Avgroup log
Late Fall, 2007
Vol 2, Issue 7
Observations on Our Industry
Thoughts and Comentary
In This Issue
Elephant in the Room
Heat in the Kitchen
Discussion on Green
Politics
Culture & Converstion
Quick Links

Greetings!
Pen & Ink logoFor the fourth year, fifty leaders of the General Aviation industry gathered in Washington in early November to meet with senior members of the Administration and discuss with these policy makers issues that are affecting and will be affecting our industry.  It was my third time participating in the Aviation Business Roundtable.  This year as in the past, CEOs and senior officers from FBOs, MROs, OEMs, Fractional and Charter operators, and others from the GA industry discussed their concerns in frank exchanges with Washington officials.  I will report in this issue what I felt were some of the highlights of the two-day meeting.  Several receiving this newsletter were there.  If you were and disagree or can add anything I missed, please let me know.

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The Elephant in the Room
Everyone knew it was there

Mike NifongThe Roundtable meeting took place only a few weeks after the FAA revoked AMI Jet Charter's operating certificate.  Everyone I spoke to in between sessions with government representatives had an opinion as to why this happened.  No one blamed AMI (or TAG Aviation, AMI's parent).  Several drew an analogy between FAA attorney Loretta Alkalay and Mike Nifong, the now disbarred attorney who prosecuted the Duke lacrosse players.  Alkalay is the FAA lawyer who headed up the AMI investigation.  "Malicious prosecution" was a term used by many.  One prominent aviation journalist called it a "witch hunt".

 Michael Chertoff, Secretary of Homeland Security, was the first official we met with.  Mary Peters, the Secretary of Transportation, followed Chertoff.  I had a question for Peters, but before my hand could be recognized, a staffer declared that time was up and the Q&A over.  I wanted to point out to her that sitting directly on her left was the president of BBA Aviation, parent of Signature Flight Support.  A few chairs to her right sat the President of Midcoast Aviation and several other senior officers of Jet Aviation, Midcoast's parent.  At an adjoining table were two senior officers of Landmark Aviation.  All of these companies and several others present at the Roundtable are 100% foreign-owned.  So my unasked question: "Why, Mrs. Peters, in this global economy that we live in, does it make any sense to preclude foreign ownership of a business jet charter company?"


I wrote about this subject in an article in Hangar Talk called the General Aviation Tsunami.  I covered some of the history of this arcane law and some of the past attempts to repeal it.
If You Can't Stand the Heat...
The kitchen gets hot

FAA logoFollowing the meeting with Secretary Peters, the Roundtable attendees moved to the "Round Room" on the 10th floor of the FAA building.  This large room adjoins the offices of the FAA Administrator and his staff.  Bobby Sturgell, the Administrator (recently appointed by the President but awaiting Senate confirmation), sat at one end of the table.  Nick Sabatini, Associate Administrator for Safety sat on his left, and Hank Krakowski, the CEO of the FAA's Air Traffic Organization was on Sturgell's right.  Jim Coyne, president of NATA and the organizer of the Aviation Business Roundtable, sat thirty feet opposite Sturgell on the far circumference of this very large round table.

After brief introductions by Coyne and Sturgell, Coyne got right to the point by asking Sturgell to explain what emergency prompted the revocation of AMI's certificate.  Sturgell said that he would like Sabatini to answer.  For the next forty-five minutes, it was all a back-and-forth between Coyne and Sabatini, neither giving much ground.  There were rare interruptions from an FAA lawyer in the room and Jim Cooling, an attorney who represents several charter operators.  One of Cooling's points concerned what he considered an intimidating email sent from the FAA to aircraft owners who were TAG clients.  Sabatini came close to apologizing for this and admitted that one other email the FAA sent on a similar subject had been retracted less than an hour after it had been sent.  It was not the FAA's finest hour, nor for that matter the finest couple of months.

If Sturgell is confirmed, he will unfortunately have to spend valuable time patching things up with the GA community.  He otherwise could have used this time for other critical aviation issues like solving the air travel mess and reorganizing air traffic control and the ATO.

Two years ago at this same meeting, Russ Chew, the then CEO of the ATO, was the main attraction.  Newsweek called Chew "Mister Fix It", but strangled by government, he did not fix much and has moved on to fix Jet Blue. This year Krakowski, Chew's replacement never said a word the whole time. 

The Discussion Turns to Green
The earth and the sky

Friends of the Earth logoThe Roundtable group moved to the Eisenhower Executive Office Building next to the White House and met with James Connaughton, Chairman of the Council on Environmental Quality.  He spoke to us for an hour about initiatives the Administration had taken and is taking on the environment.  He explained some of the cost benefits to the environment and the economy of the United States and the world.  I was impressed by Connaughton and found his remarks enlightening.

I have to admit I am conflicted about the whole issue of global warming.  I have tried to listen to both sides.  Based on what we hear on most of the evening news programs and read in the majority of the press, it would seem that global warming is caused by increasing levels of CO2 being released into the atmosphere because of the industrialization of both developed and developing countries. On the other hand, many scientists and others believe we are experiencing a long-term climatic cycle.  In the early 70s there was fear of a returning ice age.

I read an interesting view on the CO2 issue as seen though the eyes of a prominent California politician.  It is not who you think and I believe you will find it interesting whether you agree or not.  See "Three Inconvenient Questions".

Eythl logoAviation is beginning to feel the heat (pardon the pun).  Operators of piston powered aircraft, of which 99% must use leaded fuel, first began to feel the pinch as the manufactures of Tetra-ethyl lead dropped out of the business.  (Only one still exists.)  Any transport vehicle must be sanitized after transporting leaded fuel before carrying any other fuel.  This month Friends of the Earth issued a proclamation that says, "Lead emissions from general aviation aircraft endanger public health".  The EPA responded with a Notice of Proposed Rule Making and asked for public comment by March 17, 2008.

Politics
Not to be overlooked

Rudy logoA meeting in Washington would not be complete without meeting with a politician.  Presidential candidate Rudy Giuliani spoke with us and explained his four major concerns with our government: over-regulation, over-spending, over-taxation, and over-suing.  He mentioned his accomplishments in the Reagan administration and what he was able to accomplish as Mayor of New York.  He spoke about the metamorphosis of Times Square and how parents could now bring their children in comfort to see Mary Poppins, where when he took office as Mayor there were many "Marys" in Times Square, but not the ones you took your children to see.  He used this as one example of how he would take on what others see as the impossible.  I liked what I heard.

Culture and Conversation
The softer side

Moon riseDinner was held in the Corcoran Gallery of Art where there was an exhibit of photographs by Ansel Adams and Annie Leibovitz; two of America's best known photographers.  Adams is known for his black and white photographs of the American west, and Leibovitz for her photographs of celebrities, most notably a nude Demi Moore seven months pregnant.

David Almy, NATA's Vice President of Marketing and Communication sat at my dinner table.  David had been taking pictures of Nick Sabatini at the FAA meeting with a silent digital long range camera until Sabatini,  obviously frustrated by pressure from Coyne, looked across the room and declared, "You with the camera, please stop that.  It is very annoying."

Queen Elizabeth IIDavid told me that he spoke to Sabatini after the meeting and both apologized to each other.  I learned that David has a master's degree in photography.  When I asked him a question about the Adam/Liebovitz exhibits, he offered to walk through the exhibits with me.  David told me things about Adams I never knew, and took me to his favorites photographs and explained why.  At the Liebovitz exhibit, his favorite was an intriguing portrait of Queen Elizabeth II done before her visit to Virginia earlier this year.

Lynne CheneyThe Roundtable meeting ended with lunch and conversation with Lynne Cheney, wife of the Vice President.  I had met her before at a Roundtable meeting a few years ago when we had cocktails at the Vice President's home.  She talked not about politics but mostly about her interest in helping young people learn about history.  She has written five New York Times best selling children's books about American history.  I left the luncheon with an autographed copy of her just released book Blue Skies No Fences, her story of growing up in Wyoming.

Thanks for reading,

Jim Haynes