You’ve bought a new aircraft, or are happy with your current one. In considering many factors, including the frequency of your travel, your need for a “turnkey” operation, and maybe your desire for some charter revenue, you’ve decided to enlist the services of a professional aircraft management company. You’ve done your research (See “Choosing a Management Company,” BAA July/August 2015), made your selection, and are ready to sign.
Similar to any new service you enlist, there is a start-up phase, referred to as “onboarding.” Onboarding is simply the steps that the company will take to properly prepare itself, the aircraft, and the crew, and to satisfy the FAA and DOT to conduct flight operations in an efficient, cost-effective, safe, and legal manner.
The onboarding process begins once your decision is made, even before the contract is signed. It begins with a meeting including you and any of your representatives who will be involved with the aircraft, such as your CFO, executive assistant, or risk manager. The management company team typically includes an onboarding specialist and designated aircraft manager, plus representatives from maintenance, accounting, charter, and human resources. They follow a comprehensive checklist to streamline and expedite the process. Communication is key. The team will meet frequently to review the status of your aircraft transition, and will provide you with weekly updates.
Certain basic processes – and regulations – must be covered for every aircraft, in addition to designing others to meet your own specific requirements. The best management companies use a recognized project management system together with a system for continual improvement. Developed by Toyota engineers, Kanban and Kaizen focus on achieving high-quality results. Other companies use the Six Sigma method and its focus on Total Quality Management. The basic organizing principle is to start with the end in mind: “What will a successful aircraft ownership experience look like for you?” and then use “reverse engineering” to get there.
In the “honeymoon period,” usually the first six months, there is a high level of activity and some topics will require your input. There are more than 180 tasks required to operate safely and meet your individual requirements, which can be grouped into 65 categories, in three main areas:
- Aircraft Management: Flight operations, accounting, vendor negotiations (e.g. fuel discounts), subscriptions, and insurance.
- Flight Operations: scheduling (dispatch), ground transportation, record keeping, installation and oversight of a Safety Management System, crew training and schedules, and issuance of flight manuals.
- Maintenance: inspections, repairs, records and manuals, warranties, equipment compliance, training mechanics, and FAA interface.
Here are some of the questions you may be asked:
- If your aircraft is coming from another management company, would you like to keep the same crew members? For example, if you’re moving to a larger or newer aircraft, is your current crew capable of or interested in operating the replacement aircraft?
- If the management company finds that your crew member does not meet the proper operating standards (identified during transition training), how will this be handled?
- If the aircraft is on a charter certificate, what are your charter requirements (e.g. annual billable hours/revenue)? Do you want the ability to approve every trip, every time? A good management company will track every opportunity and be able to share how many trips were presented, and how many you accepted or declined with the associated revenue per hour.
The onboarding process traditionally takes 60-90 days, but may be extended if the FAA is delayed in conducting your certificate acceptance flight or additional crew training is required. Once complete, you will have one individual assigned to you, often referred to as a “Client Advisor” or “Aircraft Manager” who will serve as your primary point of contact with the management company to ensure that you have a positive experience. BAA