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1994 AOPA Annual Report

Flight Plan to Revitalization

The key is working as a crew — a crew of 336,424

If one word could be used to describe the outlook for general aviation at the end of 1994, that word would have to be opportunity.

AOPA and AOPA Legislative Action scored a major victory in August with the passage of the General Aviation Revitalization Act, which provides product liability reform for most general aviation aircraft and components through an 18-year statute of repose. For years, your association led the fight to pass this important legislation, along with the General Aviation Manufacturers Association and other organizations; but it was you pilots who made the victory possible.

The product liability triumph does not mean that general aviation has recovered. Instead, product liability reform provides the opportunity for a general aviation renaissance.

On the first Thursday of 1994, the Clinton Administration proposed the corporatization of the FAA's air traffic control functions. The proposal would substantially increase costs for general aviation, adding — in one example I calculated, based on a proposed fee schedule from the Reason Foundation — $98.81 in ATC fees to a 530-nautical-mile IFR flight from Frederick, Maryland, to Chattanooga, Tennessee, in a Beech Bonanza. The flawed corporatization concept continues to threaten general aviation today.

AOPA's effectiveness last year was facilitated by yet another record-setting membership. We ended our fifty-fifth year with 336,424 members, some 15,000 more than at the beginning of 1994. And as in 1993, our growth came while the pilot population continued to fall — by 10,981, to 654,088 airmen at the end of the year. For the first time, we could claim more than half of the active, certificated pilots as members.

Here's how you helped us in the general aviation industry's flight toward recovery last year.

Preflight

After listening to your concerns about the declining pilot population, AOPA launched Project Pilot in April. The unique program is designed to encourage new pilot starts by pairing AOPA members as volunteer mentors with prospective pilots whom the mentors nominate. And who could be better qualified to share the joy of flying and the excitement of learning to fly than an AOPA member?

The program was successful beyond our wildest dreams. You responded enthusiastically, enrolling more than 10,000 participants during Project Pilot's first year. And you showed that the mentoring process does work. Student pilots participating in Project Pilot are much more likely to earn pilot certificates than those who aren't mentored. More than 92 percent of Project Pilot participants surveyed expect to earn their private pilot certificates within one year, compared to other AOPA research that indicates only 14 percent of all student pilots get their wings from one year to the next.

Hundreds of the men and women encouraged by Project Pilot mentors have already earned private pilot certificates. Many have become AOPA members, and some are now enrolled in Project Pilot as mentors — sharing the joys of their new-found avocation with still more prospective pilots.

Taxi and takeoff

Surveys tell us that the quality of services provided to our members directly affects our membership growth. This year, our membership topped 50 percent of the active pilot population — testimony to the fact that not only do we listen, we respond.

Of course, many of you are aware of our Pilot Town Meeting program, through which you can share your opinions with me personally. More than 6,400 of you attended one of the 34 meetings held during 1994. Many more of you spoke with the specialists on the toll-free 800 lines in our Aviation Services Division, where your comments and concerns are tallied and shared weekly with every manager in the association; callers are also asked to participate in our ongoing weekly surveys. We receive hundreds of letters, faxes, and AOPA Online messages each month, and we're constantly looking for new ways to hear your opinions.

Also listening are our 11 regional representatives. Acting in the field on behalf of AOPA's Government and Technical Affairs Division and AOPA Legislative Action, they were involved in dozens of state and local issues last year — intervening not just on behalf of local pilots, but everyone who benefits from general aviation. In addition to participating in user groups and task forces, these representatives were instrumental in such victories as retaining the flight service station network in Alaska, reinstituting airport land use commissions in California, and obtaining tax amnesty for flight schools in Texas.

G&TA headquarters staff proposed two-year aircraft inspections and four-year third-class medicals, and weighed in on a variety of other issues — from MLS cancellation and the preservation of DUAT funding to reductions in controlled airspace and continued flight over our national parks.

FAA Administrator David R. Hinson was our guest in mid-July to fly the nation's first "stand-alone" GPS instrument approach, which was commissioned at AOPA's home field in Frederick, Maryland. Our flight inaugurated Frederick's GPS Runway 5 approach, which heralds FAA development of as many as 500 new stand-alone GPS approaches annually, beginning this year. Stand-alone GPS approaches offer tremendous utility over previous GPS "overlay" approaches, which required an underlying conventional instrument approach as a framework.

Enroute

AOPA's optional products and services were renamed AOPA Certified services in September. These services represent good value to you, and they help your association and general aviation in very important ways. Every time you use an AOPA Certified service, a royalty is paid to AOPA — at no additional cost to you. This saves you money by helping to keep your membership dues low. Low dues mean more members, which equates to a stronger AOPA and, in turn, a stronger general aviation industry. Imagine just a few cents per credit card transaction, for example. Multiply that by the more than 94,000 open AOPA Certified credit card accounts, and again by the dozens of credit card purchases each cardholder might make during the year.

AOPA Certified services generated more than $5.9 million for the association during 1994; without this revenue, we would have to raise your membership dues by almost $20 in order to maintain the level of service you have come to expect. Dues fund only 43 percent of AOPA's annual budget, which provides each member with an average of more than $90 in services and benefits — from our toll-free Pilot Information Center to representation in state capitols and in Washington, D.C. Because of AOPA Certified services, there was no dues increase in 1994 and none is planned for 1995; your dues have remained the same for five years.

That's not all we're doing to keep your membership dues low. Your association is doing more with less. Technology provides the organizational efficiencies necessary to maximize our human resources without sacrificing the level or quality of your membership services. For example, replacing our mainframe computer with networked personal computers and file servers not only produced annual savings of $200,000, but it improved membership service by reducing computer response time. Investments in specialized computer systems and other technologies have also enabled us to realize significant graphics production cost savings in our Publications Division and Membership Marketing Department.

Approach and landing

As 1994 drew to a close, we were reminded that we couldn't rest on our laurels when the FAA published a Notice of Proposed Rulemaking for revisions to the airman medical standards contained in FAR Part 67. These rules had not been substantially changed in more than a decade, and we had been anticipating some changes for several years. Unfortunately, the proposal that was released on October 21 did not provide the promised "regulatory and economic relief to many airmen" and would, in fact, require annual third-class medicals for airmen 70 years of age or older. You will recall that we petitioned the FAA in 1993 to extend the period between exams to four years for third-class medical certificate holders who fly only VFR.

Some specifications in the NPRM are so vague that the prospect of many pilots falling victim to Bob Hoover-type medical certification experiences suddenly becomes very real. And almost none of the proposed changes acknowledge the very real and dramatic advances in medical knowledge and technology.

We asked for your help in defeating this challenge, and you responded by submitting many of the more than 5,000 comments that the FAA has received on the NPRM. Obviously, this is an issue that we are continuing to fight this year.

Yet another record-setting AOPA Expo, held in Palm Springs, California, during October, was made even more enjoyable by the positive attitudes among the attending members, manufacturers, and vendors. Cessna announced that both the first new Cessna 172 and the first new 182 to roll off the company's new single-engine production lines have been designated as future AOPA Membership Sweepstakes airplanes. The Skyhawk will be given away at the end of this year, and the Skylane will be the 1996 sweepstakes prize.

Cessna is not the only company that appears optimistic about the future of piston aircraft production. I visited Piper Aircraft in Vero Beach, Florida, during December and saw firsthand the enthusiasm that beleaguered company maintains for the production of piston aircraft. Throughout the industry many other companies, both large and small, are also showing cautious signs of optimism.

As a membership organization, you will continue to set our agenda. You overwhelmingly agreed on all the significant issues of 1994. Our flexibility enables us to respond almost instantaneously to threats against general aviation, even as we lead the effort to build an industry consensus on major issues.

Only time will tell what effect product liability reform will have on general aviation's flight toward recovery. And we have already seen that we can't sit idle, waiting to learn the outcome; ATC corporatization and medical certification have shown that GA is still vulnerable to a variety of threats. With your continued help and support, however, general aviation's chances of thriving again are much, much stronger.

Sincerely,

Phil Boyer
President


Automatic Annual Renewal

Not only is AOPA's membership maintaining record levels, but more and more members are opting for the convenience of Automatic Annual Renewal. Under this program, your annual dues are automatically charged to your credit card — and if you designate your AOPA Certified credit card, you'll receive a $2 discount each year. More than 55,000 members were enrolled in this program at the end of 1994.

Another benefit of this service is that it conserves the AOPA family of organizations' financial resources. Money that would be spent to mail renewal reminders can instead be applied to legislative representation, general aviation advocacy, and other membership benefits and services. To enroll in Automatic Annual Renewal, check the box on your renewal card or call us at 800/USA-AOPA.

AOPA Certified Services

AOPA Certified services, easily identified by their distinctive new AOPA Certified check-mark logo, represent a double benefit to members: The service is selected because of the value it represents to users and because AOPA receives income every time the service is used — keeping dues low and GA strong, at no additional cost to you. AOPA Certified services include the AOPA Aircraft Insurance Program; AOPA Aircraft Title and Escrow Services; AOPA Legal Services Plan; AOPA Aviation Accidental Death and Dismemberment Insurance; AOPA Aircraft Financing; AOPA Aviation Chart sales; AOPA Flight Funds; AOPA Online; AOPA insignia merchandise; AOPA MasterCard and Visa; AOPA Financial Services; AOPA Group and Individual Term Life Insurance Program; AOPA Health and Disability Insurance programs; AOPA Travelers' Club; and AOPA car rental discounts through Avis, Budget, and Hertz. Thirty percent of AOPA's revenue during 1994 was generated by AOPA Certified services, and the AOPA credit card program alone saved each member $4.14 in additional dues.

Bettering the benefits

Many members consider AOPA Pilot among their most valued membership benefits, according to surveys. The magazine — which had record advertising revenues of more than $6.8 million during 1994 — was also recognized for its overall excellence. The magazine was ranked among the 25 most successful association publications in the nation by Association Management magazine, placing it among such prestigious titles as Audubon, National Geographic, and The Journal of the American Medical Association. Revenues from the magazine help fund AOPA operations and keep dues low.

Expo sets more records

AOPA Expo '94, held at the Wyndham Hotel and Convention Center in Palm Springs, California, during October, was another record-breaking event. A record 8,358 members attended Expo in 1994, a 17 percent increase over the previous record — which had been set the year before in Orlando, Florida. Other records set in 1994 included 67 aircraft on static display and 305 exhibitors. Expo '95 has been scheduled for October 18 to 21 in Atlantic City, New Jersey.

This time, a new Skyhawk

The 1994 AOPA Membership Sweepstakes aircraft, our Better Than New 172, turned heads everywhere it flew. The specially equipped and refurbished Cessna Skyhawk featured the latest improvements in aerodynamics, avionics, performance, and appearance. This year's sweepstakes airplane will be the first new 172 to roll off Cessna's new piston-aircraft production line in Independence, Kansas.

Keeping up with chart changes

Your association was involved with the FAA and NOAA on several charting initiatives during 1994. Most significant was our effort to obtain funding for the new Low Altitude IFR/VFR Planning Chart shown here. It replaces the old IFR/VFR Wall Planning Chart and the Flight Case Planning Chart, both of which were discontinued in early 1993. The new chart, available May 25, will be revised annually.


Legislative Action Goes Solo

Pilot support makes big win possible

A major victory was scored last August with the passage of the General Aviation Revitalization Act, which provides product liability reform with an 18-year statute of repose for most general aviation aircraft and components.

The win was even more significant because it represented the first solo flight of AOPA Legislative Action. Legislative Action was reorganized as a separate tax-exempt corporation at the beginning of 1994 to better focus its legislative activities. AOPA Legislative Action is charged with representing all pilots and general aviation in the legislative process.

When surveys told us that 92 percent of all pilots indicated support for a general aviation statute of repose, AOPA Legislative Action made product liability reform its top priority. Nearly a decade of effort began to pay off in March 1994, when — with only four days' notice of the Senate's vote on the bill — the Legislative Action staff began its first- ever grass-roots telephone campaign. This generated some 2,000 telephone calls from pilots to key hold-out senators, helping to secure passage of Senator Nancy L. Kassebaum's measure by a 91 to 8 vote.

Legislative Action mailed a National Pilot Alert to pilots in late March, asking for help with the battle in the House of Representatives — where general aviation product liability reform had been bottled up in the Judiciary Committee for years. More than 30,000 of you wrote letters in response. Some shrewd political maneuvering by representatives Dan Glickman (D-KS), James V. Hansen (R-UT), and James M. Inhofe (R-OK) freed the bill from the Judiciary Committee's grasp and encouraged its chairman, Jack Brooks (D-TX), to support a compromise general aviation product liability bill rather than suffer a political defeat. Hansen and Inhofe are AOPA members. President Bill Clinton signed the General Aviation Revitalization Act in a White House ceremony on August 17.

While AOPA Legislative Action led the fight to pass this important legislation, it was you — pilots and AOPA members — who made the victory possible.

Legislative Action's momentum continued through the year. In October, AOPA Pilot published a list of the 128 congressional candidates that AOPA's Political Action Committee had supported — so that you could support them at the polls. An astonishing 92 percent of these candidates won their races.

In the 1992 presidential elections, 92 percent of AOPA members cast votes, compared with only 55 percent of all Americans old enough to vote. And 87 percent went to the polls in the 1994 congressional elections. These numbers, which show dramatically that members equal voters, give Legislative Action clout. You are critically important in that initiative. To that end, Legislative Action also initiated a political action database that allows us to call upon politically active pilots in times of need.

With continued assistance — your letters, telephone calls, and faxes to your elected representatives — AOPA Legislative Action will continue to fly high in 1995. — Phil Boyer, President


1994 AOPA Air Safety Foundation Annual Report

On Course for Aviation Safety

Weather workshops, instructor clinics top list of achievements

The Air Safety Foundation experienced clear skies, unlimited visibility, and smooth air on its flight to improved general aviation safety during 1994. From confronting one of the biggest safety challenges general aviation has ever faced — weather — to implementing a major regulatory change by revising flight instructor refresher courses, the foundation worked to make your flying easier and safer.

Safety seminars are ASF's most visible activity; this year was no exception, with more than 27,000 pilots participating. After the highly successful airspace education programs of 1993, it was time to tackle the leading cause of serious cross-country accidents: weather. The program had to be practical, challenging, and entertaining.

Our Tactical Weather Workshop was born to fill the need for a non- theoretical approach to weather flying. Teaming up with Sporty's Academy, which donated videotape from its successful weather flying series, ASF prepared a group of short trip vignettes. Two different programs, spring/summer and fall/winter, make the presentations seasonally appropriate. Pilots were briefed on the forecast and then put in the virtual left seat to fly the trip.

The foundation invested in state-of-the-art video equipment that allowed freeze-frame discussions with participants on the intricacies of avoiding a line of thunderstorms or coping with icing conditions. Unlike typical "canned" presentations, the audience was encouraged to participate, ask questions, and add insights from their own experience. These popular programs continue currently.

In 1993, ASF petitioned the FAA to streamline the flight instructor refresher clinics by reducing the length of classroom time required, while improving course quality. The shortened program became a reality in August 1994, and ASF led the industry with the first 16-hour course in the country. This saved many instructors money by shortening hotel stays and trips to the seminar site. It also significantly reduced what many instructors considered "filler" topics. More is not necessarily better, and ASF presented a more concise and relevant program.

The tremendously popular Pinch-Hitter program, which ASF designed for flying companions more than 30 years ago, was expanded to include a 45-minute videotape version for people who could not attend the ground school. The tape was a runaway bestseller at AOPA Expo '94 in Palm Springs, California. The ground school course, which runs about four hours, was offered in more than 20 cities during 1994 and is available again this year. The training manual was reorganized to answer the questions most asked by non-pilots, such as, "How difficult is the aircraft to control? How does the autopilot work? How do I call for help?"

Wake turbulence education was a hot topic that required fast action. Several fatal accidents involved smaller aircraft flying into wingtip vortices generated by Boeing 757s, and the FAA required some procedural changes as a reminder of the threat. ASF responded with an article in AOPA Pilot, a reprint of which was distributed through the FAA Aviation Safety Program as well as the foundation's own seminars. These reached a total audience of more than 360,000 pilots. To communicate with the remainder, ASF — with AOPA's support — produced and distributed a poster to more than 5,600 FBOs nationwide.

Safety statistics show that the accident risk rises in high terrain. Government Accounting Office and FAA safety investigations revealed higher accident rates in mountainous regions. And ASF was there to provide a practical, hands-on solution. In September, the foundation offered a special mountain flying course, along with a Pinch-Hitter flight program, to provide pilots with the opportunity to learn flight safety in the high country.

The foundation's database, the largest non-government collection of general aviation accident information, grew to nearly 21,000 records. Information was provided to companies, educational institutions, state and local governments, the FAA, NTSB, and AOPA.

Data from the foundation helped AOPA's Medical Advisory Board to determine the real risk of pilot incapacitation during flight — which was a key element of AOPA's response to the proposed revision of the FAR Part 67 medical certification requirements. The data show that the FAA's desire for more frequent exams and electrocardiograms for older pilots is unwarranted, on the basis of accident history. One of ASF's primary duties is looking at the facts and providing all parties with an unbiased view so that rational decisions can be made.

Aircraft-specific safety reviews for the Beech Bonanza series, Piper Malibu, and the PA-28 series (including the Arrow) were completed during 1994. These detailed reports identify pilot and aircraft shortcomings and suggest appropriate training strategies to overcome them. Four more reviews are under way for 1995.

Promoting the safety agenda is a time-and-energy-consuming process. Several long-term initiatives continue in such areas as airspace, ATC procedures, and next-generation technology for light aircraft. ASF is also focusing on personal computer-based flight simulation, to smooth the way for new training technology. Some efforts will pay off immediately, or as quickly as the FAA can respond, and others are dedicated to the long- term growth and viability of the industry. It is vital that decision makers in both government and industry receive practical input from the user community, and ASF is here to do that.

Financially, ASF had an excellent year. More money went directly into programs, products, and services. General aviation's public acceptability will depend, in large part, on our ability to fly safely. As in 1992 and 1993, we were able to make a contribution to the foundation endowment, which is the nonprofit organization's equivalent of a savings account. This is essential for the long-term growth of the foundation.

The ASF is a nonprofit charitable organization, but only a small portion of our funding comes from AOPA membership dues. This year's successes were the result of donations and grants from several foundations and the generosity of the pilot community. ASF receives the majority of its contributions from individual pilots. The number of donors increased for the second consecutive year, as did the amount of the average gift.

The ASF headquarters staff and field instructors did an outstanding job in delivering the safety message, according to our internal measurements — and, even more importantly, according to your comments. Your investment in general aviation safety is working, and we appreciate your continuing support as we navigate general aviation's critical safety challenges in 1995.

Sincerely,

Bruce Landsberg
Executive Director

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