Business Aviation Is Flying High, Still Has Room to Climb, Says Olcott

Business aviation is at an all-time high, and yet there's room for further growth, NBAA president Jack Olcott said at the convention's opening general session on Monday.

In his review of the accomplishments of the organization and the industry in the last 12 months, Olcott told attendees that more companies than ever before are flying business aircraft, with 400 new flight departments formed in the last year alone. According to Wichita-based AvData, more than 8,000 companies are flying more than 12,000 aircraft. And that doesn't include fractional ownership.

Olcott conceded that fractional ownership is a major catalyst in the growth of the industry. He said that since the concept was inaugurated in 1986, more than 1,000 companies have purchased shares in 1,200 aircraft. More than 200 aircraft have been purchased by share owners in just the last 12 months. Olcott was particularly enthusiastic that 80% of fractional owners are new purchasers of aircraft, and half of shared owners never before flew in a business aircraft.

GAMA President Ed Bolen echoed Olcott's enthusiasm. Shipments of new aircraft in the first nine months are up 55% over 1997, which itself was a good year. Through October, billings are up 20%, said Bolen. "[This] will be the best year [in shipments and billings] in a long, long time," he said.

On the regulatory and legislative front, the fight was won this year to prevent the establishment of user fees or an increase in present aviation taxes. Meanwhile, NBAA and GAMA are helping to convince the FAA that fractional ownership should continue to be operated under FAR Part 91 rather than Part 135. And the industry was able to get an exemption to the fastener quality act.

Olcott pointed to several specific accomplishments over the last year as part of the success the industry is enjoying. One example is the opening of the Business Wings exhibit at the National Air & Space Museum. It took nearly four years to make it happen, but already four million people have been exposed to business aviation's message since the exhibit opened in June. Olcott said seven institutions are now participating in the association's Professional Development Program and 87 representatives of member companies have completed the course. Enrollment doubled in the last quarter.

Also enjoying considerable success are the association's REACHBAC program, the "No Plane, No Gain" advocacy campaign, and the GAMA-led GA 2000 learn-to-fly project. Version 3.0 of Travel$ense, the association's software program for comparing airline costs versus business aviation use, is being released here. The association has completely rebuilt its Web site, which has had a phenomenal response: Visits there have grown 1,600% since the site was introduced in 1995. Working with the FAA and Congress, the NBAA succeeded in getting the major providers of situational display data to block registration numbers on request from operators.

Olcott said that in order for business aviation to continue to fly in fair weather, it must be pro-active. The industry cannot, for example, relent in its fight to prevent user fees. Fees will surely be proposed again when the 106th Congress convenes in early 1999, warned Olcott. FAA reauthorization funding again will be an issue next year, because current funding has been extended only six months.

The session ended as it began-on a high note-with awards to: Delores Johnson of Signature Santa Barbara, for her "extraordinary support" of Operation REACHBAC; to Mutual of Omaha's flight department, for its participation in the Corporate Angel Network; and to Townsend Engineering's Bill Wagner, for his long-time contribution to business aviation. Wagner's award was the first of a new award to be presented each year by Duncan Aviation.

By Gordon A. Gilbert