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May 18, 2020 — Volume 19, Issue 20 |
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| This Week's Top Stories |
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Today, NATA released a problem statement that outlines how Stop Eviction or other similarly related municipal Ordinances are potentially putting airports at risk for violations of FAA Grant Assurances. These Ordinances are also jeopardizing airport’s Airport Enterprise Fund covenants, policies, tenant/subtenant lender and bond covenants, and lastly unduly interferes with airport’s working directly with its airport tenants and subtenants. We believe airports should be exempted from any local Ordinances without a complete and thorough review of FAA policy and preemptive legal standing.
Upon further review, we have become made aware that certain municipalities nationwide are implementing Stop Eviction Ordinances, or other types of legislation, that ignore federal preemptions at airports that conflict with the intent of the FAA guidelines, and provide for commercial tenants within those jurisdictions to forego paying rent, prohibiting evictions, and allowing repayments of rent to be deferred without fee or penalty.
The NATA White Paper outlines how these local Ordinances currently do not align with FAA guidelines and are posing challenges between sponsors and tenants. NATA remains focused on policy that best supports airport businesses and airports to work together during these challenging times.
In mid-April, NATA released a White Paper titled Recommended Practices for Airport Sponsors and Commercial Aviation Businesses in Addressing Leasehold Issues in Response to COVID-19. We urge airport sponsors and tenant businesses to work together to determine the best path forward for each community to continue to allow the airport to act as a base of recovery and their tenant businesses to provide valuable services and serve as pipelines for employment.
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SBA and Treasury Release PPP Loan Forgiveness Application
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Friday, the Small Business Administration (SBA) and Department of the Treasury released the Paycheck Protection Program (PPP) Loan Forgiveness Application and instructions for the application. These documents will assist small businesses in seeking forgiveness at the conclusion of the eight-week covered period, which begins with the disbursement of their loans.
To apply for forgiveness of your Paycheck Protection Program (PPP) loan, borrowers must complete the application as instructed, and submit it to their lender (or the lender that is servicing their loan). Borrowers may also complete the application electronically through their lender.
SBA indicated that it will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities.
According to the SBA, the form and instructions include several measures to reduce compliance burdens and simplify the process for borrowers, including:
- Options for borrowers to calculate payroll costs using an “alternative payroll covered period” that aligns with borrowers’ regular payroll cycles
- Flexibility to include eligible payroll and non-payroll expenses paid or incurred during the eight-week period after receiving their PPP loan
- Step-by-step instructions on how to perform the calculations required by the CARES Act to confirm eligibility for loan forgiveness
- Borrower-friendly implementation of statutory exemptions from loan forgiveness reduction based on rehiring by June 30
- Addition of a new exemption from the loan forgiveness reduction for borrowers who have made a good-faith, written offer to rehire workers that was declined
Click here to view the application and instructions.
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Members Appointed to the Women in Aviation Advisory Board
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Last week, the U.S. Secretary of Transportation Elaine L. Chao announced the appointment of 30 board members to the newly formed Women in Aviation Advisory Board (WIAAB). Former U.S. Air Force Secretary Heather Wilson will serve as chair of the board. “The Department welcomes Dr. Heather Wilson and these accomplished advisory board members, who share a commitment and passion for encouraging women to access opportunities in aviation,” said U.S. Transportation Secretary Elaine L. Chao.
The WIAAB was established on October 3, 2019, under the FAA Reauthorization Act of 2018. The purpose of the WIAAB is to develop strategies and recommendations that would encourage women and girls to enter the field of aviation. The WIAAB will assess education, training, mentorship, outreach, and recruitment of women in the aviation industry.
"On behalf of NATA, I would like to congratulate the FAA and all those selected to the Board who are representing women across the aviation industry," stated NATA Vice President of Marketing and Communications Shannon Chambers. "The aims of the Women in Aviation Advisory Board are critical to the future health and prosperity of aviation. These are defining times for our industry and the ability to inspire more women to join aviation-related career paths will be key to our longevity and success."
Board members represent a diverse range of backgrounds and expertise, including those from major airlines and aerospace companies, nonprofit organizations within the aviation industry, aviation and engineering business associations, the U.S. Air Force Auxiliary, Civil Air Patrol, and institutions of higher education and aviation trade schools. A full list of appointees and their biographies is available here. Read more here.
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NATA Applauds Pick for Ambassador to The Bahamas
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Today, the National Air Transportation Association (NATA) welcomed the announcement of the Administration’s intent to nominate William A. Douglass as the Ambassador Extraordinary and Plenipotentiary of the United States of America to the Commonwealth of the Bahamas.
“Mr. William A. Douglass is an excellent candidate for Ambassador to the Bahamas. He is a steadfast proponent of business aviation and knowledgeable of its vast benefits in promoting tourism, fulfilling critical services, and aiding in emergency response efforts,” stated NATA President and CEO Timothy Obitts. “I have known Mr. Douglass for nearly two decades as a friend. When approved by the Senate, NATA looks forward to working with Mr. Douglass to further strengthen the connections between the U.S. and the Bahamas, particularly in supporting the essential services provided by NATA’s aviation business members both in the United States and in the Bahamas. NATA worked with Mr. Douglass during the relief efforts of Hurricane Dorian, wherein many aviation businesses in the United States volunteered and provided instrumental relief, life savings missions, and support to the people of the Bahamas.”
Douglass is an entrepreneur and philanthropist, who co-founded the investment firm K2 Advisors in 1994, now part of Franklin Templeton Advisors. He was instrumental in evacuation missions following Hurricane Dorian and assisting in efforts to rebuild The Bahamas in the aftermath of the disaster. He has done philanthropic work for the people of the Bahamas for many years, including relief for schools.
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NATA Remembers Oscar Flowers | Friend of the Industry and Champion of Safety 1st
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NATA is saddened by the news that Oscar Flowers, a long-time employee of TAC Air, recently passed away. Flowers joined TAC in 1998 and held roles as its general manager of its Shreveport, Louisiana, facility, Director of Safety and Security, and Procurement Manager.
Born Dec. 11, 1943, in Wilson, North Carolina, Flowers spent a number of years with Amtrak, serving as chief of onboard services. His career led him into aviation with AMR Corp., Ogden Air, and ultimately TAC Air, according to The Wilson Times.
“NATA’s Safety 1st Program is what it is today due to the hard work and dedication of members like Oscar Flowers. Oscar was a long-time member of NATA’s Safety Committee and was instrumental in shaping the PLST online as well as many other programs,” stated NATA Managing Director of Safety and Training Michael France. “He will be remembered as someone who was knowledgeable and always willing to help with a smile and kind words.” Read more.
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NATA joins the rest of the aerospace industry in mourning the passing of Rudy Frasca, who passed away from natural causes at the age of 89 on May 11, 2020. An aviation enthusiast and well-known figure in the community, Rudy was also a longtime member of NATA's Flight Training Committee and the recipient of the NATA Pilot Training Award.
Rudy was born on April 19, 1931, in Chicago, Illinois. He was one of six children of Anthony and Jenny Frasca. He and his wife Lucille (Matern) married in 1955 and moved to Champaign, Illinois, where Rudy started his business and where they raised their eight children together.
Rudy Frasca founded Frasca International in 1958. The flight simulator manufacturer started his aviation career when he began taking flying lessons at the age of 14 and soloed shortly thereafter. He joined the Navy in 1949, and he worked in the service as a flight instructor through the Korean War. Rudy was a benefactor for many aviation organizations and had a special place in his heart for collegiate aviation (NIFA, SAFECON & UAA). Numerous awards have been bestowed upon him for his personal efforts and the company’s contributions to the simulation industry.
Those who knew Rudy admired his friendly, outgoing personality, his sense of humor, his strong work ethic, and his faith. He had a way of always looking for the good qualities in people. He treated others with respect and took great interest in getting to know people. Frasca employees knew he cared by the way he asked about them and took interest in their work. He had a quick wit and loved to laugh. Rudy was truly larger than life. His contributions to the aviation industry will not be forgotten. Read more.
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Association Highlights:
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NATA Roundtable and Webinars to Address PPP, Safety and the Road Ahead
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How are businesses preparing for what lies ahead? NATA's "Air Charter Roundtable: Forging Ahead" provides participants the opportunity to hear about the current state of the industry and discuss the challenges, risks, and opportunities on the path forward. Join your colleagues and the panel on Wednesday, May 20, 2020 at 11 AM EDT.
Tomorrow at 2:00 PM EDT, NATA and David Hernandez of Vedder Price will host a Small Business Administration’s Payroll Protection Program webinar to assist aviation businesses in navigating relief programs. Hernandez will address PSP and PPP compliance and audit risks on the eve of the PPP loan forgiveness and the first PSP quarterly report. Air carriers agreed to a wide variety of broad certifications and compliance obligations. The failure to comply with these obligations have severe consequences, including civil and criminal prosecution. To audit and enforce compliance, the government created an Office of Special Inspector General with very broad investigation and prosecutorial authority modeled after TARP OIG, which resulted in 381 convictions and recovery of $11 billion. Register here.
The NATA Safety 1st team will also host their third webinar in the series, “Getting the Most from the New Safety 1st Training Center,” to allow for continuing education and professional development during COVID-19. The webinar is scheduled for this Wednesday, May 20 at 2PM EDT.
To view last week’s SFAR webinar recording, please click here.
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Digital Version of the 2020 Spring Edition of the Aviation Business Journal is Now Available
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NATA's 2020 Spring Aviation Business Journal is now available online. You won’t want to miss this issue full of important stories about the states of the aviation business industry today, click here to read more.
Highlights from this issue:
- Mining the Data: Measuring FBO Market Demand
- Outback Operator: Gem Air Shines with Backcountry Charters and UPS Cargo
- NATA Members Rise to Support the Fight Against COVID-19
- Building Strong Teams to Meet Industry Challenges
- Raising the Bar for Air Charter Brokers
As always, we thank our advertisers and Member Support Level participants. Click here to read the latest issue.
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Listen to NATA’s Participation in Flying Insider’s Podcast
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With COVID-19 devastating the aviation industry, Andrew Schmertz, Co-Founder and CEO of Hopscotch Air, hosts his Flying Insider podcast. Schmertz interviews executives, entrepreneurs, and team members about how their companies are adjusting and what they see as the future of aviation when we emerge from the turbulent weather.
In the latest episode, “Navigating the COVID-19 Crisis,” NATA Senior Vice President, Ryan Waguespack, discussed how NATA is assisting companies through the pandemic. Podcast topics include the state of the industry, common questions businesses have, advice for charter operators to mitigate the risks, and what the future may hold. Click here to view the recording.
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NATA’s Annual Good Experience Return Means More Now than Ever
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NATA offers a Program that protects your employees while offering tangible savings to your bottom line. The longer you stay in NATA's Workers Compensation Insurance Program, the more you save. GER checks add up, literally!
GER is calculated when the workers compensation premiums and losses are pooled as a group for all members insured in the Program. All remaining premiums not used for payment of the group's claims and insurer overhead costs are returned to participants in the Program. The potential profit from the Program makes up the total GER. This year's GER totaled $6.1 million!
Once enrolled you can sit back, relax, and watch the savings pile in.
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| Membership Spotlight: |
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ACAM Begins Training for IS-BAH Registration
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Asian Corporate Aviation Management (ACAM), specializing in aircraft management, CAMO, charters, trip support and ground handling across the Asia-Pacific Region, is strategically based at Seletar Airport, Singapore. ACAM is aiming to achieve the IS-BAH standard as a follow on to their success with IS-BAO Stage 1. The company has recently completed NATA Safety 1st Aircraft Marshalling online training modules at the NATA Safety 1st Training Center for its ground support team. Joshua Maniar, flight operation supervisor,
explained, “The Safety 1st online training modules covered all we needed and
more, to create total awareness and understanding of every role we engage in on
the ramp. Safety does not happen by itself, you need to create a safe culture
through training.” Read more.
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FBO Chain Donates and Delivers Masks to Hospital
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While the New York City region remains one of the areas in the U.S. most heavily impacted by the COVID-19 pandemic, personal protective equipment there continues to be in short supply. Million Air, which opened its flagship FBO at Westchester County Airport (HPN) last year, decided to give back by donating 8,000 surgical respiratory face masks and 1,100 N95 protective face masks. It coordinated with the Westchester Business Council and dispatched a Houston-based Cessna Citation S/II from its charter fleet to ferry the masks to its HPN location. From there, they were sent to nearby White Plains Hospital. "These are times that define a generation, and we cannot sit on the sidelines,” said company CEO Roger Woolsey. Read more.
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