IN TERN ATIO N AL B USI N ESS AVI ATION CO UN CI L (IB AC ) WWW.I BAC.ORG

International Business Aviation Council www.ibac.org

Representing business aviation worldwide.

Suite 16.33 999 University Street

Montreal, Quebec H3C 5J9, Canada

Phone: (514) 954-8054 Fax: (514) 954-6161 Email: info@ibac.org

IBAC Annual Report

2001 (Final Edition)

international business aviation council

Contents

2001 in Review The IBAC Governing Board Governing Board Meetings

Planning and Operations Committee (POC) Strategic Plan

Communications International Civil Aviation Organization (ICAO)

Business Aviation Representation IBAC Aircrew Identification Card

International Standards for Business Aircraft Operations IS-BAO Standards Board

IBAC Financial Report for 2001 Planning for the Future

International Business Aviation Council, Ltd.

IBAC Member Associations

F R A N C E

2001 in Review Aviation experienced considerable disruption in 2001 and the business aviation sector was no exception. The tragic events of September in the United States resulted in many short term constraints on business aviation operations and long term impacts are inevitable. Security regulations, which had primarily been focused on commercial avia-tion, suddenly became, and will continue to be, a central issue for Business Aviation. The International Civil Aviation Organization (ICAO) placed high priority on improving aviation security Standards and Recommended Practices (SARPs) after the September horror. The Assembly met late in September, calling for a priority meeting of the Avia-tion Security Panel and a High Level Ministerial Meeting. The new security reality placed considerable pressure on IBAC, as security had not been a demanding issue in the past given Business Aviation’s inher-ent good security standards and record. Access issues continue to be a major fo-cus for business aviation. The new security reality and ongoing customs regulations and interpretations placed new constraints on operating freedoms. The continuing downturn of economies of most countries also had an impact on Business Aviation as the market for new aircraft sales softened. However, the de-liveries of new aircraft continued at a re-cord pace with 769 new jet aircraft deliv-ered. Rapid growth in the fractional own-ership programs continued. Two new Business Aviation Trade Shows were launched in 2001; the European Busi-ness Aviation Convention and Exhibit (EBACE/1) in Geneva in April, and the Business Aviation Airshow Brazil (BAAB), soon to become the Latin Business Aviation Conven-tion and Exhibit (LABACE), was held in Sao Paulo in December. The principal priority for IBAC continued to be the International Standards for Business Aircraft Operations (IS-BAO). The ‘code of best practices’ was completed in 2001 at the inaugural meeting of the IS-BAO Standards Board. IBAC increased its members in 2001 with the Governing Board welcoming the Japan Business Aviation Association (JBAA).

The IBAC Governing Board IBAC is a Council of national and regional business aviation associations. Represen-tatives on the Governing Board in 2001 were as follows: Brian Humphries – Chairman European Business Aviation Association (EBAA) Paul Stinebring - Vice Chairman National Business Aviation Association (NBAA) John Batty - Treasurer Business Aircraft Users Association (BAUA) Rui Thomas de Aquino Associação Brasileira de Aviação Geral (ABAG) Dewald Basson Business Aviation Association of Southern Africa (BAASA) Rodolfo Baviera Italian Business Aviation Association (IBAA) Olivier de l’Estoile European Business Aviation Association—France (EBAA-France) Peter Gatz German Business Aviation Association (GBAA) Toshi Iwata Japan Business Aviation Association (JBAA) John South Australian Business Aircraft Association (ABAA) Doug Thierman Canadian Business Aviation Association (CBAA) The Corporate Secretary is William Stine of the NBAA.

Governing Board Meetings IBAC Bylaws require a minimum of one meeting of the Governing Board and Mem-bers each year. In 2001, two meetings of the Governing Board and Members were held as follows: Governing Board 33 (GB/33) – April 21, Geneva, Switzerland Governing Board 34 (GB/34) – December 15, New Orleans, USA. The 33rd meeting of the Governing Board was held following the first European Busi-ness Aviation Convention and Exhibit (EBACE/1). The focus of the meeting was the IS-BAO standard, which was entering the test phase. The JBAA completed a prelimi-nary briefing on the Association’s intent to join IBAC, and was accepted at GB/34. GB/34, originally planned for New Orleans in the middle of September, was post-poned to December 15, following the tragedy of September 11. Security and customs problems were the major focus of the 34th meeting. The IS-BAO Business Plan was given ‘agreement-in-principle’, subject to determining a final price.

Planning and Operations Committee (POC) The IBAC Planning and Operations Committee (POC) met twice in 2001. The first meeting was held in Montreal in February and the second in Sao Paulo in December. The POC contin-ued to ensure quality representation of Business Aviation at ICAO and others related interna-tional forums. Environmental issues were central to the POC discussion early in the year as IBAC prepared for the ICAO Environmental Colloquium. Security became a major focus of the POC subse-quent to September 2001. The POC prepared Working Papers to be submitted to ICAO and addressed constraints placed on training. The POC also provided consolidated business avia-tion input to Members of the Committee tasked with development of JAR OPS 2 (AWGAS). Members of the IBAC Planning and Operations Committee in 2001 were: Donald Spruston, Chairman, IBAC Olivier de l’Estoile, EBAA-F Adalberto Febeliano, ABAG Rich Gage, CBAA Derek Leggett, BAUA William Stine, NBAA Guy Viselé, EBAA Peter Ingleton, Secretary, IBAC

Strategic Plan The Strategic Plan developed and approved by the Governing Board in 1999 provided for an Action Plan to be reviewed and updated at each meeting of the Board and Members. Activity continued on the five Strategic Objectives :

1. Foster safe and efficient global business aviation op-erations. (Safety and Efficiency)

2. Seek means to achieve fair and equitable access by business aviation to the world’s airports and air-space. (Equitable Access)

3. Contribute to the orderly development of a safe and efficient global aviation system, through participating and contributing as a partner in international stan-dards and planning forums. (Standards and Plan-ning Forums)

4. Establish an international presence and structured management program representing global business aviation interests. (Presence)

5. Promote the growth of business aviation throughout the world. (Growth)

Definition of Business Aviation That sector of aviation which concerns the op-eration or use of aircraft by companies for the car-riage of passengers or goods as an aid to the conduct of their business, flown for purposes gener-ally considered as not for public hire and piloted by individuals having, at the minimum, a valid com-mercial pilot license with an instrument rating.

International Civil Aviation Organization (ICAO) IBAC continues to recognize the importance of professional representation in ICAO Commit-tees, Panels, Work Groups and Conferences. Principal ICAO meetings in which IBAC par-ticipated in 2001 were:

• Committee on Aviation Environmental Protection (CAEP), 5th meeting; • All Planning and Implementation Regional Group (ALLPIRG); • Environmental Colloquium; • ICAO Assembly; and • Aviation Security Panel.

Technical Reports on all meetings are filed on IBAC’s Website. In 2001, IBAC was granted status at the Committee on Environmental Protection and the Asia Pacific Air Navigation Planning and Implementation Regional Group. IBAC also applied to the President of the ICAO Council for status at the Aviation Security Panel.

Communications Good two-way communications between IBAC Members and the Secretariat and between IBAC and the aviation community and governing bodies remains a priority. Principal means of keeping Members current include the following:

1. Governing Board Meetings and their minutes. 2. Planning and Operations Committee (POC) meetings and their minutes. 3. IBAC Electronic Update (Quarterly). 4. IBAC Printed Update (Quarterly). 5. Technical reports and bulletins. 6. IBAC Website. 7. Work Group Meetings (i.e. Safety and Flt Ops and Env Issues) and their

minutes. 8. E-mail and phone.

Principal means of communication with authorities and the industry is through:

1. IBAC Flyer. 2. IBAC Strategic Plan Brochure. 3. IBAC Website. 4. Presentations and Working Papers at Conferences 5. Kiosk at industry conventions. 6. Meetings.

Business Aviation Representation An important element of IBAC’s ‘raison d’être’ is the need to represent the interests of busi-ness aviation and its member national and regional organizations at international meetings, workgroups and media events. Considerable efforts by the POC over the past few years to ensure effective representation by IBAC has produced good results, with status gained at all of the major forums identified in POC planning. The POC has now agreed to solidify efforts and to continue to work on good representation at these forums rather than extend its partici-pation. IBAC participated at a number of ongoing committees and forums, including:

• NAT System Planning Group (NAT SPG) • NAT Implementation Management Group (NAT IMG) • NAT Economic and Finance Group (NAT EFG) • NAT OPS/AIR • European Air Navigation Planning Group (EANPG); • Caribbean (CAR) and South American (SAM) PIRG (GREPECAS); • GREPECAS Air Safety Board (ASB) • ALL Planning and Implementation Regional Group (ALLPIRG) Meeting; • Asia Pacific Planning and Regional Group (APANPIRG); • Committee on Aviation Environment Planning (CAEP); • Operations Panel; • Obstacle Clearance Panel; and the • Aviation Security Panel.

In addition, IBAC continued to provide input to a number of aviation journals such as Global Business Jet, Aviation International News and Flight International. As was done in 1999, and 2000, IBAC participated in a virtual conference, Aviation 2001, presented on the Web.

IBAC Aircrew Identification Card An increase in deliveries of the Crew Card was seen in 2001, the great majority of the new orders coming after September. The following summarizes the status.

1. 1,599 Crew Cards were issued. 2. Net income increased from approximately $60,000 to $64,100. 3. New Order Forms were developed and put on the Website. 4. A new generation crew card was introduced.

The progress achieved this year is largely due to the work of Paul Lessard in administering the program. IBAC appreciates the support of IBAC Members in promoting the Aircrew Card Program and looks forward to support continuing in future years.

International Standard for Business Aircraft Operations (IS-BAO) 2001 marked the completion of the International Standard for Business Aircraft Operations (IS-BAO). After two years of work by IBAC and Member Associations, the project to develop the standard was concluded in December when the standard was approved. IS-BAO is a ‘code of best practices’, developed by the industry for the benefit of the industry. It benefits existing operators facing significant growth and it helps new companies. It is in-tended to promote harmonized procedures worldwide. It documents the best practices of ex-perienced flight departments, capturing the procedures that have resulted in business avia-tion’s excellent safety record. IS-BAO was developed in three phases. Phase one was a ‘proof of concept ‘ designed to determine if international standards would benefit flight departments. A number of Focus Groups met and concluded overwhelmingly that the standard was needed. Following the Governing Board approval to proceed, Phase two was completed, featuring a number of rep-resentatives of flight departments from all corners of the world, tasked to develop a true ‘code of best practices’. The objective of Phase three was to develop an IS-BAO Business Plan describing the management process for marketing, selling and keeping the IS-BAO cur-rent.

IS-BAO Standards Board The IS-BAO Standards Board was formed in 2001 and met for the first time in New Orleans in December. The Standards Board has responsibility for keeping the standards dynamic. Proposals for change will be considered annually and approved changes issued in an amendment every January. Standards Board Members are as follows: Chairman John Batty, Business Aircraft Users Association (BAUA) Vice Chairman Paul Stinebring, National Business Aviation Association (NBAA) Members Robert Blouin, NBAA William Boucher (CBAA) Robert Conley (Aventis) Gary Ridley (IBM Europe) Glenn Navas (Interavia Taxi Aero - Brazil) Donald Spruston (IBAC) Secretariat Ray Rohr, IBAC Standards Manager Peter Ingleton, IBAC Director ICAO Liaison Paul Lessard, IS-BAO Administrator

IBAC Financial Report for 2001

IBAC Policy requires that the financial position of the organization be audited every three years. The last audit was conducted in 1999 by Thomas Hardy LLP, in Washington 24 February 1999, prior to the transfer of the IBAC Principal Office from Washington to Montreal. The next planned audit will be completed in 2002; however, an accounting firm conducted a financial review at the end of the 2001-year. The total surplus for 2000 was $40,000 (Net Income of $60,857 less carryover of project funds of $20,00). The IBAC Governing Board authorized $30,000 of the surplus to be applied to studies and projects, and the remaining $11,000 to be added to the IBAC Reserve Fund. The approved Reserve Fund for 2001 was set by the Governing Board at $88,000. The IBAC financial position for 2001 year-end was reviewed by the IBAC Finance Committee, Chaired by the Treasurer, and submitted to the Board for approval in accordance with IBAC policy.

More detail can be found in Appendices as follows: Appendix A - Statement of Financial Position Appendix B - Statement of Revenue and Expenditures

2001 Year-End Summary (USD) Current Assets at Year-End $304,507. (Cash & Savings Certificates) 2001 Revenues $320,800. 2001 Expenses $268,183. 2001 Net Income $ 86,073. Operating Surplus $109,073.

ICAO Assembly 2001

Planning for the Future 2001 marked the end of the second complete year of the IBAC Business Plan approved in 1999. Significant steps have been made towards improving the representation of Business Aviation at the international level. Many of the Action Items in the Strategic Plan have been completed or are in ongoing status. IBAC’s first priority over the last two years, the development of the International Standard for Business Aircraft Operations (IS-BAO), is now complete. The new ‘code of best prac-tices’ will be introduced in 2002. Also planned for 2002 will be the introduction of the audit program. An Audit Procedures Manual will be finalized and an accredited auditor program instituted. The objective is to develop a Certificate of Registration to give flight depart-ments the option of using a third party industry accredited auditor to verify that IS-BAO standards have been implemented. Pursuant to the goal of keeping IBAC’s business planning and strategic thinking current, the IBAC Governing Board and Members are planning a major strategic planning retreat in 2002. The objective of the retreat will be to ’brainstorm’ and to ensure all current and fu-ture issues are addressed in future plans. The output will be renewal of the IBAC Business Plan. The IBAC Governing Board has two meetings planned for 2002. The first will be in June, held following the CBAA Convention, Trade Show and Static Display in Montreal. The sec-ond meeting will be held in Orlando, following the NBAA Annual General Meeting and Con-vention. The Planning and Operations Committee (POC) has meetings planned for March in Nashville and October in Bordeaux. IBAC has been invited to make presentations in 2002 at a number of events, including : • FAA General Aviation Forecasting Conference; • International Oceanic and Global Navcom Conferences; • Inmarsat Users Conference; • EBACE/2; • EBAA Operators Symposium; and • IATA World Security Conference. IBAC will continue to ensure quality representation at ICAO and other international forums through 2002.

Appendix A Statement of Financial Position

Dec 31, 1999 Dec 31, 2000 Dec 31, 2001 Assets Current Assets Bank Accounts (Cash on hand) $ 52,831. $ 10,969. $ 98,851. Savings Certificates $100,000. $200,000. $205,656. Total Current Assets $152,831. $210,969. $304,507.

Fixed Assets

Furniture and Equipment $ 517. $ 517. $ 0.

Total Assets $153,348. $211,487. $304,507. Liabilities & Equity

Liabilities GST Paid on Expenses $ (2,029.) $ (2,407.) $(3,438.) PST Refund $ (2,340.) $(6,872.) GST Payable $ 0. $ 0. $ 1,200.

Total Liabilities ($ 2,029.) ($ 4,748.) ($9 ,111.)

Equity Opening Equity Balance $176,585. $176,585. $176,585.

Net Assets previous year $ (21,207.) $ 50,960. Net Income $ (21,207.) $ 60,857. $ 86,073.

Total Equity $155,378. $216,236. $313,619.

Total Liabilities and Equity $153,348. $211,487. $304,507.

Appendix B Statement of Revenues and Expenses

Revenue Aircrew Card $ 72,675. Member Contributions $271,045. Interest $ 10,535. Total Revenue $354,256. Expenses Aircrew Card $ 8,565. Contract Services $ 10,981. Hospitality $ 2,732. Insurance $ 521. Office Supplies, Tel, etc $ 9,088. Office Lease $ 8,311. Furniture and Equipment $ 9,308. Professional Fees $ 1,254. Publications $ 5,395. Staff Contracts $130,351. Staff Travel $ 32,452. Travel for Technical Reps $ 12,020. Miscellaneous/Contingency $ 2,758. Special Projects $ 33,708. Total Expenses ` $ 268,183. Net Income 2001 $ 86,073.