CHAIRMAN’S MESSAGEDear <strong>NBAA</strong> Member CompanyRepresentative:The <strong>2006</strong> <strong>NBAA</strong> <strong>Annual</strong> <strong>Report</strong> reviews theactivities of the Association during the past12 months. This letter highlights some of themost important developments that have takenplace at <strong>NBAA</strong>, and how those actionsstrengthen the Association’s efforts to serve you, its Members.During the past year, your Association has devoted its efforts to thetwin challenges of championing the interests of the industry in thefederal policy arena while providing Member Companies with the best,most up-to-date operational and technical support so that you cancontinue to fly safely, securely and efficiently.AdvocacyIn <strong>2006</strong>, <strong>NBAA</strong>’s primary advocacy challenge has been to counterproposals to dramatically restructure funding and governance of thenational air transportation system. Specifically, the Federal AviationAdministration (FAA) reauthorization process, which is scheduled toconclude in late 2007, is being viewed by some as an opportunity tooverhaul the way the FAA is funded and who makes decisions aboutthe aviation system.The Air Transport Association (ATA), the lobbying group for theairlines, has a proposal that would transfer $2 billion of their costs ontogeneral aviation through the imposition of user fees on GA. The plan,designed to let airlines pay less to use the aviation system while exertingmore control over it, would be calamitous to general aviation, especiallycompanies that rely on business aviation to help them succeed.<strong>NBAA</strong> has forcefully opposed the airlines’ plan from the outset. Shortlyafter the ATA introduced its proposal, <strong>NBAA</strong> President and CEO Ed Bolensent a letter urging <strong>NBAA</strong> Members to use <strong>NBAA</strong>’s online ContactCongress resource to make federal legislators aware of the industry’sstrong, unified opposition to the plan and interest in retaining the currentefficient system under which business aviation pays its fair share of aviationsystem costs through fuel taxes. Independently and with other generalaviation associations, <strong>NBAA</strong> has continued to keep awareness of theissue high through the media and industry forums. In the coming months,<strong>NBAA</strong> will continue to remind elected officials of the industry’s oppositionto any user fee plan.<strong>NBAA</strong> also has been active in its advocacy efforts withfederal regulators. A 2005 accident involving complexaircraft owner and charter arrangements resulted inincreased scrutiny and possible new regulation from the FAA.<strong>NBAA</strong> co-hosted a series of operational control workshopsacross the U.S. to voice concerns from the industry withagency officials; FAA officials took the concerns into accountand made significant changes to their initial policy planning.Safety and OperationsNo less important are the Association’s efforts to promote safety and tohelp its Members deal with the operational challenges they face eachday. Business aviation safety is the industry’s highest priority, and <strong>NBAA</strong>is dedicated to maintaining the community’s strong safety record.In <strong>2006</strong>, <strong>NBAA</strong> continued its long-standing efforts to produce anddisseminate information about safety best practices. The Associationalso built upon its successes in bringing all segments of the industrytogether at events focused on safety.For example, the annual Corporate Aviation Safety Seminar (CASS)had its best turnout ever in <strong>2006</strong>, with more than 400 people in attendance.The event, which has been jointly hosted by <strong>NBAA</strong> and FlightSafety Foundation since 1998, is considered a leading venue for businessaircraft operators to discuss and exchange safety information.To further enhance the safety focus of the Association, <strong>NBAA</strong> addeda second safety-themed event in <strong>2006</strong>. The Association partnered withBombardier Aerospace and the FAA to produce the Safety Standdown,an annual event that seeks to improve business aviation safety byfocusing on human factors.In <strong>2006</strong>, <strong>NBAA</strong> developedseveral newMember benefits thatenhance safety and efficiency.The Forum forEnhanced Reliability andMaintainabilityStandards (FERMS) is anInternet-based tool thatprovides manufacturersand operators, through acentral information clearinghouse,with real-time information about business aircraft maintenanceand performance. Another web-based product is the National AirspaceSystem Status Briefing (NASSB), a user-friendly resource that provides aninstant snapshot of domestic ATC traffic management initiatives andrestrictions (shown).<strong>NBAA</strong> also introduced a new newsletter, titled <strong>NBAA</strong> Navigator,which is produced by <strong>NBAA</strong>’s GA Desk and designed to alert Memberflight departments about important air traffic controlchanges and other national airspace operational challengesin a concise and easy-to-reference format. Membershave responded very positively to this valuable and userfriendlyprinted resource.In addition, <strong>NBAA</strong> updated and strengthened theAssociation’s Management Guide and Airports Handbook(coming by year’s end), each of which contains extensiveinformation on business aviation safety. The Association2 <strong>2006</strong> <strong>NBAA</strong> ANNUAL REPORT
has continued to provide <strong>NBAA</strong>’s Journal of Business Aviation Safetyto all Members at no cost.As part of its continuing commitment to support Members’ operationsat the local level, <strong>NBAA</strong> welcomed two experienced industry veteransto its team of regional representatives during <strong>2006</strong>. <strong>NBAA</strong>’s work tomaintain a robust level of local representation for its Members providesthe industry with a voice on issues unique to each part of the country. Inthe coming months, the Association expects to add yet another regionalrepresentative.Industry EventsHosting industry-leading Conventions, Regional Forums, Seminars andother events also has been an essential element of <strong>NBAA</strong>’s missionduring <strong>2006</strong>. The many events coordinated by the Association bringtogether a global community of business leaders, government officials,manufacturers and aviation department personnel – virtually everyoneinvolved in nearly every aspect of business aviation.<strong>NBAA</strong>’s <strong>Annual</strong> Meeting & Convention remains the premier event andannual meeting place for the business aviation community. Despite alast-minute date and location change for the <strong>NBAA</strong> 58th <strong>Annual</strong>Meeting & Convention in the aftermath of Hurricane Katrina, the 2005event drew more than 28,000 Attendees and a record-setting 1,142Exhibitors. The show also featured 110 state-of-the-art business aircrafton static display and 75 Informational Sessions.Business aviation’s largest international event – the annual EuropeanBusiness Aviation Convention & Exhibition – also was a great successthis year. EBACE<strong>2006</strong>, which is jointly organized by <strong>NBAA</strong> and theEuropean Business Aviation Association, set a new record by drawingmore than 9,700 Attendees.<strong>NBAA</strong>’s 17th <strong>Annual</strong> Schedulers & Dispatchers Conference likewiseset a new record, drawing a record 2,200 people in <strong>2006</strong>. In addition,the Association held a series of one-day Business AviationRegional Forums at key business aviation centers across the U.S.All told, I believe <strong>NBAA</strong> has been effective in serving its Membersover the past year, both by furthering your interests in Washington, DC,and supplying you with the resources you need to make business flyingsafer and more productive.Sincerely,Kenneth E. EmerickChairman of the Board<strong>2006</strong> <strong>NBAA</strong> ANNUAL REPORT 3