Collegiate        Qualifying
                     Air Charter
                    Ensuring the air travel


Air Travel Safety   safety of your team,
                    students, faculty, alumni,
                    and staff is a large and
                    important responsibility.
                    However, with the
                    right strategies and
                    knowledge you will
                    have the tools needed
                    to promote safe, high
                    quality air travel.




                          Written By: Shirley Mason
                        Senior V.P. Market Intelligence
                             September 24, 2010
Qualifying a Charter Operator
   Finding the right charter operator can seem like a daunting task. By following these
   recommendations you will develop the ability to identify qualified operators for your air
   travel needs.

   It is recommended that only operators able to provide evidence of current air carrier
   certificates, consistent with the type of commercial operation being requested, be
   contracted to provide air travel. When chartering, be sure to demand two appropriately
   qualified and licensed pilots as a requirement for all passenger carrying flights. Charter
   providers should be pre-screened to allow for quicker response to on-demand, short
   notice air transportation. This can be accomplished either directly with the provider,
   or through a charter broker. The development of standardized qualifying criteria will
   facilitate this pre-screening.
            1. Operator must be in possession of a current, air operator certificate issued
               by their country’s appropriate licensing agency (such as Federal Aviation
               Administration (FAA) Part 121,125,129,135).
            2. Operator must have been consistently operating an aircraft under a valid
               air operator certificate for a minimum of 24 months. Require an on-site
               audit for newer certificates.
            3. Operator must have a permanent, physical, primary office location
               containing the appropriate records applicable to the prior operational
               experience. These records must include appropriate pilot, aircraft,
               maintenance, training, and trip records.
            4. Operator must have full-time staff including adequate management, pilots, administrative, and maintenance
               personnel.
            5. The Operator should provide a current list of approved aircraft from an official approved operations document (i.e.
               FAA Operations Specifications, International Air Transportation Association (IATA) Air Operators Certificate, etc.).




4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // argus.sales@argus.aero // www.argus.aero                           -2-
6. Audit the air carrier or use a third-party auditing firm to assure the air carrier
                                                      meets regulatory requirements, industry best practices and any customer specific
                                                      needs.
                                                      7. Check for any historical or current regulatory enforcement actions against
                                                      the air carrier. The National Business Aviation Association (NBAA) recommends
                                                      that this is obtained through a third party auditor or the regulatory authority that
                                                      oversees the air carrier.
                                                      8. Obtain and review the liability insurance amounts on the aircraft. Liability
                                                      Insurance minimums are dependent upon the type of the aircraft and operation
                                                      (anywhere from $25,000,000 to $200,000,000 in coverage).
                                                      9. Provide the air carrier with a master vendor agreement which details the
                                                      minimum service expected (aircraft, crew, insurance minimums, etc). Ensure that
                                                      all agreements with the air carrier are in writing.


                                                      Qualifying Aircrew
                                                      How do you know if the pilots are qualified? The following are the recommended
                                                      minimum crew requirements and qualifications. Each is subject to change based
                                                      on new and/or updated federal regulations or industry best practices. The
                                                      below listed experience requirements depict common qualification guidelines.
                                                      Supplemental criteria or other minimums may apply in certain circumstances.

            1. Pilot-in-Command (PIC)
                 •   Salaried employee of operator.
                 •   Cannot be a contract pilot.
                 •   Minimum total time of 3,000 hours
                 •   Minimum total PIC time of 1,500 hours
                 •   Type rated in aircraft and minimum PIC time in specific type of 250 hours.




4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // argus.sales@argus.aero // www.argus.aero                                   -3-
•   Airline Transport Pilot (ATP) Rating
                 •   Current Class 1 medical
                 •   No significant accidents, incidents, or
                     enforcement action in the previous 36
                     months.

            2. Second-in-Command (SIC)
                 •   Minimum total time of 1,000 hours
                 •   Minimum total PIC time of 500 hours
                 •   Commercial, multi-engine, instrument
                     rating
                 •   Current Class 1 or 2 medical
                 •   No significant accidents, incidents, or
                     enforcement action in the previous 3 years.

   NOTE: In the event the pilots do not meet the criteria established above, their combined experience and ratings must exceed the
   individual requirements set forth for each.

   Qualifying Aircraft
   It is important to ask about the aircraft that will be used during your travel, therefore it is recommended to ensure the following:
            1. Aircraft must be under the operational control of the certificated air operator employing the crew.
            2. Aircraft may not have historical significant damage or serious maintenance anomalies.
            3. Liability Insurance minimums apply depending upon the type of the aircraft and operation (from $25,000,000 to
               $200,000,000 in coverage). Hull insurance consistent with the value of the aircraft in the marketplace should be
               required.
            4. Installed avionics equipment minimums (Traffic Collision Avoidance System (TCAS), Ground Proximity Warning
               System (GPWS), and Reduced Vertical Minimum Separation (RVSM) may apply.




4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // argus.sales@argus.aero // www.argus.aero                               -4-
5. Maintenance Programs are established to ensure the aircraft are properly certified and maintained in a manner that ensures
            they are airworthy and safe. The Maintenance programs should be validated through an independent source to verify that
            the program includes the use of manufacturer’s and Civil Aviation Authority (CAA) information, as well as company policies
            and procedures.
         6. Management ensures that contracted maintenance, including repair and overhaul facilities, is performed by maintenance
            organizations acceptable to the CAA.
         7. All maintenance tasks, including required inspections and airworthiness
            directives, are performed; that maintenance actions are properly documented;
            and that the discrepancies identified between inspections are corrected.
         8. A system that continuously analyzes the performance and effectiveness of
            maintenance activities and maintenance inspection programs is required.
         9. A required process to ensure that aircraft inspections are completed and the
            results properly documented.
        10. Company policy manuals and manufacturer’s maintenance manuals are
           current, available, clear, complete, and adhered to by maintenance personnel.
        11. Maintenance facilities are adequate for the level of aircraft repair authorized in
            the company’s CAA certificate.

Charter Broker Requirements
If you decide to use a charter broker to set up your travel arrangements, you will want to
ensure they meet any regulatory requirements and best practices set forth for air charter
brokering. Air charter brokers must be very familiar with a range of FAA operational
regulations and restrictions, such as requirements for certificated charter operators, flight
duty, and rest restrictions, and the need for the charter operator to maintain complete
control over its flight activity.

Unlike FAA-certificated charter operators, charter brokers acting either as an agent for the customer, an agent for the air carrier or the
middleman currently are not required to be licensed and/or certificated by the FAA or Department of Transportation (DOT). However,




4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // argus.sales@argus.aero // www.argus.aero                              -5-
the DOT has published enforcement policy notices that set certain requirements for all air charter brokers,
which are summarized here:
         1. Brokers must be clear with the customer/charterer, as applicable, in all solicitation materials,
            verbal and written correspondence, contractual documentation and word-of-mouth contact,
            that they are not the FAA licensed Part 121, 125 ,129 or 135 operator. The broker cannot
            create the false impression that they are direct air carriers in their own right by, for example,
            referring to an aircraft used in the air services they are marketing in a manner that conveys
            the false impression that they are the air carrier. Such phrases as “our fleet,” “our charters,”
            “our charter service,” “our aircraft,” “our crews”, “our flight crews” or “we operate a fleet of”
            have been found by the DOT to create such an impression, even if such phrases are qualified
            by footnotes or other disclaimers. Brokers may not represent themselves as a principal in a
            transaction (i.e., buying or selling air transportation for their own account) unless they have first received economic authority
            from the DOT to act as an Indirect Air Carrier (IAC) (see below).
         2. It is incumbent upon the broker to exercise due diligence to ensure he or she is arranging the charter service that is
            advertised. For example, if the broker is acting as an agent of customer, the broker must ensure it is, in fact, placing
            customers on licensed direct air carriers. Similarly, if the broker is advertising that charter customers will be placed on
            audited charter flights (e.g., “ARGUS Platinum Rated”), then the broker must ensure that the charter operator has met that
            audit/standard.



       With these guidelines you now have the knowledge needed to ensure that your air charter travel
                      is undertaken using safe, reputable air transportation providers.



                                               ARGUS understands the substantial role and responsibility you have in ensuring the travel safety of
                                               your students, faculty, alumni and air medical staff. ARGUS’ Aviation Travel Risk Management Services
                                               are tailored specifically towards the needs of your University and College and enables you to run the
                                               travel management program effectively and efficiently while mitigating travel-related risks. With ARGUS’
                                               global experience in business, commercial and private aviation, we are uniquely able to provide the
                                               knowledge you need to ensure that all college and university travel is undertaken using safe, reputable
                                               air transportation providers.

                     4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // argus.sales@argus.aero // www.argus.aero

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Collegiate air travel safety whitepaper updated 010611

  • 1. Collegiate Qualifying Air Charter Ensuring the air travel Air Travel Safety safety of your team, students, faculty, alumni, and staff is a large and important responsibility. However, with the right strategies and knowledge you will have the tools needed to promote safe, high quality air travel. Written By: Shirley Mason Senior V.P. Market Intelligence September 24, 2010
  • 2. Qualifying a Charter Operator Finding the right charter operator can seem like a daunting task. By following these recommendations you will develop the ability to identify qualified operators for your air travel needs. It is recommended that only operators able to provide evidence of current air carrier certificates, consistent with the type of commercial operation being requested, be contracted to provide air travel. When chartering, be sure to demand two appropriately qualified and licensed pilots as a requirement for all passenger carrying flights. Charter providers should be pre-screened to allow for quicker response to on-demand, short notice air transportation. This can be accomplished either directly with the provider, or through a charter broker. The development of standardized qualifying criteria will facilitate this pre-screening. 1. Operator must be in possession of a current, air operator certificate issued by their country’s appropriate licensing agency (such as Federal Aviation Administration (FAA) Part 121,125,129,135). 2. Operator must have been consistently operating an aircraft under a valid air operator certificate for a minimum of 24 months. Require an on-site audit for newer certificates. 3. Operator must have a permanent, physical, primary office location containing the appropriate records applicable to the prior operational experience. These records must include appropriate pilot, aircraft, maintenance, training, and trip records. 4. Operator must have full-time staff including adequate management, pilots, administrative, and maintenance personnel. 5. The Operator should provide a current list of approved aircraft from an official approved operations document (i.e. FAA Operations Specifications, International Air Transportation Association (IATA) Air Operators Certificate, etc.). 4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // [email protected] // www.argus.aero -2-
  • 3. 6. Audit the air carrier or use a third-party auditing firm to assure the air carrier meets regulatory requirements, industry best practices and any customer specific needs. 7. Check for any historical or current regulatory enforcement actions against the air carrier. The National Business Aviation Association (NBAA) recommends that this is obtained through a third party auditor or the regulatory authority that oversees the air carrier. 8. Obtain and review the liability insurance amounts on the aircraft. Liability Insurance minimums are dependent upon the type of the aircraft and operation (anywhere from $25,000,000 to $200,000,000 in coverage). 9. Provide the air carrier with a master vendor agreement which details the minimum service expected (aircraft, crew, insurance minimums, etc). Ensure that all agreements with the air carrier are in writing. Qualifying Aircrew How do you know if the pilots are qualified? The following are the recommended minimum crew requirements and qualifications. Each is subject to change based on new and/or updated federal regulations or industry best practices. The below listed experience requirements depict common qualification guidelines. Supplemental criteria or other minimums may apply in certain circumstances. 1. Pilot-in-Command (PIC) • Salaried employee of operator. • Cannot be a contract pilot. • Minimum total time of 3,000 hours • Minimum total PIC time of 1,500 hours • Type rated in aircraft and minimum PIC time in specific type of 250 hours. 4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // [email protected] // www.argus.aero -3-
  • 4. Airline Transport Pilot (ATP) Rating • Current Class 1 medical • No significant accidents, incidents, or enforcement action in the previous 36 months. 2. Second-in-Command (SIC) • Minimum total time of 1,000 hours • Minimum total PIC time of 500 hours • Commercial, multi-engine, instrument rating • Current Class 1 or 2 medical • No significant accidents, incidents, or enforcement action in the previous 3 years. NOTE: In the event the pilots do not meet the criteria established above, their combined experience and ratings must exceed the individual requirements set forth for each. Qualifying Aircraft It is important to ask about the aircraft that will be used during your travel, therefore it is recommended to ensure the following: 1. Aircraft must be under the operational control of the certificated air operator employing the crew. 2. Aircraft may not have historical significant damage or serious maintenance anomalies. 3. Liability Insurance minimums apply depending upon the type of the aircraft and operation (from $25,000,000 to $200,000,000 in coverage). Hull insurance consistent with the value of the aircraft in the marketplace should be required. 4. Installed avionics equipment minimums (Traffic Collision Avoidance System (TCAS), Ground Proximity Warning System (GPWS), and Reduced Vertical Minimum Separation (RVSM) may apply. 4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // [email protected] // www.argus.aero -4-
  • 5. 5. Maintenance Programs are established to ensure the aircraft are properly certified and maintained in a manner that ensures they are airworthy and safe. The Maintenance programs should be validated through an independent source to verify that the program includes the use of manufacturer’s and Civil Aviation Authority (CAA) information, as well as company policies and procedures. 6. Management ensures that contracted maintenance, including repair and overhaul facilities, is performed by maintenance organizations acceptable to the CAA. 7. All maintenance tasks, including required inspections and airworthiness directives, are performed; that maintenance actions are properly documented; and that the discrepancies identified between inspections are corrected. 8. A system that continuously analyzes the performance and effectiveness of maintenance activities and maintenance inspection programs is required. 9. A required process to ensure that aircraft inspections are completed and the results properly documented. 10. Company policy manuals and manufacturer’s maintenance manuals are current, available, clear, complete, and adhered to by maintenance personnel. 11. Maintenance facilities are adequate for the level of aircraft repair authorized in the company’s CAA certificate. Charter Broker Requirements If you decide to use a charter broker to set up your travel arrangements, you will want to ensure they meet any regulatory requirements and best practices set forth for air charter brokering. Air charter brokers must be very familiar with a range of FAA operational regulations and restrictions, such as requirements for certificated charter operators, flight duty, and rest restrictions, and the need for the charter operator to maintain complete control over its flight activity. Unlike FAA-certificated charter operators, charter brokers acting either as an agent for the customer, an agent for the air carrier or the middleman currently are not required to be licensed and/or certificated by the FAA or Department of Transportation (DOT). However, 4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // [email protected] // www.argus.aero -5-
  • 6. the DOT has published enforcement policy notices that set certain requirements for all air charter brokers, which are summarized here: 1. Brokers must be clear with the customer/charterer, as applicable, in all solicitation materials, verbal and written correspondence, contractual documentation and word-of-mouth contact, that they are not the FAA licensed Part 121, 125 ,129 or 135 operator. The broker cannot create the false impression that they are direct air carriers in their own right by, for example, referring to an aircraft used in the air services they are marketing in a manner that conveys the false impression that they are the air carrier. Such phrases as “our fleet,” “our charters,” “our charter service,” “our aircraft,” “our crews”, “our flight crews” or “we operate a fleet of” have been found by the DOT to create such an impression, even if such phrases are qualified by footnotes or other disclaimers. Brokers may not represent themselves as a principal in a transaction (i.e., buying or selling air transportation for their own account) unless they have first received economic authority from the DOT to act as an Indirect Air Carrier (IAC) (see below). 2. It is incumbent upon the broker to exercise due diligence to ensure he or she is arranging the charter service that is advertised. For example, if the broker is acting as an agent of customer, the broker must ensure it is, in fact, placing customers on licensed direct air carriers. Similarly, if the broker is advertising that charter customers will be placed on audited charter flights (e.g., “ARGUS Platinum Rated”), then the broker must ensure that the charter operator has met that audit/standard. With these guidelines you now have the knowledge needed to ensure that your air charter travel is undertaken using safe, reputable air transportation providers. ARGUS understands the substantial role and responsibility you have in ensuring the travel safety of your students, faculty, alumni and air medical staff. ARGUS’ Aviation Travel Risk Management Services are tailored specifically towards the needs of your University and College and enables you to run the travel management program effectively and efficiently while mitigating travel-related risks. With ARGUS’ global experience in business, commercial and private aviation, we are uniquely able to provide the knowledge you need to ensure that all college and university travel is undertaken using safe, reputable air transportation providers. 4240 Airport Rd. Suite 300, Cincinnati OH 45226 // 513.852.1010 // [email protected] // www.argus.aero