IBAC Annual Report 2010

Contents 2010: Challenges of Rebuilding Governing Board Governing Board Meetings Finance Committee Planning and Operations Committee (POC) Environmental Issues Work Group Communications 2010 Highlights Presentations Business Aviation Representation Aircrew Identification Card Business Aviation and Climate Change Aviation Security International Standard for Business Aircraft Operations (IS-BAO) IS-BAO Standards Board Business Aviation Safety Leadership 2010 Financial Report 2011: Building for a Strong Future

international business aviation council

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010

IBAC Member Associations

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International Business Aviation Council (IBAC)

IBAC Annual Report 2010

2010: Challenges of Rebuilding Business aviation around the world continued on its road to recovery in 2010 following the devastating impact of the economic downturn in 2008. Aircraft movements started to increase and aircraft sales were once again positive as the total number of global business aircraft continued upward. In particular, substantial growth in business aircraft ownership and use was experienced in the Middle East and Asia. Europe also saw a substantial percentage growth in 2010. Business Aviation events regained much of their health and moved towards record numbers of attendees experienced in 2007. It was a year of rebuilding towards heights achieved before the recession. The International Business Aviation Council (IBAC) and Member Associations experienced the challenge of strengthening representative capability under pressures of reduced revenues. Demand for activity by representative bodies increases in tough times and yet resource bases are tightened, demanding draw on surpluses collected in healthy years. Thanks to the annual contributions of IBAC Membership along with special one time contributions, resources were sufficient to continue strong and effective representation. Safety of business aircraft operations continues to be the high priority for IBAC and Members. The business aviation safety record remains amongst the best in aviation, as reported later in this Annual Report. In 2010, IBAC initiated action to ensure that the critical safety data was available into the future and that a mechanism was established to ensure sustained recognition from the International Civil Aviation Organization (ICAO). IBAC was active on a number of Panels and work groups at ICAO to ensure business aviation interests in safety standards are well represented. 2010 was a very significant year for the International Standard for Business Aircraft Operations (IS-BAO). Unprecedented growth was experienced in Peter Gatz the numbers of operators using the standard, and the number obtaining a IBAC Chairman Certificate of Registration more than doubled. The year clearly established the IS-BAO as the premier global safety standard for business aviation. Growth continued in North America, but a very substantial increase was experienced in other parts of the world. Demand for IS-BAO Workshops doubled. A new Quality Assurance program was introduced and a dedicated Auditor Workshop program established. There was increased focus by civil aviation authorities to use the IS-BAO as a means of demonstrating compliance with aviation safety regulations. The substantial increase in workload as a result of the increased demand resulted in a Governing Board decision to conduct an IS-BAO Business Model Study to determine how best to manage the program into the future in recognition of its growth. There was also need to commence work on rebuilding the management capacity and to search for more automated mechanisms to handle the increased communications and database needs. More detail of the IS-BAO 2010 experience can be found later in this Annual Report. The environment was again a significant priority for IBAC in 2010 as the Council solidified the structure established the previous year. The Business Aviation Climate Change initiative developed in 2009 was communicated at events and applied to advising governments and others of the very proactive stance being taken by the business aviation sector. The new format for managing the Environmental Issues Work Group (EIWG) continued and the Group met on a regular basis, with emphasis in 2010 given to the development of a new CO2 certification standard and a potential new noise standard.

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010 Security standards at ICAO and many States were stable in 2010, but changes by many governments were under development, requiring attention by user organizations. IBAC continues to promote application of industry standards and best practices as an effective means of continuing to provide good security. Other IBAC activities continue to provide positive results. The CNS/ATM Advisory Group was successful in providing coordination and input on air traffic management issues under a new management process. The Aircrew Identification card continues to be in high demand. Solid relationships with governments and sister organizations around the world continues. Overall, in spite of the challenges faced by IBAC and Members by the recovery from the recession, along with its financial pressures, the organization has been very successful in representing the interests of its constituents. The success of programs such as the IS-BAO and Aircrew card are clear signals that the value of the international representative body continues to grow.

Len Giacomelli Vice Chairman

Terry Yeomans Treasurer

Rui Aquino Past Chairman

The IBAC Governing Board IBAC is a Council of national and regional business aviation associations. Each IBAC Member Association has authority in accordance with the IBAC Bylaws to appoint one Member to the Governing Board. Members of the Governing Board in 2010 were: • • • • • • • • • • • • • • •

Peter Gatz - Chairman, German Business Aviation Association (GBAA) Len Giacomelli - Vice Chairman, Canadian Business Aviation Association (CBAA) Terry Yeomans -Treasurer, British Business and General Aviation (BBGA) Rui Thomas de Aquino - Past Chairman, Associação Brasileira de Aviação Geral (ABAG) Elizabeth Dornak, National Business Aviation Association (NBAA) Eric Aguettant, European Business Aviation Association - France (EBAA-F) Ali Al Naqbi, Middle East Business Aviation Association (MEBAA) Rodolfo Baviera, European Business Aviation Association (EBAA) Rob Garbett, Business Aviation Association of Southern Africa (BAASA) Michael Keenan, Australian Business Aircraft Association (ABAA) Leonid Koshelev, Russian United Business Aviation Association (RUBAA) Kazunobu Sato, Japan Business Aviation Association (JBAA) Karan Singh, Business Aviation Association for India (BAAI) Chuck Woods, Asian Business Aviation Association (AsBAA) Pietro Zaccari, Italian Business Aviation Association (IBAA) The Corporate Secretary is William Stine of the NBAA.

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International Business Aviation Council (IBAC)

IBAC Annual Report 2010

Governing Board Meetings IBAC Bylaws require a minimum of one meeting of the Governing Board and Members each year. In 2010, two meetings of the Governing Board and Members were held as follows: Governing Board 51 (GB/51) – Geneva, Switzerland, 7 May 2010 Governing Board 52 (GB/52) – Dubai, UAE, 10 December 2010. The 51st meeting of the Governing Board was held following the European Business Aviation Conference and Exhibit (EBACE) held in Geneva. The significant increase in demand and workload for the IS-BAO program was subject to a review and the GB agreed to create a Task Force to assess potential business models that could be applied to building a solid management structure for the future (see IS-BAO report in this Annual Report). Also at the GB/51 meeting, the IBAC Business Plan 2010-2014 was approved. The Governing Board also approved a new Emissions Policy that was partially driven by the community’s Commitment on Climate Change.. GB/52 was held following the Middle East Business Aviation show (MEBA) in Dubai, UAE, hosted by the MEBAA. The Governing Board reviewed the status of the work of the Task Group assessing business models for the IS-BAO and completed a review of the report of the Finance Committee on the budget constraints that will be experienced in 2011 due to the economic downturn.

IBAC Finance Committee The IBAC Finance Committee is a committee of the Governing Board, chaired by the IBAC Treasurer. In accordance with the IBAC Financial Policy the Committee is mandated, on behalf of the Governing Board, to oversee the financial program and annual expenditures. The Finance Committee met twice in 2010. The Committee dedicated most of its two meetings towards planning towards offsetting the impact of the recession on the IBAC budget. Considerable analysis was conducted during the December meeting on forecasts for 2011 and the amount of draw necessary from the Reserve Fund. Results of the Committee meeting were presented to the December GB meeting with agreement that a draw on the Reserve Fund will again be necessary in 2011, with a target set at a draw of $26,000, with a further review to be completed at GB/54. • • •

Terry Yeomans - Treasurer and Chairman (CBAA) Len Giacomelli - (CBAA) Paul Stinebring - (NBAA)

Planning and Operations Committee (POC) tember. The POC met with the Executives of the European Aviation Safety Agency (EASA) in Cologne in advance of the POC meeting. The EASA Executive Director confirmed the intention of the Agency to maintain the principles for the NCC rules established years before. The POC discussed at some length the workload issues for the IS-BAO program and assessed the potential for continuing growth. Progress of the Business Model The second meeting (POC/23) was Task Force was reviewed. also held in Brussels 23-25 SepThe IBAC Planning and Operations Committee (POC) met twice in 2010. POC/22 was held in Brussels, Belgium 10-12 March. The POC met with officials of the European Commission responsible for environmental issues. Following the meeting with EC and Eurocontrol officials the POC discussed a number of current issues including preparation for the ICAO High Level Safety Meeting.

International Business Aviation Council (IBAC)

Members of the POC in 2010 were: Donald Spruston, Chair, IBAC Ali Al Naqbi, MEBAA Steve Brown, NBAA Ricardo Nogueira, ABAG Francisco Lyra, ABAG Sam Barone, CBAA Peter Gatz, GBAA Brian Humphries, EBAA Pedro Azua, EBAA William Stine, NBAA Guy Lachlan, BBGA Peter Ingleton, Secretary, IBACso ry Yeomans (BBGA), Pedro Azua (EBAA), Steve Brown (NBAA), Pe-

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IBAC Annual Report 2010

Environmental Issues Workgroup (EIWG) The EIWG is responsible for developing IBAC policy on environmental issues, with policies submitted to the IBAC Governing Board for approval. In 2010, the revised process for managing the EIWG was implemented and Robert Shuter was contracted to provide EIWG leadership. As Chairman of the IBAC EIWG, Mr. Shuter also served as the business aviation representative on the ICAO Committee on Aviation Environmental Protection (CAEP). The EIWG consists of representatives from some of the IBAC Member Associations, with strong technical support provided to the EIWG by representatives from airframe and engine manufacturers. In 2010, EIWG meetings were held on a regular monthly basis via Teleconferences. Two principle issues were discussed in preparation for the ICAO CAEP Steering Committee meeting held in Toulouse in November. Most significantly, the EIWG worked to determine the business aviation position on a potential CO2 certification standard. The second issue of importance was the proposal to introduce a new noise standard in advance of the plan earlier developed by CAEP. IBAC was represented at the CAEP Steering Committee meeting by Robert Shuter and many of the EIWG Members.

Communications Good two-way communications between IBAC Members and the IBAC Secretariat and between IBAC and the aviation community and governing bodies remains an IBAC priority. Principal mechanisms for keeping Members current with IBAC policies, aviation rules, airspace design and regional procedures are: 1. 2. 3. 4. 5. 6. 7.

Governing Board Meetings and their minutes. Planning and Operations Committee (POC) meetings and their minutes. IBAC Update (Quarterly). Technical reports and bulletins. IBAC Website (www.ibac.org). Work Group Meetings and their minutes. E-mail and phone.

Principal means of communication with authorities and the industry is through: 1. 2. 3. 4. 5. 6. 7.

IBAC Flyer. IBAC Update IBAC Strategic Plan Brochure. IBAC Website. Presentations and Working Papers at Conferences Kiosk at industry conventions. Communication Meetings. 2010 Business Aviation Turbine Fleet

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Turbo-Jet Aircraft Turbo-Prop Aircraft

18,053 13,112

Total Turbine Aircraft

31,165

International Business Aviation Council (IBAC)

IBAC Annual Report 2010

2010 Highlights Significant highlights in 2010: ∗ ∗ ∗ ∗ ∗ ∗ ∗

IBAC Business Plan 2010-2014 approval. Very rapid growth in the global acceptance of IS-BAO. Implementation of an IS-BAO Quality Assurance program. Substantial increase in number of IS-BAO Workshops. Initiation of a Task Force to assess IS-BAO Business Models. Development of an Agreement with Helicopter Industry Associations for a ‘Helicopter Edition’ of IS-BAO. Approval of a new Emissions Policy.

IBAC Presentations In 2010, IBAC made presentations at a number of Conferences and meetings, including: • • • • • • • • • • • • • • • • • • •

Various Member Conferences such as CBAA, EBACE, and NBAA. Numerous IS-BAO presentations at NBAA regional forums, IOC, etc. 42 IS-BAO Workshops SMS Tool Kit Training Programs Global Aviation Environmental Summit, Geneva Switzerland The ICAO Council (in the Council chambers), Montreal. Various European Aviation Safety Agency working group meetings. EASA Executive, Cologne. EC Environment Officials, Brussels Asia Pacific DGCA Conference, Macau, China. Russian Business Aviation Conference, Moscow. ICAO High Level Safety Meeting, Montreal, Canada. Business Aviation Safety Seminar (BASS), Singapore. FAA SMS Focus Group in Dallas. ICAO Operations Panel, Montreal. Flight Safety International Managers, Teterboro and Savannah, USA and Farnborough, UK Corporate Transactions Conference, New York, USA Northeast Helicopter Council, Concord, USA Corporate Aviation Safety Symposium, Tucson, USA

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010

Business Aviation Representation An important element of IBAC’s ‘raison d’être’ is representing the interests of business aviation and its member national and regional associations at international meetings, workgroups and media events. The POC carefully considers each of the many international meetings to determine which sessions are significant to the interests of business aviation. Capable and knowledgeable persons are then assigned to each session. Technical Reports of each meeting are filed on the IBAC web-site.

International Civil Aviation Organization (ICAO) IBAC recognizes the critical importance of good professional representation in ICAO Committees, Panels, Work Groups and Conferences. IBAC was represented at many ICAO meetings during the year, including Panel sessions and regional planning group meetings for the North Atlantic, Europe, South and Central America and Asia Pacific. Technical Reports are filed on the IBAC website. Current Representatives are. ICAO Programmes

Member

Alternate

AEP Airport Economics Panel

Ingleton

ANSEP Air Navigation Services Economics Panel

Ingleton

ALLPIRG All Planning Implementation Regional Groups

Spruston

APANPIRG Asia/Pacific Regional Planning Group

Spruston

AVSECP Aviation Security Panel

Spruston

Ingleton

CAEP Committee on Aviation Environmental Protection

Shuter

Gilley/Ingleton

WG 1 Noise (Technical)

Vacant

Ingleton/Stine

WG 2 Policy Guidance and Operations

Gilley

WG 3 Emissions (Technical)

Cotti

Market Based Measures TF

Shuter

Visele

Azua

Ingleton

EANPG European Air Navigation Planning Group FALP Facilitation Panel

Ingleton

FCLTP Flight Crew Licensing and Training Panel

Evans

GREPECAS CAR/SAM Regional Planning Group

Nogueira

NAT ATMG Air Traffic Management Group

Bowers

NAT FIG

Bowers

NAT EFG Economics and Financial Group

Ingleton

NAT IMG Implementation Management Group

Spruston

Stohr

Ingleton

NAT SPG Systems Planning Group

Ingleton

Stohr

NSP Navigation Satellite Panel

Lichius

OPSP Operations Panel

Ingleton

Statistics Panel

Ingleton

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Nichols

International Business Aviation Council (IBAC)

IBAC Annual Report 2010

IBAC Aircrew Identification Card Aircrew Identification Cards issued by IBAC to flight crews of companies who are with a flight department that is a Member of one of the fifteen IBAC Member Associations continue to provide a widely recognized and useful means of identification. Card holders report that this form of identification serves to facilitate the entry and departure formalities for flight crews engaged in international operations and can prove beneficial in facilitating access for other types of operations. Applications for Crew Cards are processed in the IBAC office in Montreal, where the in-office turn around is typically one or two days. The Crew Card program is managed by Administrator Paul Lessard, with assistance from John Goldbach. In 2010, 2013 cards were issued. The sales record over the past few years is shown in the table below.

Definition of Business Aviation That sector of aviation which concerns the operation or use of aircraft by companies for the carriage of passengers or goods as an aid to the conduct of their business, flown for purposes generally considered as not for public hire and piloted by individuals having, at the minimum, a valid commercial pilot license with an instrument rating. Sub-divisions of Business Aviation Definition Sub-division 1 Business Aviation – Commercial The commercial operation or use of aircraft by companies for the carriage of passenger or goods as an aid to the conduct of their business and the availability of the aircraft for whole aircraft charter, flown by a professional pilot(s) employed to fly the aircraft. Sub-Division 2 Business Aviation – Corporate The non-commercial operation or use of aircraft by a company for the carriage of passengers or goods as an aid to the conduct of company business, flown by a professional pilot(s) employed to fly the aircraft. Sub-Division 3 Business Aviation – Owner Operated The non-commercial operation or use of aircraft by an individual for the carriage of passengers or goods as an aid to the conduct of his/her business. Sub-Division 4 Business Aviation—Fractional Ownership The operation or use of aircraft operated by an entity for a group of owners who jointly hold minimum shares of aircraft operated by the entity. Fractional Ownership operations are normally non-commercial, however, the operation of the aircraft may be undertaken as a commercial operation in accordance with the AOC held by the entity.

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010

Business Aviation and Climate Change Business aviation is committed to consistently alleviating the environmental impact attributed to aircraft operations. Although business aircraft produce relatively small amounts of emissions, the industry accepts its responsibility and obligation to participate in global aviation action to mitigate environmental impact of emissions. The UN Intergovernmental Panel on Climate Change (IPCC) reports in “Aviation and the Global Atmosphere” that: Emission Targets ♦ of global CO2 man-made emissions, it is estimated that the total civil aviation contribution is of the order of 2%, and • Carbon-neutral growth ♦ of CO2 emissions attributable to overall civil aviation operations, it is by 2020; estimated that general aviation contributes only a very small propor- • An improvement in fuel efficiency of an average of tion (i.e. of the order of 2% of all aviation operations). 2% per year from today until 2020; and, In 2010, IBAC continued to promote the business aviation position on • A reduction in total CO2 Climate Change developed in 2009 and published in the document titled emissions of 50% by Business Aviation Statement on Climate Change. (see IBAC webpage) 2050 relative to 2005. This document served as the business aviation input to a universal aviation Paper prepared as the aviation community contribution to the ICAO presentation at the UNFCCC meeting in Copenhagen in December of 2009. IBAC continues to work with other aviation industry sectors to encourage an international aviation managed solution to fuel efficiency measures and development of standards for CO2 management. The aviation community developed a universal Paper tfor submission at the 2010 meeting of the UNFCCC in Cancun Mexico, the first time all sectors of aviation community committed to a united position.

Business Aviation Commitment on Climate Change

Although no definitive decisions were made by the UNFCCC at the 2009 Copenhagen and 2010 Cancun meetings, the aviation community has continued its aggressive action to curb the potential climate change threats. IBAC has participated through its Environmental Issues Work Group (EIWG) in deliberations of ICAO’s Committee on Aviation Environmental Protection (CAEP) to develop both Certification Standards for CO2 and fuel efficiency measurement parameters. EIWG Members participate in Work Groups established by ICAO to develop proposals for the standards under an aggressive time schedule. Routine monthly meetings of the EIWG are used to communicate progress and to determine if additional data is need from business aviation. In 2010, IBAC participated in a Summit on Aviation and the Environment, at which all sectors of the aviation community committed to continue the aggressive activity on climate change.

Aviation Security Business aviation has long provided secure operations given that this is one of the core reasons corporations choose to own and operate their own aircraft. For that reason, the industry has always been active in promoting best practices amongst its member companies and working towards effective and equitable security provisions in rule making. Business aviation was actively engaged in 2010 in providing advice to security regulators to ensure that new rule proposals are meaningful, fair and technologically feasible.

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International Business Aviation Council

IBAC Annual Report 2010

International Standard for Business Aircraft Operations (IS-BAO) The International Standard for Business Aircraft Operations continues to be the gold standard for business aviation safety. In 2010, there was a very substantial expansion in application of the safety ‘code of practice’ as operators around the world increasingly discovered the advantages of implementing the standard. The number of flight departments choosing to gain a Certificate of Registration (C of R) expanded rapidly with the total number of Certificates issued since inception expanding from 200 at the end of 2009 to 475 at the end of 2010. In 2010, 360 documents were sold compared to 191 in the previous year.

700000 600000 500000 400000 300000 200000 100000 0 ‐100000

Expenditures

360 (191 in 2009) 1320 100 (69 in 2009) 475 IS-BAO Revenues and Expenditures, with the Net gain, is illustrated to the left. The IS-BAO is a Not-for-Profit program with net gains applied to further development.

20 03 20 04 20 05 20 06 20 07 20 08 20 09 20 10

$

The activity record in 2010 was: IS-BAO sales in 2010 Total sold since 2002 inauguration Certificates of Registration in 2009 Total Certificates of Registration (2002-2010)

Revenue

Net

42 Workshops were conducted, attended by over 600 flight department personnel and auditors. ISBAO presentations were made at a number of conferences, conventions and workshops. Quality assurance changes to the IS-BAO program were fully implemented in 2010, with the Audit Manager chairing an Audit Review Committee responsible for reviewing the audit reports as well as potential new auditors.

Substantial growth in use of the IS-BAO in 2009 and 2010 resulted in serious workload problems. To provide temporary relief, an IS-BAO Management Committee was formed so that program tasks could be distributed to other staff and routine communications established to ensure coordination of all elements of the program. It was realized that a long term solution was needed, leading to a Governing Board decision to create an internal Task Force to study business model options. A consulting firm (InterVistas) was contracted to provide program management, facilitation and business modeling expertise. Work on the study was commenced in 2010 with a target date set at mid 2011.

SMS is Fundamental to IS-BAO

An Agreement was signed in 2010 with three Associations that represent helicopter communities (HAI, EHA and BHA). The Agreement provides for the use of the IS-BAO standard by helicopter operators and for a Work Group to be established to develop a helicopter edition of the IS-BAO. The Work Group started its analysis in 2010 with a target to have the edition ready for the 2011 Standards Board meeting. The Work Group concluded early in their deliberations that the best solution was to modify the existing IS-BAO such that it was compatible with both fixed and rotary wing operations

International Business Aviation Council (IBAC)

Business aviation was one of the first industry sectors to apply Safety Management Systems (SMS) in its operations. In 1999/2000, SMS was used as the cornerstone to the new safety standard—IS-BAO. IBAC and Member Associations used this knowledge and experience to develop two new programs designed to help operators with implementation of the valuable safety standard. The two programs that were developed in 2008 and launched in 2009 were: 1. SMS Tool Kit. 2. SMS eLearning training program.

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IBAC Annual Report 2010

IS-BAO Standards Board The tenth meeting of the IS-BAO Standards Board was held in Atlanta, 18 October 2010. The Standards Board has responsibility for keeping the IS-BAO current and dynamic. The Board approved a number of changes for a revision to be released on 1 January 2011. IS-BAO Standards Board Members in 2010 were: Chairman Steve Fisher, Shell Aircraft Vice Chairman David Nigri, Textron Members: Paul Stinebring, Emerson Electric Len Beauchemin, AeroTechnal Solutions Steve Brown, NBAA Pat Dunn, Orient Wonder Jens Hennig, GAMA Donald Spruston, IBAC Bill Stine, NBAA David Stohr, Air Training International Rudy Toering, FSI / CAE Francisco A. Lyra, ABAG Juergen Wiese, BMW Carl Evans, FedEx Secretariat: Katherine Perfetti, IBAC Standards Manager . John Sheehan, IBAC Safety Promotion Manager Peter Ingleton, IBAC Director of ICAO Liaison

Business Aviation Safety Leadership Business aviation has an excellent safety record; however the industry has an established plan to ensure the record will get even better. The Business Aviation Safety Strategy establishes the business aviation activities designed for continuous improvement. The Safety Strategy is continuously updated by the IBAC Planning and Operations Committee. The business aviation safety record over the past five years is shown in the following Table. Business Aircraft Accident Rates by Operator Type (Extrapolated) (per 100,000 departures)

Operator Type

Departures (5 yrs)

Total Accidents Fatal Accidents

Total Accident Fatal Accident Rate Rate

Commercial (Air Taxi)

10,371,205

305

85

2.94

0.82

Corporate

18,866,041

75

13

0.40

0.07

Owner-operated

4,878,560

123

41

2.52

0.84

*All Business Aircraft

34,115,807

558

157

1.64

0.46

The Business Aviation Safety Record (over 5 yrs ending in 2009)

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International Business Aviation Council

IBAC Annual Report 2010

IBAC 2010 Financial Report An annual review of IBAC 2010 finances was conducted by Collins Barrow Accounting firm in March 2011. An audit was completed in August 2011 in accordance with the IBAC Finance Policy which requires an audit to be completed every three years. Reserve Fund approval for 2010 was set by the Governing Board at $333,400. Special Project funds available at the beginning of 2010 were $71,667 ($22,000 of which were dedicated to the Environment Project).

2010 Year End Position (USD) Total Assets at Year-End (Cash and Savings Certificates, inclusive of IS-BAO)

$879,929.

2010 Report of Revenues and Expenditures (USD) (Exclusive of IS-BAO) Revenues

$403,713.

Expenses (without Special Projects)

$413,341.

Special Project Fund Expenses

$70,805.

Net Income (exclusive of IS-BAO and Projects)

( $9,628.)

Draw from the Reserves

$9,629.

More detail can be found in Appendices as follows: Appendix A - Statement of Financial Position Appendix B - Statement of Revenue and Expenditures

IS-BAO Revolving Fund Year–End Summary (USD) Current Assets at Year-End

$430,000.

Revenues

$845,680.

Expenses

$482,470.

Net Income

$363,210.

The net gain in 2010 in the IS-BAO program was primarily due to widespread increased growth in the acceptance of the standard for worldwide application.

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010

2011: Building for a Strong Future The 2011 year will continue to present many challenges for the business aviation community. The corporate world continues to recover from the financial recession of 2008 and decisions regarding creation and expansion of flight departments is often left until recovery is certain. Nevertheless, the business aviation industry continues to grow. The number of business aircraft and their operations expanded in 2010 and forecasts indicate that the trend will continue through 2011. The IS-BAO program will be the focus of attention in 2011 as IBAC and Members strengthen the management structure to address the considerable growth experienced in 2010. Given that the number of documents in circulation and the number of operators that have achieved a Certificate of Registration have increased considerably in 2010, changes are needed to facilitate management and control of the expanding workload. A study of business model options will be completed in 2011 and decisions will be needed on how to restructure the program to provide sustainability. A new IS-BAO Program Director will be named and a new management team assembled. The workshop program will be enhanced to allow for increasing numbers of workshops. Contracts will be placed with specialists in various corners of the world so that workshops can readily be presented close to where operators are based. Quality assurance enhancements made in 2009 and 2010 will continue to be solidified. Resources will be applied to developing a quality database management system so that the large number of audit reports can be effectively reviewed, filed and routine reports enabled. Change made to the IS-BAO to accommodate helicopter operators will be completed in 2011 and the amended standard will be presented to the Standards Board for assessment and approval. The IBAC Business Plan, and in particular its embedded Strategic Plan, maps a challenging program for the Council. Safety programmes in addition to the IS-BAO must be pursued with ICAO and other government organizations such as the European Aviation Safety Agency, which continues development of new regulations for all aviation sectors, including corporate aviation. The Council is resolved to work with ICAO to ensure a sustainable program is in place to track safety data for business aviation. IBAC must also continue focus on the environment program given the critical demands from society to ensure global sustainability in face of the climate change threat. The business aviation position on new standards for CO2 must be emphasized at appropriate forums such as the ICAO Committee on Aviation Environmental Protection. The coordination strength of the Environmental Issue Work Group must be reinforced to ensure a business aviation consolidated and universal position. IBAC and volunteer organizations must also continue to strongly represent the interests of the business aviation community in the evolution of Next Gen and European Single Sky changes, and communication will be needed to keep business aircraft operators knowledgeable about procedural and airspace changes. As new security regulations are introduced in many corners of the world IBAC must be prepared to work with regulators and operators to make the changes smoothly and effectively. Bad regulation will be opposed. The value of business aviation in today’s global economy increases constantly and signs of its acceptance and necessity are clearly evident, even in corners of the world where it had not been previously strong. Whether or not there is to be growth is not in question as it will certainly happen. Pressures on the mass transport systems are such that business aviation remains an attractive option. The challenge for the industry representative bodies is to ensure that growth is facilitated and the community is well represented when new policies and rules are developed. It is impossible to over state the importance of the establishment of coordinated policies, positions and actions of a worldwide family of business aviation associations. Strength of the business aviation community is inherent in its collective will expressed through a strong family.

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International Business Aviation Council

IBAC Annual Report 2010

Appendix A Statement of Financial Position (Inclusive of IS-BAO Revolving Fund)

2006

2007

2008

2009

2010

Assets Current Assets Bank Accounts (Cash on hand)

$106,770.

$148,285.

$165,996.

$127,704 .

$212,381.

Savings Certificates

$454,967.

$454,967.

$354,967.

$454,967.

$667,548.

Total Current Assets

$561,737.

$603,252.

$520,963.

$582,671.

$879,929.

$561,737.

$603,252.

$520,963.

$582,671.

$879,929.

$(218.)

$(263.)

$28,708.

$415.

$3,457.

GST Paid on Expenses

$(8,820.)

$(3,906.)

$(15,329).

$(22,619.)

$(62,44.)

PST Refund

$(19,947.)

$(18,952.)

$(24,729.)

$(26,826.)

$(17,920.)

GST Payable

$1,036.

$1,009.

$(43.)

$(43.)

$(28.)

Total Liabilities

$(27,993.)

$(21,257.)

$(10,563.)

$(35,646.)

$(27,319.)

Opening Equity Balance

$176,585.

$176,585.

$176,585.

$176,585.

$176,585.

Net Assets

$422,576.

$414,879.

$449,020.

$356,675.

$447,885.

Net Income

$(7,696.)

$34,778.

$(92,345.)

$86,671.

$282,777

Total Equity

$589,731.

$624,509.

$531,527.

$618,318.

$907,249.

Total Liabilities and Equity

$561,737.

$603,252.

$520,963.

$582,671

$879,929.

Fixed Assets

Total Assets Liabilities & Equity Liabilities Accounts payable

Equity

International Business Aviation Council (IBAC)

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IBAC Annual Report 2010

Appendix B Statement of Revenues and Expenses Revenue Revenues

Aircrew Card Member Contributions Interest

Expenses

$266. $403,713.

Aircrew Card

$28,441.

Contract Services

$13,275.

Hospitality

$3,838.

Insurance

$4,443.

Office Supplies, Tel, etc

$13,695.

Office Lease

$10,779. $659.

Professional Fees

$3,201.

Publications

$1,787.

Staff Contracts

$217,213.

Staff Travel

$54,917.

Travel for Technical Reps

$12,090.

CNS/ATM Advisory Group

$40,656.

Miscellaneous/Contingency

$2,664.

Promotion at Conferences

$4,075.

Uncategorized Meeting Room Rental Total Expenses

16

$312,584.

Total Revenue

Furniture and Equipment

Net Income

$90,682.

$0. $1,827. $413,341. $(9,628.)

International Business Aviation Council

IBAC Annual Report 2010

IS-BAO Statement of Revenues and Expenses Revenues

2009

2010

IS-BAO and Audit Manual Sales

$224,539

$543,570.

Workshops

$87,410.

$196,047.

Cert of Registration

$14,320.

$17,845.

SMS Tool Kit

$23,003.

$27,685.

SMS eLearning

33,553.

$56,532.

Total Revenues

$383,306.

$845,680.

Insurance

$2,000.

$2,000.

Courier and Mail

$27,273.

$26,230.

Printing

$26,271.

$32,246.

Administration

$9,773.

$13,784.

$191,790.

$337,991.

Marketing and Sales

$1,919.

$260.

Miscellaneous

$11,025.

$2,100.

Other

$19,803.

$22,624

E-Learning Project

$18,364.

$19,931.

SMS Tool Kit Project

$25,694.

$5,083.

CEN Project

$37,003.

Total Expenses

$370,919.

Expenses

Standards Management

Net Income

International Business Aviation Council (IBAC)

$12,387

$482,470

$363,210.

17