Plane Conversations

This post first appeared on 4.26.11 in CS&A Insurance blog – Clear on Top

How do we determine is something is dangerous?  Is there a universally known definition or just a matter of opinion?  Webster defines the term as follows:

dan·ger·ous – adj – able or likely to inflict injury or harm

If we stop and think about the literal definition of dangerous, we realize that it applies to most things in our life.  We start off each day with dangerous acts…shaving, taking a shower, cooking breakfast, driving to work…all of which have the ability to inflict injury or harm.   How many of us have cut ourselves when shaving?  How about burned yourself while cooking?  And what about having an accident in a car?   The generally accepted odds are that 1 in 4 people will be involved in a serious car accident in their lifetime.  Let’s take that a step further, based on the average number of automobile trips made by Americans in their lifetime the odds of being killed in an accident are 1 in 140.  Driving is the most dangerous activity undertaken by most Americans on a daily basis and very little thought is given to the dangers encountered because it is just a routine part of life.

Why does the general public view flying as being dangerous?  Any time we cheat the laws of gravity we are entering into a “dangerous” scenario by definition; but is it really dangerous, or is it just different?  According to the National Safety Council, the odds of being killed in a plane crash are about 1 in 250,000.  In comparing these statistics you are 1,786 times more likely to die in a car than in a plane…in other words you are more likely to die on the way to the airport than in flight to your destination.

So what is it that is driving this dangerous view of flying?  In short, lack of education and the media.  This is a funny combination in my mind because the media is supposed to educate, but often times they are just as uneducated as the masses to which they are pontificating.  How does a blind man know what color the sky is?  He trusts the person describing it to him, even if that person is colorblind.  In absence of knowledge we tend to believe whatever sounds the most accurate.  So without further ado I give you some media quotes concerning recent flying scenarios making headlines.

“The Monday night close call, left Obama’s jet 2.94 miles away from slamming into the 200-ton C-17 plane…” – New York Post

This is what is known in the aviation world as a “go around”.  It happens on a daily basis and exists for just such an occasion.  When the required separation cannot be maintained or does not exist, the controllers direct the pilots to break off the approach and send them around to try it again.  Let’s put this in perspective just to give you an idea how far 2.94 miles is…try 15,500 feet.  This is a greater distance than all those aircraft that pass over your house on approach to landing if you live within 30 miles of a major airport.   If their landing lights are on when they fly over your house at night, they are probably below 10,000 feet and only 1.89 miles away from slamming into your house.

“The pilots landed their planes safely but without help from the airport tower.”  – ABC News

“Planes forced to land without help from tower at Reagan Natl” – America’s Newsroom     

News flash…the tower does not and cannot help a pilot land an airplane.  The tower can only give direction and recommendation just like the traffic cop at an intersection.  Pilots land without help from the tower thousands of times every day…it’s how we were trained from Day 1.

Let’s face it, flying is still a widely misunderstood activity and as long as there are reporters there will be inaccurate news reports.  As pilots, we are a relative minority and the understanding of flight is still a wondrous mystery to most.  The how’s, why’s, and what if’s are the stuff of Hollywood legend.  Entire movies have been made around the fear of flying and the perceived dangers that they instill are numerous.  Aviation activities still draw front page news, from the airshow to the accident and the engine failure to the ATC actions.  Is flying dangerous?  Yes.  Is it more so than other daily activities?  No.  It is up to us as pilots, air traffic controllers, and all other aviation support personnel to do all we can to operate as safely as possible and calm the fears of the general public.

Be professional, train appropriately, and be personable.  Just because we can fly does not mean we are above anyone else.

Click on pen to

During training at the American Airlines Learning Center in Dallas, new agents were given a specific protocol for checking passengers and their bags in at the ticket counter.  We were to greet the customer by name as it was printed on the ticket.  Ask them what their final destination was – just to make sure the ticket was right - and ask them how many bags they would be checking.  This was long before that silly question of “have your bags been out of your possession since you packed them,” like anyone would actually admit to that.

I once had a woman tell me that her final destination was her mother’s house.  While I agreed that a visit to her mother was surely a wonderful thing, I could not check her bags to her mother’s house.  She gave me her final airport, I checked her bags through and all was right with the world.

This woman’s trip raises a question in my mind.  I know the city-pair on her ticket; however, that citypair didn’t really  match her real travel intentions.  She might have departed from Columbus, Mississippi, but might actually have lived Macon, Mississippi.  She might have traveled to Charleston, West Virginia, but might actually have needed to go to Parkersburg, West Virginia.  Because of limited choices in scheduled airline service, she ended up with a drive on both ends of her trip.  Now, until we have personal jet packs, we’re not going to be able to leave our homes and fly to exactly where we want to go.  Can you imagine the air traffic nightmares that personal plane a la George Jetson would bring?  Yikes! 

Still, we know that general aviation can reduce our drives simply by virtue of the fact that there are more general aviation airports.  Put new and better technology with new and better aircraft and you have a few people with similar intentions sharing flights.  Vancouver has over 60,000 fans on two Facebook pages and a population of over a half million people in the city, not taking suburbs into account.  Surely a few of those people could agree on a time to go from the Abbortsford airport to the Blatchford Field in a Cessna Mustang.  Wouldn’t you think?

Click on pen to

Maybe the bigger question to ask is: Will social technology change the way people do business?

Over the past two months I, along with the rest of the world, watched the events unfold in Tunisia and Egypt which resulted in the toppling of decades old repressive regimes. Then the outbreak for freedom spread to other countries in the Middle East  and Libya , and is even trying to gain a toe hold in China. Governments can shut down the internet for a time, but eventually people will figure a way around the firewall. I thought about the part social media played in these events and the discussions in mainstream media about what social media has done in these countries to fuel the protests.

Social media and the technology behind it are not inherently good or bad and do not have any power on their own to do anything. The technology is just another means of communicating. What Social Media has done is enable the world to connect and communicate in ways, and at a speed and distance, never before seen in human history. And right now it is in it’s infancy.

As a student of social media and how it might be used in business and private aviation to change the ways we do business for the positive, I have been met with skepticism as I talk and write about it.

Questions and Comments include:

• Nobody on Facebook will book a charter flight or buy an aircraft
• The affluent (our current clients) don’t use Social Media
• Social Media is some kind of fad and won’t last
• Those who use Facebook only communicate silly chatter about what they had for breakfast and where they went the night before
• I don’t want anything to do with this social media stuff, it is a waste of time
• How do you monetize this stuff and what is your ROI?

Back to Egypt and Tunisia:

History will show that the power of the people to communicate with each other was the undoing of repression. The worry now is that another repressive regime will fill the void as so often has happened in Africa. Somehow this time, I don’t believe the people will allow that to happen. Now that the people have won, who in Egypt or Tunisia will be able to lead the country and not allow the people to communicate online? Another demonstration can happen in an instant. Once freed, people will not go back willingly to being repressed.

So if the power of this communication on steroids called Social Media can topple governments, does its use also have the potential to open up markets and change the way people buy goods and services? I think the answer is that it’s already happening. And it will pick up speed just as the development of the technology has picked up speed.

People, given the tools to communicate unfiltered across borders, cultures and any other boundaries, will drive solutions to market problems that have been begging to be solved.

The air transportation system in this country has major efficiency problems that cannot be solved by the government or the airlines overnight. Our government can’t even agree on a funding solution to update the 1960’s generation air traffic control system, much less solve a market problem.

So if the government can’t solve the problem of inefficient air travel who can? How about we the people, through communication which creates new knowledge and creates innovation and brings new solutions.

Click on pen to

Anyone in the aviation industry is familiar with the success of Southwest Airlines.   We have heard the stories of both employee and customer satisfaction that seem to represent an anomaly among the large air carriers.  Many reasons are given for their success including the use of one type of plane, emphasis on simplicity of service, or use of less congested airports.  Several bestselling books have focused on the leadership of Herb Keller and the Southwest team.  In her well-researched book, The Southwest Airline’s Way, Jody Gittell demonstrates that while all these are indeed factors, there is another underlying and more foundational reason for SWA’s accomplishments –its ability to foster and sustain relationships.  She writes:

“Southwest’s most distinctive organizational competency is its ability to build and sustain relationships characterized by shared goals, shared knowledge and mutual respect.” 1

In short, it is about the human network.

Other companies, large and small, are now learning this valuable and often overlooked lesson.  Relationships are how we do business.  Relationships that are (forgive the often-used buzzword) authentic, can truly make a real difference in how we attract, sustain, and build business.

Sales used to be stereotyped by the iconic image of the used-car salesman.  Fair or not, the image often conjured by mentioning this is one of a greasy, manipulative, and patently untrustworthy individual who views customers simply as walking dollar-signs.  There is a low-level of trust between the salesperson and the customer and many people avoid this type of exchange if at all possible.  In a recent Gallup poll the sales professions ranked in the lower 10 percent of professions that foster trust in the public eye.2  Why?

Because more and more, we are choosing to do business with those we know and trust, particularly with high-involvement products such as cars and yes, aviation related purchases.  Research has shown that while we may indeed seek the absolute lowest price for a box of cereal, most people are willing to pay more for an expensive item or service when they sense that the person or company has a relational connection to their product or service.  Certainly price is a factor, there is another set of factors at work in our businesses –the relational.

Think about Apple computers.  The base-model Apple Computers are clearly more expensive than a comparably equipped PC.  Why do these computers regularly have strong sales, even in a down economy?  It is the connection Apple has created in our culture.  In his book What Americans Really Want… Really Frank Luntz discusses this culture Apple has been able to create:

“Mac people want you to know they are Mac people.  You’ll see the Apple logo on cars or on the backpacks of college kids.   Thousands of people attend MacWorld….People who own Macs want you to know that they are part of that community of people…People are prepared to pay an Apple premium because their products satisfy all our other needs (fewer hassles, longer lasting,  fewer worries and less stress.)”3

It’s the connection with the human network and a clear message about how this meets more than the real need (computing).  Their products also meet the felt needs of our modern society, connection and relational trust.

There is a lot we can learn from this in the aviation community whether we sell multi-million dollar aircraft, charter, or flight lessons.  We need to examine our place in the human network and our ability to demonstrate our ability to foster trust and real relationships among the people we work with and the people we serve.

Historically (Southwest being a notable exception) we have not been great at this in the aviation industry.  The true value of the products we offer can only be built where we take the time to build relationships of trust.  In a recent article on sales and trust Todd Duncan puts it simply when he says, “Sales are made when trust exists.”4

While our goal will certainly be to make our companies strong by working hard to make sales, may we not neglect the lessons of trust and the human factors that enable us to establish it.  When we take the time to build an authentic human network, we may well discover an increase in affinity for, and interest in, the great products we have to offer to the aviation marketplace.

1.  Gittell, Jody Hoffer The Southwest Airlines Way (McGraw Hill, New York, NY, 2003) page 12

2.  Duncan, Todd “The Velocity of Trust” Success Magazine, January 2011, page 20

3.  Luntz, Frank What Americans Really Want…Really (Hyperion, New York, NY, 2009) pages 19-21

4.  Ibid, Duncan

Click on pen to

A January 17 press release from Embraer announces that Embraer delivered 100 Phenom deliveries in 2010 making it number one in most deliveries. That’s pretty impressive for a new aircraft that was only certified at the end of 2008, and especially taking into consideration the economy.

An excerpt from the press release:

One hundred aircraft delivered: more than any other business jet in the world.

São José dos Campos, January 17, 2011 – Embraer’s Phenom 100 entry-level executive jet was number one, with 100 deliveries in 2010. Together with the other airplanes of Embraer Executive Jets’ portfolio, the Phenom 100’s success is also reflected in the Company’s increasing market share, which is the fastest growing in business aviation in terms of units delivered.

“Its clean-sheet design, superior cabin comfort, amazing performance, low operating cost, as well as the jet’s great looks, have thrilled our customers,” said Luís Carlos Affonso, Embraer Executive Vice President, Executive Jets. “We are honored and thankful to our customers for their choice and confidence in the Phenom program and in the Embraer brand.”

Our delivery group at JetQuik, led by Bill Minkoff, has delivered 16 Phenom 100 and  2 Phenom 300 aircraft to customers in the US and Europe since October 2009. The acceptance and deliver process gets smoother with each delivery. Embraer is building great aircraft.

We are proud to be managing and operating two Phenom 100’s in charter service. They have gained good market acceptance with our charter passengers and are proving themselves as they get time in service.

Congratulations to Embraer for making a great entry level business jet.  I look forward to seeing the Legacy 450 and 500 aircraft when they reach certification and production.

Click on pen to

Part 1

I read a lot and try to keep up with what is going on in our industry, trends, innovations, economic forecasts for aviation and the economy on a macro level, what and how the airlines are doing, and so forth.

However, my best perspective about Business and General Aviation still comes from where I sit working in the middle of a business that charters, manages, sells, maintains, fuels and stores aircraft. We also partner on two flight schools that do primary and advanced flight training. I am surrounded by and involved with just about every aspect of general aviation.

2010 was a year that started out with no clear understanding of whether it would be the year of recovery or a repeat of 2009.

The first 8 months of the year were up and down on monthly revenue in charter. Some months looked great and some looked like 2009. It is hard to run a business without predictability in revenue and activity. How do you staff for that and plan cash flow? We managed to hang on.

We have been very fortunate to have a maintenance division of the company that never slowed down during the recession due to the type of maintenance we specialize in. We perform work on and refurbish small regional airline aircraft and the demand for these aircraft worldwide didn’t change much during the recession. Small airlines around the world and the communities they serve need aircraft. Aviation in many countries is not so much a luxury but more of a necessity of travel with poor road infrastructure. The weakness in the small regional airline market seemed to be more the lack of financing than lack of demand.

Our FBO’s showed steady improvement this year over last year. Fuel sales volume was still not at 2007 levels but it got closer. I like upward trends more than downward trends.

The good news really happened in the last 4 months of this year. The phones started ringing more and our charter flights picked up tremendously. As I reviewed it yesterday, and compared to the last 4 months of 2009, I almost couldn’t believe the numbers. Our revenue in charter was up 65% over last year from September through December.

What happened to cause this increase?

A few things on our end helped, including an increase in the size of the charter fleet with 8 new aircraft additions over the past 12 months. Included in that mix was a 30-seat turboprop that met a void in the market. Without too much marketing effort this aircraft started flying immediately when it went into service at midyear.

Looking at the external factors, the airlines and the system they operate in continued to add frustration and inefficiency to air travel. More TSA hassles, more delays and cancellations added to the misery factor. Reduced seats and increased demand created profit for the airlines but caused trouble for the business traveler. Full flights don’t allow much flexibility when cancellations happen due to weather or maintenance. It is not so easy anymore to rebook on the flight leaving two hours later. Sometimes that turns into “we will get you there tomorrow”.

Demand for travel has come back but the friction in the system has gotten worse.

That is good for those of us who are in the business of offering alternatives to scheduled airline travel.

So my guess is that we also benefited from the economy and the airline system. I will take the gift the airlines are handing us and smile.

The snowstorm in the Northeast this week generated a lot of year-end flight activity for us. Stranded vacationers were willing to charter flights to get where they needed to go.

So this year ended up a whole lot better than it started, and I am encouraged that the opportunities for our company and for our industry are going to improve in 2011.

Even in a shaky and uncertain economy people still need to travel. Businesses have proven their resilience to keep doing business and make things work even when the forecasts from some are doom and gloom. Face to face business has yet to be replaced totally by the videoconference. I still can’t share a meal with you through the video screen.

I believe we have amazing opportunities as an industry to improve the efficiency of businesses by saving time and stress on their most valuable asset – their people.

From my perspective I will take 2010 as a year of learning to adapt and innovate and treading water without sinking.

In the next posting I will throw out some ideas and thoughts about what 2011 and forward could look like.

Happy New Year

Click on pen to

An economy is defined by, or limited by, time and productivity. Value is created in an economy when an improved use of the resource of time creates gain in productivity.

The purpose of travel by aircraft is to gain time over other means of travel, time that can be used to create new value.

Inside the experience of travel the journey itself can either add to or subtract from productivity. If I can be productive while traveling I gain value during the travel in addition to the gains on both ends of the journey.

Every day, those of us in business aviation, witness the gains in productivity both in time saved and in the positive experience of travel by private and business aircraft.

Business travelers who have experienced this form of travel know what I am talking about.

Business travelers who use the airlines will testify to the negative impact on productivity from the time drain and wear and tear of airline travel.

The airlines, and the system they have created around the hub and spoke, have done a lot to try and ease the journey by creating nice terminals with food, shopping, and wifi connections to the Internet.  However, am I more productive sitting at the Airport Starbucks on my laptop for three hours waiting on the connecting flight, or being at my destination three hours earlier?

What about the time en-route?

If I can conduct a meeting in the air with clients, vendors or fellow workers what’s it worth?

When is the last time you had a business meeting while traveling on an airline in coach class or even in business class?

Business aviation wins hands down both in time saved in the journey and productivity experienced during the journey.

So why doesn’t everyone travel using a business aircraft?

Price and perceived value!

Business aviation is expensive when compared to the perceived value.

If our industry created a true cost-productivity calculator application that took into consideration not only the value of the time savings, but just importantly the productivity gains experienced during the journey, would it change the perception of the value of business aviation?

The technology is here today to do this.  

I would challenge our friends in the tech sector to come up with an application that calculates the “true costs” of the various modes of air travel.

What would an application like that be worth to those of us in Business Aviation?

Click on pen to

Today marks the one year anniversary of this site we call Plane Conversations. When we started we knew what we wanted to accomplish but did not have an idea of where the hard work would take us in the first year.

This post is the 338^th by the writers, 14 in number, who have contributed. The page views according to the stats number about 45,000 in the first year. I can’t tell you whether that is good or bad. I like numbers, but quality seems to outweigh quantity for me after the first year in the world of social media.  

I am grateful to everyone who has contributed for their perspectives and stories about aviation. It would have gotten pretty dull had it just been me.   

About the same time we launched this site, we also made a strategic decision to use tools of Social Media to communicate to our market, our peers and those we hope to do business with. Today we have active Facebook friends numbering 1360, with several Facebook pages covering the different areas of our businesses. We also actively communicate through Twitter, as well as distributing our blog content through numerous other sites and social media applications. All of this has helped us reach and meet new people across the globe.  

At the outset we hoped to reach the audience of travelers who need Business Aviation but just haven’t realized it yet.

I believe in looking at our readers in the first year that we have communicated more to our own, those of us already in the business of aviation.

That’s OK though, because what this site has brought us are new relationships with people in business and general aviation around the world. Chances are we would have never met most of you any other way and that makes the effort worth it.

Who knows where the beginnings of these new found relationships will lead, but my hope is that we will mutually prosper. Maybe the shared knowledge will help us all in some way even if it is small. Many people have taken the time to read these posts and the hope is that the time was not wasted.

What are the lessons learned so far? 

• If you want to launch a blog site and contribute regularly be prepared for a serious time investment. It is much harder than I thought it would be.  
• You think you know what people are interested in but you really don’t know until you put it out there.
• Moving forward I want to spend more time thinking about what to write and put more effort into the quality of the posts and worry less about the quantity of posts.
• The more perspectives and stories we get from different people the better. After all this is a conversation, and conversations are best when there are more people participating.

Over the past year I have seen Business Aviation start to wakeup to the power of using social media and its technologies to communicate our message. Each week I become aware of new people on Twitter and Facebook. The ability to move the conversation to the positive in our industry has been tremendous. For the most part I believe we have silenced or at least neutralized the mainstream media bias against our industry; the bias that we were an industry for the rich and famous only.

I have seen the technology of social media develop so fast that no one can keep up with all of the changes happening. As Facebook and Skype come together in an integration of their communication services over 700 million people will be using the two together. That is a staggering number and it will grow.

Is there an opportunity to reach this audience with the message of our industry and what it can do for people’s time and lifestyle? There has to be, so maybe the best is yet to come.  

Thanks to all of you have taken time out of your busy lives to read a post or two.

Thanks to the writers, and especially Jon Anne and Rachel who have not only written, but contributed by editing and proofing the rest of us, as well as distributing the posts out to all of the other sites and applications. Your tireless efforts have made this happen. It has been a true team effort.

A big thanks to Benet, Rob, Clint, Paula and other friends who have promoted our message and site in a social way. We have learned much from you and will continue to listen and learn. 

I look forward to this next year and what it will bring to those of us in Business Aviation who have weathered the storm of the past two years. Never before have we had the opportunity to tell our message like we do now. It will be great to see the impact that “Social Media”  has on Business Aviation.

Click on pen to

Photograph by: Chris Ware, Getty

Bloomberg and Associated Press report that June 2010 airline traffic rose 2.3% over June last year with US airlines carrying 65 million passengers. Annualized that comes to 780 million passengers. DOT projections say we will hit the 1 billion annual passenger level in the US in about 10 years.   

In spite of low customer satisfaction with airline service, people keep coming back for more. If you listen to all the grumbling you would think that, surely, travelers have had enough.  

The need or desire to travel must outweigh the pain of going to the airport and flying by airline.

People don’t like to fly the airlines but they keep doing it and the numbers are growing.

People love to fly in their own aircraft, ride in the back of a business jet or even a prop aircraft on their own schedule, and without the hassle of airline system,  but our industry languishes in this economy.

What is wrong with this picture?

It seems that price outweighs most considerations for the masses when it comes to travel.

Wouldn’t we all rather ride in a private jet if we could do so for the price of a Southwest Airline ticket?

How do we move a very small percentage of the market of travelers over to our side of the game?

It would only take a very small percentage of those 780 million annual passengers to radically change the fortunes of business and private aviation from manufacturers to service providers to the operators of the aircraft.

Move a few percent of the market share of travel to business and general aviation and, suddenly, the world looks a lot brighter for those of us in this industry.

I see a lot of effort being put forth; but, mostly, the efforts are in their own silos. I don’t see a lot of effort as an industry working together to solve the problem. There seems to be a general acceptance that it is what it is and that the situation on a macro level is not going to change quickly anytime soon.

It is worth thinking about to see if we can come up with solutions, isn’t it?

Click on pen to