconsider the risk/ Teterboro accident by its “tacit

BILL BERNSTEIN whether the way FAA resources TAG’s parent company ended up reward equation. But this year approval” of allowing opera- Charters fighting a losing boarding or disembarking the are allocated has an actual safety paying a $10 million civil penalty the final resolution of the 2005 tors to use their charter certifi- offending aircraft. Operators benefit or amounts to redundant to the FAA. “They just got scru- crash that came to symbolize cates to cover aircraft not under battle against the gray market and brokers generally become and energy-sapping paper shuf- tinized out of existence,” a for- illegal charter–the aborted take- their control. The FAA’s Charter aware of possible illegal char- fling and make-work. While the mer charter manager told AIN. off of a Challenger 600 from Operations Specifications A008 by Charles Alcock ters when, after missing out on FRACTIONAL aviation industry is heavily regu- He requested anonymity in case New Jersey’s Teterboro Airport released in response has since a charter booking themselves, lated, it would be impossible for he ever needs to return to the in 2005–could change that calcu- strengthened operational con- Legitimate charter opera- involved barely even acknowl- they discover that the flight is the FAA to field enough inspec- charter business, although cur- lation. In September the founder trol audits, reducing oversight tors appear to be fighting a los- edge what they are doing to be being conducted by an aircraft tors to monitor every operator, rently, he said he would as a pilot and co-founder of Platinum Jet problems tied to lax control. But ing battle to halt the tide of illegal. Operators interviewed by either not on a commercial AOC & CHARTER certificate holder, pilot, mechanic but never again as a manager for Management of Fort Lauder- illegal practices continue. illegal charter flying around AIN were reluctant to put their or that does not have clearance and so on. So the agency relies a charter operation. “The liabil- dale, Fla., the company primar- “South Florida appears to the world. Industry leaders names to comments on specific for a cabotage flight. They have to a great extent on paperwork ity is too great,” he said. ily responsible for arranging the be a hot spot of illegal activity,” have been taking an increas- illegal activity in these regions, complained to AIN that once and, more important, on the charter, were sentenced to 30 said David McCown, vice presi- ingly vocal stand on the issue but several said it is now so wide- they make their local authori- fact that accidents aren’t good Concerns about FSDOs and 18 months in federal prison dent of charter broker Air Char- over the past couple of years, spread as to create a real disin- ties aware of the alleged breach for business. Everyone involved In his charter experience, he respectively, following the sen- ter and chairman of Acana, an but have become frustrated by centive for legal operators to of the rules, officials either do in aviation thus has an incentive saw operators that didn’t like tencing of others involved in organization formed in the wake what they regard as a failure enter these markets. nothing or are too slow to react. part twO of a two-part to comply with regulations and scrutiny from their local FAA what prosecutors dubbed a con- of those accidents to bring self- by authorities to police the so- When the European Business In European countries at least, operate safely. Flight Standards District Office spiracy to defraud charter cus- regulation to charter brokers. called gray market effectively. Aviation Association (EBAA) prosecution rates for illegal char- special report In the charter industry, some (FSDO) shop around for over- tomers and brokers. Perhaps no “Every time [the subject] comes While illegal charter is widely launched a customer-awareness ter activity appear to be low (at believe that the FAA is misallo- sight from another office outside crash since the attacks of 9/11 up, Florida seems to be where accepted to be a big problem in campaign in November 2010, least for non-AOC flights), and cating its resources, focusing too the operators’ immediate area. has had a greater impact on the people see it the most.” Europe, it is undoubtedly even Marwan Khalek, chief execu- in regions such as the Middle Charter and frax operators much on the operators that go This results in a long-distance, air charter industry, financially Industry experts speculate more widespread in Russia tive of UK-based charter group East and Asia they are almost above and beyond the regulations email-type relationship between and operationally. South Florida’s popularity as a and the Middle East. In fact, it Gama Aviation, indicated that as non-existent. and not enough on operators the operator and the FAA inspec- Another classic accident leisure destination and transit seems to be so commonplace in many as half of all for-hire flights “This is still a huge prob- confront myriad concerns that are pushing safety margins. tors who are supposed to verify from that era–the 2004 crash of point to the Bahamas and Carib- emerging markets like these as in Europe could be operating lem and the authorities are clos- A case in point that often comes that the operator is flying safely the Challenger 601 on takeoff bean lie behind its status as a to give the impression that those illegally. In addition to paid-for ing their eyes to it, especially in In last month’s issue of AIN, in Part 1 of the offers insights on their current activities. up in discussions about excessive and legally, he asserted. from Montrose, Colo., involving capital of illegal charter activity. flights conducted in aircraft respect of cabotage flights,” said charter/fractional special report, we covered Former AIN senior editor Gordon Gilbert has FAA oversight is TAG Aviation Another issue is that FAA NBC’s Dick Ebersol and fam- In June the FAA issued an operating under private Martin Bauer, managing direc- the current state of the charter and fractional been analyzing safety statistics and provides an USA, which many believe was inspectors in some FSDOs are ily–may also see a dénouement emergency revocation of Bimini rules, his estimate included tor of German charter operator share segments, both in the U.S. and worldwide. update on the worldwide charter safety situation. run out of business by the FAA. putting a lot of time into the pilot of sorts this year, if the DOT Island Air of Fort Lauderdale, aircraft operated by AOC Aero-Dienst. For Part 2 of this special report, the AIN A key issue for many charter operators is the TAG USA was, in fact, sold initial training issue (see article on releases as promised its proposed Fla., an on-demand charter holders who do not have But in France, Dassault Fal- team digs deeper into the issues facing charter FAA’s recent change of heart regarding initial to what was then the Sentient/ page 26), which forces operators rules for regulating charter bro- operator that allegedly operated permission under cabotage con Service executive flights and operators and the air-taxi industry. pilot training for new-hire and contract pilots. JetDirect charter conglomerate Continues on page 28 u kers, prompted by the Montrose scheduled flights on a 30-seat rules to fly in another terri- FBO director Bertrand d’Yvoire These include the ever-problematic ille- While the FAA says that it is considering new accident. (See Air Charter Bro- Saab 340A; Part 135 flights can- tory–most commonly U.S. sees authorities becoming more gal charter issue, both in the U.S. and interna- guidance, operators tell AIN that no relief is ker Regulations: Is the Wait not be operated as scheduled N-registered jets making vigilant–at least on the cabotage tionally, and the effects this has on legitimate in sight and that this policy change is causing Finally Over? on page 28.) flights and are limited to air- flights within Europe. In issue. He claimed that French charter operators, reported by international them to spend thousands of dollars on redun- craft with a maximum capacity these cases, the operator authorities are more proac- Types of Illegal Charter editor Charles Alcock and AIN contributor dant and unnecessary retraining, according to of 20 passengers. (Aircraft that concerned is supposed to tively challenging non-European James Wynbrandt. an update by Matt Thurber. But illegal charter comes in are designed for or have a capac- FRACTIONAL file an application to the Union operators about their right The U.S. Department of Transportation has AIN also examines the effort to encourage several varieties. It can be as sim- ity for more than 20 passengers local aviation authority, to make a flight, insisting that been promising new rules covering charter charter operators to embrace a single industry ple as an owner letting a friend use are covered under Part 125 rules, which then has to ascer- they file the required application an aircraft in exchange for pick- a category that has also been & CHARTER tain whether local oper- to prove that local operators do ­brokers for the past four years, and in an update audit standard, similar to the airlines’ system. ing up the costs, or as calculated under scrutiny from those seek- ators object to the flight not object to the cabotage flight by James Wynbrandt, we learn that new regula- But not all operators agree that a single stan- as a broker knowingly arrang- ing to bring greater oversight to being conducted. being conducted. tions are expected to be released shortly. dard is needed. ing flights using aircraft and/or shady areas of air charter.) In terms of illegal char- Dustin Dryden, chief execu- Fractional share operators, with their And finally, last year’s spate of natural and crews that do not meet Part 135 This past year the DOT, Providers surviving ter flown by non-AOC tive of UK-based charter group large fleets and consequently large pools of man-made disasters reminds us once again regulatory requirements. But in which regulates charter through and growing aircraft, the main chal- Hangar 8, spoke for many in the pilots, have led the business aviation industry of the critical role that charter operators and whatever form, illegal charter its mandate to protect consum- lenge is the need to catch industry when he complained of in dealing with unionized workforces. AIN ­brokers play in helping move people to safety poses a safety threat to passen- ers from false and misleading To read Part One of this series, the culprits red-handed– bending of rules by operators go to Other Special Reports in the senior editor Chad www has been following­ quickly and reliably, a subject ably covered by gers and puts legitimate provid- advertising, wrested consent in other words, actually on Continues on page 30 u the fractional unions for many years and James Wynbrandt.  Resource Center at AINonline.com. FOTOLIA ers at a competitive disadvantage orders and fines from several the ramp with passengers Special report continues on next page u

20 Aviation International News • November 2011 • www.ainonline.com www.ainonline.com • November 2011 • Aviation International News 21 FRACTIONAL Cessna were Bombardier (chosen by 16 policies and pricing (jet card and charter­ & CHARTER percent of respondents), Dassault (12 customers) and residual-value terms percent), Hawker Beechcraft (7 per- (fractional customers). cent), Embraer (4 percent) and Boeing BJT also asked survey respondents (2 percent). to rate the aircraft features that mattered uContinued from preceding page Another key survey question asked most to them. Range topped the list, fol- readers to indicate the three lowed by cabin size, economical operation, Time savings and airport access top most important reasons they age of aircraft and runway performance. fly privately. The ability to Maximizing your investment in private Finally, respondents were air transport reasons bizjet travelers fly privately save time (selected by 77 per- busin asked to rank e October/November 2011 | Vol. cent) and reach more air- 9 No. manufacturers of Tra ss j 6 by Jeff Burger ports (69 percent) both veleet aircraft they own scored much higher than r or have re­cently If you could receive a complimen- a thousand readers. Thirty percent of other reasons, which in- ® owned. Based on tary year of flying privately on any air- respondents to the above question said cluded more comfortable the percentage rating BUSINESS AVIATION’S craft, what make and model would you they’d opt for a Gulfstream, with the flights (44 percent), pri- each company “excel- REPORT choose? That was one of the questions GV-SP, G500, G550 and G650 among vacy (37 percent), the CARD lent,” Gulfstream came our readers rate manufacturers in the first annual Readers’ Choice Poll the most frequently cited models. Cessna ability to work en route and service providers out on top for reliability piper meridian conducted by Business Jet Traveler, a sis- came in second with 19 percent yearning (34 percent) and secu- the little engine that could (82 percent), aircraft Fractional providers ter publication of Aviation International for Citations such as the X, “Ten,” CJ3, rity (29 percent). (Per- do their ad claims hold up? technology (66 percent), GetawaYs a taste of france off newfoundland News, which drew responses from nearly CJ4, Excel, XLS and XLS+. Behind centages don’t total value for price paid (53 100 on some ques- percent), cockpit tech- tions because the nology (68 percent) and What are the most important reasons you fly privately? survey al­lowed re- product support (71 per-

spondents to select mul- www.bjton cent). Dassault scored line.com Save time 77% tiple answers.) The first BJT highest for cabin amenities Fractional share, jet reader survey reveals (67 percent) and overall sat- what users want Ability to use airports that the airlines don’t serve 69% card and charter cus- from their airplanes. isfaction (77), while Bombardier tomers gave generally got the most “excellent” ratings More comfortable flight 44% high marks to their providers, but char- for cost of maintenance (30 percent). ter users seemed most satisfied over- For full survey results, see the October/ Privacy 37% all, with 75 percent saying they would November issue of Business Jet Trav- definitely do business with the com- eler or visit BJTonline.com, where pany again and recommend it to oth- you’ll find a PDF of everything that Ability to work en route 34% ers. Fractional, jet card and charter appeared in print, as well as demo- Readers rated two reasons for choosing users all gave high grades to customer graphic information on the survey Security 29% business aircraft as significantly more service and cleanliness of aircraft. respondents and their comments about important than the other four. The lowest grades went to peak-day flying privately. o

Pilot unions gain traction at fractionals, with three of top five frax unionized by Chad Trautvetter

In July, CitationAir became the third or a race to the bottom for them.” IBT of the five major fractional providers to 1108 does have active union-organizing have a unionized pilot workforce, leaving “card drives” at Flexjet and Avantair, but Flexjet and Avantair as the only nonunion that doesn’t guarantee that a pilot union shops. The International Brotherhood of vote will ever happen at either company. Teamsters (IBT) Local 1108 represents NJASAP president Mark Luthi pilots at Flight Options and CitationAir, doesn’t think that unions are necessarily a while NetJets pilots have an in-house foregone conclusion at these fractionals, union: the NetJets Association of Shared however. “A management team plays a Aircraft Pilots (NJASAP). significant role in a group’s decision to With the recent addition of Citation- organize through the treatment of its Air’s pilots to the unionized ranks, the ques- employees,” he noted. “If an employee

tion on many minds is if this trend is likely group enjoys respectful treatment, con- SHUTTERSTOCK to continue at Flexjet and Avantair, as well sistent work rules and fair wages and as at the larger aircraft charter providers benefits, it is highly unlikely it will choose question. “When management attempts to attendants have been represented by such as XOJet and Executive Jet Manage- to form a union. If, however, they experi- pit similarly skilled employee groups against the Teamsters for some time. “I look ment; the latter is a sibling of NetJets. To ence the opposite, unionization becomes one another, they create a situation that for a dramatic increase in the number answer this question, AIN queried the lead- an inescapable eventuality.” compels these groups to consider strategic of crafts seeking representation at all of ers at both fractional pilot unions. alliances to protect the scope of their work,” the fractionals,” he said. “There is no doubt in my mind that Unionized Charter Pilots he said. “In these situations, joining together According to Luthi, NJASAP could Flexjet and Avantair will be unionized,” When asked about unionization at the may offer the best defense against being form a “strategic alliance” with FlightSafety said IBT 1108 president Mat Slinghof. larger charter firms, Slinghof told AIN, taken advantage of, which typically mani- International, another sister company to “Their CEOs and executive officers have “Local 1108 believes these pilots should fests itself as a race to the bottom as compet- NetJets. “FlightSafety instructors complete contracts. Their fractional owners and jet have all of the benefits of unionization. ing groups battle to preserve job security.” the vast majority of training in the frac- cardholders have contracts. They have It will improve their pay, benefits and job Both union leaders also said that tional industry,” he said. “Our industry’s contracts with manufacturers. security and protect all of us against whip- the unionizing trend at the fractionals flight instructors would certainly benefit “What I hear pilots asking is, ‘Why sawing. The synergistic relationship among is likely to expand beyond the pilot from contractually defined work rules and shouldn’t I have the same contractual pro- fractionals, card programs and charter groups. Slinghof pointed out that the compensation packages. And with the frac- tections when it comes to my job?’ Flexjet makes unionization of charters inevitable.” Teamsters successfully organized the tional sector widely unionized, they would and Avantair pilots understand that sooner Luthi also brought up the specter dispatchers at NetJets in September, exert tremendous bargaining clout.” o or later it’s going to be collective bargaining of whipsawing when responding to this and the NetJets mechanics and flight Special report continues on page 24 u

22 Aviation International News • November 2011 • www.ainonline.com FRACTIONAL Safety Audit (IOSA) system the but it does train and accredit audi- Although the number of opera- airlines adopted as their single tors. Normally ACSF holds one tors participating in the ACSF stan- & CHARTER auditing standard. auditor training session per year, dard is growing, not all agree that The charter industry auditing but demand for ACSF audits has one standard is what the industry process is not getting simpler and grown, and the foundation has needs. David Rimmer, president is costing operators thousands of added a second training event this of Long Island-based charter/man- u Special report continued from page 22 dollars for stamps of approval year, to be held early this month. agement firm ExcelAire, is a mem- from a variety of organizations. ACSF publishes a pre-audit ber of the ACSF board of governors Air Charter Safety Foundation According to ACSF president checklist and the complete ACSF but, he told AIN, “I don’t think the Bryan Burns, one charter oper- standard on its website, with free goal of establishing a single audit touts single audit standard ator spent more than $150,000 access to anyone, not just ACSF standard is attainable. No one per- during the past two years to have members. There is a fee to regis- son, standard or philosophy ensures by Matt Thurber six audits done. And it isn’t just ter with ACSF, but no member- safety and it is highly unlikely that the cost of the audits that both- ship requirement. all charter operators and charter Charter operators face grow- includes a safety management ers operators, he said, it is also “Our goal and mis- buyers would ever agree ing pressure from customers and system (SMS). The SMS itself the time spent changing proce- sion is that we want to to a single standard.” auditing organizations to par- has become almost a separate dures and processes to meet the improve the industry,” Rimmer doesn’t ticipate in multiple expensive audit, too. And then there is the requirements of separate audit- Burns explained. “We believe that simply audits on a regular basis. Wyvern Air Charter Safety Foundation ing organizations. “It’s ridiculous as a foundation don’t passing any third-party and Argus are the major private (ACSF), which is trying to con- that operators have to change have a vested financial audit “guarantees that auditing standard bearers, and vince the industry that its audit standards to comply with vari- stake in the game. Our an operator is safe or there is also the International should be the single standard for ous auditing standards,” he said. vested interest is purely compliant. “Undergo- Standard for Business Aircraft the entire charter industry, sim- “The problem was resolved with safety and proving that ing third-party audits is Operations (IS-BAO), which ilar to the IATA Operational the airlines 20 years ago when [an operator meets the a time-consuming pro- IATA developed the IOSA. It’s a safety standards].” cess for operators, but a single gold standard. We’re tak- He doesn’t see a con- Bryan Burns, healthy one. Operators Argus Disputes Need for Single Standard ing that message and bringing it flict between ASCF’s ACSF president often benefit from third- Joe Moeggenberg, president and CEO of research and auditing firm to the community. We feel that the standard and commercial auditing party audits and can learn about Argus International, doesn’t think the Air Charter Safety Foundation (ACSF) ACSF [standard] is the most com- companies and doesn’t believe how other companies respond to audit is needed as a single audit standard for the charter industry. Argus prehensive for charter operators.” that ACSF is encroaching on their similar challenges. As operators has its own audit standard and also conducts audits of charter operators. business models. “We want them we can also be of benefit to the “We do not support the ACSF audit standard. It’s something the industry ‘Moving the Safety Bar’ to embrace the standard,” he said. auditors with the same exposure to does not need at this time,” he told AIN. “The Wyvern standard and Argus Burns pointed out that no one has “The money is in the audits, not new or different methods. and IS-BAO have been well accepted in the industry. The ACSF is built on conducted a study of charter safety the standard.” “Audits can provide a good the IOSA, the standard used for commercial air carriers. It wasn’t scalable; as it relates to industry audits and ACSF has had 56 operators baseline,” he explained. “But only the large operators could really [have it apply to them]. We’re a big he questions whether all the audit- audited since it began offering the there’s more to being safe than supporter of the IS-BAO audit, which is recognized worldwide.” ing is really beneficial. “Our goal standard. Of those, 28 have met the having a perfect set of manuals or For Argus, he added, “The biggest part of the business is the is to move the safety bar,” he said. standard, while the other 28 failed records. We consider a carrier’s auditing. We do lots of audits; that business has been good. We will “That was what was measurable their audits. Of those that didn’t philosophy, management, reputa- have a record year for charter audits, the reason being that a lot of and quantitative relative to IOSA. pass, said Burns, most weren’t tion, business practices and indica- large charter users are requiring the charter operators they work with It truly moved the safety bar.” prepared for the audit. Some failed tions of financial soundness–much to be audited.” –M.T. Unlike the commercial provid- because they weren’t ready for the of which is not considered in an ers, ACSF does not do any auditing, SMS portion. audit–single standard or not.” o

when his airplane crashed. Part 135/91 sector posts The one Part 91 fatal busi- U.S.-registered Part 135 and Part 91 Business Jet and mixed accident statistics ness jet accident that occurred Turboprop Accident/Incidents Worldwide in the first nine months of last (First Nine Months 2011* vs First Nine Months 2010) by Gordon Gilbert year involved a Part 135 operator on a Part 91 positioning flight. ­Business Jets Total Part 135 Part 91 The number of accidents a Cessna 207 (each operated by This occurrence might have been involving U.S.-registered turbine an Alaskan air-taxi operator), expected to be classified under Part 2011 2010 2011 2010 2011 2010 airplanes operating under Part using a prearranged radio fre- 135 accidents because the aircraft Nonfatal accidents 20 9 4a 0 16b 9 135 air-taxi rules increased slightly quency, agreed to rendezvous for was certified as an on-demand air c in the first nine months of this year a flight back to the same desti- taxi. However, the NTSB clas- Fatal accidents 0 1 0 0 0 1 compared with the same period last nation. According to the NTSB, sifies the accident as occurring Total accidents 20 10 4 0 16 2 year, while the number of fatali- the pilot of the 208B flew his air- under Part 91 because that was ties remained unchanged. Accord- plane along the left side of the the rule it was operating under Fatalities 4 2 0 0 0 2 ing to AIN research, Part 135 jets 207 and the pilots continued to when the accident happened. Over Incidents 17 15 1 5 16 10 suffered four nonfatal accidents in talk via radio. The 207 pilot told the years there are other examples the first three quarters of this year the Safety Board that the pilot like this, and the NTSB has been ­Business Turboprops Total Part 135 Part 91 compared with no accidents in the of the 208 then “unexpectedly consistent in its classification. same period last year. Part 135 tur- and unannounced” climbed his In the first nine months, the 2011 2010 2011 2010 2011 2010 boprops also were involved in four airplane above, and over the top number of fatalities in Part 135 Nonfatal accidents 22 22 2 5 20d 17 mishaps in the first nine months of of the 207. turboprop accidents appeared e this year compared with six in the The pilot of the 207 immedi- relatively low, but the ratio of Fatal accidents 7 4 2 1 5 3 same period last year, but two of ately told the pilot of the 208B fatal accidents as a proportion Total accidents 29 26 4 6 25 20 the accidents this year resulted in that she could not see him, and of the total number of accidents fatalities, versus one fatal accident she was concerned about where was much higher among air-taxi Fatalities 16 12 2 2 14 10 in the same time frame last year. In he was. She said the 208B pilot operators than it was for Part 91 Incidents 18 7 4 2 14 5 both periods the results of the fatal then said, in part: “Whatever turboprop operators. o accidents were two deaths. you do, don’t pull up.” Moments Special report continues on page 26 u * 2011 data preliminary Note that one of the two fatal later, the next thing she recalls (a) Includes a U.S.-registered jet operating in Switzerland at the time of the accident. crashes in the nine-month period was the 208B’s impact with her (b) Includes a U.S.-registered jet operating in Mexico at the time of the accident. (c) Fatal accident involving a Part 135 operator on a Part 91 positioning flight. resulted from a midair after the airplane’s right wing. She man- (d) Includes a U.S.-registered turboprop operating in the UK at the time of the accident. aged to make an emergency land- (e) Includes a U.S.-registered turboprop operating in Nigeria at the time of the accident. pilots decided to fly in formation. The pilots of a Cessna 208B and ing. The pilot of the 208B died Sources: FAA, NTSB, AIN research

24 Aviation International News • November 2011 • www.ainonline.com FRACTIONAL Standards John Allen stated, “that it was policy, changes will have to be made.” & CHARTER not appropriate to accept another air carri- Attendees at the Van Nuys operators er’s training,” according to Reilly’s letter. meeting are working with the National “As an air carrier, if you choose to employ Air Transportation Association Air Char- a new pilot for your company, that pilot ter Committee and also writing letters to must attend your initial new-hire course,” legislators. According to Prime Jet’s Janke, uSpecial report continued from page 24 Reilly wrote. FAA Order 8900.1 offers a simple solution, NBAA’s Domestic Operations Commit- in that it seems to support the concept of New guidance on contract training tee “is aware of this issue and the fact that pilots not having to redo recent training. the long-standing regulations and FAA pol- Paragraph 3-1079, subparagraph B, states, could cost charter ops thousands icy have not been applied consistently to “In the development of a training module, operators around the country,” according the operator may consider the students’ by Matt Thurber to Mark Larsen, NBAA project manager, previous experience and training. Previ- operations and web development. “Because ous experience considerations include past A consequence of the public’s revul- and many pilots enjoy the part-time con- it has not been interpreted and applied con- experience in Part 121 or Part 135 opera- sion after the Colgan Air/Continental tract pilot lifestyle. Each pilot still has to sistently around the country, FAA head- tions; past experience with the operator’s Connection Flight 3407 crash is extraor- undergo indoctrination training for each quarters is working to standardize the systems, methods and procedures, previ- dinary political pressure for the FAA to charter operator, but if a pilot is type application of the existing regulations and ous duty positions; and previous experi- crack down on operators. The feeling rated in a Hawker 800, he or she could fly policy. For those operators that have been ence with an aircraft type.” among the public and the politicians who the Hawker for more than one operator in compliance with the regulations and Asked what the FAA is doing to represent them is that had the FAA been after differences between the two opera- headquarters policy, this notice will mean address this situation, a spokesman told tors initial training programs were evalu- few, if any, changes; however, for those AIN, “The FAA is developing clarifying ated and found mostly similar. operators who have credited previous train- guidance on this issue that we will issue Under previous FAA guidance in Order ing inconsistent with FAA regulations and in the near future.” o 8400.10, a revision to the guidance, Hand- book Bulletin for Air Transportation (HBAT) 77-12, permitted this practice, and Air charter comes to the rescue: it became common for a pilot to fly the same aircraft type for multiple operators. sector proves its worth with evacs However, the FAA updated 8400.10 a few years ago with a new guidance docu- by James Wynbrandt ment, 8900.1. And a consequence of this update is that “all HBATs have been can- No one questions air charter’s agility in evacuation programs–and which extricated celed,” according to an Aug. 15, 2011, let- arranging spur-of-the-moment transporta- the expats from Jakarta. “We’re finding ter from Kenneth Reilly, FAA manager of tion for time-pressed business and leisure right now a tremendous need for our secu- the Scottsdale, Ariz., FSDO. “Currently, travelers. But over the past year the industry rity or political evacuation product.” no rule or guidance exists that would has also proved itself in the role of aerial res- Roban estimates MedEx currently per- allow an air carrier to accept training pro- cue service, extracting stranded expatriates forms about 1,500 evacuations per year. vided by another air carrier.” and travelers in the midst of natural disas- Essentially, what this means is that if a ters, political turmoil and medical crises. Foreign Operations pilot flying that Hawker 800 for operator To be sure, these specialized forms of air Demand for evacuation charter is A wants to fly the same model for opera- charter have been in place for more than a expected to grow as companies deploy Under an update to 8400.10, a contract pilot will tor B, that pilot needs to undergo thou- decade. In 1998 private air charters evacu- more employees to foreign locations. Gat- have to undergo training in each aircraft he flies at sands of dollars worth of initial new-hire each charter operator for whom he flies. ated some 4,000 expatriate employees from wick, UK-based Air Partner, a global air training at a training provider, regard- Jakarta during riots that swept Indonesia. charter broker that offers evacuation ser- more diligent, the two pilots who were at less of whether he just completed such But events of the year past, from the earth- vices through its emergency planning divi- the controls of the Colgan Dash 8 Q400 a course. This would also apply if a full- quake in Japan to the turmoil in Tunisia, sion, notes that major U.S. multinationals when it stalled after leveling off during time pilot were just trained by opera- Egypt, Libya, the Ivory Coast and beyond have increased overseas employment by 2.4 an approach into Buffalo-Niagara Inter- tor A then quit to work for operator B. have brought the need for these services million since the year 2000. And expatriate national Airport on Feb. 12, 2009, might The training could be at a simulator com- into sharp relief. employees are increasingly working in sec- not have crashed. pany such as SimCom, CAE SimuFlite or “Times are turbulent,” said Mike Roban, ond- and third-world countries, where the The political pressure resulted in rap- FlightSafety International or it could be a vice president at MedEx Global Solu- risk of instability can be high. Additionally, idly drafted legislation, the “Airline a non-simulator, in-aircraft training pro- tions in Baltimore, which provides charter Continues on page 31 u Safety and Pilot Training Improvement gram. But, according to the FAA, that Act of 2009,” which would mandate that training has to be done for each operator all airline pilots have an airline transport for which the pilot flies. pilot certificate and thus would need a minimum of 1,500 hours flight time. Industry Response That hasn’t become law yet, and now The charter industry and contract pilots politicians are discussing settling for a are unhappy about this situation and are minimum of 700 hours instead of the challenging the FAA to return to the previ- current 250 hours. Whether or not these ous HBAT-permitted system–which seemed efforts would help prevent accidents to work fine and has not resulted in any remains debatable. safety issues–or develop new guidance. A group of charter operators held a meeting Costly Training Requirements on August 25 in Van Nuys to discuss this But that hasn’t stopped the FAA from issue and work together to come up with a an inexplicable crackdown on Part 135 solution. The meeting was brought about by charter operators, a move that is having Prime Jet CEO Cheryl Janke. One operator a profound effect on the way some oper- at the meeting said, “If this goes forth, these ators use part-time contract pilots and [pilots] are going to lose their livelihoods.” make hiring decisions. This situation has been developing since Some charter operators, especially 2009, when a charter operator overseen by smaller ones, have long been able to the Long Beach, Calif., FSDO rejected the employ part-time pilots who remain cur- FAA’s claim that all new-hire pilots needed CESSNA AIRCRAFT rent on airplanes common to fleets of to redo training that they had already and Medical evacuation services and providers have proliferated as business and leisure pursuits take travelers to multiple operators. Many of these com- recently completed. The matter made it to ever more distant and remote locales. Most medical evacuation services are membership based, relying on panies can’t afford to hire full-time pilots, FAA headquarters, where director of Flight some planning on the part of the consumer.

26 Aviation International News • November 2011 • www.ainonline.com FRACTIONAL 601 at Montrose Regional Air- on brokers, so the public can have “The definition of air charter bro- port in Colorado and the 2005 more confidence in their dealings ker will be a matter for comment & CHARTER crash of a Challenger 600 at with them,” said Jacque Rosser, in our rulemaking.” Teterboro Airport in New Jer- NATA’s director of regulatory affairs. The DOT’s answers are vague sey. Following its review, the The accidents that led to the by design. “Since the proposal is DOT concluded, “existing regu- DOT’s action also sparked the not public, we cannot discuss spe- u Continued from page 26 lations do not provide sufficient creation of Acana (Air Charter cifics,” the department stated. consumer protections.” Association of North America), Whatever rules are proposed, Air charter broker regulations: In early 2007 the DOT released established to foster adoption of NATA wants additional steps an Advanced Notice of Proposed best practices and self-regulation taken to make it easier for con- is the wait finally over? Rulemaking (ANPRM), “Con- among air charter brokers. sumers to find out the specifics of sumer Information Regarding On- a charter flight for themselves. Fair Application of the Rules by James Wynbrandt Demand Air Taxi Operations,” “If [brokers] say, ‘I’m going soliciting comments on specific “We welcome regulations–as to put you on XYZ Charters,’ The Department of Trans- flights. That eased the entry into information that the DOT recom- long as they are fair and allow bro- it’s not easy to find out if the portation (DOT) says it will the market of lax and unscru- mended charter customers be pro- kers to do their work,” said David aircraft they’re putting me on is release its long-awaited propos- pulous brokers whose practices vided: the name of the company McCown, Acana chairman and on the [operator’s Part 135 char- als for air charter broker regula- resulted in several high-profile with operational con- vice president of Air ter] certificate,” said Rosser. tions by the end of this year, and accidents and–at the recommen- trol of the aircraft; any Partner, a global char- “The FAA’s certification page that’s not a moment too soon for dation of the NTSB–brought “doing business as” ter brokerage. Acana will tell you the kinds of air- many in the air charter broker- scrutiny from the Department names in the compa- believes any regula- craft that are on the certificate, age community. of Transportation. ny’s Operational Spec- tions should “apply to but it won’t tell you the serial “Unethical brokers who While the FAA regulates air ifications; the name of all who engage in char- number, so it’s not easy to find know nothing about aviation charter operations–governed the aircraft owner; and ter brokerage, including out on your own if an airplane have saturated the market; they under Part 135 of the FARs–the the name of any broker limousine companies is actually certified for charter. simply have a website and a cell DOT has broad authority to reg- involved with arrang- and hotels who offer In our comments we encouraged [phone],” said Wayne Rizzi, pres- ulate charter brokers (and oper- ing the charter. Since to arrange charters as the DOT to work with the FAA ident and CEO of charter broker ators) through its mandate to then the department part of their services,” to make it simple. There should Air Royale International. “These protect the public from false and has delayed release of McCown said. be a website with all the certifi- types of brokers are dangerous misleading advertising. “Our the NPRM containing David McCown As for letting bro- cation and airplane information. for consumers and they’re giving primary goal is ensuring that the draft regulations several times kers “do their work,” the DOT The information is all available, transparent, ethical and profes- consumers who use the services for unexplained reasons. Outsiders told AIN, “We recognize that it’s just a matter of putting it sional brokers a bad reputation.” of air charter brokers are ade- attribute the delays to insufficient questions have been raised about into a user-friendly format.” But after almost five years of quately protected against unfair bandwidth; the DOT has been whether our existing regula- If the DOT does finally release development and several delays, and deceptive practices,” the occupied with actions against air- tions effectively permit air char- the NPRM this year, it will not be you can be excused for forgetting DOT explained. lines, whose practices affect many ter brokers to maximize the public the first resolution this year to the what the DOT regulations are more travelers, leaving charter regs ­benefits they might bring to the illegal broker practices that drew intended to cover, and what led Consumer Education in a holding pattern. on-demand charter marketplace. the DOT’s attention. In Septem- to calls for rules in the first place. In recommending that With the problem of illegal We intend to address both [this, ber the founder and co-founder The mainstreaming of busi- consumers be provided spe- charter brokers continuing–and and the unfair and deceptive prac- of Platinum Jet Management, the ness jet use that began early in cific information about char- in the view of some increasing– tices] issues” in the NPRM. company that arranged the ille- the last decade brought an expo- ter flights that would enable established brokers seem to wel- Regarding whether the rules gal charter of the Challenger 600 nential increase in the air char- them to make informed deci- come DOT regulations. will cover only entities that spe- that crashed in New Jersey, were ter broker field, expedited by sions about safety and quality “I think there’s really strong cialize in air charter, or include sentenced to 30 and 18 months, the lack of licensing or certifica- of service, the NTSB referenced desire in the charter community to businesses that arrange charter as respectively, in federal prison. (See tion required to broker chartered the 2004 crash of a Challenger have some level of formal oversight an ancillary service, the DOT said, Illegal Charters on page 21.) o

FAA oversight issues said. These pilots were already under work with and seems to be knowledgeable; inspectors for help with any problem, a Department of Defense drug-testing he came from a charter background.” But although he is also careful to bring up u Continued from page 20 program, and the FAA found that even he also worries about rogue operators that questions well in advance and he doesn’t to pay to retrain pilots on aircraft in which though the defense program was more fly illegal charters and he has reported expect instant service. If you need, for they are already current (with another oper- stringent than the FAA drug program, these to the government, without much example, an RVSM letter of authoriza- ator). “They are putting resources into the they are separate. Although American Jet satisfaction. In one case, he observed a tion in a day, he said, “that’s not going absolute wrong areas,” the former manager paid $3,000 for that violation, Hensley local company without a charter certifi- to happen. But when it’s planned, they’re said, “spending massive time and effort isn’t as upset about the money or the vio- cate fly a charter for which American Jet on top of it. I’ve heard horror stories of overburdening everybody with paperwork.” lation as he is about the government drug had quoted a price. other FSDOs. I’m a believer in asking The requirement for RVSM letters of program inspectors’ attitudes. Instead of Hensley reported that illegal char- questions before heading down a certain authorization also takes up a lot of valu- working with the company to find a prob- ter to the Department of Transportation path and I don’t ask after I’ve done it.” able FAA time, he noted. “That’s a per- lem and help fix it, he said, “they come in and even provided ample documentation, Robst believes that it’s important to fect example of a total waste of resources. communicate with FSDO inspectors, “and It isn’t a finite amount of resources; it’s I understand that I’m not the only fish in resource allocation.” “Most of them, like us, are trying to do the right thing.” the pond.” Whenever a new inspector is Jim Hensley, president, owner and assigned to JA Air Charter, he makes a director of operations for American Jet –Carl Robst, JA Air Charter, director of ops point of meeting and getting to know the Charter of Bethany, Okla., has also seen new person. “These are people, too,” he operators offered the opportunity to have with their citation books open and ready including FlightAware tracking informa- said. “Most of them, like us, are trying to oversight done by non-local FAA officials. to start writing. They will not help you tion, but nothing has been done so far. do the right thing.” “I thought that was a little odd,” he said. if something fell through the cracks.” In Part of the problem, he noted, is that a He added, “I really do have a good The biggest issues Hensley has had with fact, drug program personnel told him company flying an illegal charter doesn’t FSDO and experienced people there doing his FAA inspectors are with long delays in in a meeting about drug testing, “‘We’re hold a certificate so has nothing for the the best they can. I’ve learned their limita- RVSM approvals, sometimes up to 90 days, here to look at all your drug paperwork FAA or DOT to take away. tions, which I have to understand so that and a drug program violation. and if we find something, we’re going to “We have a good relationship with the I come up with something that works for American Jet received a violation violate you.’ That’s how you come in? I Du Page [Ill.] FSDO,” said Carl Robst, both of us. My job it to learn how to oper- because it didn’t conduct initial drug test- just sat there flabbergasted.” director of operations at JA Air Char- ate within the system. You can fight it, ing for some National Guard pilots hired Hensley overall is happy with his com- ter. “While it’s not a perfect relationship, but in the long run it can be more efficient to fly charters. “We just added them to pany’s FAA oversight. “Our [principal I do feel they work hard to work with us.” working within the system.” o our random [drug testing] pool,” Hensley operations inspector] has been easy to Robst feels comfortable asking his FAA Special report continues on next page u

28 Aviation International News • November 2011 • www.ainonline.com FRACTIONAL will adhere to cancellation terms. Evacuation services in their home country–after their medical Sudan, can place evacuation aircraft on company to own and operate its own fleet, Buyers of individual seats pay in condition has been stabilized. standby for accelerated response. performed a medevac for a non-member uContinued from page 26 & CHARTER full when they commit online and Unlike traditional charter service, which Costs for evacuation services for natural from Egypt. “That was $160,000,” said have no right to a refund. devastating natural disasters of recent years prides itself on quick response to unantici- disasters and social upheaval–both for the Jeff Tolbert, the company’s CEO. Essentially, Jackson argues have brought home the point that businesses pated needs from unexpected quarters, most analysis and planning portion, and for the Aeromedical services are largely unregu- that Victor is a more dynami- need to have plans in place to retrieve per- air charter evacuation services, whether actual extraction, if needed–vary widely. lated beyond the Part 135 rules under which uContinued from page 28 cally market-driven approach sonnel wherever they are traveling or relo- geared toward natural, political or medi- they operate. The more stringent standards to offering charter because cated in the event of such catastrophes. cal calamity, are membership based. Cus- Medical Flight Requirements applied to helicopter medevac flights do not there is strong motivation for “This is all about planning,” said Phil tomers–either corporate or individual–sign Medevac flights require a skill set of their extend to long-distance fixed-wing opera- Victor bypasses brokers to tap the users to make private flying Mathews, president of Air Partner. “When up before they require the service. Indeed, own, as well as specially outfitted aircraft. tions. Required operational specifications more affordable. we work with customers, we analyze the much of the services’ effectiveness stems A stretcher can’t even be loaded horizontally focus mainly on ensuring that stretchers charter value for members Victor offers flights only from various lift options in that part of the world from being ready to spring into action when aboard most business jets, and a standard are secured aboard the aircraft by certified its approved network of operators, beforehand. We may be under contract to needed with a plan in place. In the aftermath divan is not certified for use by a prone pas- methods. (The Department of Transporta- by Charles Alcock posted at the website. Then they which currently includes 38 com- evacuate three or four, or 300 to 4,000. The of the earthquake in Japan, for example, senger during taxiing, takeoff or landing. A tion regulates medical equipment installed are able to earn 70 percent of the panies based in the UK, Denmark, lift profile can be very different.” Air Partner called on China Airlines, with ventilator, a heart-lung machine, or sufficient on air ambulances.) Two accreditation bod- Victor is the latest company to income generated from resell- Germany, France, Austria, Slove- Concurrently, as business and leisure whom it had already contracted, to provide headroom for a physician to perform aggres- ies, CAMTS (Commission on Accreditation attempt to provide travelers with ing seats, with Victor pocketing nia, Sweden and Switzerland. Vic- pursuits take travelers to ever more distant lift. The company’s emergency planning sive CPR might be necessary, depending on of Medical Transport Systems) and Eurami a web-based means of directly the remaining 30 percent. So, tor checks operator AOCs as well and remote locales, the need to get them division also facilitates passport clearance the patient’s medical condition. Biohazards (European Air Medical Institute), offer vol- accessing private charter flights for example, on a $5,000 flight as specific aircraft tail numbers to back home after an accident, injury or ill- to safe havens ahead of time, pre-arranges and decontamination, transferring medical untary quality-control audits for aeromedical without involving a broker. The booking, the member would pay ensure that these are covered by ness while on the road has propelled the lines of credit and provides real-time logis- records, and handling special visa require- services, but their audits are not widely used. aim is to bring together its mem- Victor $250. If the member then the AOC to avoid any possibility Victor members use an online bidding system called FareShare to buy and sell seats growth of medical evacuation, or medevac tical support during evacuations, such as ments for transporting medical patients are While disasters, unrest and accidents will bers and a select group of opera- were able to resell one or more of illegal charter flights. on flights or empty legs, bypassing broker fees in the process, according to the firm. services and providers. obtaining overflight permits. Mathews esti- additional considerations. remain a fact of life, from the evidence seen tors, allowing customers to search spare seats for $2,000, he would Victor holds an air travel “Accidents and illnesses happen, and mates that between the earthquake in Japan Some medevac providers require this year, so too will air charter’s ability to for real-time aircraft availabil- recoup $1,400, with Victor tak- organizer’s license issued by the operations. As of late Septem- on the Spanish island of Mal- the better prepared you are with an assis- and the uprisings in the Middle East, the annual membership while others sell come to the rescue. ity, book flights and arrange pay- ing the remaining $600. UK Civil Aviation Authority. ber, Victor had signed 409 mem- lorca. The UK-based company tance program, the better the chance of company has evacuated more than 12,000 plans for specific time periods. Costs are “This has proved the robust nature of ment via a secure escrow account. This carries legal obligations bers, after launching earlier this believes that many members will recovering and being productive again people this year. typically a few hundred dollars per per- what we do,” Mathews of Air Partners said Crucially, the clients them- Broker Fees Eliminated for minimum levels of insur- year with an initial group of 80 have common travel patterns in the shortest possible time,” said Pat- Dubai-based Air Charter International, son per year for international coverage. about the lessons of 2011. “We’re dealing selves can then sell seats on their In the Victor business model, ance protection in the event of members, consisting mainly of that will lead them to cluster rick Deroose, a group general manager at which covers the Middle East, Africa and Medevac experts note in the majority of with chaotic situations, but we have been flights and/or remarket empty charter operators no longer pay bankruptcy or disruption to people who had second homes together to share aircraft. o MedAire, a Tempe, Ariz.-based provider of Asia, offers emergency evacuation ser- cases patients can be repatriated via com- able to deliver exactly what we told our cus- legs exclusively to other Victor broker fees, which it claims typ- medevac and medical services with offices vices ranging from security advisories to mercial airliner accompanied by an appro- tomers we would.” o members through an online bid- ically run between 7.5 and 12 on five continents. full evacuation capabilities, and during the priate care provider. But in the event an ding system called FareShare. percent (although AIN has iden- The gray and black this business–well over 30 years– Operations Committee during its Medical evacuation is not to be confused Arab Spring unrest performed evacuations air ambulance is required, the member- At face value, FlyVictor.com tified broker fees as low as 2 I can think of only one instance April meeting this year. But noti- with emergency rescue, or transport from from Bahrain and Yemen. The company’s ship fee is well worth the price; early this is a more refined cross between percent in current market condi- of illegal charters when a Part 91 operator was fined fying authorities will not in itself accident site to hospital. Medevac service Emergency Evacuation Standby Services, year AirMed International of Birming- Expedia and eBay. tions). Essentially, the charterer uContinued from page 21 for operating an illegal charter. The stop the activity. plans pick up the cost of repatriating patients available to companies and individuals ham, Ala., which specializes in long- Founder and CEO Clive pays the 5-percent transaction chances of getting caught are slim.” “It might not be as quick as to a medical facility of their choosing–usually operating in Afghanistan, Iraq, Kuwait and haul medevac flights and is the only such Jackson claims that the com­ fee to benefit from the chance to time-consuming and expensive people want,” NBAA’s Nichols pany’s FlyVictor.com website resell seats or empty legs through to regain.” Charter Operators conceded. “It is something diffi- provides travelers with a greater the Victor site. But in a standard Owners face FAA civil penal- Keep the Pressure On cult for the FAA to enforce.” degree of transparency than charter transaction, the charterer ties of up to $10,000 per violation If the frustration about illegal While illegal charter might other online portals in terms of would not pay the broker fee–at per flight. Since each such excur- charters within the industry con- not be quick or easy to stamp having full details on the part- least not directly. sion violates scores of FARs, the tinues to grow, the chances of rule- out, operators and brokers can ner operators and their fleets. In Victor members can also fines could be substantial. But breakers getting nailed for flouting protect themselves and cus- Jackson’s view, this will make it explore possibilities for sharing the FAA has not been aggressive the regs may increase. NATA tomers through rigorous due more probable that they will be flights with other members by in policing this end of the illegal maintains a telephone hotline diligence and use of auditing able to spread the cost of flying posting interest in specific trips charter market. funded by an FAA grant where services in their charter activi- in a way that is practical for all and ranges of dates. Members can “One-thirty-four-and-a-half any employee or an agent of a ties. For their part, aircraft own- concerned. then monitor available dates and is more and more of a problem,” charter operator can report suspi- ers can investigate the legal routes using the website’s watch said Joe Moeggenberg, president cious charter activity. And discus- options available that allow Seat Remarketing function, or can keep an eye on and CEO of Argus International, sions with brokers and operators them to receive financial com- According to Jackson, one flight possibilities via Twitter. the aviation data and safety audit- indicate many of them are ready to pensation over the table for the reason that other online char- When the system identifies ing services company. “We know drop a dime on any such activity use of their aircraft. And charter ter-booking portals have failed is demand for a specific route and there’s a lot of it going on. What we they observe. The question of how customers themselves, industry that they rely too much on oper- dates it can provisionally assign need in the industry is a couple of to notify the FAA of suspected ille- experts say, need to rigorously ators to make private flying more a specific aircraft and operator high-profile busts to make this go gal charter was also a topic of dis- vet any operator or broker they cost effective for clients by mar- to this prospective booking and away. In all the years I’ve been in cussion at the NBAA’s Domestic consider working with. o keting unused capacity, such as will notify members that this is empty legs. A key differentiator available. The first member who between these companies and books this flight, without obli- Charter ops fighting “The aircraft can’t be both [pri- need to be valid and the aircraft Victor is that while operators can- gation, becomes the prospec- vately owned and available for maintained and insured. They not sell individual seats on their tive charterer; when three more a losing battle commercial charter] and the are much more lax in regard to aircraft, their charter customers members sign up for the flight it uContinued from page 21 authorities have missed a trick flight time and post holder reg- can remarket individual seats. becomes a firm booking. Mem- on this because you can’t have ulations, which effectively cuts When an aircraft is booked bers can even check the availabil- of aircraft registered in off- the aircraft as an asset owned at the cost of the complex post through Victor any positioning ity of specific seats on specific shore locations such as the Isle arm’s length one day and then holder team required in com- or return leg is held so that the aircraft online before deciding to of Man, which are restricted to [have] it be strictly for private mercial operation.” flight booker can be sure that commit to join a group. purely private operations. Many flights the next day,” he argued. For many operators, the this will be available for others Once a flight is confirmed offshore-registered aircraft are “Illegal charter activity is most effective way to tackle to use to spread the overall cost. the main charterer (the Victor legally owned by so-called spe- a big issue. We are aware of illegal charter is to do more According to Victor managing member who books the aircraft) cial purpose vehicles set up many such instances and it’s to ensure that consumers are director Jonathan Sumner, selling is committed financially, enter- mainly for tax management pur- damaging the private charter aware of the potentially dam- spare capacity reduces the price ing a binding contract with the poses. In some cases, Dryden business,” commented Martin aging implications of using of flying for the charterer with- operator and paying the cost of explained, the individuals who Bernegger, senior vice presi- illegal charter. Apart from pos- out squeezing operator margins. the charter into Victor’s client set up these corporate enti- dent and general manager of sible safety breaches, the use Members pay a flat 5-per- deposit account with the HSBC ties then argue that the aircraft Jet Aviation Business Jets. “If of illegal charters can invali- cent transaction fee to Victor bank. Victor then pays the oper- is effectively not their private an aircraft is flying with two date insurance and the terms for each flight booking and this ator before the departure date asset in one context, while argu- pilots under private flight rules, of finance arrangements for the fee is built into the charter rates and guarantees that its members ing that it is for other purposes. for example, only the licenses aircraft concerned. o

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