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Trends in Aviation Data Management Systems Business Aviation Flight Department e-Training & e-Recordkeeping Doug Stewart, President AircraftLogs NBAA 2011 Annual Meeting & Convention
Trends in Aviation Data Management SystemsBusiness Aviation Flight Department e-Training & e-Recordkeeping
Doug Stewart, President
AircraftLogs
NBAA 2011 Annual Meeting & Convention
What We Do…
1. Internet-Based Software:
• Scheduling
• Flight Operations & CrewManagement
• Expense Accounting
• Tax Reporting
• Corporate Reporting
• Maintenance Management
2. Outsourced Aviation Reporting:
• Flight Records
• Managed Aircraft
• Expense Reporting
• Tax Reporting
• Corporate Reporting & TimeShare Tracking
Past Focus for Aviation Technology
Scheduling Flight PostingManagement
ReportingFlight
PlanningScheduling Flight PostingManagement
ReportingFlight Planning
• Can we create Flights Itineraries & Planning Information?
• Can we get FBO and Airport data?
• Can the Scheduler Process Information Quickly?
• Do we like the screens?
• Does it work for our Flight Department?
• Can it run reports?
High Level Process
New Challenges - Changing the Focus
• Greater Demand, More Corporate “Users” of Aviation Data
– New IRS & SEC rules more challenging than FAA rules
– Corporate personnel need “hands on” access to data and software
• Internal Processes have not Kept Pace
– New reporting requirements create complex business processes
– Lack of accounting and “close the books” capabilities
• Existing Technology is Stretched
– Designed for use inside the flight department - not to manageprocesses above
– Restricts information sharing and requires “work-arounds”
Flight Request &Approval
Board of Directors
Internal Accounting
Tax Accounting
Compliance Reporting
External Reporting
Executives
Exec. Assistants
Maintenance
Scheduling Flight PostingManagement
ReportingFlight Planning
Compliance Crackdown!
2004 Congress targets corporate jets with AJCA,repealing Sutherland Lumber tax case
2005 IRS Notice 2005-45 details new layer of taxcalculations and documentation
2006 SEC require greater aircraft disclosures
2007 ATA campaigns promote negative image
2008 GM, Chrysler & Ford scorned by Congress
2009 TSA initiates “LASP”
2010 IRS releases disclosures for non-profits
2011 Wall Street Journal article scrutinizes annualreports and proxies of corporate operators
• More to come…..
Reporting Becomes Important … and Difficult
IRS & SEC: Now Harder than the FAA!
IRS & SEC Require Active Reporting:
1. Aircraft Expense Disallowances (IRS)
2. SIFL / Fringe Benefits (IRS)
3. Proxy Reporting / Executive Compensation (SEC)
4. Related-Party Transactions (SEC)
5. Federal Excise Tax (IRS)
FAA Requires Compliance, But Not Reporting
1. Pilot & Crew Training & Experience (FAA)
2. Aircraft Maintenance Status (FAA)
U.S. Securitiesand ExchangeCommission
Aviation Reporting Becomes Difficult
Contributing Factors
• Many Flight Departments are “Orphaned” Departments
– Remote airport location
– Disconnected from major corporate functions
– May lack a strong reporting relationship to the corporate office
• Broken Reporting Processes
– The data flow is often broken (especially with managed aircraft)
– Aviation reporting is easy to overlook
– Lack of aviation knowledge at “Corporate”
• Aviation Technology may not be Budgeted
• Lack of Accountability
– Who’s responsible for Reporting?
– Who’s responsible for Data Quality?
How We Solve It
How We Solve It
Technology Trends We See
• IS-BAO fostering a “Data Driven” Culture
– Example: crew training & currency
– Automated Performance Metrics
• SaaS Delivery (Software-as-a-Service)
– Completely Internet-based, vs. Web-access to installed software
– No installations, no upgrades, no IT involvement
– Worldwide access
• Increasing Emphasis on IT Security
– Corporate Aviation has long been overlooked
– Many offices have weak security environments
• Software provides “Embedded” Processes and Best Practices
• SaaS allows “hands on” Customer Support
• Outsourcing of Aviation Reporting
AircraftLogs – One Integrated System
Flight Request &Approval
SchedulingFlight
PostingManagement
Reporting
Board of Directors
FlightPlanning
Internal Accounting
Tax Accounting
Compliance Reporting
External Reporting
Executives
Exec. Assistants
Maintenance
Closing Comments
• Most companies experience data issues
• The data you need is passing through yourhands…Capture it!
• Most companies use 30% of their software capabilities
• Aircraft management relationships almost alwayscause process breakdowns (by their nature)
• The NBAA Tax Class is Two Days Long!
Don’t know who your tax people are?
Are they attending?
Find out!
