Tag Archives: business

Aircraft User Fees

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And why general aviation pilots and businesses should be fighting back.

There’s been a lot of talk — and fighting against — the Bush Administration’s “Next Generation Air Transportation System Financing Reform Act of 2007.” I’ll be the first to admit that I don’t have all the details. But here are a few things that seem pretty clear to me.

Higher Fees Hurt Business

The User Fee system proposed by the Bush Administration may severely cut the activities of general aviation pilots. According to AOPA President Phil Boyer, “Nine out of 10 AOPA members have told us that this would reduce, curtail, or end their flying.” What’s that going to do for the aviation industry? As current pilots who can no longer afford to fly regularly sell off their aircraft, the used aircraft market becomes flooded. Fewer people will be buying new aircraft, so manufacturers will suffer. Suppliers to those manufacturers will suffer, as will employees all around.

As costs increase for general aviation businesses like flight schools, charter services, and tour outfits, those costs get passed along to consumers. That drives prices up, possibly making these services too costly for the marketplace. There are fewer customers. Businesses fail. This continues the cycle of used aircraft sales and unemployment.

Proposal Seems to Ask General Aviation Pilots to Bail Out Airlines

Shifting the cost of ATC services from airlines — which are responsible for hundreds of thousands of passenger hours a day — to general aviation is simply unfair. Many of these companies are failing financially because of their top-heavy management organization and unreasonable pay scales. Why is it that some airlines — Southwest comes to mind — are financially fit and offer good service to their customers while other airlines — think United — can’t stay afloat without government funds and pension rule changes? Could it be that some companies are simply managed better than others?

Do you think it would be fair for all people who use banks to pay a certain tax to the government for a fund that’ll bail out mismanaged banks that go under? Like the ones that gave out mortgages to anyone capable of writing their name on a form, no matter what their financial situation was?

Or how about a tax on drivers to be put in a fund to bail out automakers who don’t build the cars we want to buy at a price want to pay?

Or a tax on homeowners living in the desert for a fund that rebuilds oceanfront summer homes destroyed by hurricanes?

Is any of that fair?

Get Involved!

If you think the administration’s proposal is a bad one — or even if you want to learn more — get involved. If you’re an AOPA member, you can sign up to get e-mail notifications of developments, as well as instructions on how you can contact your government representatives to tell them what you think.

You can also go to this page to get more information about the funding debate.

Don’t wait until it’s too late. Act now.

Understanding Engineers

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Some engineer jokes.

My friend Stan sent me these.

Understanding Engineers – Take One

Two engineering students were walking across a university campus when one said, “Where did you get such a great bike?”

The second engineer replied, “Well, I was walking along yesterday, Minding my own business, when a beautiful woman rode up on this bike, threw it to the ground, took off all her clothes and said, “Take what you want.”

The second engineer nodded approvingly and said, “Good choice; the clothes probably wouldn’t have fit you anyway.”

Understanding Engineers – Take Two

To the optimist, the glass is half full.

To the pessimist, the glass is half empty.

To the engineer, the glass is twice as big as it needs to be.

Understanding Engineers – Take Three

A priest, a doctor, and an engineer were waiting one morning for a particularly slow group of golfers.

The engineer fumed, “What’s with those blokes? We must have been waiting for fifteen minutes!”

The doctor chimed in, “I don’t know, but I’ve never seen such inept Golf!”

The priest said, “Here comes the greens keeper. Let’s have a word with Him.” He said, “Hello, George! What’s wrong with that group ahead of us? They’re rather slow, aren’t they?”

The greens keeper replied, “Oh, yes. That’s a group of blind fire fighters. They lost their sight saving our clubhouse from a fire last year, so we always let them play for free anytime.”

The group fell silent for a moment.

The priest said, “That’s so sad. I think I will say a special prayer for them tonight.”

The doctor said, “Good idea. I’m going to contact my ophthalmologist colleague and see if there’ s anything he can do for them.”

The engineer said, “Why can’t they play at night?”

Understanding Engineers – Take Four

What is the difference between mechanical engineers and civil engineers?

Mechanical engineers build weapons and civil engineers build targets

Understanding Engineers – Take Five

The graduate with a science degree asks, “Why does it work?”

The Graduate with an engineering degree asks, “How does it work?”

The Graduate with an accounting degree asks, “How much will it cost?”

The Graduate with an arts degree asks, “Do you want fries with that?”

Understanding Engineers – Take Six

Three engineering students were gathered together discussing the possible designers of the human body.

One said, “It was a mechanical engineer. Just look at all the joints.”

Another said, “No, it was an electrical engineer. The nervous system has many thousands of electrical connections.”

The last one said, “No, actually it had to have been a civil engineer. Who else would run a toxic waste pipeline through a recreational area?”

Understanding Engineers – Take Seven

Normal people believe that if it isn’t broke, don’t fix it.

Engineers believe that if it isn’t broke, it doesn’t have enough features yet.

Three Things to Consider when Blogging for Business

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Some thoughts.

A while back, I was interviewed by a local newspaper reporter about my blog. Being the newspaper’s “business advocate,” he was most concerned about blogging for business.

That’s actually a good topic of discussion for anyone who blogs and operates a business. (That includes me, since I actually own and operate two active businesses: my writing “business” and Flying M Air.) So I thought I’d share some of my thoughts about blogging for business here.

Purposeful Content

One of the first things to think about when blogging for business is content. You have a few options:

  • Publish content that has nothing to do with your products, services, or industry. I’m not sure why you’d want to do this in a pure business blog. (I do it here, but that’s because this blog wasn’t created to support my business.) It could provide enough interesting content to attract visitors and some of those visitors might develop an interest in your products or services. But if you propound opinions — especially political opinions — that are unfavorable to some visitors, you could actually damage your company’s reputation and lose potential (or worse yet, existing) customers. I think Bob Parsons, CEO of GoDaddy.com committed this sin; I recall reading a bunch of mailing list messages urging other readers to boycott GoDaddy.com because of something Parsons had said in his blog. (I decided to boycott the list instead and dropped my subscription.)
  • Publish content of interest to your customers that isn’t directly related to your products or services. This is something I do with this blog. My customers (the folks who buy my books) are obviously interested in topics my books cover. But what of related topics my books don’t cover? When I write an article about blogging for business, the article may appeal to some of the folks who have bought my WordPress book, since that book covers blogging software. But it goes beyond the scope of that book to offer additional helpful information. (At least that’s the goal.) It also appeals to bloggers using other blogging platforms that I haven’t written about or don’t even know about. Those people are not going to buy my WordPress book. When you publish content like this, it makes your blog a place for people to get valuable information. These people may be customers or future customers. Or they might be people who will recommend your site to potential future customers.
  • Publish support content for your customers. This is probably the best and most useful thing you can do with a blog — provided your Web site doesn’t already have support information in an easier to reference or search place. Some good examples include the blogs for FeedBurner, Tumblr, and Google advertisers. I do this on my blog by publishing clarifications and corrections to my books in the various Book Support categories and answering reader questions in Q & A.
  • Publish pure marketing content. I’m talking about information about new products, special offers, and links to product reviews. This is obvious business stuff and I do it on both of my business-related sites. Here, I’m sure to mention when a new book has hit bookstore shelves or if one of my Informit articles is published. On Flying M Air’s Web site, I have a What’s New category where I list new tours and excursions as they are released and a Special Offers/Be Spontaneous! category where I release information about limited-time offers. But in all honesty, although Flying M Air’s Web site is blog-based, I don’t really consider it a blog. You can find better examples of this on many business-related blogs, including the ones listed in the previous bullet point.

If you don’t consider content first, you might find yourself in a situation where you don’t know what to publish. One of my publishers went through this exercise with its blog. It turned the blog over to a single person who had a single focus of interest. The resulting entries appealed only to a small group of visitors and did a pretty good job of alienating others, including me. The project has since been turned over to someone else and the content is more well-rounded.

Writing Style

One of the things I don’t like about some blogs is the writing style used by some bloggers. (Fortunately, I don’t see much of this because I seldom visit a blog more than once if I don’t like the way it’s written.) Some people write as if their company’s legal department is looking over their shoulder. Or their fifth grade English teacher. Or their boss. Or their teenage son.

A blog’s writing style should set the tone for the entire blog. Here are some examples of what I mean:

  • Authoritative. You’re the expert and your words prove it. But be careful with this one. If you make a solid, authoritative statement and it’s wrong, your blog’s comments will fill with corrections — some of them worded in a very nasty way. And if people rely on what you tell them and have problems, you’ll wish your legal department was looking over your shoulder as you were writing.
  • Friendly and helpful. This is my preferred approach. I try to write as if I’m talking to a friend, offering suggestions, advice, assistance. You might not know all the answers, but here’s what you know — or are pretty sure about. Is the information helpful? If so, great! If not, well, keep checking in; you might find something more helpful in the future.
  • Hip, cool, groovy. (Am I dating myself here or are those words back in the current vocabulary?) You’re part of the “in crowd” and you know your readers are, too. You use current slang and make reference to people, places, or things in popular culture. Grammar isn’t important, spelling goes with the current trend. If you want to appeal to others who communicate this way — especially young people who are influenced by current fads — this is the way to go. But be aware that it’s likely to alienate everyone else (including me).

These are just some examples. The best thing to do is come up with a tone that’s comfortable to you. If you pick the wrong tone, your readers will probably know it. And they’ll wonder what else is fake about your blog’s content.

Branding

Another thing to consider is the presentation of your company’s blog. Everyone in business these days knows how important branding is. While you might think it’s okay to throw a blog up on wordpress.com or blogspot.com, formatting limitations are likely to make it impossible to give your blog the same branding elements as your Web site. If this is important to you, you’ll need to take the time and effort (or hire someone else to take the time and effort) to set up a fully customizable blog that can include your company logo, colors, fonts, and images.

In my world, Flying M Air is a perfect example. When I had my company’s brochure redesigned by a real designer (imagine that!) nearly a year ago, I decided to use the color scheme, shapes, designs, and existing logo as branding elements that I’d use on my Web site, business cards, and other presentation and marketing materials. That meant rebuilding the site from the ground up — which turned out to be a bit of a challenge, given that I wanted to use WordPress as my publishing platform. (WordPress is heavily reliant on CSS and I know just enough about CSS to be dangerous. I documented the task in a 7-part series on this site, if you’re interested in reading about my experience.) The resulting site supports my “brand” and is clearly identifiable as “official” Flying M Air material.

Conclusion

These are just a few things to think about when setting up a blog for your business. I’m sure if you brainstorm a bit, you can come up with more. (After all, I’m no expert!)

And brainstoming is probably a good idea if you’re getting ready to launch a business blog project. Get everyone who will be part of the blogging team involved. Talk it over together. Come up with a plan.

Just remember that every plan should be flexible, allowing for change as change is needed.

Got some advice to share? Use the Comments link.

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Heli-Shopping

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The latest craze? I wish!

You’ve probably heard of heli-skiing, where they take you to the mountaintop in the ultimate “lift”: a helicopter. And heli-hiking, where they take you by helicopter to a remote trailhead and pick you up someplace equally remote. Well, thanks to one of my regular passengers, I’ve now started doing heli-shopping trips.

Here’s the deal.

Wickenburg has serious limitations on its shopping opportunities. Sure, there’s a great supermarket (which even has a Starbucks now, if you can imagine that) and there are a handful of shops down and around town for buying souvenirs, items for your home, and gifts. And even a little boutique.

But for hard-core shoppers, that might not be enough. For these people, it’s Scottsdale or bust.

Scottsdale, by car, is a good 90-minutes from Wickenburg. And that’s if you don’t hit any traffic and push the speed limit a bit. But by helicopter, it’s only 30 minutes away. The obvious benefit for the shopper: less time in the car, more time in the shops.

Last year, a couple who flies with me every time they come to stay at one of Wickenburg’s guest ranches, drove down to Scottsdale for a shopping day. The weather was awful and rainy and since people who live in Arizona don’t know how to drive on wet roads, the traffic was terrible. When they got to the shops, she got right down to business while he tried, in vain, to get a seat at one of the mall restaurants for lunch and a few hours of reading time. But the mall was packed and he couldn’t get a seat, so he wound up in their rental car in the covered parking garage, reading by the car’s dome light. Then, when she was finished shopping, they had another long, miserable drive back to Wickenburg.

This unhappy memory stuck with them. So this year, when they came to visit, they asked me if I could simply fly her down to Scottsdale, while he did something in Wickenburg that he enjoyed: a round of golf.

I’m never one to turn down a good charter, so yesterday at 10:30 AM, I was winding up Three-Niner-Lima with my eager passenger on board. We had an uneventful flight down to Scottsdale, landed, and locked up the helicopter on the ramp. Then, since I had only one passenger and my Scottsdale airport car is a two-seater, I drove her down to the Scottsdale Fashion Mall and let her loose by herself for four hours. Then I spent the time doing some errands, having a nice lunch, and doing a bit of shopping on my own.

I picked up my passenger at 3:30 and drove back up to Scottsdale Airport. I put the car away and we carried our bags back to the helicopter. I stowed everything under the seats and, a few minutes later, we were heading north for a slightly different route back to Wickenburg that would include an overflight of Lake Pleasant and Castle Hot Springs. We were back on the ramp at Wickenburg in time for cocktail hour at the ranch.

Mission accomplished. In style.

Heli-shopping isn’t for everyone. For one thing, it ain’t cheap, so potential heli-shoppers have to be really serious about their shopping time. And shoppers simply have to say no to that great deal on an end table at Restoration Hardware — or anything else that won’t fit in the helicopter.

But heli-shopping is more than just transportation to the shops awaiting your discretionary spending dollars. It’s a scenic flight from one world (the sleepy retirement community of Wickenburg) to another (the busy city of Scottsdale). The transition from town to open, empty desert to suburbs to city is something to see. And you won’t believe the kinds of things you can see from the air that are simply invisible from the road.

Heli-shopping takes shopping to new highs. Pun intended.

How do you make a million dollars in aviation?

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Start with two million dollars.

That isn’t my joke — it’s standard aviation humor. And if you think it isn’t true, start an aviation-based business.

Yesterday, against all odds, UPS actually delivered the auxiliary fuel pump I needed to get Zero-Mike-Lima up and running again. Yes, on Saturday. In Wickenburg.

The UPS guy was at our neighbor’s house, looking for ours when we spotted him. Mike gave a New York hail-a-cab style whistle and the driver saw us waving at him from our hillside. Moments later, he was on our driveway in front of the house.

“How many deliveries did you have to Wickenburg today?” I asked.

“Two,” he replied. “And you’re lucky it was me driving. I was out for four weeks. If the other Saturday driver can’t find a house, he just doesn’t deliver.”

Yes, I was lucky. I needed the part to replace the fuel pump that had gasped its final gasp on Friday, right at the end of a flight. Although the pump is redundant in flight (so there was no danger during the flight), I do need it to prime the engine at startup. I couldn’t fly without it. And I had three relatively lucrative gigs lined up between Sunday and Thursday.

The fuel pump cost $1,500. Add another $40 or $50 for overnight Saturday delivery by UPS. Then add the cost of the mechanic who graciously agreed to come in on Saturday — one of his usual days off — to install it. I told him to charge me extra. He said he would. Hell, it’s only fair. He could have said it would have to wait until Monday. Then I’d miss out on one (which turned into two) of my gigs.

Doing the Math

Unexpected repairs like this are only part of what makes operating an aviation business a lot more expensive than people think. How many times have I been at a rides gig where people asked how much fuel the helicopter burned? Every single one. I tell them it’s 16 to 18 gallons an hour and sometimes they ask how much fuel costs. I tell them $4 a gallon. They do some math in their head to come up with $64 per hour. Then they see us loading people on board for $30 a head, sometimes three at a time, and figure I can get 6 10-minute flights in per hour. That number comes out to $540/hour. Jeez! I must be making a fortune!

The truth of the matter is, fuel is among the least of my expenses.

What people always fail to consider is insurance (at about $11,500 per year); regular maintenance like oil changes ($120 each), 100-hour inspections ($2,000 each), annual inspections ($2,000 each); and the cost of the oh-so-important overhaul due at 2,200 hours that costs (currently) a whopping $182,000. (Do the math on that: $182,000 ÷ 2200 = $83/hour.)

And then there are things like this fuel pump. The original pump lasted only 416 hours. If the final cost of replacement is $1,700 (with all labor and expenses), that works out to another $4/hour. Add that to the cost of replacing my primary radio, which is currently in the shop and may be declared dead: $2,100 for a used one plus several hundred for troubleshooting the old one and swapping them out. And the cost of that clutch down-limit switch that had to be replaced 200 hours ago: the $8 part with $800 labor. And, oh yeah, let’s not forget $120 just to make sure my transponder is working right — that’s something I’ll be paying for every two calendar years.

How about the support stuff that doesn’t go on my helicopter? Like the $1,200 tow bar and the $600 golf cart (used, thank heaven) to pull it? And monthly rent for the hangar to keep it safe and dry and out of the sun? And the charts and other FAA publications I’m required to keep up to date, including sectionals (twice a year per chart), terminal area charts (twice a year per chart), airport/facilities directories (every 56 days), and the FAR/AIM (once a year)? Or how about my annual medical exam, which is required just to keep my license? Or credit card fees just so I can accept credit cards for payment?

And how about marketing? The $1,600 I just spent on 4-color, tri-fold brochures and the $459/month I spend during the high season to get them in brochure racks throughout the Phoenix area? And the cost of the trade show I’ll be attending later this month to sell my multi-day excursions to folks looking for a different kind of vacation?

And how about the cost of my ground crew on those outdoor ride gigs and the cost of permits and commissions just so I can do them? And the cost for operating the helicopter just to get to and from the gig — sometimes more than an hour each way? And the cost of the table and chairs and shade structure and signs that we use on those gigs? And those orange cones and all that yellow Caution tape? And overnight lodging and meals for me and the ground crew on distant, multi-day gigs?

Don’t get me wrong. I’m not complaining. I knew I was in for it when I launched this business.

But it does explain why I have to charge $450/hour for flight time. I’m not pocketing nearly $400 in profits as most people may think. I’m barely covering my costs.

Paying for It

Today is Sunday and Zero-Mike-Lima is sitting snug in its hangar, all ready to fly. I picked up a second tour today, one of my Ghost Towns & Mines air tours. Right after that, I’m doing my first ever Swansea Town site day trip. On Tuesday, I’m taking a winter visitor to Scottsdale for some upscale shopping. And on Thursday, I’m taking some folks to Sky Harbor so they can catch a flight to Canada. The total revenue for these four flights is estimated at $1,895. That’s revenue, not net income.

Just enough to cover the cash outlay for that fuel pump and labor.

Would I give it all up? Hell, no! But I do hope the new fuel pump lasts longer than 416 hours.