SMS for RACCA Members

By Nathan Eisenman, RACCA Aviation Advisory Committee

I did a quick take on the new SMS rule and below is what I sent our FedEx Operators. I think it important to share with all RACCA coperators.

This is my interpretation of the new rule;

Operational and Implementation Evaluation of the FAA 

Final Rule on SMS for 14 CFR Parts 121 and 135 Operations

26 April 2024

Scope of Detail

On 22 April, the FAA issued a pre-release of their final rule regarding SMS for various certificate holders. This review provides a short background of the rule and also specific considerations of the new rule as they pertain to FedEx Supplemental Air Operations (SAO) contracted organizations, both those operating under 14 CFR part 121 and 14 CFR part 135.

Regulatory Background

In 2015, the FAA promulgated 14 CFR part 5, which required Part 121 operators to develop and implement SMS and also prescribed basic implementation and operational requirements for those systems. Soon thereafter, consideration was given to improving aviation safety by the extension of these SMS requirements in part 5 to additional organizations that play a critical role in the design, manufacturing, and operation of aircraft (i.e. certificate holders operating under part 135, LOA holders operating commercial air tours under 91.147, and certain certificate holders under part 21). 

As an SMS provides a structured, repeatable, and systematic approach to proactively identify hazards and mitigate risks, the value of now requiring these organizations to develop and implement an SMS is absolutely valid and appropriate. In 2009 and 2012, the FAA chartered two sequential ARCs to develop and provide guidance on implementing SMS with the preceding organizations. The final ARC report was issued in October of 2014.

In January of 2023, the FAA published an NPRM regarding both an update to the SMS requirements in part 5 and also to extend the requirement to have an SMS for all certificate holders operating under the rules for the previously detailed organizations. By 11 April of 2023, almost 200 comments were received in response to the NPRM, with the comments originating from air carriers, aircraft designers and manufacturers, trade associations, emergency medical transport services, non-profit safety organizations, a university, and private citizens.

The final rule was released as an advance copy on 22 April 2024. The rule was posted to the Federal Register on 26 April 2024 with an effective date of 28 May 2024. The new rule will ultimately apply to nearly 1,850 part 135 operators and more than 700 air tour providers. 

Restricted Scope of Evaluation

This evaluation examines regulatory content and intent strictly relating to FedEx SAO operations, therefore no considerations regarding certificate holders operating under part 21 and air tour operators are reviewed. Additionally, no financial and/or federally mandated paperwork reduction evaluation metrics are provided.

Definition Changes

The original part 5 had as the definition of “hazard” the following: “Hazard means a condition that could foreseeably cause or contribute to an aircraft accident as defined in 49 CFR 830.2.” In an effort to align the definition more closely with ICAO Annex 19, the FAA further refined it by adding after “a condition” the phrase “or an object”. They also replaced the phrase “that could foreseeably” with “with the potential to,” and inserted “incident” before “aircraft accident.” The finalized definition “hazard” therefore is as follows: 

“Hazard means a condition or an object with the potential to cause or contribute to an incident or aircraft accident, as defined in 49 CFR 830.2.”

Scalability

An SMS is designed to be scalable to the size and complexity of the aviation organization and to not be unduly burdensome. In the final rule, the FAA decided to retain the express requirement for the SMS to be appropriate to the size, scope, and complexity of the aviation organization in order to provide a better understanding of scalability as a result of the comments received. This content has been moved, along with other general SMS requirements (formally contained within 5.3) to 5.5. Various sections in the final rule amplify considerations relating to scalability, program design and implementation, and use of third-party safety service providers. The FAA also describes the utility of using dedicated software to facilitate an organization’s SMS design and implementation. Specifically, the FAA-supported program of Web-Based Analytical Technology (WBAT) is mentioned in terms of capably being able to meet recordkeeping and documentation requirements. Further reinforcement of the importance of scalability is demonstrated through the FAA’s referencing their acceptance of the use of paper/digital files to accomplish the same administrative tasks as through the use of WBAT.

Part 121 Operations

Initially, the FAA had stipulated that existing part 121 operators would be required to submit the changes to their SMS needed for compliance with this new rule. The FAA elected to delete that proposed notification requirement. However, part 121 operators are still mandated to meet the new requirements proposed in 5.21(a)(7) (Safety Policy Code of Ethics), 5.53(b)(5) (Safety Risk Management Interfaces), 5.57 (Hazard Notification), 5.71(a)(7) (Employee Confidential Reporting System), 5.71(a)(8) (Investigating Hazard Notifications), and 5.97(d) (SMS Records). The FAA will validate compliance with these new requirements using existing oversight methods and tools.

Part 121 operators will be required to revise their SMS to assure compliance with the new rule no later than 30 days and 12 months after publication of the rule in the Federal Register – 28 May 2025. 

Part 135 Operations

This rule will require part 135 operators to implement SMS. After initially requiring that these organizations submit a “statement of compliance” with their certificate or LOA application, the FAA concluded that it was not necessary to make this submission a regulatory requirement. However, instead of requiring these applicants to submit a “statement of compliance,” part 135 operators will now be required to submit to a “declaration of compliance.” Submitting this declaration of compliance to the FAA will document and verify that the organization has developed and implemented an SMS meeting the applicable requirements of part 5. The FAA will conduct its assessment of the applicant’s SMS using the same processes and procedures it uses to assess the applicant’s compliance with other FAA requirements. To assist the FAA in evaluation these operator’s SMS, they will additionally be required to make their SMS processes and procedures available in accordance with 5.9(d) and 5.95 to FAA personnel for review.

Both the transmittal of a part 135 organization’s declaration of compliance and successful development and implementation of an SMS that is in full compliance with the rule must be completed no later than 30 days and 36 months after publication of the rule in the Federal Register – 28 May 2027. 

Single-Pilot Operations Exemptions

Upon evaluation of comments regarding the coverage of the rule to single-pilot organizations, the FAA elected to provide precise enumeration as to which components of the rule would not be applicable to these operations. This guidance is specified in 5.9(e). The following briefly details the components of the rule that were determined to be not applicable for these operations:

5.21(a)(4) – Safety Policy, reporting policy requirements

5.21(a)(5) –  Safety Policy, definition of unacceptable behavior

5.21(c) – Safety Policy, documentation and communication requirements

5.23(a)(2) – Safety Accountability and Authority, definition requirement for accountability all members of 

                     management regarding SMS processes

5.23(a)(3) – Safety Accountability and Authority, accountability of certain employees relative to safety 

                     performance

5.23(b) – Safety Accountability and Authority, certain employees authorized for risk acceptance decisions

5.25(b)(3) – Duties and Responsibilities of the Accountable Executive, communication throughout the 

                      organization

5.25(c) –  Designation of Management Personnel

5.27(a) – Coordination of Emergency Response Planning, delegation of authority thereof throughout the 

                 organization

5.27(b) – Coordination of Emergency Response Planning, employee responsibility assignments

5.71(a)(7) – Safety Assurance – Safety Performance Monitoring and Measurement, confidential employee 

                     reporting system structure and operations 

5.93 – Safety Communication, (all)

5.97(d) – SMS Documentation and Recordkeeping – SMS Records, duration of retention of communication 

                records required under 5.93

** NOTE ** There exists a critical concern for FAO Safety and the collective group of feeder operators in view of the FAA’s ambiguity regarding the exact descriptions and qualifications centered around these carve-outs for single-pilot operations. The FAA has not yet made yet clear and unambiguous differentiation between single-pilot organizations vs. single-pilot operations. Regarding evaluation by FAO Safety and impending actions by the group of FAO operators, this is an extremely important concern. The following provides the FAA’s level of focus from the new rule regarding this concern:

“These exceptions are limited to entities with a single pilot who is the sole individual performing all necessary functions in the conduct and execution related to, or in direct support of, the safe operation of the aircraft. All necessary functions would generally include: operational control, refueling, ground handling of the aircraft, flight planning, weight and balance calculations, performance of preventive maintenance, coordination of maintenance activities, pre-flight and post-flight activities, and financial decisions related to operating the aircraft safely, in addition to operating the aircraft.”

Obviously, a feeder pilot operating under part 135 regulations, will most certainly be conducting ops as a single pilot, but he will most certainly not be “the sole individual performing all necessary functions in the conduct and execution related to, or in direct support of, the safe operation of the aircraft.” Intuitively, a compelling case can be made that the intention of the FAA with these exemptions is that these specific conditions will strictly apply to an organization wherein a sole person conducts all the functions necessary for business continuity, not just conducting the flight ops as a single pilot. If indeed that situation does prove to be the case, FedEx feeder organizations will not fall under these exemptions and the operator will therefore be required to be in compliance with the rule in 100% totality. This specific point, along with certainly many other points as yet undetermined, will absolutely require clarification from the FAA.

Conclusion

This long-awaited rule was just released this week. Already, both trade publications and industry advocacy groups have literally exploded in their level of coverage of the final rule’s release. FAO Safety, along with the entire group of operators, will now need to closely follow subsequent developments and ensure complete compliance with the rule on or before end of May 2027, the clock is ticking… 

The final rule, as published in the Federal Register, is accessible here: https://www.federalregister.gov/documents/2024/04/26/2024-08669/safety-management-systems

University Aviation Association Focuses on Mental Health

By Kathryn B. Creedy

Universities, operators and unions gathered together during the 2o22 University Aviation Association conference to discuss mental health, a growing issue in an industry in which such a topic has long been a third rail to careers.

The overwhelming message was reaching out for help is not a career ender, but emphasis must be placed on preventing the escalation of mental – or any health issue for that matter – into a crisis that could threaten a student’s education or a pilot’s career. Speakers also noted human factors is just another facet to safety management systems and advised that support programs must be accessed throughout an employee’s career.

“Is it better to let problems fester into a crisis or to perhaps take time away from studies or career to get healthy,” asked one speaker, equating mental health issues to any other health problem. “Pilots and students must understand getting help may not end their career. They must understand that talking about having a tough day or asking about mental health is okay.”

“We know how to train our bodies,” said USAF Academy Peak Performance Center Dr. Dillon Small who, with other speakers reported a dramatic shift over the last five years that students and aviators are more receptive to talking to a psychologist. “We also know how to train our craft and fly airplanes. The next challenge is the mental component. We must teach how we can get better and stronger and leverage that for better performance.” 

While illuminating the programs such a Peer Support Groups to help students and employees navigate life’s problems, stress or mental health issues, speakers focused on destigmatizing psychological issues using the ALPA’s mantra – Talk Early and Talk Often. The Air Force, for instance, recast the debate as a way not only to be mentally and physically health but as a way to improve performance. But pilots said conflating the two could be dangerous since they are two separate issues and focusing on performance could complicate resolving mental health issues.

Everyone is now placing a higher priority on mental health, speakers noted including airlines with their Peer Support Programs (PSPs) Aircraft Owners and Pilots Association, National Business Aircraft Association, the US Air Force and collegiate aviation. The idea is to increase opportunities for students and pilots to find appropriate helping agencies and community support when faced with stressful challenges.

Speakers all recommended creating Peer Support Groups (PSPs) or, in the case with pilots flying the line the Pilot Peer Support (PPS) something all mainlines currently have. In addition, they described how to go about setting up programs and training peer volunteers. ALPA members are covered by its PPS while FedEx, United and Delta have standalone programs.

Embry-Riddle Professor Jennah Perry noted her studies showed a significant reduction in stress after students took the stress management course at the university. Her study colleague Anastasia Rivera added it is a matter of building awareness of how bodies and minds work and identifying the warning signs of stress. Finally, ERAU Jorge Abelo discussed the different stressors found in minority populations and how to address that cohort both in college and in careers. He emphasized working with the many affinity groups already in the industry including Latino Pilots Association, National Gay Pilots Association and Organization of Black Aerospace Professionals.

RACCA Announces Impressive $20,000 in 2022 Scholarship Award Winners

For More Information Contact: Kathryn Creedy                                            

321 405 4395          kcreedy@raccaonline.org 

RACCA Announces Impressive $20,000 in 2022 Scholarship Award Winners 

Hyannis, MA, December 12, 2022 – The Regional Air Cargo Carriers Association (RACCA) and UPS announced eight deserving aviation scholars as recipients of the 2022 RACCA Scholarship and RACCA UPS Scholarship awards to foster their continuing education in pursing aviation careers.  

RACCA scholarship winners, awarded $2,500 each, include Demarcus Griffin, Stephanie McClendon, C. Sahara Billman and Simarjit Singh. The RACCA UPS FlightPath Scholarship, also $2,500 and designed for aspiring pilots, maintenance and flight operations professionals, was awarded to Amos Igwe, Cameron McCoy, Jackson Heagy and Evan Wetsch.

“Scholarships are of paramount importance to building the aviation workforce, so it is incumbent on industry to reach back and give those just starting out a helping hand,” said RACCA President Stan Bernstein. “Our scholarship winners are doing that already as they mentor youth and promote aviation careers even as they continue to train. By helping them, we help the entire industry.” 

RACCA Scholars 

Demarcus Griffen

Demarcus Griffin, from Memphis, TN, recently began flight training and is working on his private pilot license but he will be graduating with honors with an AAS Degree in aviation maintenance technology. He also has gained partial maintenance certification necessary for his career and is looking forward to completing his AMT certification. Griffin was attracted to the cargo industry by working for FedEx after his high school graduation. A student at Arkansas State University (ASU), Mid-South, Griffin was described as one of its top students in its Aviation Maintenance Technician program and has only one semester remaining. He continues his work at FedEx where he is now an AMT Helper on the night shift gaining hands-on experience from certified mechanics.

Stephanie McClendon

Stephanie McClendon is a student at Delta State University’s Flight program and achieved her private pilot license in eight months, becoming the first student in her class to do so. Described as someone who will go above and beyond in her career and a great asset to aviation, McClendon completed her instrument rating last summer. Originally from Whitmore Lake, MI, she is active in Alpha Eta Rho professional aviation fraternity and became its vice president in her freshman year. McClendon is also an officer in the Women in Aviation Magnolia Chapter and is a leading member of the Delta State Precision Flight Team where she promotes aviation careers. This work includes representing Delta State at the Mid-South Air Show and DSU’s Aviation Career Fair. Within the next two years she wants to achieve her CFI, CFII and MEI certifications before building time to become a regional cargo pilot. McClendon’s volunteer work includes FOD clearance at her local airport, working with the elderly and at the local animal shelter.

C. Sahara Billman

Sahara Billman attends Embry Riddle Aeronautical University in Daytona Beach, FL realizing her lifetime dream of pursuing an aviation career. Originally from McKinney, TX, she is now pursuing a bachelor’s degree in Aeronautical Science where she is on the Dean’s List. She completed her instrument and commercial ratings and is a member of the university’s Flight Professional Conduct Board and Women in Aviation. Her family’s inability to finance her pilot dreams failed to cool her enthusiasm and, at the age of 14, Billman began seeking organizations to help her achieve her dream. She began working with Tango Thirty-One Aero Club, a nonprofit focused on helping underprivileged youth learn to fly through “sweat equity” and working in the maintenance bay. During high school she helped restore two aircraft from the ground up including engine overhauls and full build-up of Continental 0-200-A engine while graduating from high school a year early. She served as the club’s president and is such a staunch advocate for youth aviation, she would like to run a group similar to Tango Thirty-One wherever she lands in her career. Recommended for continually seeking challenges and her dedication to success, Billman is also known for her personal character and integrity. Billman is a now a certificated private pilot and a member of ERAU’s Flight Competition Team.

Simarjit Singh

Simarjit Singh began his flight training this year and has already earned his private pilot certification, among the first in his class at Vaughn College of Aeronautics and Technology to achieve this goal. Hailing from Queens, NY, he will shortly earn his instrument rating, the next milestone in the journey that began in childhood when he decided he would be a pilot. Known for his leaderhip skills, Singh recently passed the instrument oral check ride and waiting for the instrument flight check ride. He works line operations at Heritage Flight Academy and takes a keen interest in the workings of engines to better handle the aircraft should problems arise. An avid aviation documentary watcher, Singh uses them to learn crucial skills like crew resource management as well as to gather information on how airline airplanes work. 

RACCA UPS Flightpath Scholars 

Amos Igwe

Amos Igwe defied his own assumptions that he could never become a pilot. But, after taking a flight with an instructor friend, his career goal changed to a cargo pilot. He already had a career at UPS as a package handler and the nightly dedication of his coworkers inspired him to use that same mentality to pursue a flying career. He was named Leader of the Year by his fraternity Pi Kappa Alpha. Igwe volunteered to help Hispanic youth immigrants integrate and succeed in their new schools and has served as director of operations for Spin for Steven which focuses on helping people with rare cancers. He and the organization raised $28,000 and attracted 700 participants to its event. Described as an man of character, intelligence, leadership, and kindness, Igwe went from zero flight time to his multi-engine instructor certification one year after graduating from the University of Louisville. He worked as an intern for the UPS FlightPath program and participated in the Tri-Annual Airport Disaster Event at Louisville International Airport (SDF). His goal is to become a Gold Seal Instructor before ultimately achieving his dream of becoming a cargo pilot.

Cameron McCoy

Cameron McCoy gained his passion for aviation as a boy and dreamed of becoming an airline pilot. He began his journey to become a professional pilot in high school where he worked at a local grocery store to pay for flight training and gain his private pilot license. Originally from Houston, TX, McCoy graduated with honors from Baylor University’s Bachelor of Aviation Sciences program. He has completed his ratings to CFII. He worked for UPS in its FlightPath Internship program and cited the company culture and people for pursuing his flight goals. McCoy’s passion for serving others started at age eight when he volunteered at church eventually becoming its sound and lighting engineer. At Baylor, he served in the Student Aviation Organization, traveling to air shows and promoting its aviation program. McCoy is also a mentor to nine students at Flight Club 502 where he organized eight tours for 100 Flight Club 502 kids at UPS’s flight training center giving them an experience in the 757/767/MD11 Level D simulator. Since then, many of those who participated, now want to fly for UPS. McCoy also mentors high school students helping them take the next step in their aviation careers. He is using his scholarship to achieve his multi-engine time in preparation for flying for Ameriflight before returning to UPS.

Jackson Heagy

Growing up in Prospect, KY, Jackson Heagy did not think about an aviation career until joining the UPS IT department after graduating with a bachelor’s in management information systems from the University of Alabama. He grew up in a family working in the UPS flight training department, however. After joining the airline, it was watching UPS aircraft that inspired him to become a cargo pilot. He earned his wings at Clark County Airport, Sellersburg, IN,where he completed an accelerated program in which he gained his PPL, instrument, CSEL, CMEL, CFI, CFII and MEI within 10 months. Having accomplished this, he began teaching at ATP Flight School where he instructed private, commercial and CFII students. As a UPS FlightPath Airline Safety Intern in UPS Safety Risk Management Department, Heagy worked with FOQA, ASAP and eReport data, combining his technology and flight experiences. He continues to work with members of the Thoroughbred Flying Club and plans to join Ameriflight next year to gain experience before returning to a UPS career. He also wants to continue working in the training center as an instructor using FOQA and ASAP data to improve aviation safety.

Evan Wetsch

A native of Louisville, KY, Evan Wetsch had a lifelong interest in aviation, but it was not until his junior year in college he began his flight career. As a FlightPath intern, Wetsch worked in the quality assurance department in the flight training center. At my job I analyze flight training data to make training safer, more efficient, and to comply with FAA and UPS standards. He has since earned his PPL before completing his degree in Computer Science Engineering from the University of Kentucky.  Since then, he earned his instrument, MEL commercial and SEL commercial in just under 70 days. He served as a CFI at Bowman Field in Louisville, and recently volunteered at Women in Aviation’s Girls in Aviation event at the field promoting the wide variety of aviation careers, including the cargo industry. Wetsch also volunteered for SDF’s mock Aviation Disaster Drill. He attended the National Intercollegiate Flying Association conference in Ohio promoting aviation careers to hundreds of students, sharing information on cargo flying and the FlightPath program. He plans to fly for Ameriflight before returning to UPS.

About RACCA

The Regional Air Cargo Carriers Association (RACCA) is dedicated to representing and serving approximately 50-member Part 135 and Part 121 cargo carriers who have about 1,000 aircraft in their fleets. Their role in the aviation

industry is meeting the cargo needs of small communities and connecting them to the national transportation aviation system, many via the global networks of FedEx, UPS and DHL. RACCA focuses on improving safety and representing its members in Washington.

Regional Air Cargo Carriers Association

35 Hinckley Road Hyannis, MA 02601

508-778-7788  raccaemail@aol.com

Interest in Flying Cargo Rises Once Students Know Opportunity and Value

Once student pilots learn about the opportunities and the value of flying cargo as a career, they are receptive to the possibilities and prefer it to other time-building experience, according to University of North Dakota Professor and Director of Aviation Industry Relations Kent Lovelace who spoke before last week’s RACCA conference.

“Members need to do more active recruiting,” he told conference attendees highlighting both the opportunities and challenges for the industry. “You need to be more visible to aspiring pilots and you need to reach out to educate the aspiring pilot population about the benefits of flying for a regional cargo carrier. You also need to be competitive with regional passenger airline pay or offer something to offset the lower pay. In addition, you need to develop defined career paths and educate students that regional cargo careers are an effective path to a major airline because those airlines value that experience.”

One take away from the survey is 62% of student pilots saw flying cargo as a more attractive than working for a regional passenger airline to reach a major carrier.

They also were more familiar with passenger carrier pathway programs, saying they were a huge incentive to pursuing that route. Familiarity with regional cargo carriers was extremely low – between 9% and 40% compared to over 90% being familiar with FedEx, UPS, SkyWest, Endeavor and Delta. Ameriflight topped the list in familiarity.

Lovelace, who has been an ambassador for air cargo careers for years, conducts a student pilot survey at UND and noted opportunities exist for the industry to spread the word about great careers and pathway programs to FedEx and UPS.

RACCA Influence on Survey

The new data resulted from conferring with RACCA to design specific questions successfully raising the visibility of the industry. The data included pilot certification trends (see charts below) and recommendations Lovelace called both opportunities and challenges. Respondents said the survey opened their eyes to the possibilities of flying cargo as a career move. They also indicated they would prefer such opportunities over building hours as a CFI.

“Students are open to other ways of gaining their flight experience,” said Lovelace in reporting survey results.  “Many would avoid CFI with students feeling regional cargo carriers would improve their marketability. Pay continues to dominate the reason for choosing a place to work while culture, safety, and how employees are treated also showed up in many of the qualitative comments. Students are familiar with FedEx & UPS but not very familiar with any of the other major and regional air cargo carriers. Significantly, 71% to 75% of students weren’t familiar with SIC and PIC regulations relating to air cargo carriers while 62% of respondents consider this opportunity more attractive than working for a regional airline to reach a major airline.”

Under new rules pushed by RACCA and finally accepted by FAA a few years ago, pilots can be hired by a Part 135 carrier as second in command at about 800 hours and they can gain turbine, pilot-in-command experience at a regional cargo carrier at 1,200 hours of total flight time.

Recommendations – Recruiting, Increased Pay

What is clear is what the industry is doing now is not working and Lovelace recommended the industry do more active recruiting.

The recommendations stemmed from the comments made as part of the survey which revealed when respondents entered flight training only 29% aspired to fly cargo while 73% cited passenger carriers as their career ambition. However, 42% of respondents cited cargo as their long-term goal compared to 73% passenger airlines which means either would suffice for those pilots.

“The survey indicates students have some uncertainty regarding their career goals,” explained Lovelace. “Both cargo and corporate pilot careers ranked higher than previous surveys. Students become far more aware of the varying career opportunities the longer they spend at UND based on qualitative responses and several students indicate a change away from military due to pay/benefits.”

Pay continues to top the reasons for going a particular career route or company for which they want to work at 95%, according to the survey, but work schedule ranked third with 90% of respondents citing its importance. Some 86% of respondents ranked bonuses fifth.

Misconceptions abounded with once commenter stating they would prefer a regional cargo instead of being a CFI but believed regional cargo operators and their aircraft were not as good as passenger regionals. Comments also cited pay and the lack of flying compared to other hours-building experiences. The commentor believed they could make it faster to FedEx via passenger regional airlines than a regional cargo carrier. Student perception also showed they thought commuting was not an option meaning they were limited in where they could live.

Lovelace noted student certifications were down, probably owing to Covid

Emerging Tech Takes Center Stage at RACCA

Emerging Tech Panelists L-R: Ameriflight CEO Paul Chase, Sabrewing CEO Ed De Reyes, Beta Technologies Chief Revenue Officer Patrick Buckles and Reliable Robotics CEO Robert Rose

With Part 135 the increasing focus of attention for operating electric and automated vehicles, as Ameriflight CEO Paul Chase indicated during a much- anticipated session at last week’s RACCA meeting, the issue is not just about the cargo industry becoming an enabler of the next generation technologies but reducing the cargo industry’s environmental footprint. Chase noted forecasts show that commercial applications for emerging technologies will see a 10% to 14% compound annual growth rate.

“All this attention,” said Chase, “certainly illustrates that what we do is essential.”

The three closest to the finish line – Beta Technologies, represented by Chief Revenue Officer Patrick Buckles, Reliable Robotics’ CEO Robert Rose and Sabrewing CEO Ed De Reyes – discussed the potential for realizing the varied missions emerging technologies have been given. For the three that included making aviation even safer, expanding cargo service to areas that are now inaccessible and improving logistics.

$19 to fly 160-mile leg vs Caravan at $800 fuel. Beta is prioritizing on developing its cargo aircraft first, arguing the reduced operating costs makes short hops with limited cargo more economically viable. However, it is working on longer ranges and has already invested in charging technology at airports.

Beta Technologies, said Buckles, is not focused on the passenger side where 80% of the eVTOL developments are targeting. “The bigger market for the new technology,” said Buckles, is in cargo and military logistics. “We are going after that market and forecasts indicate 80% of new technology will be deployed in that arena. We are trying to change how cargo is moved in order to cut fuel costs and open a lot of new missions that are not economically viable today. We’ve seen cargo be incredibly transformative in the past few years. We have to further transform it, not from carrying 1000 shirts to Macy’s, but to delivering 1000 shirts to 1000 households. With electric and eVTOL you can get cargo there faster and more economically.”

Like Beta, Sabrewing started by designing its Rhaegal aircraft specifically for the cargo market. De Reyes noted RACCA members were instrumental in helping to tweak the design to make it more useful. “Air Cargo is the low hanging fruit,” he said. “But, in reality it’s the ability to deliver that cargo not just to doorsteps but doorsteps that have never had access to any transportation at all. The ability to get to any destination is the battery and operators need to plan to complete the mission on a single charge. While we have designed it for 1000 nm with max cargo, what about the mission that starts at one airport and goes to five different airports before returning to base. Our aircraft can go 24 hours a day and it never gets tired. You can’t do that now with crewed operations but you can with a UAV.”

One of the first companies to receive Air Force Agility Prime backing, Sabrewing decided to concentrate on commercial rather than military operations. De Reyes indicated if the military saw value in Rhaegel operations that would be the icing on the cake but the company sees commercial operations as leading the space. Bringing that home was a statement during a conference by the Air Force that it didn’t have a logistic mission.

“There are far more logistics aircraft than fighters,” he said. “The military really has to wrap its head around conquering logistics if they are going to win wars. In fact we found the hardest part was getting the military to understand how much they have in common with air cargo companies than anything else. Their defining issue is where they have to go has no runway and that’s were we come in. If we can provide solutions for air cargo carriers, then we’ve solved it for the military as well.”

He noted that with many of the emerging technologies the wait is years before it is introduced into service but the need in the cargo industry is immediate. “We can put it in the fleet and start operating and still get the ranges and payloads we have right now,” he said. “We have achieved that and sold 138 Rhaegel Bs and we just booked an order for 53 Rhaegal As. Our tech is moving quickly.”

Rose noted Reliable Robotics Electric Caravan was a way to introduce advanced automation to improve the safety and economics of regional air cargo. He emphasized regionals say they want more flexibility and the company was responding by offering flexibility on how they design their routes and how they manage their networks.

He also stressed the safety aspect of the new technologies as Airbus has argued in continuing its development of autonomous airliners. “Really safety needs to drive the changes,” said Rose. “We will have autonomous planes but we need to focus on certification and the practical reality of the challenges before us. This will only happen for safety and certification is for safety. We have to have an exclusive focus on safety to get through the certification process.”

Why Part 135?

Chase asked what it was about Part 135 that was attracting so much attention from the cargo-oriented emerging technology and the three panelists all pointed to the regulatory infrastructure already in place. They noted the passenger-oriented new technology aircraft faced not only the development of certification standards and rules but also the integration into the National Airspace, two daunting challenges that are expected to forestall the ambitious timelines set down for passenger aircraft.

Reliable Robotics is based on existing aircraft to speed certification. This is about more than replacing the pilot. It is also about a computer system deciding how packages are delivered. A lot of it is the flexibility and enabling you to do what you can’t do today with new routes and really working those planes to their maximum capability.

For Reliable Robotics it was basing its technology on existing aircraft and focusing on automation and removing the pilot in favor of the control center with the autopilot flying and the pilot managing the flight through an advanced flight management system. He reported the company has made great strides with the FAA toward certification which includes an entirely new navigation system.

Sabrewing chose Part 23 certification specifically for its known pathway and certification allows operation in Class B and C airspace. “We have 10 detect-and-avoid sensors that allows us to take off and fly under IFR conditions just like conventional flight,” he explained. The only difference is the pilot sits on the ground and we can land vertically or conventionally. Out of the 200+ regulations, 60% deal with flying human beings and we do not have to certify to that.

Rose agreed adding: “We don’t have a pilot on board, we have a set of avionics that can do this all internally and we’ve made great progress in certifying that and the autolanding system that brings the aircraft to the ground. “This is not new technology for Part 25 or Part 23 aircraft certifications. Cat III is already there but for us you need the capability and the procedures that go with it. We have auto take off and the capability for rejected take off. We tackled those first and then we addressed the management of emergency conditions and turning that into software so we can finally move the pilot out in favor of developing detect and avoid and loss-of-link procedures. We see it as an incremental process in building the capabilities.”

Buckles noted Beta’s experience with the Air Force Agility Prime program provided lessons learned and flight test data which ports directly over to the FAA to ease the certification burden. “The FAA is learning as quickly as the industry and finding the right parts of industry to enable a data-based, safety-based approach,” he said. “With cargo, we will be building the social acceptance by getting the aircraft out there. That contributes a lot more than something written in a powerpoint presentation.”

Solving the Pilot Shortage

Inevitably the conversation turned to whether or not the new technology would ultimately solve the pilot shortage but for Rose, it is about more than that.

“When you think of true autonomy and fast forward to the future, it is also about a computer system deciding how packages are delivered but that’s a long way from where we need to be for that. We need to ask the question what the incremental small bits are that will contribute to the solution. There are very few examples where there was a giant leap forward in aviation except maybe the Wright Bros.”

Sustainability

In discussing emerging technology’s role in sustainability, Buckles said it will come by applying the right technology – hyrdrogen, electric, SAF – to different problems rather than going for a moon shot out of the gate. For its electric solution, it began early building out the infrastructure and investing in ground charging stations. It has already completed 12 airports and is targeting the completion of 60 more by the end of 2023.

It also requires thinking differently about power. “On a mission with a 190 nm leg the fuel costs $700 for the Caravan but $13 for a recharge,” he said. “If you think about utilization and how many times a day you can run the argument becomes better. Then think about the fact operations and maintenance are far less expensive meaning you don’t have to wait for a full load to be profitable. This opens up a lot of other business opportunities for carriers. There are a lot of companies who need airlift but it was not economical before. Now we can give them what they need through aviation which is now much more affordable. The next question we get during discussions like this is whether we know of any experts to help them rethink logistics. You could end up running a flight department for them.”

Payloads Important

De Reyes discussed the barriers he faces to market penetration. “The biggest issue is operators don’t want to buy an aircraft that carries less than a SkyCourier or a Caravan,” he said. “To build an aircraft for that kind of load is huge but we approached this from the path of least resistance. We adopted Leonardo’s flight control computer meaning we only need a TSO to do that. We have commercial off the shelf technology where they provide the engineers and tech support which reduces our production costs and your acquisition costs.”

He asked for a show of hands on how many operators could make a profit flying 300 pounds of cargo – only one hand went up. “This is a viable form where we are getting people who are thinking about drones within a drone. You get Rhaegel to a destination and smaller drones fan out from that destinations to smaller destinations,” he said. “You have a fixed cost of $200 minimum to launch a flight. You cover a 50-lb payload with $4 per pound. These fix costs and higher loads make for higher profit margin and that is how we’ve approached our product. We carry more weight than a SkyCourier but we have a far lower cost per hour.”

FAA Progress

Rose noted there is a lot of doubt the FAA will accept the new technology or that it will be too expensive. “But we are seeing a lot of movement with the FAA and on the cost side we discuss how much pilots really cost,” he said. “It’s not all about the costs. A lot of it is the flexibility and enabling you to do what you can’t do today with new routes and really working those planes to their maximum capability. It’s also about pilot utilization. For us, once they are done flying a route, they can virtually fly other routes, the same pilot could oversee operations regardless of time zones.”

As for airspace integration, De Reyes noted drones have been flying in the airspace for 30 years so ATC knows how to deal with it. For new technology, he said, we need to follow the same procedures by filing a flight plan. This is not something new or unknown to the ATC.

Boeing urges air taxi safety standards be as strict as for commercial jets

AIN Takes Xwing Autonomous Caravan for Spin

Taylor Explains Care & Feeding of Today’s Workforce to Maximize Success

Management and employee goals mesh nicely if companies change their work culture to positive developmental leadership – making over the workplace so that it is more attractive to younger workers and giving employees what they need to be more satisfied. These leadership skills result in a more productive, happier and stable workforce, according to Dr. Mark Taylor who spoke during last week’s RACCA meeting.  

For a copy of Dr. Taylor’s two Powerpoints contact: mark@taylorprograms.com

In a reprise visit to RACCA, Dr. Taylor noted the challenges up-and-coming GenZ – under 22 years old – have experienced, citing 9/11, the Great Recession, Covid, Climate Change and now another recession. This experience has taught them to be naturally pessimistic and it is up to leadership to provide a developmental culture that helps them grow and establishes contagious positivity.

“They are anxious and depressed because their American adolescence has been overwhelming,” he explained of what he called Gen NeXt and GenZ. “They are incredibly web dependent and completely unprepared for the workforce. They’ve had less self-esteem parenting and have become pragmatic scrappers with more pressure to succeed.”

Taylor noted one in six 18- to 24-year olds are disengaged from work, life and school in favor of video games. Only 51% are considering a four-year degree – a marked change since the 1960s when the push for college became the norm. This offers a significant opportunity for airlines who engage with flight and aviation maintenance schools that GenZers are already looking at.

“The good news is there are a lot of warm bodies looking for career paths that don’t involve going to college,” Dr. Mark Taylor told RACCA attendees last week.

“They are more aware of social justice and diversity, equity and inclusion and expect a company’s record on those issues to be pristine. They make that apparent early in the interview.”

Engaging the Workforce

“They can succeed with development but you must help them grow and build in success,” he said. “They need a lot of praise.

“Praise is a nutritional requirement especially when tied to how their work helps with the mission,” he continued. “And if this is not your management style or you don’t want to do it…welcome to the never-ending world of constant turnover.”

He noted middle managers often resist these new leadership tactics, preferring a more autocratic style. This means it is up to leadership to convince them their way is now counterproductive. Instead, they must help workers make behavioral and cognitive choices to make themselves happy, realize their full potential and enjoy lasting fulfillment.

“If you give people praise and a mission they will blossom,” he said. “It is the daily kudos that make a difference and what does that cost? Nothing. By helping workers be happier and more satisfied, they continue to produce, develop and grow. When people feel as if they are growing, learning, developing and contributing to the mission, they are more likely to stay. Give them a purpose, meaning and mission and that improves engagement, retention, results in more cooperation and more productivity.”

Taylor provided guidance for leadership for adopting these 21st Century employee engagement techniques including increased flexibility on work rules and recognizing employees have a life outside of work. He advised focusing less on what people should be doing and more on what they are doing right. Only then are they receptive to receiving corrections which must be designed to teach and improve rather than as punishment. Leaders should praise for specific behaviors and outcomes which offers subliminal direction and tells them what you want more of. In addition, he advised tying gratitude for their contribution to why it matters, the progress toward success and how it makes your job easier.

“When people mess up, start with recognition and appreciation of something good they have done that has contributed to your expectations they have met or tried to meet,” he advised. “Really, these are the techniques used by every kindergarten teacher. Offer the necessary feedback and relate it to your shared goals of company success. Help them figure out what they did wrong and how they need to do it differently. End with praise, your expectation of success and encouragement. Get their willingness to get the job done and a commitment.”

The key to today’s workers, he said, is their need to be doing something of value and importance, whether it is meaningful and makes a difference, all of which makes them more motivated. Managers must also keep them busy because a focused mind is happier than a wandering mind especially if they are focused on impacting the mission, learning, growing and developing.

Bracing Your Organization to Equip Gen Z in a Hybrid Working World

RACCA Sees Unprecedented Demand for Annual Conference

Hyannis, MA, September 28, 2022 – The Regional Air Cargo Carriers Association is experiencing unprecedented demand in attendance at its annual conference scheduled for November 1-3 at the Hilton Scottsdale Resort & Villas in Scottsdale, AZ. With the growth of the air cargo market over the past few years and advent of emerging technologies such as autonomous and electric cargo aircraft, organization is also seeing a dramatic upsurge in membership.

RACCA extends a special invitation to media who should contact Kathryn Creedy, kcreedy@raccaonline.org.

“With the increasing in interest in regional cargo airline market, we have expanded our program to include a special panel with all the planned autonomous cargo vehicle platforms which should be a highlight of the conference,” said President Stan Bernstein who has led the organization since its inception. “In addition, this will be the second year we’ll have a static display of the workhorses of the regional air cargo fleet. Registration has reached historic levels which reflects RACCA’s relevancy in providing access to regional and mainline cargo operators.”

The Regional Air Cargo Carriers Association (RACCA) represents approximately 50-member Part 135 and Part 121 air cargo carriers, with a fleet of about 1,000 aircraft. Their role in the aviation industry is meeting the cargo needs of small communities and connecting them to the national transportation aviation system, many via the global networks of FedEx, UPS and DHL.

With UPS, DHL and Fed Ex at the forefront of adopting drone, autonomous cargoliners and other emerging technologies, the Emerging Technologies and the Regional Air Cargo Industry panel will include Sabrewing, Beta Technologies and Reliable Robotics discussing autonomous and electric cargoliners. Reliable Robotics not only recently achieved a major program milestone with the FAA acceptance of certification basis of its advanced navigation and autoflight system, it is also creating its own cargo airline.

UPS, together with its UPS Flight Forward subsidiary, plans to purchase up to 150 electric Vertical Takeoff and Landing (eVTOL) aircraft from Beta Technologies (BETA), a RACCA member, to augment its air service for select small and mid-size markets. Meanwhile, Fed Ex is testing out an Elroy Air’s cargo drone. Also, a member of RACCA, Elroy Air produces a hybrid-electric vertical take-off and landing plane being tested to connect with FedEx Express sorting facilities. DHL is the first to order 12 fully electric Alice eCargo planes from Eviation which has also been ordered by RACCA member Cape Air.

With workforce issues continuing the forefront of aviation concerns, the conference schedule includes two sessions on the emerging trends in today’s workforce with Dr. Mark Taylor, an award winning speaker recognized internationally as an authority and educator who is on the forefront of transformations in educational practice and workplace management. The conference will also have sessions on student sentiment for pursuing air cargo careers, the value of building time with a cargo airline and the pilot shortage outlook from University of North Dakota Professor and Director of Aviation Industry Relations at University of North Dakota Kent Lovelace.

Online registration for the 20^th anniversary event ends October 5 but walkups will be available onsite. Both conference hotels are sold out now although other Scottsdale hotels are available.

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About RACCA

The Regional Air Cargo Carriers Association (RACCA) is dedicated to representing and serving approximately 50-member Part 135 and Part 121 cargo carriers who have about 1,000 aircraft in their fleets. Their role in the aviation industry is meeting the cargo needs of small communities and connecting them to the national transportation aviation system, many via the global networks of FedEx, UPS and DHL. RACCA focuses on improving safety and representing its members in Washington.

Pilots Discuss Why Flying Air Cargo is Great Career for Women

How do you fly a whale? MD11 Fleet Captain (Senior Manager) Captain Cheryl Pitzer, who loves the challenge of such unique cargo, can tell you because she did it for FedEx – extra planning and slow climbs and descents.

Meanwhile, when discussing unique cargo, UPS ONT Assistant Chief Pilot, B757/767 and Check Airman Captain Alyse Atkins indicated her moment came when she was part of the first vaccine airlift, solidifying for her, and all those listening to the Women Who Fly Air Cargo webinar, the importance of cargo carriers.

Quick Advancement

According to FAA data, approximately 6% of active pilots are women, and even fewer are cargo pilots so the webinar was clearly designed to attract more women to the industry. Its purpose was to discuss the life of a cargo pilot, the challenges and opportunities experienced, how Captains Adkins and Pitzer achieved their current positions and their work to encourage more women to pursue cargo careers.

Their advice for those interested in cargo flying, especially later in careers – jump in with both feet.

“Follow your passion because you could not be entering the workforce at a better time,” said Pitzer, who also volunteers for Orbis International’s flying hospital. “People are achieving their goals must faster than before. You don’t stay junior very long and the cargo world has a bigger variety of flying from out-and-back in a single day to week-long trips. You can find a schedule that fits.”

UPS ONT Assistant Chief Pilot, B757/767 and Check Airman Captain Alyse Atkins agreed. “There are so many opportunities working for a cargo carrier both now and in the distant future. Don’t let anything stand in your way. We all know about the pilot shortage because it’s on the news every day, but the issue extends across a lot of disciplines and we have a need for engineers and aviation maintenance technicians.”

“There are so many jobs besides flying the aircraft,” Pitzer agreed. “You can be an instructor, in the safety department, a simulator instructor. You can have a role where you are home a lot. The flexibility of the job is fantastic.”

Part of a panel organized by the International Aviation Women’s Association, the two captains, along with Cargo Airline Association Vice President Legislative Policy Gina Zuckerman blasted some of the myths about cargo flying including that it is all back-of-the-clock.

Atkins and Pitzer journeys included transitioning from flight attendant to pilot and charter flying and, for Cheryl, a stint flying freight on a Metroliner which was her pathway to FedEx.

What Cargo Carriers Look For

Both emphasized the importance of leadership roles such as experience as an instructor, chief pilot, working in union leadership or anything that shows the candidate has stepped up, has gone above and beyond such as service in your community.

“I didn’t realize I was going to be a minority in the field when I began,” said Atkins. “I don’t see myself as a female pilot. I’m just a pilot. That’s all that matters and that’s the mindset I’ve always had. We need more women in the field and that is why I’m using my voice for a call to action to attract more women to become pilots and aviation maintenance technicians.”

Pitzer agrees but noted she spent her entire career proving women pilots are not different. “We were proving we were pilots, not female pilots,” she said. “But the coming generations embrace being different and there are benefits to that but now I realize how true it is that you have to see it to be it.”

“Instead of stuffing yourself into male roles, it is important to celebrate the differences,” CAA’s Zuckerman interjected.

Atkins discussed the importance of her many mentors most of which were men who brought different kinds of guidance, support and development to her career and why she is paying if forward by being a mentor. “They told me what I needed to hear,” said Atkins. “If they disagreed, they told me, but they’d also tell me their proud of me and that I’m capable of doing more than I give myself credit for. But my best mentor is self-reflection which is also important.”

Why Cargo Flying is Better

First, they said one of the biggest benefits is the fact economic ups and down have a less acute impact than the passenger industry but, otherwise, there are also a lot of similarities with passenger flying since it is all based on seniority.  

“You bid what you want to fly,” said Pitzer. “You can bid on short or long trips. The beauty of that is accommodating the family. Throughout your career you can change how your schedule works.”

Atkins agreed but emphasized that she schedules her flights so she can participate in leadership opportunities such as serving on committees, managing pilots and giving check rides.

They emphasized, while their careers may be different, the challenges of a work-life balance is little different than any employee.

“As a professional pilot, I have a responsibility to be rested and fit for duty,” said Atkins. “But I have young kids to whom I have an obligation as well. But when I have to work my family understands my obligation. My husband and I have frank discussions on how to manage family and household. Managing that is not always easy but it’s doable with good support system. And when I am home, I am very present.”

It was clear the 100 listeners tuning into the webinar were interested in pursuing cargo operations, but it was also clear the discussion and the reassurances given by Captains Atkins and Pitzer went a long way in helping the decide on their next step. International Aviation Womens Association Women Who Fly Air Cargo webinar

Industry Awaits FAA Response to Overhaul of Part 135 Rest & Duty Regs

By John Hazlett, Vice President, Regional Air Cargo Carriers Association

Source: Republic Airlines

Saying current Part 135 rest and duty regulations are too prescriptive and do not account for current human factors science, the 20-member Aviation Rulemaking Committee on rest and duty time now awaits FAA’s response to its recommendation to overhaul the regulations.

The ARC was tasked with reviewing current rest and duty rules for Part 135 and related requirements of Part 121, evaluating the effectiveness and deficiencies of those rules, and proposing future rulemaking to improve the situation. The ARC’s report to the FAA included cost-benefit analysis and applicability of modern science related to rest and duty interaction. 

The Part 135 Pilot Rest and Duty Rules Aviation Rulemaking Committee (ARC), including members from various Part 135 operators, including Regional Air Cargo Carriers Association (RACCA), submitted recommendations several months ago and continue to await FAA’s response.

“Our goal was to recommend updates to decades-old Part 135 rest and duty regulations to recognize the effects of circadian rhythm and cumulative duty time, among other variables, while considering the complexities of Part 135 on-demand operations,” said Kent Jackson, Jetlaw managing partner and Industry Chair of the Rest and Duty Rules ARC In a quote from Aviation International News (AIN), told NBAA.

AIN also quoted Ashley Smith, Jet Logistics president and NBAA’s representative on the ARC, who stated the ARC was mindful of the differences between Part 121 and 135.

As part of its evaluation in developing recommendations, the ARC leaned on fatigue science experts and utilized a series of risk-management exercises based on Part 135 scenarios, NBAA said, including such factors as numbers of legs to be flown, duty hours and time zones crossed, the impact of circadian rhythms, and duty day start time in current Part 135 operations, flight assignments that overlapped the “Window of Circadian Low” (WOCL), and likely future business models.

“John Hazlet and I served on the last ARC that tackled Part 135 Rest and Duty in 2003,” noted ARC Industry Chair Kent Jackson.  “That 2003 ARC did not lead to a Notice of Proposed Rulemaking. We hope that this effort does produce an NPRM and ultimately updated and enforceable rules.” 

RACCA Vice President Hazlet and Eric Walter, Chief Pilot of Bemidji Aviation Services, both serve on the current ARC, with Cape Air VP–Flight Operations Bill Cush as an alternate. The FAA, which is reviewing the recommendations, will publish them in the Federal Register for comment. NBAA anticipates it may be years before the ARC recommendations are implemented into regulation.

Global Cargo Infrastructure Needs Modernization

By Kathryn B. Creedy

Aeroterm Vice President-Development Greg Russell indicated serious investment is needed to update and modernize airport warehouse infrastructure to accommodate not only industry changes over the last 50 years but the dozens of new regulatory and technology requirements demanded by 21^st Century cargo operations.

In an Aviation Pros podcast, Russell noted warehouse capacity is full and users need more space, a problem pre-dating covid. “Covid just magnified the problem,” he said. “Two statistics I recently read illustrates the issue. First McKinsey reported e-commerce experienced a decade of growth in just the first three months of the pandemic. In addition, IATA reported that during 2020, 80% of cross-border e-commerce was transported by air.”

He said the two trends were colliding with the fact that existing warehouses are between 20 and 50 years old and cannot accommodate the needs of modern cargo operations. Aeroterm, which is modernizing JFK cargo facilities and operations, sees warehouses that are inefficient because they were built at a time trucks were smaller. Today, airside ramps are inadequate as is building depth, column spacing, clear height truck docking, HVAC, queuing areas, lights roofs and a host of other building systems.

“We need to modernize and redevelop these areas to accommodate air cargo efficiency and technology standards,” he said. “We not only have to address this at the building level but also in the airport layout and planning ensuring proper planning promotes cargo efficiency and includes upgraded software, climate control, enhanced security and sustainability.”

Russell pointed to cold storage saying it varies widely from airport to airport which affected not only Covid vaccine distribution but shipping of pharmaceuticals and perishables which have become increasingly important.

Changes Needed to Increase Investment

Redevelopment of cargo areas will require investment which is now stymied by the length of ground lease terms. They are inadequate to amortize investment and recoup a return, Russell explained. Some of the problem is regulatory but others include the contracts between airlines and their cargo vendors.  

He recommended pushing out the ground lease cap beyond the regulatory 50 years enabling a longer time to amortize the investment and gain a return on what is an expensive proposition given the technology, regulatory and infrastructure requirements.

Noting project costs have skyrocketed, Russell said they now include technology and security requirements, traffic mitigation, software to track key performance metrics, deicing and accommodating electric ground support equipment.

In addition, ground handlers are looking for even shorter leases driven by the short-term contracts with airline partners which increases risk. Like regional airlines, they want to match the leases to the length of the contracts.

He also recommended airports take on the responsibility for “pad-ready” work perhaps with government assistance which would increase the attractiveness of investing in this kind of cargo infrastructure overhaul. Airports also have to make sure rates are cost effective for the different business models, he said.

Currently, Aeroterm is working on a $145 million investment at JFK, demolishing two aging facilities and replacing them with a 350,000 square foot consolidated facility incorporating all the features needed in modern cargo operations. The project is part of a multi-phase plan for broader redevelopment and consolidation of the cargo areas at the international gateway.

When questioned about whether the infrastructure plans moving through Congress could be applied to these projects, he noted the bi-partisan plan listed $25 billion for airports but also $7.5 billion for electric vehicles which could fund fleet replacement of gas to electric. This too brings increased cost burdens for new facilities which must accommodate the power demands required of such vehicles.

“It could incentivize investment,” he said. “But any approach should be consistent and accommodate other approaches to powering equipment in the future, such as hydrogen so we don’t find ourselves duplicating infrastructure. We need a unified vision on how we fuel or power our equipment.”