IN THIS ISSUE: SPRING 2006

Thunderstormfrom page 1STORMSCOPE – A DIFFERENT LOOKInitially, a popular misconceptionwas that Stormscope simply detectedlightning. Actually, most of whatStormscope receives is electrical noise.It puts dots on a display showing whereair friction is – warm air and cold airmixing and creating static electricity.During the cumulus stage of athunderstorm, there can be severe turbulence, strong winds and convectivewindshear, but the cell is usually precipitation free. In this situation, radar willbe unable to show you the hazards thatexist, but Stormscope will accuratelydefine the area to avoid.An ideal companion to airborneradar, Stormscope can “see” aheadwhen radar signal attenuation will notallow you to see the storm behind thestorm. It maps electrical dischargesthroughout the area, 360 around theaircraft from up to 200 miles away, withdischarge points indicating storm size.Simply stay 25 nm away from the discharge pattern indicated on your displayto avoid thunderstorm hazards.Weather detection equipment canonly show you where areas of precipitation and turbulence exist. What it is, orwhat it is about to become, calls for asubjective judgment by the pilot.For that reason, Archie Trammelldeveloped his “Objective StormHazards Indexing Test,” which hasassisted pilots at all levels of experiencein making good decisions for manyyears. We will cover the first six of his tenquestions, because they require no datafrom onboard equipment that you mayor may not have.THIS TEST CAN SAVE YOUR LIFEEach “yes” answer is bad news,indicating a thunderstorm potential,perhaps a very serious one.1. Is the local atmosphere significantlyunstable?This is the critical question. If theatmosphere is unstable, that radar echoor cloud up ahead is most likely athunderstorm. If it’s extremely unstable,the storm could be severe.For an answer to this question, referto the Convective Outlook for theperiod, from the National Severe StormsLaboratory.2. Is the surface dewpoint greaterthan 10 C?Based on historical records, whenthe dewpoint is less than 50 F (10 C), asevere thunderstorm is improbable. Butabove a dewpoint of 50 F, the possibility for a serious thunderstorm exists.The higher the dewpoint, the greaterthe danger, because surface levelmoisture is the fuel of a thunderstormand dewpoint is a direct measure ofmoisture content.THE MOST IMPORTANT EQUIPMENTIn the final analysis, that “computer”in your skull is your most importantequipment for dealing with hazardousweather. Your analysis of informationand your judgment are the main factorsin your likelihood of living to be a wise,old pilot.43. Is the temperature/dewpoint spreadgreater than 17 C?When it is, the moisture content islow. This is significant only when a radarecho is present or when you’ve visuallyidentified a cumulonimbus formationproducing rain. If the rain aloft falls intoa high temperature/dewpoint spread –meaning a warm, dry atmosphere – theraindrops will tend to evaporate. Whenwater evaporates it cools the air, and itwill sink. The result will be verticalshears and possibly one or more strongmicrobursts.Answers to questions 2 and 3 areavailable from any weather station andare always given in the ATIS.4. Is the thunderstorm’s speed of movement greater than 10 knots?To estimate gust potential, add 30knots to the speed at which a thunderstorm is moving across the ground. A10-knot or greater speed of movementmay result in gusts near the surface inexcess of 40 knots. A speed greater than20 knots means it’s a severe thunderstorm.The answer to question 4 is notalways easy to acquire. The best sourceis ATC, because often a controller willwatch the speed of storm movement inorder to anticipate traffic flow. However,you’ll have to ask for the information.5. Is there visible evidence of ahazard?Cloud to ground lightning is causefor extreme caution. Even cloud-tocloud lightning is a bad sign. And,certainly, the presence of a roll cloud,particularly a vertical one, is a sign ofextreme danger.6. Is it the southernmost cell in a line?The southernmost cell is often themost dangerous one because surfacelevel moisture fuels thunderstorms. Inthe U.S., surface level moisture comespredominantly from the Gulf of Mexico.Therefore, the cell at the south end ofthe line has the least competition forfuel, and it will grow faster.Remember that when cells organizeinto a line or cluster, there’s a local instability in an otherwise relatively stableatmosphere. So this is another sourcefor an answer to question 1.Remember, three or four “yes”answers to the six questions do notnecessarily mean that a dangerousthunderstorm will develop, but you willknow that the potential is there. As the“yes” answers add up, your natural optimism should begin to disappear,because this is one of those times whenPilot Pessimism can be a great aid toflight safety.Have a safe thunderstorm season!

5

NEW BANKRUPTCY LAW AFFECTS ALL PILOTS.NEW LAW CONTAINS FIVE-YEAR LOOK-BACK FOR RECKLESS MISCONDUCT.Recent changes in the BankruptcyAbuse Prevention and Consumer ProtectionAct of 2005 generally received scant attention from high net worth individuals.Most aircraft owners reflect little onpotential exposure resulting from a catastrophic accident. However, they shouldrecognize that it is possible for them toreposition their assets and control theattachability of them in the event of adevastating judgment. The judgment is ofvalue only to the extent that the creditor hasthe right to attach assets in its satisfaction.PILOT PLANNING NEEDS ATTENTIONExemptions from creditor attachmentunder the new bankruptcy law are generallydetermined under state law. If an individualhas resided in the state within the priortwo years, his resident state will generallycontrol. However, the bankruptcy law overrides state exemptions in the case of willfulor reckless misconduct. For example, if anaircraft accident causes serious physicalinjury or death to another individual, andit was shown that the pilot’s conduct constituted recklessness, protected assets couldbe converted to attachable assets.The homestead exemption protectsa primary residence from creditors, andvaries significantly under state law. The newbankruptcy provision greatly curtails theeffectiveness of this exemption for newpurchases of all taxpayers and generallyPILOT’S LOUNGEfrom page 2Q: What does the Beech King Air C90B have17,074 feet of?A: Electrical and avionics wiring. Stack theEiffel Tower on top of the Empire StateBuilding on top of The Matterhorn and you'llhave enough wire to stretch from base campto the top of the tower.6eliminates it as an exception for injuredplaintiffs in the case of serious physicalinjury or death. This special treatmentapplies during the first five years followingthe alleged misconduct.The second provision makes it moredifficult for creators of asset protection truststo protect assets against future claims.Under the new law, if assets are transferredto an asset protection trust with the intentto hinder, delay, or defraud current orfuture creditors, the asset transfer may bepresumed fraudulent if the person declaresbankruptcy within ten years.Although the new bankruptcy law hassingled out two exemptions and renderedthem less effective, asset protection strategies are still available under federal andstate exemptions. One of the most commonly recognized exemptions is for qualifiedpension and profit sharing plans. The newlaw also protects rollover IRAs to the sameextent it covers qualified plans. The law alsoadds a provision to cover contributory IRAsestablished through annual contributions,though only 1,000,000 in assets is protected.exemptions often turn on who is the beneficiary of the assets. It is also important torecognize that asset protection planningcannot be done without consideration ofestate planning issues, second marriageissues, special needs issues, and othernon-tax dispositive goals.When seeking assistance in designingan effective asset protection vehicle, it isimportant to remind the planning professional that a significant portion of your exposure could be subject to attack under the“reckless misconduct” exception. To beeffective, planning must be undertaken withthe recognition of this new exposure. Louis M. Meiners, Jr., CPA, JD – February 13, 2006Louis M. Meiners, Jr., is an attorney and CPA who servesas president of Advocate Aircraft Taxation Company.Advocate’s practice is limited to serving the needs of ownersand operators of aircraft. Services include aircraft operational analysis, sales and use tax management on aircraftacquisitions, income tax planning, federal excise taxplanning, and representation before taxing authorities.Meiners can be reached at (888) 325-1942, orloum@advocatetax.com.WHAT SHOULD A PILOT DO?Asset protection planning is now moreimportant than ever for pilots. Adequateliability insurance is virtually non-existent,and the new bankruptcy law greatly reducesthe effectiveness of certain planning tools. Itis important to recognize that state lawQ: Who set two world records by flying a1994 Piper Dakota around the world solo?A: Polly Vacher. At 57, the physiotherapistand mother of three from Birmingham,England, is the first woman to fly solo acrossthe Pacific Ocean in a single-engine airplaneand the oldest woman to fly solo around theworld. Vacher took off from Birmingham onJanuary 11, 2001, and returned home 29,000This article is designed to provide information of general interest to thepublic and is not intended to offer specific legal advice. You should consultAdvocate Aircraft Taxation Company or your tax and aviation advisor if youhave a matter requiring attention. Note: This memorandum represents ageneral overview of tax developments and should not be relied upon withoutan independent, professional analysis of how any of these provisions mayapply to a specific situation. Disclaimer: Any tax advice contained in the bodyof this article was not intended or written to be used, and cannot be used, bythe recipient for the purpose of avoiding penalties that may be imposed underthe Internal Revenue Code or applicable state of local tax law provisions.miles and 124 days later on May 17. Shecircled the globe to raise money for acharity, the Royal International Air TattooFlying Scholarships for the Disabled, whichfunds scholarships to help paraplegics learnhow to fly.

WHAT TO DOWHEN THEUNEXPECTEDOCCURS.As the reliability of current productionairframes, power plants and electronics continues to improve, the likelihood that a failure of one of these systems will lead to anincident or accident becomes more remoteeach year. However, distractions at a criticalmoment during takeoff or landing, an unexpected wind shear, poor runway conditions,a missed step in a checklist or an incursionwith wildlife are much more likely and are justa sample of the many incidents that occureach year and cause significant damage toaircraft. For many owner pilots, this is acompletely new scenario in which they haveno prior experience. In most cases there areno injuries to anything except the aircraft.Most pilots are well aware that one oftheir first calls should be to advise theirinsurance broker that there has been anincident. If there has been no personalinjury and nothing failed in-flight to causethe incident, the FAA or NTSB will not getinvolved. But, as a precaution, it is not a badidea to notify the local Flight StandardsDistrict Office and let them “officially”advise you as to whether they wish topursue the matter further.ESTIMATE PROCESSREPAIR FACILITYThe estimate of repair is probably themost important step in the process and cannot begin too soon. Depending on the partsrequired, it may take a few days for theestimate to be completed. You will want asmuch detail as possible and the repairestimate should be prepared based onan on-site inspection of the aircraft. Theestimate cannot include any items not related to the repair or anything that could beconstrued as “betterment.”A complete set of digital photos areimportant and will be used frequently tohelp in expediting the completion of theestimate. It is also important to note, thatwhile you can authorize anything on youraircraft to be accomplished, the insurancecompany has to approve the charges prior toactual accomplishment.Depending upon the location of theincident, the type of aircraft and the extentof the damage, it is probable that yourregular service facility will not be able tohandle the repair – and there are many factors to consider when selecting a repair facility. One of the most important questions toask is: have you performed this type ofrepair on this type of aircraft previously?If the answer is yes, ask for some references.Many facilities throughout the countryare capable of repairing less complexaircraft and perform adequate repairs on aregular basis. However, when repairsinvolve high performance aircraft with pressurized cabins, there are fewer facilities withthe experience and specialized toolingrequired. In short, for this type of aircraftyou are best protected by working with afactory-authorized service center that ismost likely an FAA repair station. This willensure that they have direct access to partsand have current documented training andinspection procedures reviewed by the FAA.They will be better equipped to deal withany FAA approvals and be in a position towork with you every step of the way throughthe process. The insurance company mayask for an additional estimate or two for theirverification, but they have a difficult timearguing with accepted procedures andrepair practices as outlined by the manufacturer. Normally, having repairs performed bya manufacturer’s authorized service facilityhelps to minimize any diminished valuerelating to the damage.This has been a brief review of initialsteps involved in the repair process shouldan accident occur. Remember that beingproactive at the beginning sets the tone fora successful repair project – one that willhave you flying again as soon as possible. ADJUSTERSOnce your insurance broker notifies theparent company of the incident you willreceive a call from the insurance adjuster.When you speak with the adjuster, it is inyour best interest to clearly state yourdesires for the repair of the aircraft and whoshould perform the repairs (if known). Becautious about agreeing to anything at thispoint as it may come back to haunt you. Theadjuster will ask you to forward a repairestimate and most likely will visit the aircraftin person. Remember, you have full controlover who will repair your aircraft and how therepairs will be accomplished. The insurancecompany controls how much they will pay.Be very cautious about authorizing any workwithout insurance company approvals oryou may be financially at risk. Getting thedetailed estimate prepared and approvedby all parties is paramount at this stage,and once that is done, the repair processcan begin.RECOVERYAs your aircraft is recovered, find out ifthere is any inside storage space available.Not only will this help protect your investment from further damage, a damagedaircraft is an obvious target for possibleavionics theft. If there is no inside storageavailable, consider having a local shopremove the panel mounted avionics and putthem under lock and key or give them to youfor safekeeping. If you are lucky enoughto acquire inside storage, make sure theaircraft is locked and secured.7

from Dave ConoverDowntime due to maintenance, evenwhen scheduled, is frustrating. Giving up thefreedom and flexibility we enjoy with apersonal/business aircraft even for a shortperiod of time is difficult. However, when anunscheduled event occurs, “Mr. Murphy”makes sure it is at the most inopportune time.smallest event will involve flight time andadd expense to our budget. So in short, thegoal is to capture as much as possible ateach scheduled event to eliminate excessive service flights. With fuel being one ofthe highest contributors to an aircraft’sdirect operating cost, this is an importantconsideration.REDUCE UNSCHEDULED EVENTSADVANCED PLANNING HELPSWhile no one questions the requirements for regular maintenance, trying toreduce the number of unscheduled eventscan be the key to a more reliable aircraft.The corporate and professional aircraft managers have become very proficient with this,since their jobs can depend on having a reliable aircraft. However, with a little planningahead, owner/operators can improve theirdispatch reliability and possibly even save afew dollars!First of all, many of us are not fortunateenough to have our maintenance facilitiesbased on the same field as our aircraft orhave a technician on staff. Thus, even theMartin State Airport – Baltimore MD (MTN)York County Airport – Rock Hill, SC (UZA)(Charlotte, NC metro area)888-386-3596Secondly, plan ahead for preventativemaintenance. For this you may need someassistance from your service facility. Many ofthe facilities servicing current production,high performance piston/turbine aircrafthave a maintenance tracking system on youraircraft. If you know you have a large phaseinspection, avionics upgrade or annual coming due, a little research in advance mightbe worthwhile. Changing an item that maybe due for replacement in a short period oftime (such as a vacuum pump or startergenerator) or performing a service functionslightly ahead of schedule (transponderinspection or fuel nozzle check) can be agood idea. It will not only eliminate a futureservice visit and prevent the possibility offailure on the road in a remote location,it allows the work to be accomplished inconjunction with other activities. In somecases, there can be some labor reductionwhen events are combined. Additionally, intoday’s “just in time” inventory structure, if apart is not back ordered, you may save somedollars on shipping or expediting fees.BREAK MURPHY’S LAWHistorically, the normal general aviationattitude is to get the aircraft in and out of theshop as fast as possible. However, by takinga step back and working with your servicefacility to identify possible high failure itemsand to forecast time replacement items inadvance, you may actually save a fewdollars. And you could circumvent anunscheduled event that “Mr. Murphy” wasjust waiting to send your way. PresortedFirst ClassU.S. PostagePAIDB.L.S.

1981 Piper Aztec - 1,000 1990 Piper Seneca - 5,000 1982 Piper Chieftain 15,000 THE SINGLE-ENGINE MARKET If you’re feeding a 520 cubic-inch engine, the 100 hamburger is a thing of the past. Fortunately, there are buyers who don’t seem too worried about operating costs. Most of the action in this market is with those airplanes that are .