Centennial Airport Business Association Newsletter

Issue: # 1 November 2008
From your CABA Chairman 
Centennial Airport businesses and aircraft operators are well aware of the Centennial Airport Business Association (CABA) and the contributions it has made to this airport.  CABA's accomplishments over the past 15 years are extensive and clearly demonstrate how important a local airport business association is to the lifeblood of an airport.  During these challenging times of governmental appropriation issues, proposed user fees, and new industry regulations, it's critical for the Centennial Airport community to have organizations such as CABA. It is important to effectively use the leverage of CABA's membership to promote local and national grass roots advocacy.

CABA was established in 1994 with the purpose of bringing together business operators, airport users and general aviation aficionados to promote the interests of Centennial Airport and the related businesses and operators.  With the leadership and vision of well known Centennial Airport advocates, CABA was able to develop community relationships, rally support, and advocate on behalf of its membership regarding many important local as well as national positions.  By harnessing its collective membership CABA has been an invaluable resource to its membership, the airport, and our aviation industry.

Largely due to a loss of committed members over the past several years CABA has faded in its capacity to successfully conduct its original mission. Fortunately, new leadership and interest in restored membership have been charged with inspiring new ideas, generating enthusiasm, and promoting continued growth.  To this end, in April of this year 9 new Board of Trustees were elected to represent the new leadership of CABA.  The new steadfast leadership is committed to securing the organization's validity and sustainable success.  Since April the Board has rewritten and adopted new bylaws, and spent considerable time and energy developing new goals and organizing priorities.
In an effort to fulfill some of these goals, the CABA board has agreed that inclusion and consistent communication with members is the key to a healthy and sustainable CABA. The Board of Trustees will make it a priority to communicate our story and progress to the current and prospective membership. This line of communication will be accomplished through this newsletter, the new CABA web site, and a series of membership events that educate members on current industry issues.  For example our first seminar on January 28th featuring Greg Feith will focus on contemporary aviation issues such as aircraft operations, FBO safety, and industry security.  It is through these activities and communication median that we aim to convey the benefits and value associated with being a member of CABA.  We hope that the Centennial Airport community will take advantage of this opportunity.

As the current elected Chairman I look forward to working hard over the coming months to make sure that this organization is successful in its attempt to develop and foster a foundation from which CABA can continue to grow, prosper, and be successful in its ability to fulfill its mission.  Please help us build CABA's membership by signing up today to be a member.  Your support and membership will be rewarded as we work together to promote our airport, our business, and our industry.

Iver Retrum
Chairman, Centennial Airport Business Association
Part 150 Study Completed at Centennial 
What Does This Really Mean For All Involved?
By Kevin Harkin 
Centennial Airport finally received approval of its FAR Part 150 study on August 14th, 2008.  It has been a 10 year effort and Robert Olislagers and the airport staff deserve a hearty congratulations. Also, let's not forget Don Crandall and staff who were involved in getting the entire process started.
However, this completion of the study now moves Centennial Airport one step closer to curfews and/or restrictions.  In order for mandatory curfews or restrictions to be put into place another study must be completed which is a FAR Part 161 study.  Many will tell you that there has never been a successful 161 study.  However, Naples, Florida has succeeded and enforced the rulings generated by this completion. 
With the FAR Part 150 Study complete, we will now have a noise department committed to noise monitoring and abatement procedures.  The airport will also be working with the community to determine acceptable noise levels and begin a roundtable discussion group to assure that we are all complying with the voluntary noise program.  The FAA did recommend that the airport include users and tenants in the roundtable and procedure committee as well.
This is just the beginning of the noise abatement and/or curfews. In 2015, all Stage 1 and 2 aircraft will be eliminated from US airspace, but how much longer will Stage 3 aircraft be allowed?  I believe we should continue to work with the communities and airport on these noise issues.  Our interests are best served if all involved have a say.
TSA Proposes New GA Security Measures  
Amending the Twelve Five Standard Security Program
By Donovan DeVasher, Brittany Davies & Iver Retrum
In early October of this year, the TSA announced a notice of proposed rulemaking that would require that all general aviation operators comply with a Large (MTOW of greater than 12,500 lbs) Aircraft Security Program (LASP). This regulation would demand new and security specific training for flight crews, random TSA audits and document submission of all passenger identities to be cleared against a No Fly list. The organizational, operational, and administrative implications are staggering. The November edition of Aviation International News (AIN) lists a few implications for Pt. 91 carriers if NRPM becomes regulation:

1. They would not be allowed to fly family members, or business associates and employees in personally owned, large aircraft without them being cleared against the TSA's watch list.

2. Flying PIC solo in a King Air 300 without your designated GSC (Ground Security Coordinator) clearing the aircraft of stowaways before flight would not be allowed.

3.  Only after one submits to a federal finger printing, and criminal history records check can they operate their aircraft.

4. Many control and documentation processes will have to be specifically implemented by you the operator, to prove individual compliance with these rules.
Fortunately, based on the impending change of federal executive administration and the proactive response by organizations such as NBAA and AOPA and many other pilot associations, there is question to whether or not there is enough momentum and political willpower to see this NRPM through without significant change. While the 911 commission has recommended that some kind of general aviation security program be implemented, what has been proposed seems to be clumsy and without clear measure. It should not surprise us that the TSA, given its short history and track record, should attempt to further increase its reach, its size, and its budget.
It is our recommendation that our members thoroughly study this issue and come to their own reasoned conclusions. While we are careful to remain open minded and as apolitical as our CABA bylaws demand, we also intend to defend the interests and further the cause of general aviation and our membership. Through successful lobbying by NBAA and AOPA, as of November 10th the TSA has granted a request to extend the public comment period through February 27, 2009. We suggest that you actively engage and continue to monitor this proposed rule change by contacting your representatives, and congress people to voice your concern.
2008 NBAA Update & Industry Outlook
What's does 2008/2009 hold for business aviation? 
By Donovan DeVasher (Excerpts taken from AIN November 2008) 

The National Business Aviation Associations annual trade show and meeting held in Orlando, October 6th through 8th, 2008 was well received by those in attendance. Many new product offerings were on display, one of which was an impressive mockup of the new business version of the Boeing 787 Dreamliner. While for the last few years new aircraft orders were unprecedented in number and value, many attendee's were skeptical that this would continue given the uncertain economic outlook of the U.S. economy, and particularly its global effect on international markets, which may prove to be disruptive to future aircraft closings. While both Cessna and Embraer continue to show very strong order backlogs, and very good cash positions, many other secondary and tertiary service providers stated that they were seeing a pronounced slow down in customer orders and prospect interest.
While experts suggest that the top end of the general aviation market (those that utilize large aircraft in excess of 12,500 lbs) are slow to react to the recent negative economic news, in that they are generally less exposed and dependent upon aggressive financing methods, the low end of the market, particularly those that operate turbo-prop aircraft, are showing intensifying signs of weakness. Some point to a dramatic increase in used turboprop and light jet aircraft for sale, coupled with marked downward price pressures as a consequence of this fact.
Financial experts postulate that these operators are more susceptible to economic swings because of marginal cash positions and equity. While a few years ago, it was not uncommon for operators to be able to finance aircraft with very little security because of relatively strong residual asset values, events this year proved to be crushing upon smaller balance sheets.
The charter market has shown a more dramatic downturn in business. Some operators stated that business is off more than 40% year to date, while others declined to comment. Given the election year, the perfect storm that is the Wall Street and credit market crash and, spiking operations costs, many operators have turned to aggressive retirements of old and fuel inefficient aircraft, and redoubling internal energies on streamlining processes. While there is some debate among researchers about a paradigm shift that may be afoot in the charter market generally, favoring more advanced logistical models, others state that there is little actionable data, given these unprecedented economic events. Interestingly, there are some market consistencies shared with smaller Pt. 91 operators.
Chiefly, the largest downturn in business has been seen with those that charter turboprop aircraft over short distances. One operator states that charter trips of less than four hours driving distance are largely gone. One analyst suggests that the charter market generally lags behind bellwether economic indicators by as much as a year. This would suggest that the worst is yet to come. That said, some operators are doing quite well, particularly those that operate larger long-range business aircraft. They point to the fact that there has been market saturation in the U.S. charter business, and that a natural contraction of the market will ultimately prove to be healthy. Conservatism may again prove to be of great value to the stronger charter operators.
As concerns an upside, for those that are in a healthy cash position, there are many good opportunities to be had. Vendors are becoming much more aggressive with incentives, and prices for used aircraft may drop to historic lows. This coupled with declining fuel costs, and a trimming of market competition, the near future may prove to be advantageous to the savvy, and the experienced. While there is no doubt that the business aviation market could use some better news, in all, the industry is still strong and vibrant, with many new and exciting products to be had. Given the tumultuous environment of the airline industry, seemingly without end, business aviation continues to provide an essential service to those that regard it as welcome relief. For those that have been around for a while, this news is probably not earth shattering. This is after all, aviation-where billionaires become millionaires overnight.
After 50 years of dedication to aviation, Gil Utterback has retired.  A prominent leader of both Denver Jet Center and the Centennial Airport Lions Club, Gil also was a founding member of the original CABA.  Thank you for the years of true commitment and devotion!

CABA Mission Statement
"To foster and promote aviation and related business at and near Centennial Airport; to collectively address and respond to issues impacting Centennial Airport, including safety and operational effectiveness; to educate the general public about all aviation activities at the airport, and to preserve the airport and related businesses as valuable economic assets to the community at large."
In This Issue
Part 150 Study Complete
New Large Aircraft Security Program
NBAA 2008 Recap
CABA Board of Trustees 
Iver Retrum
Kevin Harkin
Brittany Davies
(Secretary and Treasurer)
Donovan DeVasher 
John Furstenberg 
 Craig Johnston
Gene Langfeldt
Bill Payne
Craig Teasdale
Helpful Links
Upcoming Meetings/Events 
November 14 - 16, 2008
(9 - 4 pm)
Stories of American Veterans Series
The EAA's B17 
Rocky Mountain Metro
December 11th, 2008
(3 pm)
Arapahoe County Public Airport Authority December Board Meeting
January 28th, 2008
(3 - 7 pm)
CABA Safety Seminar /
Wine & Cheese Networking Event
Featuring - Greg Feith
Current CABA Sponsors 
Dusk at Centennial
KD Design 
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Centennial Airport Business Association | 8001 South InterPort Boulevard | Suite 300 | Englewood | CO | 8112