Transcript AST 205 - Indiana State University

AST 205
Chapter 1 Notes
FBO
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• What does FBO stand for?
• Fixed Based Operator
• How did that term originate?
• Originated from the early Barnstorming
days of aviation Post WWI.
• What services to FBO’s offer?
– Fuel sales, repair/maintenance/alteration,
aircraft storage, rental, instruction, air
taxi/freight, pilot supplies, sales, etc.
What’s happening to FBO’s
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• 1970- approximately 12,000 FBO’s in US
• 1980- approx. 10,000
• 1993- approx. 4,300
• Today- 4,800 – 5,200 approx.- projected to
remain the same or decline slightly
What are some examples of Larger Chain FBO’s
in the US?
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• Raytheon Aircraft Services
• Bombardier
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• Mercury Air Centers
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• Signature Flight Support
• Million Air
• Others?
Reason’s for FBO Decline in numbers
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• Onset of Jets- starting in the 1960’s – 1970’s
• Economic cycles- recession in 1970’s and 1980’s
• More competition for free time
• Expense- Why?
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– Liability issue- 18K deliveries in 1978, approx. 900 in 1993
– Production costs
– Increased complexity- Technology, airspace
– Progressive communities demand better service
Currently
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• Moderate Growth- Why?
– Deliveries are up
– Hiring is up
– VLJ’s
– Sport pilot initiative
– 1994 General Aviation Product Liability Reform
Act
– Deregulation- concentrated traffic at hubs
Some Statistics
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• Commercial airlines serve only 5% of public-use
airports
• General Aviation is the exclusive user of 90% of
these airports
• 281 large U.S. airports handle virtually all
passenger traffic
• 25% of travelers board at the 5 largest airports
• Air carriers (121) compose about 2.2% of the civil
aircraft fleet but make up 35% of the civil hours
flown
Statistics Continued
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• Of the approx. 19,000 landing facilities in the U.S.- only 5,000
– 6,000 are for public use and roughly ½ of those are
privately owned.
• Of the remaining half (roughly 3,000) these airports are
classified into the NPIAS- National Plan for an Integrated
Airspace System as:
– Large Hub- i.e. Chicago O’Hare
– Medium Hub- Cincinnati- (comair)
– Small Hub- Louisville, Evansville
– Non-Hub- South Bend
– G.A. reliever- 25,000 – 35,000 operations per year such as Indy
Mt. Comfort/Executive
– Others- Sullivan County
NPIAS Airports
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• All publicly owned and public-use airports
and some private airports if they are publicuse and not located too close to another
NPIAS airport
• Projects include:
– Runway maintenance/construction
– Hangar construction
– Approach/Nav. Aids
– Others
Why is the fight for local airports important?
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• We lose an average of more than one
airport per week in the U.S.
• Airports are increasingly under attack from
the NIMBY crowd
• More industries are being built in rural
America
How is the Aviation System Funded?
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• Federal Airport and Airways Trust Fundcongress authorizes it’s use every few years
• FAA operating budget- $14 Billion Dollars in
2006
• Trust Fund Makes up 75% of that; the
remaining 25% comes from the General
Fund of Taxpayer revenues
• Sadly- User Fees are on the Horizon
How is the Trust Fund Funded Currently?
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• Commercial Passenger Tax- 10% of all
tickets sold
• General Aviation Fuel Tax- 19.4 cents per
gallon of AVGas- 21.9% cents per gallon of
jet fuel
• (Part of the G.A. fuel tax- 4.3 cents per
gallon has beed traditionally diverted to
reduce the federal deficit- this was stopped
about 4 years ago by the AIR21 Legislation)
FAA Trust Fund Funding Ctn.
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• Air Cargo Tax- 6.25% tax (a.k.a. freight
waybill tax)
• International Departure Tax- $6 per person
per trip.
Why G.A. likes the current funding System
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• Directly Related to System Use
• Easy and Inexpensive to Collect
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• Easy to Pay
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• Does not impact safety as user fees would
• Accepted to the taxpayer
The Future of G.A.
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• User Fees
• Sport Pilot Growth
• VLJ Growth
• Alternative Fuels
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• Noise Reduction
• Increased Crashworthiness
• More Intuitive Avionics
• Influx of new designs from around the globe
Thank you- Questions?
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