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ASC Monthly Update

##Date##                                                                                                Volume 6 Issue 7


NATA Airline Services Council 

NATA formed the Airline Services Council (NATA ASC) to further the interests of companies that provide services to scheduled air carriers as their primary business. The primary goal of the NATA ASC is to provide a voice within the public policy arena, especially in terms of issues that impact their viability and profitability..


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NATA Airline Services Council Holds Quarterly Teleconference
Last week, the NATA Airline Services Council (NATA ASC) held its quarterly conference call. Officials from the Transportation Security Administration (TSA) participated and addressed a number of important issues affecting the airline services community, including a Certified Cargo Screening Program update. Roger Briton from Jackson Lewis LLP provided members with an update on the National Mediation Board’s latest actions involving changes to the Railway Labor Act and how that could affect NATA ASC companies. Council members also received an aviation industry insurance presentation from representatives of AON Aviation.

The July 22nd conference call Minutes will soon be accessible by clicking here.

The July 22nd Agenda can be found by clicking here.

To view the 2010 NATA ASC Event Calendar, please click here.

Risk Management – More Than Just A Buzzword
For insurance purposes, airline carriers and airline services providers are grouped together. If the airlines suffer major losses, then the insurance underwriters start pulling back and premiums for liability insurance start rising. This impacts every service provider and means that we are in fact inter-related.

We learned this on the recent Airline Services Council teleconference. Representatives from one insurance broker explained that because of last year’s airline disasters, premiums, although having recently trended down, may start to increase again. The aviation market is considered as a whole when it comes to risk and services providers are grouped right in there with the major carriers when it comes to risks and premiums.

The question then is, What can we as service providers do to reduce the risk and therefore prevent major accidents that would contribute to premiums rising for everyone? While I’m sure that every company has a great safety program, at least on paper at the corporate level, does this really translate out to the ramp and how things are done day-to-day?

It hasn’t been that long ago when the ground crew of one service company poked a hole in an aircraft with their ground service equipment and because it wasn’t reported, the aircrew didn’t find out until things went wrong airborne. Or a cargo aircraft crashed on takeoff because either the locks weren’t properly set and the cargo shifted or the cargo wasn’t loaded correctly. These are things that service companies control directly.

One way to prevent these types of disasters or near-disasters is to have an effective risk management program. When this term was first used, it seemed to be just the latest management buzzword-of-the-day. You’ve experienced these. Somebody comes up with a buzzword and sells a lot of books. They make a lot of money, and you’re left with another ineffectual management word for your lexicon.

Risk management is different. It can be an effective tool because you identify the potential problem, decide the probability of its occurrence and what its financial impact would be. If the probability is low and the impact is slight, you don’t have to spend a lot of time on it. However, if you decide the probability of its happening is high and/or the financial impact to the company would be extreme, then you spend management attention on it. You decide what preventive measures will keep the incident from happening or at least mitigate the circumstances should it occur and therefore manage your risk.

Managing risk by having good preventive measures in place reduces the probability of occurrence and the severity of major accidents. By each company doing its part to prevent these types of disasters, flying is a lot safer and there is the opportunity for reduction in premiums for everyone.

Jack Evans, Chairman, NATA Airline Services Council & CEO, Total Airport Services

FAA Reauthorization Update
Over the last two weeks, congressional leaders and staff have continued their attempts to resolve the remaining differences between the U.S. House of Representatives and the U.S. Senate versions of long-term Federal Aviation Administration legislation. With a few issues still remaining, there is hope that Congress will yet approve a long-term FAA reauthorization bill before it adjourns for its summer recess within the next week or so.

NATA is closely monitoring the situation on Capitol Hill and will update the membership with the latest developments.

To learn more about the Senate and House FAA reauthorization bills, please visit the links below:

House FAA Reauthorization Bill

Senate FAA Reauthorization Bill

Five-Week Congressional Recess + Mid-Term Election Year = Great Opportunity For A Congressional Tour Of Your Facility
The U. S. Congress is due to adjourn this week for a six-week August recess. This lengthy adjournment will allow Members of Congress to spend time in their districts and states prior to the mid-term elections on November 2. With advance notice, Members of Congress welcome the opportunity to visit constituents and local businesses in their community. NATA encourages you to host a congressional tour to showcase your business, airport or facility and educate your Members of Congress and their staff about the importance of your aviation business to the community and to our nation’s economy.

For more information on hosting a congressional tour, please click here to view NATA’s Congressional Tour Webpage.

Did You Miss Last Week’s Webinar On Health Care Reform?
Dr. Robert Graboyes, senior healthcare advisor with the National Federation of Independent Business discussed some of the most contentious issues affecting small businesses in the Patient Protection and Affordable Care Act (P.L. 111-148). If you missed the webinar and would like to view a recording, please click here.


NATA Airline Services Council Membership Profile

WFS began operations more than 25 years ago as AMR Services, a division of AMR. Today, WFS is independently owned and its services have expanded around the globe to make it the world’s largest cargo handling company and a premier airline services provider.

WFS is a full service handling company providing above and below wing handling services as well as cargo handling and technical services such as fueling and maintenance, including equipment, boarding bridges and conveyor belts. Services are offered at more than 100 locations on four continents by over 10,000 employees. Globally, WFS handles more than 3 million tons of cargo annually. While cargo is now over half of WFS’ global revenue with more than 30 stations handling cargo in North America and another 30 in Europe, the company has continued to develop with additional services and locations being added, such as Airport Ambassadors in PEK, the development of a CIP terminal in SIN, and the purchase of a majority shareholding in British Airways Regional Cargo. WFS India began providing services in June 2009 in a joint venture and WFS South Africa began operation of the Dube TradePort Cargo Terminal at Durban, South Africa, in May 2010.

The WFS vision remains to maintain a leadership position in the provision of quality services in the eyes of customers, employees, shareholders and competitors while never losing focus on the primary priorities of safety and security.

Changing aviation security requirements have led the company to invest in resources both capital and human to comply with new regulations and keep innovation alive in its business practices.

WFS has been proactive in preparing for the implementation of the 100% cargo screening requirements since late 2008. Five WFS locations have been TSA certified to provide CCSF services since January 2010. WFS was the first ICSF in Miami when it received certification in January 2009 and then only the third in the country. Since then, certifications followed in PIT, DFW, PHL, LAX and JFK. CLT and BWI are on track to achieve certification before the August deadline with BOS following not long after.

WFS Director of Cargo Security and Compliance Karen Avestruz said, “We are happy to be working with the TSA and with cargo forwarders and shippers in this initiative. We have long-established relationships with our carrier-partners, and becoming a resource for independent cargo screening is a logical step in the evolution of the handling business. We will continue to strategically certify our cargo facilities even after the August 2010 screening deadline – all in an effort to provide seamless service to our cargo customers. “

“We have invested in the latest TSA-approved technology and are able to combine our knowledge of the cargo handling business with screening services to provide a “one-stop shop” for the needs of the cargo community,” she explained.

The certification from the TSA as an independent cargo screening facility means that WFS can assist cargo shippers to meet the obligation to screen cargo, eliminating the need for forwarders to invest in screening technology. WFS’s independent cargo screening facilities give forwarders the option to deliver pre-screened cargo to the carrier without having to wait in queue at the cargo facility awaiting screening.

The TSA-approved cargo security process includes security screening, cargo build, delivery, maintenance and validation of the security chain of custody for cargo shipments. The WFS facilities are using approved screening technology to expedite shipment processing.

What services can WFS provide to meet security requirements for cargo customers?

  • X-ray screening, ETD, and/or physical search qualified staff
  • TSA-certified independent screening facility
    • Cargo operations-trained staff to work with shippers and airline partners on ULD build configurations
  • Facility is located on-airport, enabling ramp side delivery of screened cargo. Trucks also available for street-side delivery.
  • Ramp space available for staging cargo for pick-up or delivery
  • Ability to station dedicated cargo agents on site for improved documentation flow
  • Competitive pricing and contract rates available for preferred customers

Contact : Karen Avestruz
Director, Cargo Security and Compliance

Have You Checked Out NATA’s Workers’ Compensation Plan?
Take a Look at the Updated Brochure
The NATA Workers’ Compensation Plan was created in April 1975, with three specific goals in mind:

  • Provide NATA members with a dependable long-term market for Workers’ Compensation insurance;
  • Structure the plan in such a way that if the overall loss experience of the participating members is favorable participants would share in the return of a portion of the premium at the end of the policy year; and
  • Make joining the plan as easy as possible.

The NATA plan is underwritten by USAIG (United States Aircraft Insurance Group), the nation’s largest aviation insurance organization and a division of Berkshire Hathaway. They have provided the coverage since the plan’s inception.

NATA’s Workers’ Compensation Plan is available to any member who meets USAIG's underwriting requirements for participating in the plan. NATA membership notwithstanding, USAIG can underwrite Workers' Compensation insurance only for individuals or firms directly involved in the operation, servicing, maintenance, storage, repair or sale of aircraft. While the NATA plan is available in most states, it cannot be written in Ohio, North Dakota, Washington and Wyoming. Its availability in other states may vary due to rating and tax considerations.

Click here to view the brochure or have your agent/broker check with USAIG at (212) 859-3988.


Aviation Fuel Quality Control Fact Of The Week

One of the key components of any aviation quality control chain is the inspections of fuel and equipment carried out on a regular basis by trained technicians. These inspections verify the current quality of fuel and help to ensure that all fuel handling equipment is functioning properly. Different inspections are usually performed on a daily, weekly, monthly and annual basis, and records of these inspections are maintained on file.

One of the greatest dangers to quality control is known in our industry as “pencil whipping.” For those unfamiliar with the term, pencil whipping is when inspection records are completed without the corresponding inspection or test actually being completed. There are numerous reasons why pencil whipping occurs, including lack of time, poor weather or forgetfulness. Having quality control records falsified through pencil whipping is a serious infraction that threatens the quality of a facility’s fuel supply.

One of the easiest methods for fighting pencil whipping involves a simple policy statement that requires technicians to bring the quality control inspection record or checklist with them when they are performing an inspection. Having the checklist in the field while the inspection is performed acts as a motivator to performing the inspection properly and prevents the accidental missing of simpler inspections. Managers and supervisors can look at the inspection records and easily tell if they are being used appropriately. A clean white sheet of paper with perfect handwriting is a sure sign that that record has not left the office. On the other hand, a record with some fingerprints and dirt on it indicates that the technicians are using the checklist when carrying out their inspections.

New 2010 NATA Airline Services Council Brochure Now Available For Member Use
NATA recently updated and published its 2010 NATA Airline Services Council (NATA ASC) brochure. This brochure provides information on the latest activities that the NATA ASC is undertaking, including issues, meeting schedule and member listing.

The 2010 NATA ASC brochure is now available for download by clicking here.

Members interested in receiving professionally printed hard copies of this brochure may contact Eric Byer on the NATA staff.

New NATA ASC Logo Available For Member Use
NATA has created a new NATA ASC logo that members can use on company stationery, publications and their Web site. The association recently provided members with two types of logos that members can use as appropriate. Members wishing to secure the new logo may do so by contacting Eric Byer.


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National Air Transportation Association
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Alexandria, VA 22302
Phone: (800)808-6282
Fax: (703)845-0396