Starting a flight department

[SheGaveMeClap]

I've recently been hired to start a small flight department. I have a couple of months to get this thing going before our airplanes show up, but I have a few questions.

I think I've hit most of the high points so far: I've got a plan for training, maintenance, insurance, approach/enroute charts and staffing. What am I missing?

Do I need to talk to the FAA for anything? Do the Feds need to approve anything? It's strictly part 91, no 135. Do I need to get up an Ops Manual, anything like that? I wouldn't think so, but I thought I'd ask.

If you see something I'm missing (probably plenty!), please let me know! Thanks in advance.....

 

[2000flyer]

I've recently been hired to start a small flight department. I have a couple of months to get this thing going before our airplanes show up, but I have a few questions.

I think I've hit most of the high points so far: I've got a plan for training, maintenance, insurance, approach/enroute charts and staffing. What am I missing?

Do I need to talk to the FAA for anything? Do the Feds need to approve anything? It's strictly part 91, no 135. Do I need to get up an Ops Manual, anything like that? I wouldn't think so, but I thought I'd ask.

If you see something I'm missing (probably plenty!), please let me know! Thanks in advance.....

Clap,

Unless you have your own fuel farm, start working with you local FBO on fuel/hangar discounts. Consider eventually getting involved with contract fuel groups.

Are you going to need office space? Furniture, phones, computer? You get the point.

Fuel credit cards?

The feds don't need to be involved (unless you're a glutton for punishment ) with a Part 91 operation. Their involvement will be callateral (a/c registrations, etc.). Now, if your aircraft are going to need an MEL or RVSM approval, yes, you'll be working with your local FSDO. That will come down the road as you develope your operations manual and request for an LOA.

Regards,
2000Flyer

 

[FracCapt]

If you see something I'm missing (probably plenty!), please let me know! Thanks in advance.....

An LOA for your RVSM approval. You need to request specific areas outside the CONUS(like North Atlantic) if you plan to operate in those areas.

Have you found a local mechanic that is experienced with your type of aicraft? Get on an MSP type MX program, but if there is not a division of the manufacturers MX on the field, find a local mechanic that can work on it when necessary.

Have you checked with the insurance company to see if your qualifications will meet their requirements? I know a few people that have been suprised by this lately.

No ops manual, FOM, or MX manual required for strictly 91.

If this company has never had a flight department before, you really need to get the boss up to speed on the REAL cost of aicraft ownership. The biggest problem is that the people writing the checks start to freak out when they see the costs associated with aircraft ownership. Make sure the accountants familiarize themselves with the tax laws as they relate to aircraft. Make sure the difference between personal and business use, if it's used for both, is clear to the owner, and the accountants. There will be hell to pay if there's an audit, and they've been claiming 100% business utilization, and it has really been used mainly for personal use.

 

[Spooky 1]

ISBAO cerification

You might consider looking at the ISBAO guidlines for operating a flight department. There are some modest costs involved and even if you choose not to comply with all of the issues it will certainly open your eyes to the vast number of possibilities that will confront you as you start down this path.

 

[400A]

Get an MEL.

 

[splatt]

Having some sort of OPs manual can sometimes lower insurance costs.

If you've got the space, having your own fuel can save a bunch of money too. When I flew part 91 (and I'd like to again) we bought fuel on the road at $3/gal. That same fuel cost only $1/gal at home by tanker truck load.

If you can't have your own fuel tank sometime an FBO will go cost plus $.05/gal.

 

[SheGaveMeClap]

How does one go about getting on an MSP type mx program? We have a mechanic on the field that will be working on the airplane.

We are starting operations with two turboprops to start, possibly a light jet in the next year. The owner/company has had various turbine airplanes in the past, so they are aware of the actual cost of owning these things. Actually, one of the airplanes is moving from another city but their pilot isn't coming along. And there will be one more airplane delivered in august sometime.

We won't be operating in RVSM airspace, so that won't be an issue.

I'm looking into the MEL right now.

The contract fuel is a good idea too. I've already thought of that, but wasn't sure how to get into it? I will work on rates with the two local fuelers here, but how about Mercury? Phoenix? How do you get involved with all of the contract fuels?

I will keep an office at the company headquarters. They will provide all the necessary office equipment there.

Thanks alot for the great replies so far....

 

[h25b]

I would call your aircraft's manufacturer and get a hold/meet your local tech. rep. He/She will guide you through the process of getting accounts set-up for parts. Establish an accounting contact with your company that can provide your company's financial information that will be required when setting up contract fuel, parts supply accounts, fuel credit cards, etc... GET ALL OF THIS DONE NOW!!! Not tomorrow or after lunch, NOW !!! Also make sure and get your MEL established ASAP, there are a variety of businesses that will help you with this for a fee (for example http://www.gln-compliance.com). At least get an Avcard, Multi-Service, and UVAIR... The more options you have with fuel payment the better chance you will have to take advantage of the various discount programs out there.

If you can, get your company to issue you a corporate credit card with a high limit, this can help eliminate red tape when you need access to lots of money in a hurry (like when you operate an airplane).

 

[2000flyer]

The contract fuel is a good idea too. I've already thought of that, but wasn't sure how to get into it? I will work on rates with the two local fuelers here, but how about Mercury? Phoenix? How do you get involved with all of the contract fuels?

http://www.avfuel.com
http://www.corpaa.org (CAA Fuel Program)
http://www.bestaero.com
http://www.wfscorp.com (World Fuel)
http://www.colt.com

To name a few.

We use all of the above and typically find that CAA has the best deals. There is a yearly fee for their program but you'll quickly make it up. We covered our cost on one trip alone. It's a small chore checking all the contracts for the best price but worth it when you can save. I've saved over $1.50 a gallon at some locations.

2000Flyer

 

[Capthuff]

Try Mariahfuels.com and join NBAA.org

there is alot of helpful info at NBAA

 

[semperfido]

I will keep an office at the company headquarters. They will provide all the necessary office equipment there.

....

an office at headquarters?..now that sucks...they will expect to see you in it

 

[T Dub]

I would avoid an office at company headquarters at all costs. You will avoid office politics, and it will be easier to manage the airplanes if you have an office at the airport.

 

[Rick1128]

Having been through the process several years ago, I will attempt to pass on some of my experiences.

1. NO office at THE OFFICE. Have one at the airport. It will keep you out of office politics and cut down on the remarks about how easy you have it when you don't show up at the office after getting home after midnight the day before. Plus it give you a place to store all the little things you always seem to need. Cabin supplies, etc.

2. Credit cards. UVAIR and Multiservice usually cover it all. And another company card for all the other things, like hotels, etc. American Express is best. Here you might want to talk to accounting.

3. MSP is a Garrett program for Garrett engines. If you don't have Garretts, JSSI is always a good possibility. They used to allow you to use local mechanics. Flexibility is nice. Find a good local mechanic, especially one who has been in business for a few years. The longer they have been in business the more experience and parts they have.

4. You do not need an Operations Manual. If you start growing bigger, you may want to consider one.

5. NBAA Join and tell your boss you will be attending the annual convention and several seminars. Well worth the price.

6. Any time the manufacturer of your aircraft has a M&O meeting plan on attending. Having a Customer Service Manager's business card can come in real handy when you have a strange problem.

7. Shop around to keep your costs down. Many Corporate Operations have shut down due to some outragous costs.

8. Be part of the team. Be flexible enough to provide good service to all departments. Talk with your boss and set up a priority for each department.

9. Set up a scheduling procedure. Have one person responsible for scheduling. If everyone and their brother can schedule the airplane you will have nothing but problems and frustrations. The boss's secruatary is a good candidate. Very few people will dare mess with her.

10. Set up a file with all your principle passengers' names, phone numbers, major likes and dislikes for food and drink.

11. Keep the types of snacks to a minimum. Experiment a little but stay reasonably conservative. Stay away from sunflower seeds. A MAJOR PAIN IN THE A$$ TO CLEAN UP.

12. Never promise more that you can deliver.

 

[h25b]

12. Never promise more that you can deliver.

That's a good one.. Remember that the root of all disappointment is misguided expectations. So if you exceed any committment, you're everyone's heroe... But if you promise something and can't deliver, you're screwed...

 

[gern_blanston]

Do avoid the office at headquarters if you can.
Do join the NBAA.
Lay down some ground rules from the very beginning. It's easy to institue 'em from the start, and nigh-on impossible to bring 'em up later.
Here's some example of things that weren't quite right at my old job that are ingrained in the principals' minds in my current flight department:
Make sure that the boss and the pax understand who runs the show, operations-wise. There can't be any pressure or arguments if you say, "We're stopping for fuel to meet my reserves." or "No, that brake computer WILL be replaced before we fly the airplane again." or "Icy runway and a 25-knot crosswind, so we'll be making this trip tomorrow. Maybe." They need to figger out that if the pilot doesn't want to do it, they don't either.
Train 'em to call you if they're gonna' be late. It's not hard to do, and once you get 'em broke in, they'll do it every time. Takes 'em 30 seconds, and it makes your life a lot easier.
Also, don't forget that good accomodations and good food are a safety-of-flight issue after a week on the road. Make sure that you're not hung up on some restrictive $102/day per-diem or $20/meal or some such nonsense. Let the boss know that you will NEVER waste the company's money, but that you cannot stay at Mike's $29.95 Motel or eat at the Waffle House whilst you're on the road.
Running a small flight department can be the best job in aviation. Good luck.

 

[Lead Sled]

Join the NBAA. They have a complete "How to" program available on flight department startups. Good stuff.

'Sled

 

[hogdriver00]

Starting a new department

Let me add in my 2 cents about what IS required by the FAA and how a professional flight department operates. True, there is no need for an Ops manual. I number of posts have correctly stated that fact. Some people then went on to suggest this policy or that policy as a way to do business. Where or how would you keep track of all these business practices or policies? The answer is in an Ops manual that is signed by the CEO. How do you have any leverage with the boss about things like operating standards or weather limits? If you set the standards in writing and the CEO signs the document you at least have a leg to stand on. This goes for crew members as well.



Ops manuals cover a lot of areas. Here are just a few: Weather and runway limits, basic qualifications for crew members, safety programs, maintenance, basic operating procedures and crew duties, and the big one, emergency response.



You don’t need to reinvent the wheel either. Just talk to some of the local chief pilots or directors and ask for a copy of their manual in a word doc. They should be more than willing to help. Modify it to fit your needs.



You can run a Joe Bob/Billy Bubba operation or a corporate aviation dinosaur operation or you can operate a professional and safe modern corporate operation. The choice is yours.

Hog

 

[splatt]

I agree with hogdriver00. You don't have to have an Ops Manual, but it can help with decisions about going or not going, especially if there's something in black white that the CEO signed-off on. It does not have to be as elaborate as a part 135 manual either. It can be as simple as wx mins, minimum runway lengths and crew training requirements... Again, it can also help lower insurance costs because it shows you've set safety limits.

 

[hogdriver00]

New Dept.

That’s the one thing I forgot to mention. Get your insurance carrier to help you out with an audit. They usually help to lower your rates especially if you comply with their suggestions.

 

[corp_da20_guy]

Try Mariahfuels.com and join NBAA.org


there is alot of helpful info at NBAA

I agree with Capthuff...go to NBAA site and even consider joining. They have a lot of good info!