2001 Annual Report of the Aircraft Owners and Pilots Association

AOPA is building a strong future on the investments of the past

When we awoke on September 11, 2001, none of us expected the world to change so completely and irrevocably as it did that day. Even as we moved through the haze of shock and grief at the tragedy that had befallen our nation — and mourned the fact that aviation was used as a weapon of destruction — the staff of your association got to work, keeping you informed, working to lift unnecessary restrictions, and defending your right and privilege to fly.

Even though no one could have anticipated the terrorist attacks and their aftermath, AOPA was ready to meet the greatest threat to general aviation in a generation. Why? Because thanks to your continuous membership support, all of the necessary tools were in place. We didn't have to scramble to create a world-class Web site, we already had one; there was no rush to figure out how to produce regional editions of an electronic newsletter, it was already in place; and we didn't have to recruit qualified staff, they were already working at the association. AOPA's foundation as a membership organization was strong. The cornerstone was laid in 1939 and the organization has continued to build, using the latest technologies to support our founding principles of making flying safer, fun, and more affordable.

Information

In the days and weeks immediately following the terrorist attacks, one of the greatest needs of our members was for accurate, clear information regarding airspace, temporary flight restrictions (TFRs), airport closures, intercept procedures, notams, and more. AOPA was ready with AOPA Online (www.aopa.org), your source for general aviation news and information 24 hours a day. Not only could members find plain-language translations and graphical depictions of notams and TFRs, they could get answers to their questions about the rapidly changing environment. In September alone, the Web site hosted more than 2 million sessions, requiring us to add an additional Web server that is still in use today.

At the same time the AOPA Pilot Information Center (800/USA-AOPA) — a free service to members that is staffed by qualified pilots and flight instructors — was flooded with as many as 1,600 member calls per day and stayed open over two weekends for the first time in the association's history. Staff members volunteered to postpone vacations and other personal activities to keep the phones operating at full capacity.

To keep you informed about the latest news and regulations affecting your area, special national and regional editions of the e-mail newsletter AOPA ePilot were sent to members affected by changing notams, airspace, airport closures, and other conditions. A special section in AOPA Pilot put a human face on the general aviation side of the September 11 story, sharing the tales of those who were in the air when all aircraft were ordered to land and the businesses and livelihoods that were threatened by the lingering restrictions. As the weeks wore on and some elements of aviation remained grounded, Pilot kept readers updated about their association's efforts on their behalf.

Accurate information about general aviation and how it operates was also critical to lawmakers, the public, and the media. Information from AOPA Online appeared in such newspapers as The New York Times, The Wall Street Journal, The Washington Post, and Chicago Tribune, as well as on CNN, MSNBC, Fox, CBS, ABC, and other television and radio news outlets. In addition, AOPA representatives conducted more than 500 media interviews in which we cut through the fear and overreactions to tell the real story of general aviation and how it serves America every day. In interviews with television, radio, and printed news media, as well as in an editorial for USA Today, I explained GA's importance to the national transportation system and argued against unnecessary restrictions.

Even as AOPA provided the nation with information about general aviation, you, our members, provided us with information that helped us to stay on top of changing issues. Your telephone calls and e-mails helped us track your concerns. In some cases the real-time information you provided helped us work with the FAA to correct faulty policy.

In each case, the tools and relationships needed to get timely, accurate information to you and to the public existed long before September 11. The tragedies of that day and the events that followed proved that your association's investments in communication, advocacy, and member services were well placed.

Advocacy

Just as important as staying informed was getting you back in the air and flying safely. Again, the relationships and expertise needed to make your voice heard were already part of the organization. AOPA Legislative Affairs, your association's lobbying arm on Capitol Hill, got to work right away, arranging meetings with influential policy makers and telling general aviation's side of the story. I personally met with a number of legislators to provide them with insight as to how GA operates and the enormous economic impact of keeping lightplanes on the ground. Access to influential congressmen and senators was possible on short notice because in many cases we had financially supported their campaigns through the AOPA Political Action Committee (PAC). While member dollars cannot be used to fund candidates, more than 40,000 members have responded to our PAC mailings with financial contributions to this special fund. We used our longstanding relationships to make sure GA's perspective was included when Congress and the National Security Council discussed aviation security concerns.

As the flood of complex, confusing, and sometimes misleading notams threatened to overwhelm pilots who were allowed to return to the skies, we stationed a member of our staff at FAA headquarters, where she was able to help clarify these rules, often before they were released. With an on-the-spot advocate for general aviation, AOPA was able to tell the FAA about the realities of operating general aviation aircraft and uncover some of the hidden implications in their proposals. Those efforts also helped stop some of the most onerous proposals from ever becoming reality.

In the weeks following the attacks, as much of aviation returned to some semblance of normalcy, a handful of airports tucked under so-called enhanced Class B airspace and within temporary flight restrictions around Washington, D.C., New York, and Boston remained closed. AOPA worked with policy makers, airport managers, and business owners to come up with proposals that would address security concerns while making it possible to get those businesses back to work. Persistent, determined efforts eventually reopened those fields.

To make sure that the money needed to fund public awareness and educational campaigns is available, AOPA launched the General Aviation Restoration Fund, which had raised some $500,000 by the end of 2001. Plans for 2002 include major newspaper advertisements extolling the positive role GA plays in America and directing readers to a newly designed Web site devoted exclusively to describing all aspects of general aviation.

As ever-tighter security restrictions were placed on the airlines, many in Washington, D.C., wanted to impose those same measures on GA. When the Aviation and Transportation Security Act came up for consideration, we fought and defeated efforts to require security programs for GA aircraft weighing less than 12,500 pounds and worked to obtain relief from airspace restrictions included in the bill.

Even as AOPA fought to keep restrictions imposed on GA to a minimal, reasonable level, some of our members ran afoul of the complex and rapidly changing rules. Our legal services team was able to work with the FAA to establish no-violations agreements for certain transgressions caused by faulty information passed to pilots through flight service and other official channels. Not unexpectedly, in the wake of September 11, membership in the AOPA Legal Services Plan ( www.aopa.org/info/certified/lsp.html) increased dramatically.

Beyond the attacks

As traumatic and far-reaching as the terrorist attacks were, responding to them was only part of what your association accomplished in 2001. Keeping general aviation strong means keeping airports open. Perhaps the most symbolic success of the year involved Merrill C. Meigs Field in Chicago. After years of working to close the airport, Mayor Richard Daley reached an agreement with Illinois Gov. George Ryan to keep the historic airport open. Working with local pilots, AOPA helped craft that agreement and made sure that it stayed in the forefront of local issues with television ads. To codify the agreement at the federal level, in 2002 the association is working hard to pass bills in both the Senate and House. Such historic legislation should prevent future local and state disagreements from affecting the all-important Chicago airport system.

With more than 1,100 volunteers, AOPA's Airport Support Network ( www.aopa.org/asn/) was another invaluable source of defense for the nation's general aviation airports. Volunteers at airports across the country made sure their fields have active and involved pilots and business owners, worked to prevent incompatible land use, fought against illegal and discriminatory operating restrictions, and more. Hundreds of airports are threatened with closure, and the efforts of an Airport Support Network volunteer can make the difference that keeps them open. That was the case during the past year at Jack Northrop Field/Hawthorne Municipal Airport in Southern California and Plum Island Airport in Newburyport, Massachusetts. When airports do close, sometimes the right kind of advocacy can ensure that general aviation airplanes still have places to call home. After two airports in the Austin, Texas, area closed, AOPA worked successfully to have legislation approved that provides for a new GA airport in the region.

Unnecessarily restrictive airspace is another front on which AOPA fought for GA both before and after September 11. AOPA successfully stopped efforts to turn the area around Nashville into Class B airspace. In addition, your association produced a member guide that explains how the FAA and other interested parties negotiate actions on airspace changes — information that can help you protect your own region from restrictions. The User Group Process for the Design of Class B and C Airspace guide is available online ( www.aopa.org/whatsnew/air_traffic/tcagroup.html).

Aviation can't stay viable without adequate resources, and AOPA succeeded in having many of its funding requests for general aviation included in FAA funding legislation, including money for Safe Flight 21, the creation of Wide Area Augmentation System precision GPS approaches, notam system improvements, and modernization of flight service.

By the time AOPA Expo rolled around in early November, the majority of general aviation pilots were back in the air and grateful to be experiencing the joy of flight again. While other organizations were canceling or deferring their events, we elected to go ahead with our annual conference. Despite airspace restrictions and travel complications, AOPA's first visit to Fort Lauderdale, Florida, was a big success. Setting a new East Coast attendance record, more than 9,000 attendees and 500 exhibitors participated in the festivities, which opened with a Parade of Planes through city streets. In addition to seminars, exhibits, and educational programs, pilots had the opportunity to listen to and ask questions of FAA Administrator Jane Garvey, who appeared via a live satellite link. Garvey, who has appeared at Expo during each of the five years she has been in office, praised AOPA's efforts on behalf of general aviation and the information it provided to pilots and the public after the terrorist attacks, saying that AOPA was "running what must be one of the world's most useful — and used — Web sites." Exhibitor sales of products, from new airplanes to avionics, and services, like new interiors, were record setting. Both attendees and companies realized that general aviation was alive and well following the tragic events of September 11.

Your flying

To keep your flying as safe, fun, and affordable as possible, AOPA created and upgraded a whole range of products and services for our members. The new AOPA's Airport eDirectory makes current airport information available to you in the cockpit through a personal digital assistant while a personal computer version allows you to sift and sort the data any way you choose ( www.aopa.org/members/airports/edirectory.cfm).

Several years ago, AOPA added Flight Training magazine to better serve student pilots and CFIs. Many members have asked about adding a subscription to this magazine to their membership, and during the year we answered these requests with an $18 add-on rate. In addition, AOPA introduced the Flight Training edition of AOPA ePilot. This free weekly electronic newsletter for AOPA Flight Training members provides student pilots and new pilots with up-to-date information about training topics, news, and products just for them.

Special-use airspace has always been among the great challenges of flight planning — will a restricted area be active or not? Often it was impossible to know whether you could fly through special-use airspace or would have to deviate around it until you were almost on top of it. With a new program that allows AOPA Online to post the real-time status of special-use airspace ( www.aopa.org/members/airports/sua.cfm), you can see which areas are active and which are not before you take off.

Medical and health concerns are naturally important to pilots, and AOPA established some new tools to help you get and keep your medical certificate. After years of efforts, AOPA in 2001 succeeded in arranging for the FAA to expedite the processing of special issuance medicals, delegating some of the decision making on these issues to designated medical examiners. At the same time, TurboMedical® ( https://www.aopa.org/members/medical/medform/) helps members identify potential problem areas with your medical application before you visit the medical examiner. This free online service is completely confidential and provides you with a printout of your correctly filled-out medical form that you can take to your exam.

In the spirit of keeping you informed and hearing your concerns directly, we continued to expand my Pilot Town Meeting schedule. (Sometimes I think the staff does this to get me out of the office.) During 2001, I met with more than 7,000 members at 28 PTMs. Answering your questions and hearing your concerns for myself helps all of us at AOPA stay on top of the issues that are important to you, our members.

Paying for all this

As a nonprofit organization, we try to spend almost all our annual income on the mission of general aviation. In the 2001 financial audit of the Association by Grant Thornton, this leading firm compared AOPA program expenses against total expenses. AOPA achieved a 93.5 percent ratio against the association industry average of 83.2 percent, confirming to members that we are "managing expenditures in accordance with our mission." AOPA membership dues haven't changed since 1990, yet our 225 employees expect annual raises, benefits continue to rise, and investment in resources and equipment doesn't stand still. Many members tell me AOPA dues at $39 a year is the best deal they have in flying. Non-dues revenue has been the answer to keeping your annual fee low while accomplishing all we do each year. Two basic sources account for non-dues revenue: publications advertising dollars ( Pilot, Flight Training, AOPA Online, AOPA ePilot) and AOPA certified products. Yes, those products we are always trying to sell you. But, they now are the biggest source of annual revenue to AOPA, surpassing annual dues. Members who use these services not only support the organization financially, but often find the best value and service for their particular need.

For almost two decades AOPA has had a relationship with MBNA America, a leading credit card company. This partnership has brought many advantages to AOPA members. Quality customer service and response to our demand for favorable interest rates has grown this premier certified product to the point that almost four out of every 10 AOPA members carry the card. During 2001 the FBO Rebate Program, which offers rebates on aviation purchases, grew from 3 to 5 percent. Card members can receive up to $250 back annually just by charging aviation products or services at more than 4,000 participating FBOs and flight schools. In addition to increasing the FBO rebate to 5 percent, the credit card now also includes a 5-percent discount at Sporty's Pilot Shop. Some 55,000 members have taken advantage of the rebate and discount programs.

The credit card doesn't stand alone in the MBNA-AOPA relationship. A full range of financial products exist. When you are buying an aircraft, the AOPA Aircraft Finance program can arrange new, more flexible terms. For those who already own aircraft and are looking to make upgrades such as new avionics, the Aircraft Equity Loan program can help. Working with MBNA, AOPA is also able to offer members a deposit program with rates that have consistently been higher than the national average for money market and CD accounts.

Almost a decade ago, AOPA took a bold step and established its own insurance agency. While many associations affiliate with one underwriter and receive a small royalty, we took a different step, allowing you as members to own the world's largest pleasure and business aviation insurance agency. In 2001 we took another step to help you get insurance quickly and easily when the AOPA Insurance Agency launched the industry's first full-service insurance Web site ( www.aopaia.com). Whether you own an aircraft or rent one, you can use the site to shop for and buy insurance online in real time. Small commercial operators can now get help obtaining insurance coverage thanks to the efforts of the AOPA Insurance Agency and major underwriters by using the advanced commercial underwriting template on AOPA Online ( www.aopa.org/members/forms/insurance.html).

Another long term relationship has been with Minnesota Life. This relationship started in the early years of AOPA when pilots had a difficult time obtaining life insurance because of the "flying restrictions." Recent rate reductions made in 2001 have made it possible for more members to take advantage of special AOPA offers for individual and group term life insurance. Celebrating 50 years of partnering with AOPA, Minnesota Life presented a $100,000 donation to the AOPA Air Safety Foundation.

In 2001 our newest certified product came from a need for pilots wanting to check on arrival and departure traffic, track individual flights, or just keep abreast of who's in the air at any given moment. Members can now subscribe to a special AOPA version of Flight Explorer flight tracking software ( www.aopa.org/info/certified/flightexplorer.html). This is the product that appeared on national television, in AOPA Pilot, and on AOPA Online showing the flight paths of the airliners that carried the September 11 hijackers.

Looking ahead

As we look to the future of general aviation, there's no denying that the events of the past year have changed us, but not our mission. The record AOPA membership level — nearly 379,000 — achieved in 2001 shows that you agree general aviation is and must remain a vital and exuberant part of our lives and the American economy. Just as your association built the foundation and employed the tools that would carry us through the aftermath of last September's terrorist attacks, AOPA will continue to forge ahead, using your support and the latest in technology to ensure that general aviation remains safe, fun, and affordable.

Phil Boyer, AOPA President

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