Brad Pierce Posts

Brad’s Testimony Before U.S. Congress – Aviation User Fees

I recently had the honor of testifying before the U.S. Congress Committee on Small Business regarding aviation user fees.  The hearing was entitled, User Fees in the Aviation Industry: Turbulence Ahead, and took place on Wednesday, September 12, 2012 in Washington, DC.  This hearing was initiated by Congressman Sam Graves (R-MO), who is Chairman of the committee.  The purpose of this hearing was to discuss the impact on small businesses of an additional $100 per flight fee proposed by the Obama administration.  I was speaking to the committee on behalf of the Airplane Owners and Pilots Association (AOPA).

My testimony focused on the important role general aviation has played to help build my business, increase our sales despite a sluggish economy, and hire additional employees.  I own and operate a Turbo Cirrus SR22 Aircraft which I can honestly say is one of my absolute best employees.  It allows myself and my staff members to travel quickly, safely and efficiently to customer locations, industry events and to manufacturing partner facilities.  I’ve flown my Cirrus to 49 states in pursuit of new business and to nurture and grow existing relationships successfully.  We simply could not do what we do without our airplane.

The current system of taxation is based upon fuel consumption, ie: each gallon of fuel purchased has a federal excise tax included, which congress has the ability to adjust if necessary.  This is a straightforward taxation method (perhaps the most simple and effective in our government), wherein those who fly more tend to burn more fuel and therefore pay more taxes.  I fly a lot, a whole lot.  I fly far (nationwide), I burn a lot of fuel, and I pay a lot more taxes than an individual who’s making small regional flights burning less fuel.  That makes sense – I’m going further distances and using more services, therefore I should be paying more into the system and am happy to do so.  The system works, it’s not broken, so this feels very much like a solution looking for a problem to solve.

The Obama administration has proposed that each flight should be charged an additional $100 user fee on top of the current excise fuel tax.  This makes no sense to me as there’s no direct correlation between usage and the proposed new taxation method.  There’s been a position among some proponents that this is “fair” because everyone pays the same additional equal amount.  Each aircraft paying an equal amount however is not “fair”.  The aviation infrastructure was built for the commercial airlines, not for the general aviation sector.  For instance, when I landed my Cirrus at Washington’s Dulles International Airport to attend this hearing, I landed on an 11,500 foot runway that was 150 feet wide and several feet deep of concrete.  This runway wasn’t built for my Cirrus or many other general aviation planes, it was built to handle heavy airliners.  I needed only a fraction of the available runway (length, width and depth) to land safely.  Saying that the cost of that runway (that’s part of our aviation infrastructure) should be split “fairly” and “equally” between both of us would be like going out to dinner and ordering a salad while your friend gets a five course meal then suggests it’s “fair” and “equal” to split the check down the middle.  It just doesn’t make sense.

In addition to the inequality I demonstrated above, another important factor to recognize is the massive infrastructure that would need to be put into place in the government to administer and collect from a user fee based system.  We’d effectively create a whole new bureaucracy, aptly referred to by many in the aviation industry to be named the SKY-R-S.  This new administration could raise fees (taxes) at any time without congressional approval which is a very dangerous proposition.  Given the vast amount of resources and personnel needed for such a program, it’s highly probably an increase in fees would be necessary just to cover this additional overhead.

Equally troublesome is the thought of having to dedicate additional resources and manpower within my own small business for the accounting function of auditing, paying, and handling these fees.  This money would add expense (beyond the flat $100 fee) to our operations which could better be spent growing our business and helping our customers grow their businesses. There is no need to add this additional burden to businesses who are already needing to be laser focused on efficiencies to compete effectively.

I invite you to watch the video presentation of the full hearing for a better understanding of this issue and all of the various points presented.  I was truly honored to be among an esteemed panel of individuals, most notably Martha King of King Schools, who did a phenomenal job expressing her position on behalf of the NBAA.  (As a side note, both John and Martha King are incredibly warm and wonderful people.  I can’t express how much I enjoyed getting to know them and was honored to testify along with Martha).  As you watch the video during the question and answer period, you may notice there was a brief tense moment between myself and the ranking Congresswoman on the committee.  Due to the phrasing of her question, I simply could not allow myself to advocate writing a “blank check” proclaiming that we should should raise aviation taxes.  I feel this is a more complex issue (including the numerous reasons I stated above) and that it’s necessary to look into the details and implications further.  I was clear in my answer however that if congress votes to increase aviation taxes, I would prefer for it to be done in the form of the existing excise fuel tax method instead of by creating new user fees.  While it was slightly uncomfortable to be in disagreement, I’m glad that I chose to stand up for my beliefs and not agree with a position I did not fully support.

I hope that each person reading this narrative will recognize that you too can make a difference when it comes to government and legislation.  I’m a normal guy who operates a small business and uses a general aviation aircraft to grow my business.  I’m not an aviation legend or a household name, but I stepped forward to support my beliefs and genuinely feel like I made a difference.  I invite each of you to do the same, contact your Congressmen and Senators.  Express your concern and let them hear your story of how aviation user fees will affect your business.  Together, we can make a difference and get user fees off the table once and for good.

Lastly, I would like to give a very special thanks to the Airplane Owners and Pilots Association (AOPA) as well as to the National Business Aviation Association (NBAA).  Both of these organizations work diligently on behalf of the general aviation industry and do a phenominal job.  I’ve gotten to know many of the staff members and leaders from both organizations and can adamantly say they are among the best, brightest and most dedicated people I’ve ever known.  They care about all interests in general aviation, both big and small, and I’m honored to be a member of both organizations.   I would also like to thank Congressman Sam Graves for initiating this hearing, along with the respected Congressional leaders who attended and participated in it.  Their time and energy invested was greatly appreciated and I was honored to have the opportunity to speak before them regarding this important issue.

Links to More Information and Resources:

User Fees in the Aviation Industry: Turbulence Ahead – Hearing Information

User Fees in the Aviation Industry: Turbulence Ahead – Brad Pierce – Testimony

User Fees in the Aviation Industry: Turbulence Ahead – Video of Hearing

 

Join Brad at the 2012 AOPA Aviation Summit in Palm Springs

I’ve been asked to speak again at this year’s 2012 AOPA Aviation Summit which will be held October 11-13th in Palm Springs, California.

I’ll be a panelist on an educational seminar entitled “Light Business Airplane Conference: Mission Critical: Using Aviation to Grow Your Business”This seminar is being presented as a collaboration between the Airplane Owners and Pilots Association (AOPA) and the National Business Aviation Association (NBAA).  It will be moderated by Mike Nichols who is the Vice President of Operations, Education, and Economics for NBAA.

The focus of this seminar pertains to using general aviation airplanes for your business needs.  Myself and the other panelists will explain exactly how we’ve used our airplanes to grow our companies and enhance our lives.  I can honestly say that our company wouldn’t be where we are today if it weren’t for our Turbo SR22 Cirrus Aircraft and the huge advantage it’s provided to us over our competition.  Information presented will be packed with real world experience showing how using GA in your business is not only possible, but will be a game changer for your organization.  There will also be plenty of time for Q&A to get answers from panelists and the NBAA regarding business aviation usage.

Mark your calender to spend October 11-13th in Palm Springs, California with myself and other aviation enthusiasts and professionals for a fantastic event you won’t want to miss.  My particular panel session will be held on Saturday, October 13, 2012 from 10:30 AM – 11:45 AM in the Mojave room at the convention center.

You can register for the 2012 AOPA Aviation Summit by visiting https://www.aopa.org/summit/.

You can learn more about the National Business Aviation Association (NBAA) by visiting https://www.nbaa.org/.

 

Cleared for Take-off: Alaska and Hawaii Landings this Summer

Last year I reached my goal of landing in all 48 continental United States in my Turbo Cirrus SR22 Aircraft.  It was truly an incredible journey flying coast to coast across our great country, but something was missing.  That something was Alaska and Hawaii – the final two states I need to visit to complete my expanded goal of landing in every state, not just those in the continental US.  I’m thrilled to announce I’ve decided to go for it!  Life’s too short to sit on the sidelines, so this summer I’ll be flying from Florida to Alaska.  The flight will take 36 hours round-trip and cover roughly 6,600 miles.  After departing Anchorage, I’ll sit back and relax as a passenger going across the Pacific to Hawaii to pick up another Cirrus in Maui.  The following day will be filled with a magnificent flight enjoying the sights of the Hawaiian islands from above… and of course, my final landing to complete my 50 state adventure!  Stay tuned for more updates as I make this goal a reality in just a few short months.

Brad in Motion Goes Mobile

  

I’ve just finished making my Brad in Motion blog completely mobile smartphone friendly.  Just visit my site at www.BradinMotion.com using your smartphone browser and the new enhanced mobile version will appear.  The photos and videos will automatically be resized to fit your screen perfectly.  There’s nothing you need to do on your end, it just all magically happens.  To quote the famous words of Steve Jobs, “It Just Works!”

Happy New Year Thoughts for 2012

Happy New Year!  It’s the time of the year to reflect on the past, but more importantly, to look towards the future and all the possibilies and opportunities that lie ahead.  This past year was nothing short of incredible!  While many of my competitors continued sitting on the porch, I spent my time continuing my business strategy of going out there, meeting customers face-to-face, and making great things happen for my businesses.  I’m very fortunate to have an incredible staff who performed with precision each and every time which made my job a whole lot easier.  I’ve followed a very simple business plan:  Always do what’s right and best for my customers, do it very quickly without errors, and continue to always let my customers know how much they are appreciated and never taken for granted.  There you have it, the secret to my success in 2011, and undoubtedly my plan for an even stronger 2012 as I look towards the future.

As I reflect back on this past year, I think of all the great places I’ve visited, the things I’ve seen, the events I’ve experienced, but most importantly, the special people I’ve gotten to spend time with over the past twelve months.  Both personally and professionally, it’s been a year of growth, change, and raising the bar to yet another level.  Did I accomplish everything I wanted to this past year?  Of course not, I’m only human just like everyone else… but I know without a doubt I’ve given 110% effort every hour of every day and never once felt like I was sitting on the sidelines as the world passed me by.  My ‘to-do’ list is jam packed with items leading into the new year, but that’s a very good thing.  It means I won’t be resting on my laurels, that I’ll be as focused and dedicated as ever to embrace 2012 and all the opportunities it has to offer.

In addition to working hard in 2011, I’ve also had a whole lot of fun along the way.  I’ve had the very unique opportunity to fly and land my Cirrus SR22 Aircraft in all 48 states in the continental United States.  My journey covered more than 55,000 miles and I can honestly say that I loved every minute flying such a fantastic aircraft and seeing so many magnificent sights.  You can read more about my journey in my previous blog post, Brad’s Flying Adventure Across America.  I also traveled to more than six countries internationally, including multiple trips to the Middle East as recently as a week ago with another visit to Dubai.  It’s been such a fulfilling experience to meet people from so many different regions of the world and to learn about their cultures as I’ve gotten to know them as individuals.

As I look towards 2012, I see a truly great future ahead!  I’ve never been more excited or more optimistic about all the great things that life has in store for me.  There will undoubtedly be challenges, but I welcome them with open arms and know they will only make me even stronger.  I’m planning on continuing to follow my dreams, the live every day like it’s my last, to work hard, to play hard, and enjoy every second of the ride!

Happy New Year!  Welcome to 2012!