NATA News

Look for more details on the NATA’s participation at EAA Air Venture 2010 later this week at www.nata.aero.

Over the last two weeks, Congressional leaders and staff are continuing to attempt to resolve the differences between the House and Senate versions of long-term Federal Aviation Administration legislation. With a few remaining issues still remaining, there is hope that Congress will still 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

NATA’s legislative effort to get relief from the regulations issued by the California Bureau of Private Postsecondary Education (BPPE) for flight training providers is ongoing. There are currently two active bills in the California Legislature that offer a delay in compliance for flight training and also require the legislature to hold informational sessions to investigate the appropriateness of regulation of flight training. The California legislature is now on recess and will not return to sessions until early August. As most flight training providers in the state recognize, August 1st is the deadline under California law for entities regulated by the BPPE to submit an application for approval to operate.

In its comments to the BPPE on the proposed regulations, NATA asserted that under the specific statutory language of AB 48 flight training should be exempted from regulation. NATA asked for a response clarifying the bureau’s interpretation and intent regarding exemptions and flight training. NATA has not received a response from the BPPE.

With the deadline for application rapidly approaching, NATA recommends that its members complete and submit the Verification of Exempt Status form to the BPPE prior to August 1. NATA believes that a basic reading of the applicable California statutes indicates that flight training providers may be exempt from regulation under the provision allowing exemption for institutions providing “license exam preparation” with programs approved, certified or sponsored by a government agency (such as the Federal Aviation Administration).

Although NATA believes that the aforementioned exemption provision is applicable to flight training providers, there is no guarantee that the BPPE will agree with NATA’s interpretation. Considering the BPPE’s failure to respond to our request for clarification on that interpretation, it may even be unlikely that the BPPE will concur. For that reason, NATA believes that the best long-term solution involves a delay in compliance passed by the legislature followed by an effort to educate the legislature on the dangers in overburdening flight training providers with unnecessary regulations and fees.

How To File an Exemption Request

1. Download the “Verification of Exempt Status” from the BPPE
2. Complete Sections 1 and 2
3. For section 3, check the box next to: “An institution offering continuing education or license examination preparation, if the institution or the program is approved, certified or sponsored by any of the following: “
4. Complete sections 4, 6, 7, 8 and 9
5. Submit the form and fee to the BPP

Those having questions about the filing of this exemption should contact Michael France.

The FAA has published new regulations that dramatically alter the aircraft registration process and establish new requirements to ensure that registration records are kept current. All aircraft owners are impacted by this rule in effect October 1, 2010.

All existing registrations will expire, and owners are required to re-register their aircraft in an effort spread over the next three years (see table in NATA’s regulatory report and the FAA’s final rule accessible below). Registrations for all aircraft that are not re-registered by December 31, 2013, and their applicable N-numbers will be cancelled by the FAA. Importantly, there is no way to ensure receipt of a new registration certificate prior to the expiration of the current certificate unless the required information is submitted at least two months before the current certificate expires.

The re-registration process for all registered aircraft will be followed by the required renewal of aircraft registration at three-year intervals or the registration will expire. The FAA believes that the primary benefit of this rulemaking will be the increased accuracy of the records within the Aircraft Registry.

To read NATA’s regulatory report outlining the major provisions, dates, and concerns with this rule, please click here. A copy of the FAA’s final rule can be downloaded here.

The U.S. House of Representatives Committee on Appropriations, Subcommittee on Transportation, Housing and Urban Development, last week approved a $67.4 billion fiscal year 2011 (FY11) bill. The bill is $1.34 billion below the president’s request and $500 million below the FY10 level.

For aviation programs, the bill includes $1.3 billion, $70.42 million above FY10 and $10.5 million above the president’s request, for the FAA’s safety enforcement efforts, including $17 million to hire 122 additional safety inspectors to assist with NextGen development and the oversight of foreign repair stations. This additional funding was included to help meet the safety goals established in the FAA administrator’s Call to Action in the aftermath of the Colgan air crash. In addition, the bill includes $2 million for aviation gasoline research for a potentially viable fuel to replace 100LL in the future.

The U.S. Senate Committee on Appropriations held a subcommittee mark-up on Transportation, Housing and Urban Development to approve their FY11 spending bill. The $67.9 billion bill funds transportation and housing programs, $800 million below President Obama's budget request, the same level as last year. The bill provides total resources for FY11 of $122.5 billion, $700 million below the president's request and $400 million above the FY10 level. For aviation safety, $15 million is provided to hire an additional 150 aviation safety inspectors. $3.5 billion is included for the Airport Improvement Program for capital investments at airports across the country.

The FCC intended that their prohibition related to 121.5 MHz would be effective sixty days after publication in the Federal Register. Fortunately, the industry became aware of the FCC's action prior to the actual publication of a final rule. At this time, there is no ban in effect, but not until the FCC formally withdraws its notice will the matter be settled with regard to this proposal.

NATA appreciates the FAA’s action to intervene with the FCC and ensure the continued use of 121.5 MHz ELTs. The association remains confident that the situation will be satisfactorily resolved and will update members on any new action on this issue.

"I am proud to declare July 16, 2010 'Aviation Industry Awareness Day,'" said Governor Strickland. "As the 'Birthplace of Aviation,' it is fitting that we celebrate those who love to fly and recognize the critical importance of this form of transportation to our livelihood and our economy. Whether it's aerospace, aircraft manufacturing, educational institutions or our vast network of over 160 community airports statewide, aviation is a crucial part of our state and country's infrastructure, and we need to continue to support and encourage the growth of this vital industry."
  
Ohio is home to 60 charter flight companies, 131 airports, two fractional providers, and 13 flight schools. In addition, there are 124 fixed base operators in the state.

You can view the proclamation by clicking here.

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.

The NATA/Conklin & de Decker Commercial Operators Tax Seminar is unique among industry tax events. Only the Commercial Operators Tax Seminar, August 17-18 in Indianapolis, Indiana, is tailored to meet the needs of on-demand air charter operators. All sessions are designed to answer the questions most commonly faced in an on-demand operation and provide attendees with clear, concise guidance to take back to the office.

NATA and Conklin & de Decker know that those involved in the air charter industry often have numerous tax questions. This is why ample ‘question and answer’ time is provided to make sure everyone has the opportunity to have their unique situation addressed.

During the two-day event, attendees will learn about taxes that commercial operators face every day in their business, such as federal excise taxes, fuel taxes, sales & use taxes, personal property taxes, income taxes, international fees and more. In addition, a comprehensive review of the impact of the Federal Aviation Regulations on taxes and the elements that should be a part of a charter management agreement are included. Details on the impact on costs when placing an aircraft on a Part 135 certificate and Like Kind Exchanges are provided as well.

This Seminar is a must attend for those involved with aircraft charter, whether you are an owner, operator, charter broker, insurance broker, consultant, lawyer etc.

The Commercial Operators Tax Seminar is on August 17-18 in Indianapolis, Indiana. Discounted registration is available for registrations on or before August 1. A special group room rate at the event hotel is offered only through today, July 26. Act now to lock in your discounts by visiting the event registration page.

We want to hear how you or one of your customers benefited from NATA’s Safety 1st Flight Crew Briefings.

Did you feel more confident in arriving or departing Teterboro and/or Newark airports as a result of this training?

Have you heard someone comment on these briefings…maybe a customer or community member?

Do you have suggestions or questions regarding these briefings?

Want more information on how to develop a briefing for your airport?

Please let us know by sending an email to schambers@nata.aero. Your submission may be featured in a future issue of NATA News, on NATA’s Safety 1st Flight Crew Briefing page at www.nata.aero/flightcrewbriefings and on our social media channels. At your request, we will keep comments confidential or report them anonymously. Thank you for your participation.