NARA members pay tribute to our colleague and friend, Ed Stimpson, who passed away on Wednesday, November 25 of lung cancer. He was 75 years old and is survived by his wife, Dottie.
Many of us are aware of the significant and far-reaching changes Ed pioneered for general aviation over his life-long career in Washington on Capitol Hill, at the helm of the General Aviation Manufacturers Association (GAMA), as the U.S. Ambassador to the International Civil Aviation Organization (ICAO) in Montreal, and in his last position as chairman at the Flight Safety Foundation (FSF). In 1991, when NARA first opened its doors to represent brokers, dealers and service providers in the pre-owned aircraft market, I introduced myself to Ed over lunch one day when he was still at GAMA. He was most welcoming and supportive of our new association when he could have easily justified a competitive position against the used market, touting GAMA’s new jets. A true visionary and gentleman, he knew the importance of adding yet one more voice to the general aviation story and championed our cause from the very beginning. After lunch, I thanked him for his time, and closed with, “Remember, Ed, new once, used forever.” He laughed, and I’ll never forget how fortunate I felt that NARA had a friend in him. Throughout the next 20 years, he remained a loyal advocate of both new and used aircraft markets. From all of us to you, thanks Ed.
Questions or Comments? Feel free to contact Susan Sheets with your thoughts.
I had the privilege of attending the International Aviation Womens Association’s (IAWA)annual meeting in Brussels where a host of speakers from the European Aviation Safety Agency , the FAA and the European Union spoke principally about the EU’s Emission Trading Scheme, (ETS) that will include general aviation emissions by 2012.Though they don’t call it a fuel tax, it sure smells like one.Under the scheme, annual fuel receipts are collected on flights to any EU country and ran through an equation.Based upon the results, you buy an allowance (bought and sold like any other commodity in the carbon market) to cover what you owe, or pay the bill.Though the EU system is not at all satisfactory to private aircraft owners, the U.S. House of Representatives passed a bill in June, 2009 that is even more onerous, and the Senate is currently considering its own Kerry-Boxer bill along the same lines.Some industry leaders think the whole green house gas emissions scheme should be deferred to the International Civil Aviation Organization, ICAO, which has experience in setting standards for global aviation matters, rather than implementing U.S. or European regional solutions.We’re not out of the woods yet, and one thing’s for sure, the green movement isn’t going away;it’s big business and politically correct.
Questions or Comments? Feel free to contact Susan Sheets with your thoughts.
USA Today's story "Feds Keep Little Used Airports in Business"
10/8/2009
Journalist, Thomas Frank, author of the USA Today's article on federally funded airports, tells a very inaccurate story about general aircraft ownership and how airports get money. His article is a gross mischaracterization of private pilots and the system in which they operate.
The Feds don't keep "little used" airports in business; recreational and business pilots keep them going by bringing commercial activity to areas that are not otherwise accessible. As a student pilot out of Manassas Regional Airport in Virginia, I fly a Cessna 172 to another rural airport mentioned in the article, Stafford Regional County. I am one of the many beneficiaries of safe, rural airports, and another 415,000 pilots in America join me in paying for rental fees, instruction, taxes on avgas and other fees that support the system.
As for the regulatory side of the story, the article is so inaccurate about how federal airport funding works, that eleven members of Congress issued a "Dear Colleague" memo to their peers in hopes to clarify how airports – big and small - qualify for much needed safety improvements. Maybe that's the good news: Congress was so provoked by this misinformed journalist that they responded positively to "right the wrong" vis-a- vis other lawmakers. I'm glad it caught their attention.
Questions or Comments? Feel free to contact Susan Sheets with your thoughts.
NARA recently held an industry-wide forum focusing on “Challenges and Opportunities Ahead: The Aircraft Sales Industry in the Next Six Months.”
More than 200 of the most knowledgeable brokers, dealers and finance officers in the resale market gathered to discuss the financial markets’ impact on the global economy, and the global economy’s effect on aircraft sales.
The remarkable attendance at the forum indicates the concern professionals have about the business aircraft resale market. NARA is pleased to have provided a timely venue for a frank discussion of what lies ahead, and the roles we all play in fostering a productive market environment.
Bankers Weigh In
The meeting opened with a panel of bankers, who began the discussion with an overview of the current financial disruption and market degradation due to liquidity constraints. The critical message was that banks are still lending, but the rules have changed. Most lenders now require larger down payments and shorter amortization schedules in today’s financial environment.
Brokers and dealers in the audience heard the bankers’ message that both parties play an important role in reaching win-win outcomes. That is, bankers are able to make more favorable decisions on lending when the brokers and dealers exercise greater due diligence in client selection.
Broker/Dealer Perspective
From the brokers’ and dealers’ perspective, the market has not reached equilibrium yet. Buyers are dictating aircraft values that have not yet stabilized. There was consensus among attendees that brokers and dealers could instill consumer confidence by better educating clients and managing expectations more realistically.
Mutual Resolve
Although bankers, brokers and dealers know that there is no “silver bullet” for what ails aircraft sales, the take-away from the meeting was a collective resolve to proactively work together to close transactions.
General aviation is a resilient industry. We will face these uncharted waters with the same hard work, innovative thinking, leadership and good business sense that have sustained us in the past. Level heads will prevail.
Questions or Comments? Feel free to contact Susan Sheets with your thoughts.
Questions or Comments? Feel free to contact Susan Sheets with your thoughts.
An important message from NARA members to the GA community will appear in the March edition of World Aircraft Sales. I have included a few excerpts below. To see the letter in its entirety, click here.
This unprecedented time in the business jet market gives reason to pause and reassess our industry and its future. While many uncertainties lie ahead, there is no doubt that private aviation remains a crucial engine of business in America and the rest of the world.
Confusion in the media and on Capitol Hill have obscured the inherent virtues of private jet travel—productivity, safety and responsiveness to opportunity—but these virtues remain indelibly clear.
NARA’s leaders have also been hard at work communicating with the lending institutions that serve the aircraft market. Our members will be among the first to know as lending policies change and the credit markets become more favorable.
NARA’s longstanding qualities of integrity, resourcefulness and wisdom—crucial in good times—are indispensable in challenging times like these. We have always believed that there is strength in numbers; that the shared knowledge and broad perspective of our membership allows each individual member to provide greater intelligence and insight to aircraft buyers and sellers.
