Aviation Business Journal 3rd Quarter 2012 - 55

Megan Wolf of Flight Options LLC served as moderator of the Developing Emergency Response and Family Assistance Plans session.

Many questions were asked of speakers and panelists.

working with dozens of air carriers. Some of these frequent errors include insufficient audits of training centers, serious errors in recordkeeping that could lead to multiple violations and enforcement action, lack of oversight of training center performance, and lack of knowledge and understanding of the air carrier’s own training program.

could be helpful. Chupp addressed a question from the audience about how to handle an emergency on a brokered flight. Chupp suggested up-front communication with corporate clients or brokers to establish how to handle an emergency situation.

Developing Emergency Response and Family Assistance Plans
Donald Chupp, president of Fireside Partners, and Dave Hewitt, president of Hewitt and Company, discussed the importance of developing thorough emergency response and family assistance plans. Hewitt emphasized the importance of a customized Emergency Response Plan (ERP). He explained that an ERP must fit the operation and must be executable in a time of great stress and emotion. He encouraged attendees to view ERP checklists not as “to do lists” but as “do not forget” lists, as many times individuals participating in emergency response get caught up on completing every single checklist item in order; and lose sight of the big picture. Hewitt also provided tips from the real world of emergency response --- verify information before reacting, know information will often be online before you are informed, keep details within the group of individuals assisting in the response, and control the emergency response environment. Chupp explained, although Part 135 air carriers are not typically required to have family assistance plans, it is a good business practice to be prepared for the worst possible scenario. He said many small businesses consider contracting out the family assistance functions; but he cautioned against that, saying it could be perceived that the company doesn’t care about the families affected by an emergency. He also acknowledged that most small businesses do not have the resources and training to fill the family assistance role on their own, so hiring a contractor to help guide the process Aviation Business Journal | 3rd Quarter 2012

Expansion of Excise Taxes on Aircraft Management Fees
Kent Jackson, managing partner of Jackson & Wade, Keith Swirsky, president of GKG Law, and Tony Gasaway, principal of Gasaway Tax Law, presented a session on the expansion of excise taxes to management fees. Gasaway explained the current legal environment surrounding excise taxes and management fees, saying that a recently published Chief Counsel Advice has many local revenue agents and excise tax specialists trying to apply excise taxes to management fees. Attendees were recommended to separate charter and personal aircraft management documents, calling the company a “service provider” in management documents and an “air carrier” in charter document. Jackson suggested bringing legal counsel to any meeting with the IRS if your company has been audited. He said the first impression is very important and you want to be sure you are using correct terminology. The group addressed the hypothetical scenario of an air carrier accepting an “operational deposit” and using those funds to pay pilots and cover other expenses and not applying tax to that deposit. An ongoing audit in which the IRS is trying to tax an operational deposit because the funds were on the air carrier’s books is currently being disputed. It could be possible to avoid a debate about excise taxes on an operation deposit if the company uses explicit language that the operational deposit is fully-refundable, remains the aircraft owner’s money until used to pay charges, and is intended to ensure timely payment of monthly fees.
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Aviation Business Journal 3rd Quarter 2012

Table of Contents for the Digital Edition of Aviation Business Journal 3rd Quarter 2012