This past year was a ‘Bear’ for many of us in the Business Aviation Industry, and it is a common-held feeling amongst most of us that the exit of 2011 is a very welcome event indeed. All hopes and aspirations are now locked onto 2012 like some kind of tractor beam, all of us willing that this year will be “the one!”

With so much emotion wrapped up in this collective hope, I felt that it would not be inappropriate for me to organize the hopes that we the majority wish that all Corporate Executive Business Aircraft Owners will do better this year by adopting the following top-six list of New Year’s Resolutions as their own; so here goes:

6.            To keep track of your business use of your aircraft and keep a running total of how much money was saved; how much money was made; what business opportunities resulted from; what trips would have been impossible...all because you used your own aircraft to make these trips.

5.            Task your Director of Operation/Chief Pilot/Director of Maintenance as well as Contract with an outside audit company to confirm and report on all of the following:

How does your aircraft compare, from a safety systems standpoint, to a brand new aircraft?

What is the current market and taxable value of your aircraft?

Are you properly and adequately insured?

Is the current aircraft that you own suitable for your current flight profile, and how will it stack up against your future anticipated usage and missions?

Are your flight activities being properly documented for all applicable taxable events and reimbursements?

Are your aircraft maintenance and inspection events being accomplished in accordance with the maintenance requirements set by the manufacturer, on-time, within a reasonable budget, and are records being properly entered and protected?

Are you subscribed to the right service and warranty programs commensurate with your flight activities?

Do you have an effective and cost conscious fuel purchase procedure in place that is being adhered to?

Are your pilots recurrency training adequately being updated to ensure that all known threats are covered both in the classroom and the simulator?

4.            To determine how well the interface between you, your office and your flight department work to ensure that your wishes and needs as well as the logistical issues of your aviation executives are communicated both efficiently and freely shared between each applicable person that is ‘need to know?’

3.            To meet with your crew (if applicable) and to ask them about how they are incorporating the principles of the Safety Management System (SMS) into all of your business operations.

2.            To review your past three years of how you have historically used your business aircraft during that period of time: to what destinations, why you used the aircraft, who else you allowed to use your aircraft; what other trips were made on business but the aircraft was not used; all with an eye to see where and how the aircraft could be better utilized to improve the overall bottom line of everything within your world.

1.            To tell everyone that you come into contact with both in a business meeting situation (unless strategically it does make sense to do so), and politically, how much you value your business aircraft, and how significant its availability and use is to the bottom line of your business.

Now please go out do the right thing for both yourself and the million, or so of us who support you.

User Fees – The Issue Compared & Understood

Outside of the United States User Fees is a harsh and unnecessary reality for much of the rest of the World. Allow me to take you on a World Tour of ‘User Fees’.

In Canada

There are Navigation Fees for Airspace Usage in Canada which is billed by NAVCANADA. Their Airspace Navigation Fees average out to about $0.40 per nautical mile; however the following fee calculations are stipulated and must be applied:

NAVCANADA charges a quarterly fee to all transient aircraft that uses their airspace. This ranges from $17.00 to $300 per Quarter depending on which aircraft category and weight class your aircraft fits into. They also may decide that a daily fee is appropriate and charge up-to a maximum of $333 per day. On top of this a NAT fee is applied per flight (to/from Canadian destinations and all subsequent hops are all considered separate flights), for a Biz-Jet it is $93.44 per flight. If a position report is to be made (flight following) then an additional charge of $58.24 is also applicable.

The calculation for Enroute fees that apply are worked as follows:

The unit rate of $0.03445 X Aircraft Weight X Distance Flown.

The Aircraft Weight is determined by taking the Square-root of the MGTOW of the aircraft in Metric Tonnes.

The Distance Flown is in Kilometres.

The calculation for Terminal fees that apply (Radar Service/Approaches, etc.) are worked as follows:

 The unit rate of $23.90 X Aircraft Weight.

In this instance the Aircraft Weight is determined by multiplying the MGTOW of the aircraft in Metric Tonnes by 0.8.

Customs charges are also charged to an Aircraft Operator by the Canada Border Services Agency through their Canadian Passenger Accelerated Service System (CANPASS.)

In Mexico and the Caribbean

There are Navigation Fees for Airspace Usage in and around several of the Caribbean States including Trinidad. These are billed through either the Caribbean Air Navigation and Advisory Services, Ltd. (CANAS) and Air Transit Clearing House Limited (ATCHL.) Other than the following list of fees, most Air Traffic Fees are rolled into Fuel taxes just like the U.S.A:

1) A tax for each time an aircraft crosses into Mexican airspace.

2) A landing fee based on the weight of the aircraft.

3) A per person immigration fee (this can be purchased as a multiple entry and would be good for 180 days.)

All other fees and taxes are local.

In the United Kingdom and Europe

All IFR flying made on Airways, as well as into, out-of, and through terminal airspace is charged to the aircraft owner/operator. Every instrument approach made comes with a fee. Every airport charges a landing fee regardless of whether you are arriving under IFR, or VFR; many of which charge surcharges based on aircraft weight and as well as noise category too. All weather briefings by telephone are charged like the ‘900’ area code system here, i.e. the cost per minute is charged to the incoming caller, while the fee per minute is captured and split between the telephone company and the government supplying the meteorological information. Basically pay-pay-pay, which is all in addition to some of the highest aviation fuel taxes on the planet...I won’t even start to talk about the Carbon Credit system that is being introduced there. The NAVCANADA user fees look really, really cheap when compared to what is being charged  in the UK and Europe. In April of 2013 the U.K. will extend the Airline Passenger Tax to all 12,500Lbs and up, Business Aircraft then making all passengers pay $288 each for the privilege of landing or taking off from their soil.

In Russia

Many control towers in Russia do not have English speaking controllers on staff, therefore it is often a mandated requirement to have a Russian Navigator onboard your aircraft, if you are visiting the country and flying internally. The navigator is billed on a daily rate plus all expenses.

Otherwise the user-fee situation there is negligible to none except for landing, parking, handling fees, as well as the occasional attempt made to hold a an aircraft hostage over invented user fees, tariffs, etc. at some of the provincial and remote airports in that country.

In the Middle East

The Middle East has always tried to mimic the precedents laid down by the Federal Aviation Administration, and therefore the airspace infrastructure is configured much like the U.S. while the infrastructure cost is subsidized by the League of Arab nations.

In Africa

For African User Fess see the United Kingdom, Europe and Russia. Some African countries have very rigid Fee policies, while others are more like the Wild-West of the 1800’s, i.e. no real governance and an awful lot of bandits.

In China and the Rest of Asia

China Compensation Fees apply as follows:

·         $3,000 for any landing on Chinese Soil from abroad

·         $1,200 for each landing made within China

·         $500 for every Over-flight Permit if transiting through their airspace

Additionally per Kilometre Navigation Fees apply as well as Airport specific Landing, Parking and Ground Handling Fees all apply.

In many parts of China, a Navigator is also required to be on-board just like Russia.

In Japan, the government there are attempting to privatize all of their airports, so their fee structure will drastically change soon.

In the Antipodes (Australia and New Zealand)

For User Fees in the Antipodes read the paragraphs that I have written about the United Kingdom, Europe, Russia and China and then combine them into the worst system possible.

In South America

Quite similar to Canada in the way user fees are administered and invoiced, however many flights undergo rigorous scrutiny and restriction.

In Conclusion

There is a darn good reason that statistically more than 60% of the World’s fleet of Business Aircraft are owned and operated in the United States of America and less than 10% in all of the European Union Member Countries put together.

Knowing what is being charged around the World outside of the U.S.A., the prospect of a $100 per flight User Fee suggested by our current Commander In Chief: Barack Hussein Obama II, might appear to be quite reasonable. If however, the current Federal Excise Tax (FET – Charged as follows on Jet A: $0.175 per gallon excise tax + $0.043 per gallon Deficit Reduction Tax + $0.001 per gallon LUST (Leaking Underground Storage Tax) tax = $0.219 per gallon) is maintained and charged alongside and addition to the proposed $100 User Fee, then may I be the first to welcome you to the ‘United Socialist States of America’, and we would then have become just like the rest of the intensely over-governed and struggling countries of the World!

The plight and dire struggle of an emerging nation is beautifully epitomised in the Declaration of Independence that was drafted, signed and addressed to King George III on the 4^th of July in 1776. One of the many grievances that the colonists of what was to later become the United States, had with the then King, was how he continually imposed Taxes on the colonists without their consent.

In my opinion, the U.S.A. was founded on the following modern precepts:

1. You cannot ‘legislate’ the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it!

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

I am pretty sure I have stirred up some ire by my ending statement, so please rosin up your fingers and start typing your comments below. By doing so you shall be exercising your right to freedom of speech, another American value that is often under attack as well.

Choosing an FBO

Unless you are based at a rural airport, own your own hangar, fuel your aircraft yourself from your own cache of fuel, and ultimately keep your flying adventures confined to the immediate local area with all take-offs and landings made at your home airport, you will often need to choose which Fixed Based Operation (FBO) is right for you.

The definition of an FBO is, in my opinion "any entity or person that provides one or more aeronautical services, at a permanent location at an airport." My own definition can be expanded upon by stating what those services might consist of:  A supplier of aviation fuel, aircraft handling, aircraft maintenance, flight training, aircraft rentals, parking/hangarage/storage, and many other aviation services not defined here.

So how do you go about selecting which is the right FBO for you to spend your money with?

The easiest way is probably to break out the type of services that you might choose from, into their own categories and then  create a concept of what you consider to be 'good' and 'bad' points of consideration.

Aviation Fuel

According to the National Petrochemical & Refiners Association (NPRA) there are 148 operable refineries in the U.S. (excluding Puerto Rico.) The sum total of all production of distilled product per day, in barrels of crude oil equals 17,736,000. Of this only 9%, or 1,400,000 barrels of Jet Fuel is produced. AVGAS production is much less.  Aviation fuel producing companies total approximately only 30 separate corporations, therefore the blend choice and base or wholesale pricing of all aviation fuel here in the U.S. is rather limited. We are lucky as consumers here, as there exists far less freedom of choice in the rest of the world.

Very few of the raw product producing companies sell direct to the FBO network across this nation. Most of the product is sold and distributed through non-producing suppliers who obviously seek to make a profit from their endeavors (quite rightly so.) Often an FBO also is unable to deal directly either with the nearest refinery, or fuel distributor because the airport at which they have chosen to hang their shingle, has a tenant agreement in place that requires all of the FBO that at based there to purchase their fuel through the airport or local municipal administration. The further away the supplying refinery, the greater the product cost.

Once the fuel makes it into the storage tanks of an FBO, the spot market price quoted by the commodities markets bears very little resemblance to the price that the FBO has paid, and is now ready to sell onto you. In the common situation where the FBO has been required to purchase its resale fuel from the landlord airport, the only way they are able to be price competitive to their neighboring FBO's either at the same field, or at other airports within the same city region/area, is to either reduce their overhead or to buy more fuel than their competitors thus receiving a discount from the airport, based upon how much they buy each month.

The distribution system that I have described above is pretty typical and thus makes a tough row-to-hoe for any FBO that is faced with competition at the same airport, a contracting pilot population, and the current administrations attempts to smash the General Aviation into smithereens. Many of the FBO's that have chosen to build comfortable, amenities-rich, and visitor pleasing facilities that are staffed with well trained, competent and customer orientated staff, elect to charge a 'ramp fee.' This practice is widely decried by many as being unfair, however I contest that you basically get what you pay for, i.e. if self-service pumps in the rain are the only service that you require, then you should expect to pay less than when you enter and exit through the smoked glass doors of an architectural wonder that serves coffee, cookies, has sleep, multi-media entertainment, flight planning rooms, courtesy cars, offers hangarage available to all transiting aircraft, and 24 hour guarded security.

Aircraft Handling

Often the level of handling services are governed by the geographic location of the FBO. In the wintry north snow and ice clearing and deicing will be readily available. At an urban location that acts as a portal for a major city, luggage service, gourmet catering, door-to-door limousine service, on-site conferencing as well as many other hotel-like amenities that may even include a concierge desk, will be available to you. At FBO's that are located at airports that act as a busy international port of entry, customs and immigration services, including access to customs brokerage agencies, international flight permits, visa and other services will usually be available to a visiting aircraft, passengers and crew. The size of aircraft handled by an FBO is governed by the runway length, load bearing capacities of the runway, taxiways and ramps, and often by locally imposed noise or size restrictions deemed by the municipal leaders. You may have to call ahead if you are going to need a certified dispatcher, a set of air-stairs, a wheelchair lift, luggage conveyor belt, or a galley restock. Size, services and amenities offered all add to the overhead of an FBO, and therefore expect to pay a ramp-fee or buy the required number of gallons necessary to support your patronage of the FBO that you are visiting.

Aircraft Maintenance

Generator brushes fail, a transponder shoots craps, an insect blocks a pitot tube, grape juice is spilled on the carpet, a navigation or beacon light burns out; possibly you are transporting company executives on a month long round-robin road show and therefore a scheduled inspection is coming due on your aircraft? Regardless of the service that you require, you must plan ahead to get maintenance performed for you while away from your home base. Occasionally an OEM service centre is also located at your destination city, and this service centre can handle your passenger and get them off to their destination hotel or office, as well as being able to perform your required servicing. Good contingency planning at the beginning of your trip might pay off in major dividends that enable you to keep to schedule if you experience an in-flight failure. Brand choice may be more important to you rather than the price that you pay at the fuel desk.

Flight Training

Some FBO's may offer flight training…or I might say that some Flight Schools might offer FBO services. Choosing where you learn to fly might be one of the most important decisions of your life, both from a competency and financial point of view. Unless you are located in a region where the choice of a flight school/FBO is not an option, i.e. there is only one; you should schedule a trial flight at each of your potential schools before you make your decision. Finding an instructor that matches your personality will go a long way in ensuring that you are able to complete your training in a timely and efficient timeframe. If there is a high turnover of instructors, the aircraft are shabby, poorly maintained, the classrooms double as pilot lounges, or you have long holding times because of the airport being too handle to handle training aircraft in their airspace, you might better served to find a different school or airport before you commit your cash to a license or rating.

Aircraft Rentals

Once you have your certificate in-hand after completing the great expense, personal fulfillment and exacting experience of becoming a pilot, what is the point if you cant either rent, or buy and hangar your own aircraft at an airport sufficiently convenient to you to maintain your proficiency as a newly certified pilot? In the area surrounding a major city you might have plenty of options available to you which may include aircraft share programs, flying clubs or flight school rentals. Either way what is the point of getting your ticket if you cant continue building flying experience somewhere that is convenient and within your means? Do your research on who rents what, where and for how much before you learn to fly?

Parking/Hangarage/Storage

It is possible to spend tens of millions of dollars on the construction of your own hangar in which you wish to house your personal or business aircraft. In most instances the chosen way to house and store an aircraft is by arranging a monthly rental rate for space at your local FBO. It is very common for an FBO to base its quoted rate, or even its willingness to house your aircraft on how much fuel you will be buying from them (remember how their price goes down, and their ability to stay in business is based on how many gallons they need to buy.) When considering which FBO best suits your hangarage needs, visit them all and stick around and watch how the base aircraft are handled, both how they are maneuvered in and out of the hangar (do they have at least 3 people to stack and unstack each aircraft from its berth?) Do they have the appropriate tug and tow bar combination appropriate to your specific model of aircraft? Do they carry sufficient insurance if they run your aircraft into a hangar wall or another aircraft? Is the hangar secure after hours? When will you be able to access your aircraft during the 24 hour cycle? How much notice do you need to give the FBO to make sure that your aircraft is out ready fro your desired departure? It is also important to understand the rules that you agree to regarding on how long your aircraft will sit outside on the ramp while another aircraft is taken in-or-out of the same hangar. I have known some FBO's to park base customer aircraft outside on the ramp, so they can accommodate a transient aircraft in the same spot that they are charging you rent for, while effectively double charging for the same space. Buyer beware.

Customer Service

Human beings are motivated by many kinds of behavior and stimulation, through-which creates a value set that they choose to live by. I for one don’t see a budget mindset having any place in the value set of an aircraft owner. This is for two reasons:

·         Aircraft can kill you if they are not housed, fed, watered, cared for and operated properly, all for the sake of an owner who is looking to own and operate their own aircraft on a shoestring budget.

·         The purchase price, cost to own and operate an aircraft is usually out-of-sight for most people on this planet. If you are not wealthy, then you shouldn’t be flying your own aircraft.

Having stated my opinion above regarding how you approach the ownership and/or operation of your aircraft, you will understand why I hold service, integrity and quality high above the actual cost, and whenever I am in the position (it does happen occasionally) to select an FBO, I treat the decision as a matter of value, instead of cost. Some of the best FBO's that I have had the privilege of using go out of their way to make certain that their customers feel safe, comfortable, cared-for and that all expectations are both met and exceeded. The FBO that greets a Cessna 172 with the same enthusiasm and standards that they provide to a Gulfstream, is sure to score high in customer satisfaction, and  ultimately in number of actual aircraft movements and subsequent fuel sales that they see and make each year. 

Making Your Choice

So what resources are available to you as an aid in making the best choice of an FBO? Well you are already here! Globalair that is; the very same website that you are reading this article. If you follow this link:  http://www.globalair.com/directories/ You can find links to aviation companies, from flight schools to flight departments, maintenance companies and charter services on the largest search engine in the aviation world. If you follow this link: http://www.globalair.com/airport/ you can rely on Globalair's FBO fuel prices, the most up to date on the Internet, to find the best 100LL and Jet A prices. Search for weather, FAA data, runway lengths and approach information.  Best yet, join MAX-TRAX here: http://www.airportfuelprices.com.  Max-Trax, the world’s first and only aircraft fuel route-mapping system. Developed by Globalair.com, Max-Trax is an easy and efficient way to improve your aircraft fuel efficiency. By providing a tool that tracks and continually updates aircraft fuel prices, it will help you save time and money each time you use it, regardless of whether you’re dispatching a single aircraft or an entire fleet of aircraft.

Max-Trax is user-friendly and extremely flexible, allowing you to modify your flight plan on the fly. Max-Trax utilizes its own proprietary FBO fuel pricing index of jet, avgas and 100LL fuel suppliers, developed in conjunction with Globalair.com’s Airport Resource Center (ARC) http://www.globalair.com/airport, to display up-to-date* aircraft fuel prices, information on the primary destination airport or alternative airports nearby and details on services and amenities available at each.

It makes laying out flight routes prior to departure or modifying them once you’re in the air as easy as pointing and clicking. If you need to deviate from your original flight plan enroute, simply rolling the cursor over a new waypoint or keying in the airport identifier or the name of a city is all it takes. Max-Trax will recalculate and display updated, point-to-point routing in a matter of seconds…including the best aircraft fuel prices at the new location.

As aviation fuel prices soar to new heights, Max-Trax can help you stretch your budget by saving you thousands of dollars on fuel purchases over the course of a year. Nowhere else on the Internet will you find a resource specifically designed to help you fly the most efficient routes and refuel at the most economical sites.