Plane Conversations

The beginning of online travel created new business models that changed the dynamics and relationships with buyers.  Now with the advent of social technology the dynamics are changing again.

instead of the traditional travel site being the brand the brand has become the traveler.

As a result, the present online travel bazaar has become a race to become more social. Technology and savvy buyers have dramatically changed online travel over the past two years. The app market, for instance, has swelled from virtually nothing to billions of dollars in just a few years, and smartphone owners love their access to a gaggle of Wi-Fi finders, flight status updaters, local restaurant finders, budget booking assistants, translators and more.

Websites offering unique travel-oriented services have made a strong showing, too. They include Wanderfly, a personalized travel recommendation travel engine à la Hunch and Pandora; and GTrot, a site that allows travelers to share their itineraries with friends and get travel advice within their networks.

Applications like these will continue to grow, improving the efficiency of the overall industry by improving the connectivity of air travel information between flights and friends.

Chasing the Lowest Common Denominator

While on-line applications enable travelers to connect and collaborate, few if any do anything to improve the travel experience. Commercial airline travel experiences are abysmal and getting worse. While the efficiency of commercial air travel for consumers and businesses has diminished could there be a better alternative emerging?

Social technology will not enhance the value of on-line travel sites enough to improve pricing.  Social technology has become a “must be” rather than a differentiator and it, by itself, doesn’t change the lowest common denominator, price.  Finding “best” prices has become easy given the power of search and the recent introduction of Google Flights.  Finding the best experience and the highest value has become difficult but may change soon.

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An airplane moves people and connects them with other people and things.

The internet connects people and moves things.

Airplane operators know that using aircraft can be an expensive proposition. Use of the internet is free. If you combined something expensive with something free what happens?

Do Private Jet Operators Understand The Implications?

There has been a saying in the private jet business: If you have to ask the price, you can’t afford it. People who use private jets generally haven’t hunted for the best prices because it’s a status thing. These two statements used to be foundational truths in the private aviation business. But things are changing.

There are a finite number of wealthy people and/or corporations who desire to own or use a private jet regardless of the cost. Most charter operators have chased all the wealthy people for a sale so operators end up chasing the same customer over and over. Even the wealthy are feeling the economic pitch and shareholders are questioning the cost of and need for private aircraft.  Now charter operators are being pressured to justify and lower their cost. Cost has become transparent thanks to the internet.  Yet most operators do not fully understand the implications of transparency and social technology on old business models and methods.

What Are The Implications?

Business travelers and affluent individuals are becoming disenchanted with commercial flights, crowded airports, flight delays, and inconvenient schedules. These travelers are looking for alternatives to save time and reduce the hassles of commercial air travel. So they go to the internet to examine private aviation alternatives. What do they find and see?  At most, Web.1.0!

When you do a search for “private jets” or “private aviation” what comes up on the first page are listings of jet brokers (those that don’t operate or own any jets). You also see lots of references to “cost per hour, fractional jets and a host of other terms that are foreign to buyers”.

So let’s say someone decides to click on any of the links. They end up on a static web page with pretty pictures of expensive jets and self- proclaimed accolades of how great this company is then an 800 number to call for a quote.

So if someone looking for an alternative to commercial air travel hasn’t already lost interest in their search then the next step is to actually make a call. Then someone answers the call and begins asking questions to the caller of which the caller has no idea what they are talking about. Not wanting to sound stupid the caller fakes their way through the dialog expecting to get a quote at the end of the call. Instead the broker/operator says “can I have your email or number so I can get back to you?”

If the buyer agrees it then takes the broker/operator at least half a dozen phone calls, faxes, or emails, before you can get a charter estimate which may or may not be correct. Then the operator/broker emails you the quote of which has so many disclaimers and its format doesn’t make any sense to the buyer. All this, and you have not boarded the plane yet.   Besides that all he buyer wanted to know is what is my seat cost and what I get for it.

By now operators are reading this saying “You don’t understand our business model, we don’t sell seats we sell jets”.  To which I would say “I know but every jet has a certain number of seats and the total cost is represented by a cost per seat, full or not.”

Broken Business Models

According to a Forrester’s recent report, there are about 53.8 Million socially engaged eBusiness travelers in the United States alone. A new market opportunity for private aviation. It’s all about the passenger – they have the money.

Certainly not all 53.8 million business travelers would consider private aviation as an alternative travel option. But let’s say 1% would which means 53,000 potentially new customers.

The private aviation industry couldn’t imagine having 53 thousand new customers because their mindsets are frozen in old business models and expensive archaic operating processes.  Today’s charter revenues barely cover the aircraft management and operational costs, and almost never reach levels necessary to cover an aircraft’s cost of ownership. At the same time in the charter world an aircraft flies empty 40% to 60% of the time.  What a waste!

It is time for a revolution in innovative private aviation business models if the industry wants to capture the significant growth opportunity fueled by demand from disgruntled business travelers looking for viable alternatives.

Old mindsets are saying “You don’t understand how we operate”. My response is “You don’t understand how to change the way you operate”.

-Ralph Waldo Emerson “Who you are speaks so loudly I can’t hear what you‘re saying.”

Stay tuned for “What Would Jet 3.0 Look Like?”

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Recently I was talking with a friend about business flying.  He is not in business nor is he a pilot.  But he had trouble getting around the notion that business aircraft are all about excessive luxury for the super-wealthy.  I commented that there might be some merit to his claim if the majority of business aircraft owners were all super wealthy individuals.  But they aren’t.  This opinion also belies a scarcity mentality that assumes if someone “has” then it is because they have taken it from someone who, as a result, “has not”.  Funny, but we forget that the vast majority of the world lives on less than 2$ per day and considers anyone who has an automobile to be “rich”.  Perspective and assumptions are often overlooked in these discussions.   Personally,  I reject the idea of a closed economic system and the resulting scarcity mentality that accompanies it.  But, alas, I digress.

Yes there are aircraft owned by the super-wealthy who utilize them mainly for pleasure.  But that is the exception (as well as their prerogative, by the way.)  However, according to a 2009 study from the National Business Aviation Association (NBAA) small businesses own the majority of business aircraft.  Less than 1 in 4 passengers on business planes are top level leadership.  More often, 70% of the time, business aircraft are used to transport mid-level mangers, sales, support and technical staff. 1  The image of the aircraft being utilized only by the CEO or COO as a luxury is simply not factual.

The practical uses of business aircraft are many.  You can more efficiently fly into airports not serviced by the airlines and reduce the expense of hotel stays and car rental.  Employees can work during the flight and not waste precious time standing in line at security or waiting for standby flights because their original flight was cancelled.  Those travelling on business aircraft said that they felt 20% more productive on the plane than in the office and felt that on the airlines they were at least 40% less effective.2

The larger businesses that operated corporate aircraft are reguarly among the most profitable (which means, in turn, they are able to hire and employ) and respected in our country.  NEXA Advisors, LLC, conducted a study to see if business aircraft ownership actually had a correlative effect on the health of the business operating the aircraft.  In short, yes, it did.  It made a solid positive difference in these companies.  The report’s conclusion was, “Business airplane users continue to outperform nonusers in terms of revenue growth, profit growth, and asset efficiency.” 3

Moreover, what is lost in the grandstanding on Capitol Hill and the media’s constant badgering of Business Aviation is how much business aviation contributes to our economy and to the success of companies that employ tens of thousands. Aviation and it’s related businesses directly employ more than 1.2 million people and infuse $150 billion into the economy.  Aviation is a signficant contributor to our nation’s health.4

The businesses operating their own aircraft were to be found on lists such as : Business Week’s 50 Most Innovative Companies, Fortune’s 50 Most Admired Companies, Business Week’s 25 Best Customer Service Companies, Fortune’s 50 World’s Most Admired Companies, and Corporate Responsibility Magazine’s 100 Best Corporate Citizens.5  Again, the caricature of the business jet operator is found to be just that -a caricature that does not accurately represent reality.

Without a doubt business aircraft have a degree of luxury about them.  And why not?  Do you chastise someone for having leather seats in their car?  An .mp3 player?  Satellite radio?  GPS?  But those things are pretty standard these days in our cars.  Perhaps one of the major issues is that business aviation stands in stark contrast to the miserable state of the commercial airline experience that we all know only too well.  If you had the choice of driving in a 76 Plymouth or a 2011 MKZ, would you really have to think long about the choice? (And for the record I drive a decade-old Ford Taurus with 140,000+ miles)  If it’s your car or boat or plane, why not make it comfortable and functional?  But at the end of the day, that’s not the point as my friend’s faulty assumptions illustrate.

Most businesses don’t operate aircraft because they simply like the luxury.  They operate them because they make practical and financial sense.  They don’t buy an aircraft so they can look cool and yet lose money.  No, they have learned that business aviation can make good business sense.  And the business aviation industry stands ready to be an integral part of the equation to help individuals and business achieve the success that, in the end, makes us all stronger.

1.  Real World Business Aviation 2009, page 5 (http://www.nbaa.org/business-aviation/Real-World-of-Business-Aviation-2009.pdf)
2. IBID, page 6
3.  The Bizav Advantage: The case for bizav, in dollars and cents Robert P. Mark, Business Jet Traveler, Oct 1, 2010
4. Aviation Week, Kansans Demand Obama End BizAv Rhetoric, July 22, 2011
5. IBID, Mark

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by Chris Findley, Aircraft Sales Specialist, CFM

It’s about time for our family to replace one of our cars.  I don’t relish the process, but I enjoy the results.  As we start to look at what’s available and for what price, we also begin examining things such as fuel efficiency, safety, maintenance and seating.  Of course, I also want a car that offers a nice driving experience.  Frankly, the more it reminds me of an aircraft, the better!

When we’re searching for the right car, we take into account a number of factors.  The same should hold true when we examine potential aircraft.  And like cars, there’s always a buzz from our friends or from slick advertisers that bring certain models to mind.  But because an aircraft works for Company A doesn’t mean in any way that it would be a good fit for Company B.  Just because there’s a really great ad that makes an aircraft look great and fun, doesn’t mean that it would be a realistically viable option for you.

So what are some the things to consider as you shop for a new or used aircraft?  This list is a summary and eventually you’ll drill down into more and more specificity, but this will help you begin the process:

• First of all, what are your travel needs?  Where do you need to go?  How often do you fly and how much is that currently costing you in terms of both direct travel cost (tickets/charter etc.) and indirect cost (lost productivity,  per diem, lodging etc.)   Try to establish whether you need an aircraft that will take you on repeated short trips or regular transcontinental trips.
• Secondly, and related to the first, how many people do you need to carry on a regular basis?  If 85% of your flights involve less than 4 people, you might not need to invest in the acquisition and operational costs of a 10 seat jet.
• Third, decide on what features are essential and what would just be “nice to have”.  Is a stand-up cabin a requirement?  Cruise altitude? What type of toilet facilities?  What size door and seating arrangement are preferred?  It’s important to work through these early so that you can focus on aircraft in your search that truly fit the parameters you want in your next aircraft.
• The fourth consideration is very important and that is performance.  Many people focus on range.  That is, “How far can this airplane take me on a single leg?”  But this is only a partial indicator of performance and is dependent upon things such as prevailing winds, air traffic delays and atmospheric conditions.  You’ll also want to consider speed.   For short hauls (say under 500 miles), a jet may not give you much of an advantage in speed/time over a nice turboprop.  Keep in mind too, that aircraft tend to perform less efficiently in high elevations on hot days.  So it is vitally important to examine the field elevations, weather patterns, and runway lengths from which you will operate your plane.
• Finally, after reviewing your basic needs, passenger requirements, features needed/desired and performance, consider the basic cost of the available aircraft that seem to generally fit this mold.  At this point, you are not getting too specific, but in a basic sense, what are the costs of the aircraft that can do what you desire.  Be sure to go past acquisition cost and consider operational, maintenance, and training costs.  Purchase price is a “one-time” cost while operating costs occur every time you start the engines.  As your search becomes more specific and starts focusing in on particular planes, you can work with your broker to develop a comprehensive picture of the likely annual cost of the aircraft.

It’s exciting to be in the market for a new or used aircraft.  But it is important to find the right airplane that fits your operational needs and makes solid financial sense.  If we can be of any assistance to you in this process feel free to contact us at CFM: 615-669-9393 or sales@cfmjet.com

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09/20/10

G’Day!  We were supposed to fly into Melbourne, but as is the case in all flying, sometimes the weather just doesn’t cooperate.  Melbourne’s weather was gusty with cold winds and low ceilings; so, we chose to bypass that part of the journey and remain in Sydney…perhaps another time.  Sunday, we let the SR22 rest and I did some sight seeing with the family.  

But on Monday I went out to the Bankstown Airport.  I traveled via the train and bus system since a taxi would have cost more than $100 each way and would still taken 40-50 minutes. I had a multi-day rail/bus/water taxi pass for $54; so, I tried it out and with some help of the locals (remember I had passed the English proficiency exam).  The bus dropped me off just at the street’s edge of the airport with just a short walk to Regal Air.

Backpack loaded, I strolled into the hangar where I met Peter Edwards the owner and director.  Regal Air is a Cirrus Maintenance Facility and another first class organization with an extremely skilled staff.  Peter and I discussed the routing that would provide a great tour of the city and surrounding area.  There’s a special route that, with ATC permission, takes you almost overhead of the famed Opera House and Sydney Bridge.  To get this permission, we had to file a VFR flight plan requesting the Harbor Scenic 1.

Peter and I did a thorough pre-flight on our SR22 that now had 14 hours.  This was only the second Perspective equipped model he’d seen and I offered up the left seat.  I think that he can fly anything with wings!  After a brief training session on the Perspective (especially the radios), we were off climbing to 1000 feet within the Class D airspace then on to 2000 as we headed further north.  The clouds prevented us from climbing much higher.

Automatically, we switched our transponder from 3000 to 1200 and soon thereafter contacted Sydney Radar for clearance into the filed route.  We were given another visual checkpoint to report (I’ve never done so much reporting of visual checkpoints in all my years of flying, by the way).  Once there, we were cleared for the air tour.  We made two circuits inside the harbor before we departed back to the north for some serious coastal flying .

Flying coastal is just that….flying along the coast line.  Today we flew at 500 feet, past all the famous beaches and across the approach end of Sydney International.  The airport wasn’t busy at the time; so, no worries about traffic.

Coastal flying over, we flew again to a visual arrival route checkpoint for the trip back to the Bankstown Airport.

Peter gave me invaluable instruction and served as a superior tour guide while in the air.  All that should help when Tim and the rest arrive into Sydney and want to do some Cirrus flying. Tim and crew arrived today for his concert tonight.  After that I expect we’ll have some good stories to tell of his flying adventures.  Cheers!

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On a  recent Lineage 1000 demonstration flight tour in the United States, Embraer Executive Jets Regional Sales Manager Cameron Gowans invited me to experience this aircraft firsthand by riding along on a repositioning flight from Dallas to Chicago.  In spite of the fact that I grew up in business aviation, I have never before had the opportunity to ride on an aircraft of this caliber.  And, I can tell you that it took some time for me to get over the “Wow!” factor.  

Approaching the aircraft, you believe are about to board an airliner which, in fact, you are. Built on the E190 series airliner, but with additional fuel for long-range flights, the Lineage 1000 is Embraer’s top of the line executive jet. The size of the aircraft is really closer to an Airbus 318 than any corporate jet made and, in airline configuration, it carries 94-112 passengers. For the Lineage 1000, Embraer advertises over 25 different cabin modules that allow you to customize the aircraft to fit your mission requirements.  The aircraft I flew in is configured with a beautiful executive interior that seats up to 19 passengers.

On our short, two-hour flight, I got the full tour of the five distinct cabin zones, including the aft-most zone containing a bedroom with private bathroom and stand-up shower.  The 19 passenger configuration could easily accommodate all of those passengers with no one feeling at all crowded. There is also plenty of baggage space for a full load of passengers and the baggage area is accessible from the cabin.

The design of the cabin makes for a more pleasurable passenger experience by controlling both noise and pressurization.  In both take-off and cruise, the cabin was quiet enough to carry on a normal conversation with fellow travelers.  And, at a cruising altitude of 41,000 feet, the cabin altitude is 7000 feet which reduces travel fatigue over aircraft with lower pressurization differentials. 

As far as cabin size, this aircraft falls between the Boeing BBJ / Airbus 318 and the Gulfstream G550/ Global Express. While the Lineage 1000 is comparable to the G550 in purchase price, in terms of cubic volume in the cabin, the Lineage 1000 has more than twice that of the G550. However, with a non-stop range of 4200 nautical miles, the Lineage 1000 does not match the 6750 nautical mile range of the Gulfstream G550.  So, while you can go non-stop from Chicago to London, London to Dubai or Dubai to Beijing on the Lineage, a trip from Chicago to Tokyo would require a refueling stop.  The question then becomes: are you willing to trade cabin size and comfort for increased range?  Since the typical missions for many companies never need the full range of the aircraft, the question may not need to be asked.  And, given my experience in the cabin, even if you do have to make a fuel stop in the Lineage, you would not feel the need to depart the aircraft.  Sitting in the cabin feels much more like being in a high end condominium than in an aircraft.   

The aircraft is state of the art design with fly by wire controls and the latest in avionics technology. It is built on an airframe designed for the rigors, reliability and economic  requirements of airline service; so, maintenance reliability should be excellent and should continue to improve as the E190 series accumulate fleet time in airline service.

Entering the cabin, you get the feel of being in an aircraft that could easily be the transportation for a head of state or an executive for a large multi-national company.  For governments, companies and high net worth individuals with international travel requirements who are looking for mission capable executive transport, this aircraft will fit a niche in the market.

Hats off to Embraer for continuing to innovate and bring new solutions for executive transport to the market.

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There is an MU-2 outside my window right now and those Garrett engines are so loud that, in the words of my first grade teacher Sister Paula, I can’t hear myself think. 

Airplanes are noisy.  No kidding, right?  That’s hardly news and it’s certainly no surprise.  Since airplanes are noisy, it follows then, that places they frequent – airports – are noisy, as well.  Again, no surprise there.  What continues to be a surprise to me are noise complaints made by people who live near airports.

What would you say if I told you that I bought a terrific little house next to a railroad track and that I got it at a steal?  You’d probably question my sanity since there are sure to be really noisy trains barreling along the tracks at all hours, right?  Now what would you say if I told you that I was planning on petitioning or even suing the railroad company to make their trains quieter and to run them only during daylight hours?  Does that even make sense?  I bought a house next to a pre-existing railroad track, the existence of which I unquestionably knew, and now I demand that the railroad operate according to my preferences?  I would be laughed out of the courtroom.  Or would I?

This situation happens every day with airports all over the United States and Europe.

Developers buy undesirable land near noisy airports, build houses all over the land, and sell the houses at attractive prices.  The new homeowners, forgetting the reason they got such a good deal on the house, then demand that the airport conform to their preferences – and the city councils and courts support the homeowners.

Airports don’t exist in a vacuum - I know that - and we all need to “go along to get along.”  However, there must be some consideration for the airports which were in existence prior to development and the economic contributions of those airports.  For instance, Atlanta’s DeKalb-Peachtree airport started it’s life in 1941, operated as a Naval Air Station as well as a general aviation airport and is currently the second busiest airport in the state of Georgia with 246,002 operations recorded in 2009.  Housing development in the area saw massive increases in the 1950s, after the airport was established.  At this time, the airport has a “voluntary” curfew between the hours of 11:00 PM and 6:00 AM.  I emphasize voluntary because it is clear from the airport’s own literature that the county would make the curfew mandatory if only the FAA would let them.  Exemptions are made for medical flights but, any other flight operating at the airport during curfew hours will receive a letter inviting the operator “without compromising safety.. [to] review its operating practices and perhaps modify its procedures to keep this from happening again.”  Basically, they invite the operator not to come back during curfew, reserving the right to invite the the operator not to come back at all.

Perhaps the most aggressive noise abatement policies are in Santa Monica, California, and in Naples, Florida, which were among the first (if not the first) to prohibit certain types of aircraft from operating into their fields at any time of day.  Naples, which is a public airport operated by the City of Naples Airport Authority, has its hands full these days dealing with an anti-airport group.  The situation has become emotionally charged and really contentious there.  The airport receives federal funding, yet the neighbors want to dictate how and when the facilities may be used.   Try doing that with an interstate or railroad. 

The Mu-2 is gone, but my ears are still buzzing; so, I sympathize with people who live with the noise.  However, because I know that airplanes are  noisy, I didn’t buy a house right next to an airport.  And I don’t have sympathy for the people who did, then proceeded to complain about a situation they entered into voluntarily.

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As I said yesterday, both the Phenom 100 and the 300 are single pilot certified and are designed to be flown by professional pilots, as well as owner pilots. The latter present a challenge as they are generally a group with little or no pure turbojet time.  Many have flown complex turbo prop aircraft but most owner pilots have spent little time in “fast movers” and lack a complete understanding of their roles and responsibilities in the ATC system. The solution lies in training and competent mentoring.  Embraer includes two “entitlement” training slots for pilots with the purchase of an Executive Jet. The training at ECTS is a thorough introduction into the Phenom and an accurate assessment of acquired skills and knowledge.   The problem is that training ends with the check-ride and subsequent type rating.   And, in any sphere, knowledge without wisdom is incomplete.

A typical type-rating oral exam consists of knowing aircraft systems and limitations along with the immediate action items associated with specific emergency procedures.  A more thorough oral drills deeper with questions involving the working relationships of systems and an understanding of why things work the way they do. The rating-ride is a carefully choreographed series of events that test specific learned procedures such as the loss of an engine on takeoff, the“V-1 Cut”, as well as single-engine approaches and landings.  The entire check ride is given within the confines of a single airport and is an accurate assessment of skills and accomplishment. The FAA oral and rating-ride are excellent tests of pilot preparedness for the unexpected problems that seldom (thankfully) occur in real life.  What a rating-ride can’t do is impart experience and judgment to a first-time jet pilot.  With experience comes wisdom and the safest way for the first-time jet pilot to get that wisdom is with the assistance of a mentor.

Slow down, you move too fast.
You got to make the morning last.
Just kicking down the cobble stones.
Looking for fun and feelin’ groovy.

 (59th St. Bridge Song by Simon and Garfunkel)

Up until recently, Air Traffic Controllers could logically assume that everyone in a jet “kicking down the cobble stones” was a pro-pilot or at least performed like one.  The advent of the personal jet has changed that.  Now anyone with a million dollars, or even less with financing, can buy a jet to look for fun and feel groovy hanging out with the big boys.  Herein lies the problem. The old instructor adage of “slow down and make yourself time for the approach” only works at the cabbage patch, but these personal jet aircraft aren’t staying in the cabbage patch.

A gap has developed between those who understand ATC and fly accordingly and those who feel as if ATC will accommodate their lack of skills and judgment. The saner parties have been the insurance companies who have insisted upon some level of supervision for low time aviators. Insurance companies, at a loss for how gauge skills and judgment, have resorted to insisting on a certain number of hours (usually 25) of supervised flying.  Typically those hours are flown in the course of business for the newly minted personal jet aviator.

Perhaps a better way to ensure the safety and success of the owner-flown community would be to adopt the commercial aviation technique of mentor flying for newly type-rated jet pilots by creating a private IOE (initial operating experience) process. Airlines have long recognized that meaningful mentor programs consist of more than the supervised “drilling of holes” in the sky.  A truly effective mentor program imparts a higher level understanding and competence to the new pilot.

With training fresh in the mind of the newly typed pilot, the mentor reinforces good technique and emphasizes the “real world” application the newly learned skills.  And it takes both training and experience to protect your Phenom investment.

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After 23,000 flight hours, I’ve just added my 7th type rating. 300 of those hours are in the Phenom 100.

The math reflects my propensity to stick  to an airplane when I find a good one and the Phenom 100 is a great airplane that does everything asked of it. My affinity hasn’t waned; so, what, then, would lure me away?  The siren song of the Phenom 300; Embraer’s latest Executive Jet offering.

I mentally questioned the ability of Embraer to improve upon the value proposition of the 100, and I was somewhat skeptical that the engineers from Brazil could score two home runs in a row. Duh!  Now I wonder what the gang in Wichita must be thinking. (Option 1: Look for a new job, or Option 2: add more sand to bury their heads deeper?)  I intend to keep flying the 100: but, to anyone out there with a 300 – you go guys!

Flight training is evolutionary. 

You go the first time to initial training and then you go back every year for recurrent training.  You don’t expect to add much because they are just getting you through the paces; but, maybe you learn something new in year two because there is something going on with the development of the aircraft. 

Last summer, I attended Phenom 100 initial training at Embraer CAE Training Services (ECTS), a joint venture between Embraer, a world-class aircraft manufacturer and CAE, a world-leading provider of aviation training.  In spite of the impressive pedigree, the venture experienced quite a few teething problems with the rollout of the first Phenom and I experienced them first-hand.  When I returned to the facility, my expectation was that my second experience would be much the same as my first one.
I was totally surprised when I arrived at CAE Simuflite in Dallas for Phenom 300 transition training.  Arriving on a Monday morning, my colleagues and I were greeted in the front lobby by no fewer than nine bright-eyed and effusively cheery CAE employees. Just after checking in, one of the greeters asked me if I needed directions to my classroom.  Since the schedule handed to me had been printed on a handy, pocket-sized card that wouldn’t get lost in the paperwork shuffle, I replied that I couldn’t miss it. I introduced myself to one of the greeters, Walter Slazyk, and in the course of conversation found that Walter was the CAE Center Leader. 

Different?   I’ll Show You Different! 
Aircraft transition courses typically focus on differences between the “old” airplane and the “new” one. The object of the training program is to prepare you for your check ride, rather than to just impart knowledge to you.  After all, this is a business.  My course was scheduled for one day of ground school followed by three days of simulator instruction and a check ride. I expected a mundane recitation of facts and figures, which I would have to regurgitate during my Friday oral exam. Instead, I was met by Steve Ford and Steve Simpson who both plowed into the whys and wherefores of aircraft systems and flight characteristics – so much more useful than the dry facts and figures.
During my Phenom 100 training process, delays in the certification of the simulator necessitated that my training be accomplished in the airplane.  Times have changed, though.  The new Phenom 300 sim has excellent fidelity and clearly mimics the feel and performance of the airplane. (Turning on the radar and taxiing over runway centerline lights are two great examples.)  On the whole, my expectations were exceeded, by a long-shot.
Both the Phenom 100 and the 300 are single pilot certified and are designed to be flown by professional pilots, as well as owner pilots. The latter present a challenge as they are generally a group with little or no pure turbojet time.  All of these pilots go through ECTS and get the best training the company has to offer.  The training is great, but how do these pilots get the experience they need to form sound judgment?  Join us tomorrow as we discuss the importance of good mentoring programs.

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In any family dynamic, each member has a role to play.  Until the invention of Trivial Pursuit, my role was to lose at every single board game we played.  It didn’t matter which game it was, I stunk equally badly at them all; but, I was okay with that.  It’s just how it was.  When I went to college, my liberal arts studies did not include Game Theory; so, in spite of its 50 year history, this business decision making tool is new to me.

In a July 24, 2010, article in Financial Post, Michell Osak highlights both the strengths and the weaknesses of using Game Theory in the strategy development process.  The theory is ideal, he says, in “strategic situations where competitive or individual behaviors can be modeled.”  However, the theory’s flaws are that it assumes that “the players act rationally and in their self-interest” and that they “act strategically and consider the competitive responses of their actions.”  Osak goes on to quote The Economist magazine which said, “Managers have much to learn from game theory provided they use it to clarify their thinking, not as a substitute for business experience.”

It seems to me that wholesale flight department liquidations were an example of a time when Game Theory was substituted for business experience – to the detriment of an entire industry.

Studies have shown that companies which either own or use private aircraft tend to pay larger dividends to their shareholders.  Yet, some of those very same companies dissolved their flight departments.  Those decisions were not based on months of study, but, rather were a knee-jerk reaction to negative press reports.  Game Theory said that a company using a business aircraft would look wasteful when compared to a similar company that didn’t.  Game Theory predicted a negative public relations issue.  Game Theory dictated that companies jettison one of their most useful business tools.

It’s time to start making decisions based on business experience again and leave the board games for family night.

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