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.