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Flight-Department-Fiscal-Flight-Plan

by David Wyndham 31. July 2015 13:40
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"Those who fail to plan, plan to fail." Now is a good time to start planning the next year's budget for your flight department. If you are a public company, you have two, or perhaps three quarters of your fiscal year already reported. How are things going? If your 401(K) is loaded with your company stock, you know that answer. That answer can also help with your 2016 budget, too.

A budget is a very important tool for planning an organization's use of its most limited resource - cash. Managing the cash is critical for any business, or individual. Failure to plan for the incoming and outgoing cash has ruined many a business. And that can limit your aviation operation’s ability to carry out its mission.

A budget is just estimate of the future showing the peaks and valleys of cash flow. A budget can also serve as a benchmark for evaluating actual versus planned-for expenses. Every organization must budget whether it goes through a formal or an informal process. Like any tool, used correctly it can be an asset in managing your aviation cash rather than a one and done exercise.

As an aviation manager, the budget should be more than just filling a square for your upper management reporting. It is a very useful tool that can enable you to track the effectiveness of your aviation operation. It can also alert you to the future peaks in expenses, such as scheduled major maintenance or an aircraft upgrade.

I like to think of the budget as a fiscal flight plan for the aviation department.

First, you need a destination. As a corporation, that destination is coming from the leadership. What are the corporate goals for the next year? How is the flight department going to support the goals of the company? Do you have the right assets (aircraft and people) to support that goal? Have you asked the boss what to expect for next year's flying? Understanding how your flight department supports the corporate goals gives you that higher level view of what to expect next year. Asking the main users gives you more details as to how or if your flying will change.

You need to check the weather. What are the restrictions or conditions that your flight department will face next year? Do you have a senior pilot retiring? Do you need to hire a new maintenance technician? Does your hangar need repaving in front? Did the word come down that your budget is frozen for next year?

Next up and maybe most critical is to preflight the aircraft. This is literal and figurative in that what condition the aircraft is in now, and at the end of the "flight" (year) determines its airworthiness. This is often the easiest part. Once you know to how much you expect to fly, you can forecast what maintenance inspections, overhauls, and part replacements will come due. You should have that running list of service bulletins that you'd like to have done. How does that interior look? What do you need, and want, to keep the aircraft flying in good condition for next year?

The cost details for your budget depend on who its for. You really need to have a budget for two people. The budget that gets rolled into to company budget is needed for reporting and overall measurement of costs. I had one client who had three line items for their budget to send to corporate: salaries, facilities, and transportation. That worked for the CFO's management reports but is insufficient for managing the flight department. You need a lot more cost detail in order to adequately measure your flight department. You need to know what is driving your aircraft costs, what your high cost maintenance costs are, most frequently replaced parts are, and much more.

Fodder for another article - how much detail is needed? Enough to see small problems become they become too big to control. You can't manage what is not measured.

Just as you monitor the weather and aircraft performance during the flight, so must you monitor the budget. Too many see a budget as a static "one and done" exercise. This misses the point of a budget. The budget at its best is a living tool that guides you through the fiscal year. It can alert you to small changes that are manageable. The budget should also be adjustable as the assumptions that went into it change. If you add an important new trip that you fly twice a month, that will increase your flight hours and could pull a big maintenance item into the upcoming year, or impact your ability to have the aircraft down for three weeks for that scheduled inspection. Not to mention if our sub-$50 a barrel oil goes back up, what will that do to your fuel budget?

You should be doing routine "actual versus forecast" reviews of the budget as well. It may be monthly or bi-monthly or whatever fits with your activity level. You also should have a documented set of assumptions that went into the original budget.  This is so much easier to do during the budget preparation than six months later trying to figure out where that number came from.

Ideally, your budget is a living document that can guide your finances throughout the year. You cannot make all the right assumptions, but with documentation and regular reviews you can keep the budget a useful document.

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David Wyndham | Flight Department

Kids Flying Biplanes

by Tori Williams 27. July 2015 11:25
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Plane and pilots en route AirVenture 2015

At 19 and 22 years of age, my boyfriend Daniel and I are still considered “kids” by the majority of adults. For this exact reason, we got a lot of interesting reactions when we flew a 1931 Waco ASO open cabin biplane into EAA AirVenture Oshkosh last week. Most people cannot fathom flying such an antique aircraft themselves, and seeing us doing it seemed out of place.

This particular Waco has been in my boyfriend’s family since the 1960s. It was an old crop duster that had been sitting in a field in Louisiana and desperately needed a restoration. They obtained the aircraft and spent over 10 years restoring it to the stunning condition that it is in now. Although he grew up around this plane, Daniel got his license and spent a couple hundred hours flying a Stinson 10A before he was allowed to move to the Waco. His tailwheel skills still amaze me, and his transition into the Waco only took a handful of hours.

He debated for several days if he should fly the Stinson into AirVenture for a second year, or take the Waco. He finally did decide to take a leap and fly the Waco, and we are both so glad he did. Although it is pretty much the opposite of the type of plane you would want to go on a long VFR cross country with, the flights there and back were unforgettable and enjoyable. The flight up was 6.7 hours total flight time (plus a stop every hour to stretch our legs and snack), and the flight back was only 5.7 hours (plus hourly stops as well).

Wearing our "Straightwing Crew Hats"

The flight was a particularly enjoyable experience for me because Daniel would give me full flight control for entire legs of the trip while we were enroute. The seat in the front has a grand total of zero flight instruments besides the stick, rudder, and throttle control. It was a fun learning experience for me to fly entirely stick and rudder, and for him to give me constructive feedback based on what his instruments read. My first couple attempts I kept getting into what I called “The Dolphin,” where I would over-correct for altitude changes and fly in a constant slight attitude of up and down, like a dolphin swimming near the surface of the water. Once I got the hang of how much input I needed to stabilize the aircraft, it was much smoother sailing.

Half the fun of AirVenture is relaxing in the shade of the aircraft wing and talking to fellow aircraft enthusiasts that walk past. We set out chairs and spoke with people for a couple hours every day. It was always interesting to see the reactions of people who had been admiring the aircraft from the other side, then came over to see us smiling and asking how they were. The most common reaction was “do YOU fly this?” and a general disbelief that such a young guy could be the pilot in command of such a plane. Most people congratulated him on his accomplishments and expressed their jealousy. There was one flight line personnel who saw Daniel climbing on the wing to reach his iPad and promptly came over to scold him for climbing on the aircraft and asked several times if he was REALLY the pilot. We did appreciate his concern for the well-being of the aircraft!

An interesting thing to consider is that the average age of WWI and WWII pilots was early 20's. Pilots younger than Daniel were flying more powerful aircraft in extremely dangerous circumstances. We kept that in mind during our journey and certainly feel reverence and respect for all veterans. Aviation has such a rich heritage and we feel honored for the opportunities we have had so far to experience flight as it would have been in the 1930s.

Beautiful view of Chicago and some sailboats off our right wing as we headed back south.

Daniel's father and my good friend Hayley flew in their Waco YKC, which is closed cabin. It was funny when we would land on the way back and they would be sweaty from all the heat the engine gives off combined with the hot day, and Daniel and I would be wearing two or three jackets to keep from being freezing. The higher the altitude, the colder the air, so we generally flew around 2000 feet.

It was an amazing year at EAA Oshkosh AirVenture and another great experience flying in. Hello to any of the brilliant people we met while up there, and I hope everyone enjoyed the week as much as we did!

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Aviation History | Flying | Tori Williams

Top 9 Things to do at AirVenture in 2015

by Sarina Houston 19. July 2015 13:03
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  1. Test your drone flying skills with Embry-Riddle Aeronautical University's Small Unmanned Aerospace System (sUAS) Challenge. The drone challenge will feature a 30-foot drone cage at Aviation Gateway Park, and will include both obstacle and speed courses designed for unmanned aerial vehicles. The competition will be held daily from 3 to 5 p.m. and is open to anyone age 10 and up. Or, for those who intend to bring a drone with them, a field next to Pioneer Airport will be designated for drone use. Small RC model aircraft (less than five pounds) may be used in the designated area from 7 to 9 p.m. every night.
  2. Visit the widely praised EAA AirVenture Museum to see more than 200 historic aircraft that are available for viewing. From the classic Piper Cub to the Spirit of St. Louis, EAA's AirVenture Museum has all of the best airplanes. From the museum, you can take a ride in a 1929 Ford Tri-Motor or a 1929 Travel Air E-4000. The museum also has four theaters and a special hands-on KidVenture area, and from May to October, you can take a short tram ride to Pioneer Airport and walk back in time through seven hangars that explore the 20s and 30s, aviation's Golden Age.
  3. Take your kids to Pioneer Airport, which is the place to be this year. From airplane and helicopter rides to drone flying to KidVenture, Pioneer Airport mixes old with new by introducing the next generation of aviation buffs to the aviation world in a variety of ways. Kids can complete a Future A&P course by visiting various booths and learning how to accomplish maintenance tasks like riveting or prop shaping. At the Young Eagles flight education area, future pilots can learn about airspace, lift and fly a flight simulator. Pedal planes are available for the youngest pilots, and older ones will enjoy a bit of history walking through the AirVenture Museum hangars.
  4. Watch the Valdez STOL aircraft show each other up. Each May, specially modified short takeoff and land (STOL) aircraft compete in a competition in Valdez, Alaska. More than a dozen of them will be at Oshkosh this year, and the competition is not to be missed. You can find them at the afternoon air shows, at the ultralight air strip and a final competition will happen prior to the night air show.
  5. If low-key is more your style, visit the Oshkosh Seaplane Base located at Lake Winnebago. Buses run from AirVenture to the Seaplane Base regularly, and beyond the weekly Watermelon Social event, it's a quiet respite from the crowds and heat.
  6. Celebrate the great moments of World War II. This is the 75th anniversary of the Battle of Britain, the successful air war to defend England in the summer and autumn of 1940, forestall a planned invasion of the island by Germany, and the first major turning point of the war. This is the moment that Winston Churchill famously predicted, should it be successful, would be known as England’s “finest hour.” Airshow themes celebrating this turning point in the European war throughout the week will include many of the 300 warbirds expected to attend Oshkosh, including a rare flying example of the de Havilland Mosquito fighter/bomber.
  7. Take a seat in a classic aircraft. In addition to the Ford Tri-Motor making its accustomed flights above the AirVenture Grounds, this year you can take a ride from nearby Appleton in the B-17 Flying Fortress Aluminum Overcast, one of the rare surviving examples of this heavy bomber that dropped more ordnance than any other Allied Bomber of World War II. The flights depart from nearby Appleton and a shuttle bus will depart the AirVenture grounds an hour before the flight.
  8. Join Burt Rutan for a week-long recognition of the 40th anniversary of his iconic early aircraft design, the VariEze. For four decades Burt Rutan has continuously broken the mold, creating one unusual aircraft design after another and popularizing concepts such as canard wings and composite construction, culminating for many with his design of SpaceShipOne, the first commercial space flight vehicle. Rutan will be at Oshkosh to share this celebration of his unparalleled history of innovation. His designs will be included in the Homebuilts in Review each morning at 10 and Rutan will be interviewed following at 1PM.
  9. Stop by the Globalair.com booth! Have we met before? Stop by and meet your hard-working GlobalAir team! We'll be in Hangar D, Booth 4028.

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Aviation History | Flying | GlobalAir.com | Sarina Houston

WWII Spitfire airplane raises $4.8 million at auction

by GlobalAir.com 10. July 2015 10:03
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A restored World War II Spitfire airplane, shot down over northern France in 1940, has been sold at auction for $4.8 million. The proceeds have been donated to wildlife and veterans' charities.

By May 24, 1940 the Allied forces were deep in crisis. The Netherlands and Belgium had fallen, and the German army had cornered more than 300,000 British, French and Belgian troops during the Battle of France - fueling Adolf Hitler's conviction in a total Nazi victory over Europe.

As the German troops closed in on the stranded Allied soldiers, British Prime Minister Winston Churchill, fearing "a colossal military disaster," ordered a daring evacuation from the beaches of Dunkirk, known as Operation Dynamo.

Leading up to and during the campaign, more than 200 British and Allied boats were sunk and 145 aircraft lost in the desperate defense and evacuation campaign - amongst them Spitfire P9374, flown by British pilot officer Peter Cazenove, which was shot down in dramatic combat with the Germans over the French coast on May 24.

Cazenove survived the assault and was taken as a prisoner of war. The Vickers Supermarine Spitfire was soon swallowed up by the shifting sands of the beaches of Calais, where it would remain entombed for 40 years until the wreckage was discovered, washed up in 1980.

In 2000, British art collector Thomas Kaplan (pictured) purchased the aircraft - which was in good condition, despite its tragic fate - and set about restoring it to flying condition. In August 2011 the plane - one of only two Mk. 1 models restored to original specifications and in working order - finally took to the skies over Britain once more.

"It is arguably one of the most beautiful pieces of technology ever created," Kaplan said at the Churchill War Rooms museum in London, where the plane has been on exhibition. "The Spitfire is in a way the most iconic symbol of the Battle of Britain and Battle of Britain was really one of the most pivotal turning points in modern history."

The sale commemorates the 75th anniversary of both the Battle of France and the Battle of Britain, in which the iconic Spitfire played a pivotal role combating the German Luftwaffe over the English Channel and beaches of Calais.

The aircraft fetched $4.8 million (4.3 million euros) at a Christie's auction in London on Thursday evening (09.07.2015), of which proceeds will go to the Royal Air Force Benevolent Fund and wildlife charity Panthera. The buyer has not been named. It had been excepted to sell for $3 million.

Kaplan said that the donations were "to pay homage to those who Churchill called 'the Few', the pilots who were all that stood between Hitler's darkness and what was left of civilization. The events of today are, more than anything else, concrete gestures of gratitude and remembrance for those who prevailed in one of the most pivotal battles in modern history."

DW had previously reported the wrong date of the auction, which in fact took place on July, 9. jgt/kbm (AFP, Reuters, dpa)

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Keeping the FAA Happy When Registering an Aircraft Owned by an LLC

by Greg Reigel 6. July 2015 11:46
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A Limited Liability Company ("LLC") provides personal liability protection to its owners, as well as the tax and management flexibility. Both of these advantages have resulted in the increased use of LLC's for aircraft ownership. However, in order for the FAA to accept an application for aircraft registration submitted by an LLC, the aircraft owner needs to comply with the registration requirements of 14 C.F.R. Part 47.

One of those requirements is that the LLC must meet the U.S. citizenship requirements of 14 C.F.R. § 47.3. One of the ways to prove to the FAA that the LLC does, in fact, satisfy those requirements is to submit a "Statement in Support of Registration by a Limited Liability Company" ("LLC statement"). Although this isn't the only way to prove citizenship to the FAA, it is one of the most common methods.

In the LLC statement, the LLC must identify its members and confirm whether each of its members is a U.S. citizen. However, if one of the members is another LLC, the FAA will require an additional LLC statement for that member LLC identifying its members and confirming that those members are also U.S. citizens. The idea is that the FAA wants to drill down to identify which of the individuals involved are U.S. citizens and then determine whether the LLC qualifies as a U.S. citizen under 14. C.F.R. § 47.2. If that second (or third, if necessary) LLC statement isn't filed, the FAA will not register the aircraft until it either receives the LLC statement(s) or it receives other proof (usually organizational documents for the LLC) showing the citizenship of the members.

When all of the LLC's individual or entity members are U.S. citizens, then the LLC will be considered a U.S. citizen. If all of the individuals or entity members are not U.S. citizens, in order for the LLC to be satisfy the citizenship requirement, 2/3 of its officers/managers satisfy U.S. citizenship AND whether 75% of the voting interest of the LLC is controlled by individuals or entities meeting U.S. citizenship requirements.

Another item on the LLC statement indicates whether the LLC is managed by its members or managers. Whatever answer is provided, that information needs to match the information provided by the LLC on the application for registration. For example, if the LLC statement indicates that the LLC is managed by its members, then the individual who signs the application for registration should indicate his or her title as "member" or "managing member." On the other hand, if the LLC statement indicates that the LLC is managed by managers, then the individual signing the application should indicate his or her title as "manager" or some variant that includes the word manager (e.g. chief manager, chief financial manager etc.). If the LLC statement and the application for registration do not match, the FAA will reject the application.

Additionally, although an LLC may also be managed by officers, if the individual signs the application for registration as an officer (e.g. president, vice-president, treasurer etc.) the LLC statement will not be sufficient for the FAA to determine whether that individual has the appropriate authority. In that case, the FAA will reject the application unless it also receives the LLC's operating agreement or some other documentation evidencing the officer's authority to sign on behalf of the LLC.

Applying for registration of an aircraft with the FAA on behalf of an LLC can be tricky. The aircraft owner(s) using an LLC to own an aircraft need to carefully dot the "i's" and cross the "t's" to ensure that the FAA will accept the LLC's application and register the aircraft. Understanding the LLC statement and the FAA's requirements can help you avoid some of the "gotcha's" that can cause problems for an aircraft owner trying to register an aircraft with the FAA using an LLC.

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Greg Reigel





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