The Red Sox & the Yankees; American East – Aviation – Division

As I sit typing this blog on the day of the Red Sox season opener against the Baltimore Orioles—Eastern Region HQ (me) Vs AOPA HQ (colleagues)—I am reminded that competition is indeed a celebrated characteristic of American culture. By the very nature of our nation’s humble beginnings competition is, like in sports, ever present in business and in life.

New York’s aviation industry is credited with an annual economic impact of $4.5 Billion in state and local revenue and the source of 500,000 direct and indirect jobs (or 4.7% of the state’s workforce).  While these numbers are certainly eye catching, as an athlete and competitor, success is less about what is achieved and more about the relationship between ones achievements relative to one’s potential for an interval of time.

There’s an old adage that reigns particularly so for aviation industries in the Northeast where competition between states is compounded by our relatively small geography. That is, “If you are not taking steps to move forward, you are moving backwards.”  In other words, to simply maintain the status quo one must change and adapt.

I recently participated in a phone interview with an NBC news affiliate out of Buffalo regarding the New York Aviation Jobs Act (AJA – A.3677-B/S.273-B)—which is the industry’s sound bite to create jobs and boost revenues through the targeted elimination of a significant financial barrier to the purchase and operation of aircraft in New York.  A respected journalist in his region, I was unable to determine if he harbors personal angst with the legislation or if he is in fact an exceptionally talented devil’s advocate.  I would prefer the latter and of course offer him the benefit of any doubt.    One of his arguments opposing the AJA was a question of Northeastern state’s efforts to repeal targeted sales & use taxes as “a race to the bottom.”  If by bottom he meant the elimination of the associated tax, then I would issue an emphatic “YES!”  His angle (as I understood it) offers the cushy scenario in which the elimination of these exemptions would place states on an even keel and ultimately generate a guaranteed revenue stream for a state.  Within this conjured world I would again reply with an emphatic “YES”, followed by an even more emphatic BUT that world doesn’t exist..”  As some might view this parallel universe a stroke of genius in which big corporations continue to pay government large sums of money with no loopholes to line their deep pockets with additional dollar-signs, reality knows not all things are created equal.  The list of examples is endless so I’ll spare you my own interpretation and point to the first and most obvious of them; differing tax rates.

For fear it isn’t obvious, I’ll jump back to the blog’s title for a moment as I infused a historic Major League Baseball rivalry as a metaphor for competition among the states.  While my intent is always crystal clear in my mind, I am aware that the rhythmic ramble with which I preach results in an uncanny knack for skewing even the most focused minds.  I thank my Nanna for that talent! ;)

Not long after accepting this position I realized politics boils down to a matter of perception.  In New York, our plight has less to do with the economic importance of General Aviation as much as it does its economic potential.  With the annual economic figures as I previously tossed out, no one really disputes GA’s importance to New York—but—with any tax legislation there is a financial value attributed to revenue generated from a given proposal.  We tend to think of this value in terms of a “price tag”, and the value associated with the AJA is $13.4 Million.  Legislators must then weigh the value of these presumed guaranteed revenues against the economic potential, or opportunity for increased (or decreased) revenues.  In other words, an exemption like this one is really an investment and so becomes a case of getting legislators to “see the forest through the trees.”  AND while we have plenty of anecdotal evidence to support our case, the dynamics from upstate to downstate make for a unique challenge gaining support from the Assembly.

Basis for Change: Since 2002, NY has lost approximately 700 income generating aircraft.  Courtesy of our friends at the National Business Aviation Association (NBAA), we know the average business aircraft generates $1 Million in annual economic activity and 5 jobs.  So where did they all go? I should first point out for those of us who grew up in parts of New England outside of Massachusetts; the Boston Red Sox is considered New England’s baseball team; hence the fan-handle Red Sox Nation.  With the advance of targeted sales tax exemptions throughout Red Sox Nation, many of New York’s aircraft popped-out to airports just over the border.  Why you ask?  It is the generally accepted notion that corporations (as well as individuals) are in business to make money and so the competition of a free market society presents opportunity in the form of reduced expenses.  GA is by its very nature a mobile industry.  Given the simple reality that owner/operators can save hundreds of thousands of dollars (or more) basing their aircraft in neighboring states, they did just that.

The net result:If you build it, he will come” – Field of Dreams

Red Sox Nation realized that by creating a competitive financial atmosphere for aircraft, we would not only maintain those aircraft currently based here but pick up additional aircraft, each of which needs to bed-down (hangar/tie-down), purchase fuel, and requires various other services all of which—and most importantly—employs people.  These people earn salaries, their income is taxed and then whatever remains is spent on homes, groceries, entertainment, and so forth.  Over any interval of time, the potential for revenue generating transactions increases exponentially, which is all made possible (in this scenario) because of the economic engines that are state airport systems.

Comparison of Success:  Without breaking into the weeds, New York’s GA industry generates its $4.5billion & 500,000 jobs from its system of 130 public use airports.  Comparatively, the seat of Red Sox nation (Massachusetts) is credited with $4.3billion and 400,000 jobs from only 40 public use airports.  Now while the direct comparison of these states treads on apples and oranges, I am required to remind you that not all aircraft were created equal.  Instead let us consider another viewpoint.  According to the FAA, New York is currently host to 7,455 (based) aircraft at its airports.  Massachusetts, with one-third as many airports, is host to 3,664 aircraft.  The simple law of averages indicates the Red Sox’s have a batting average almost twice that (based on raw numbers alone) of its longtime rival.  So again, it is fair to conclude there is a correlation between the number of based aircraft and the associated success of a state’s aviation industry.

The Yankees are and continue to be a historically successful team, however, (as some fans like to gripe about an unlimited payroll) two-times as many airports offer considerably more economic potential than the neighboring system.  As such, my Red Sox continue to dominate the American East—Aviation—Division.  As we say in sports, there’s always tomorrow so fear not my Yankee friends and colleagues.  The Aviation Jobs Act is alive and well despite the final budget resolution released today (Monday, March 31st).  As the AJA awaits consideration in the Assembly Ways & Means Committee, your industry representatives (AOPA, NBAA, & NYAMA) are hard at work educating lawmakers and changing perceptions.  The opportunity to turn the tide is  ever only one-swing away and no fans know this better than those tuned into the fourth game of the 2004 ALCS between none other than the Red Sox and the Yankees.

Keep GA’s voice strong and join or renew today: http://www.aopa.org/Membership.aspx

AOPA and Aerial Applicators- Working Together to Improve Low Level Aviation Safety

13In late November, I had the privilege of attending my first aviation event focused on agricultural aviation and aerial application, known to fans of the movie “Planes” and most of the public as cropdusting.  While I’ve been around aviation and airports nearly all of my adult life, my exposure to agricultural aviation has been limited, and as I learned, my knowledge naïve.  And even though my wife grew up in northwest Kansas in a family that farmed and with a dad who owned a spray service, I never had the opportunity to meet him, or learn much about this small aviation niche during my days on the airport side of our industry. 

So with that background, I attended a day of the Colorado Aerial Applicators Association’s (CAAA) annual conference in Loveland, where about 150 ag pilots, vendors and their families had convened to talk all things ag.  And what did I learn?  That ag pilots are some of the most welcoming, passionate, entertaining and knowledgable pilots I’ve met.  During the course of my day, I spent time learning about the myriad of challenges faced by ag pilots- stringent rules on materials handling, complex EPA stormwater requirements at airports, continuing agricultural and aviation education demands, and of course, the constant threat posed by structures and obstructions like Meteorlogical Evaluation Towers (METs).

METIf you’re not familiar with METs, these are small towers used to evaluate wind power generation feasibility at a particular location.  METs are small, difficult to see, and often erected quickly with no notice, posing a significant hazard to low level aviation activities such as aerial application, firefighting and emergency medical service (EMS) operations.  Because most METs are less than 200’ tall and typically located in rural areas away from airports, they are not usually subject to obstruction review or approval by the Federal Aviation Administration under FAR Part 77.  In the Northwest Mountain region, legislation addressing the marking, lighting and reporting of such towers has recently been passed in Montana, Idaho and Wyoming.  Such marking, lighting and reporting of METs significantly improves aviation safety.

Recognizing this, the National Transportation Safety Board weighed in last May, when it released a Safety Recommendation about the towers and how ideally they should be lit, marked and reported.  For those not familiar with METs, the Nebraska Aviation Trades Association has comprehensive MET information, along with an excellent five minute video.

Across the country, my fellow AOPA regional managers and I are working with aerial applicators and others to mitigate the impact of (METs) on aviation. In Colorado, through the initaitive of AOPA and the recently established Colorado General Aviation Alliance, discussions about legislation to require the marking and lighting of METs in the state began earlier this year.  At the CAAA convention in November, I had the opportunity to participate in a legislative forum led by State Represenative Jerry Sonnenberg, an AOPA member and active GA supporter from Sterling, who has agreed to sponsor a bill in the 2014 Colorado General Session addressing the hazards posed by METs. 

I thoroughly enjoyed my day with Colorado’s aerial applicators and learning more about this unique segment of general aviation.  I’m looking forward to collaborating with them and others to improve aviation safety in Colorado, and across the Northwest Mountain Region.  In fact, myself and AOPA are also already hard at work with our partners in Washington state on similar MET legislation in 2014, so stay tuned.

Oh, and the best part about hanging out with ag pilots?  Hands down, I think they have the best flying stories of any pilots I’ve encountered.  When was the last time you met a pilot who survived a mallard strike through the windscreen and into his chest at 140 knots while in a climbing turn at 50′ AGL?

 

 

 

June is Aviation Appreciation Month in Nevada

On May 17, Nevada Governor Brian Sandoval issued a proclamation declaring June to be Aviation Appreciation Month in Nevada. The Governor’s proclamation states, in part, “The continued vitality of aviation, aerospace, aircraft manufacturing, educational institutions and aviation organizations is important to the daily function of our society,” and, “The aviation industry will continue to play a vital role in the economic and social well being of the State of Nevada.”
AOPA supports these goals. We actively worked for passage of two bills introduced in the Nevada Legislature. Senate Bill 270 would have provided an appropriation to the Nevada Fund for Aviation to be used to match federal Airport Improvement Program grants at general aviation airports. Senate Bill 385 would have provided personal property and sales and use tax abatements for qualifying aviation businesses.
AOPA supported these bills by letters, email, and in person. I testified in support of SB 385 during a Senate Committee on Revenue and Economic Development hearing on April 2. The following day I testified in support of SB 270 during a Senate Committee on Finance hearing.
Unfortunately, the 2013 Nevada legislative session ended the evening of June 3 without the legislature taking final action on either bill. We are already discussing strategy about bringing these measures back in the next session, which convenes in February 2015.