Piper Announces New M600/SLS. First GA Aircraft to be Standard Equipped with HALO™ Safety System and Autoland Capability. Available Q4 2019.

management activity of the Rental Real Estate may constitute a single activity with the activity of Rental Real Estate Entities as opposed to be separate trade or business activities of a debtor in their own.” This decision is an excellent example of a Court considering the reality of how aircraft are operated to support businesses and affirms the deductibility of business aviation expenses. What lessons can general aviation operators take from this decision? First, it emphasizes the importance of filing an election or disclosure, consistent with Revenue Procedure 2010- 13, informing the IRS of the activities that a taxpayer seeks to group for the purpose of determining the nature and scope of the undertaking. Second, it is a reminder that the Internal Revenue Code gives knowledgeable and diligent taxpayers significant flexibility in business operations and in incorporating aircraft into those operations provided that there is an overlying profit motive and business intent. Williams is an important decision in a body of case law that affirms the utility of business aviation. • BY SUZANNE MEINERS-LEVY SHAREHOLDER OF ADVOCATE CONSULTING LEGAL GROUP, PLLC ADVOCATE CONSULTING LEGAL GROUP, PLLC WWW.ADVOCATETAX.COM TOLL FREE: (888) 325-1942 Suzanne Meiners-Levy is a Partner and the Pro Bono Coordinator at Advocate Consulting Legal Group, PLLC (ACLG). ACLG is a boutique legal practice, employing over twenty-five lawyers, CPAs, accountants and para-professionals to exclusively serve the legal and tax planning needs of the general aviation aircraft owners and operators. FALL 2019 PUBLISHER Dave Conover EXECUTIVE EDITOR AND WRITER Justin Lazzeri COLUMNIST John Foster GRAPHIC ARTIST Jennifer Longo THE ADVANTAGE MAGAZINE STAFF REQUESTS YOUR FEEDBACK! We would greatly appreciate hear- ing from you! Please tell us what you think of Advantage magazine and offer any thoughts you have for improving this publication. Our goal is to provide helpful, interesting information that you enjoy reading. Your opinions, suggestions and ideas for new articles and content are important for continuing improve- ment and growth that will serve all our readers. Email us at: Advantage@Skytechinc.com 800-394-1334 www.skytechinc.com The Pilot-In-Command is solely responsible for the safe and proper operation of his/her aircraft and it is the responsibility of the pilot-in- command to operate that aircraft in compliance with that aircraft’s Pilot’s Operating Handbook and other official manuals and directives. Thank you! Pilatus Introduces the New PC-12 NGX Piper M600/SLS, First EQUIPPED with innovative Autoland Technology ADVANCEMENTS IN AVIATIONare taking off SPECIAL EDITION www.skytechinc.com Fall 2019 IN THIS ISSUE October 22, 2019 - Today, at the National Business Aviation Convention & Exhibition (NBAA- BACE) in Las Vegas, Pilatus took the wraps off the industry’s most advanced and versatile single-engine turboprop – the PC-12 NGX. The brand-new PC-12 NGX incorporates an improved engine, smarter avionics and a completely redesigned cabin with larger windows, making this third generation of the PC-12 airframe the most advanced single- engine turboprop ever. Building on the experience gathered from the worldwide PC-12 fleet of over 1,700 aircraft with more than seven million flight hours plus Pilatus industry-leading support, the new PC-12 NGX brings the latest technology to the turboprop market. PROVEN ENGINE TECHNOLOGY WITH DIGITAL CONTROL Single-engine turboprop operation demands a proven powerplant: at the heart of the new PC-12 NGX is the PT6E-67XP turboprop engine by Pratt & Whitney Canada. This improved engine features an Electronic Propeller and Engine Control System including Full Authority Digital Engine Control (FADEC) – a worldwide first in this market segment. In addition, the new propeller low speed mode results in a significant reduction in cabin noise for great passenger comfort. The new turboprop engine enables the PC-12 NGX to achieve a maximum cruise speed of 290 KTAS (537 kilometres per hour). The PC-12 NGX also adds advanced features like Prist®-free fuel operation. SMART COCKPIT ENVIRONMENT The PC-12 NGX boasts a range of new features for the pilot: the Advanced Cockpit Environment (ACE™) System by Honeywell as inspired by the PC-24 provides enhanced avionics. In another first for the segment, Pilatus combines the power of a cursor control device with the versatility of a smart touch screen controller in a truly professional flight deck. The digital autothrottle, i.e. automatic thrust adjustment, reduces pilot workload for greater safety and ensures automatic power optimisation in every phase of flight. NEW CABIN WITH LARGER WINDOWS The cabin windows have been enlarged by ten percent to enhance the PC-12 NGX’s passenger experience and deliver more natural light. The rectangular shape of the new windows, also adapted from the PC-24, and dark windshield surround trim create a distinctive ramp presence for the PC-12 NGX. The completely redesigned cabin comes in six different BMW Designworks’ interiors. The especially developed extremely light passenger seats offer optimum ergonomics with full-recline capability if required. The seats are arranged to provide maximum freedom of movement with more headroom thanks to the redesigned headliner. The air-conditioning system delivers better and quieter air distribution. REDUCED OPERATING COST With the new PC-12 NGX, scheduled maintenance intervals have been extended to 600 flight hours, which provides significant cost savings. The time-between-overhaul period has also been increased from 4,000 to 5,000 hours, thereby reducing the cost of operating the PC-12 NGX even further, making it the undisputed leader in its class. Speaking at the presentation in Las Vegas, Markus Bucher, CEO of Pilatus, stated: “We are excited to reveal the new PC-12 NGX today. To maintain the PC-12’s leadership in the general aviation marketplace, we continuously seek innovative solutions which benefit the safety, comfort and productivity of our customers. The PC-12 NGX is a showcase for the advanced technology collaboration between Pilatus, Pratt & Whitney Canada, and Honeywell. Together, we took the best, and made it even better. What’s more, our customers do not have to wait years into the future to enjoy these benefits, the PC-12 NGX is here today.” Base price of the PC-12 NGX in 2020 is 4,390,000 US dollars, with typically equipped executive-configured aircraft priced at 5,369,000 US dollars. THE PC-12 NGX AT THE NBAA-BACE Pilatus presents the first series production PC-12 NGX at the static display at NBAA-BACE in Las Vegas from 22 to 24 October. The PC-12 NGX is certified, and customer deliveries will begin in the second quarter of 2020. • For more information, visit www.pilatus-aircraft.com. The World’s Best Turboprop – Better Than Ever: Pilatus Reveals the PC-12 NGX OFFICIAL PRESS RELEASE 4 • Owner & Pilot Advantage The windows are 10% larger, allowing for more natural light to enter the aircraft. The cabin features a newly designed interior inspired by the PC-24. Owner & Pilot Advantage • 5 Honeywell has added safety features such as roll protection and emergency descent mode to the NGX. Pilatus doesn’t introduce upgrades to their products quite like the rest of the industry does. As an example, back in 2016 they introduced a modification to the PC-12 NG which included standard additions like a new five-blade prop, aerodynamic cleanups that resulted in a five knot+ speed increase, a plethora of desirable optional equipment incorporated into the base airplane, better short-field performance, and a better climb rate. While they engaged in an informative and effective ad campaign and certainly gave their Dealers enough marketing ammunition to make the upgrade wildly successful in the marketplace, the PC-12 NG moniker for the airplane stayed just as it was. When queried about why the market designation didn’t reflect the changes, they explained that they reserved new names for major modifications. Well, say hello to the Pilatus PC-12 NGX, also known as The NeXt Big Thing. The new designation means exactly what you would expect, that this airplane is different than its predecessors. And the NGX has something for everyone. It starts the minute you get sight of the airplane because the 10% larger passenger windows are immediately noticeable. As you step inside, you are invited into a completely redesigned interior with – get ready for this – lie-flat seats with footrests. New upwash and downwash lighting support a brightly lit meeting space or a pleasing opportunity for a nap. New sidewalls have even more storage and the interior seats are easily added or removed without any tools. If you glance upfront, what will stand out is not what is there but rather what is missing. The new PC-12 NGX features a first- of-its-kind Pratt & Whitney PT6E-67XP…with emphasis on the “E”. That denotes Electronic, and that’s what the engine is. It is the first PT-6 you will have ever seen that does not have a Fuel Control Unit. The engine features dual-channel full authority digital electric control (FADEC) which includes overtorque and over-speed protection, flameout protection, and surge protection. The potential for “hot starts” and the associated damage to your checkbook and your schedule are suddenly relegated to “the good ‘ol days”. Also, Missing In Action is the Manual OverRide lever and the Condition lever. The propeller in a PC-12, in addition to never having a lever in the first place, is now completely electronic. That permits a new prop RPM setting called “Prop Low” which reduces the prop RPM to 1550. The reduced cabin noise at 1550 RPM is simply amazing. Total digital control of the engines contributes two major financial enhancements to the PC-12 NGX. First, the engine now has a 5,000-hour TBO and a Hot Section Inspection is not required. Second, the inspection interval of the airplane is now a whopping 600 hours. Honeywell’s contribution to the NGX is a stability package that includes roll protection, emergency descent mode triggered by a “Cabin Altitude” altitude warming (it turns the airplane 90° and automatically descends to 15,000 feet); incorporates Visual approaches, triggers audio call-outs of runways and taxiways, and is ADS-B in and out compliant. Its new Surface View feature shows where an airplane is on a ramp or taxiway, reverts the charts displayed to a night vision format, incorporates S-XM weather, and has a Bluetooth audio panel with 3-D audio. Finally, if you ever find it necessary to investigate a CAS message, the appropriate checklist is displayed as soon as you acknowledge the message. Oh, and did I mention that the touch-screen controller is standard? We have a limited number of 2020 units available beginning in the second quarter of next year and we will be conducting a short demonstration tour in February. Swiss quality and Swiss innovation speak for itself. If you’d like to participate in that conversation just give us a call. • -John Foster, President of Skytech, inc. 6 • Owner & Pilot Advantage MESSAGE FROM the President p THE BEST TIME TO FLY THE BEST IS NOW Introducing the brand-new PC-12 NGX, the most advanced single-engine turboprop ever. Featuring general aviation’s first Electronic Propeller and Engine Control System, a digital autothrottle, enhanced avionics with smart touch screen controller. And all that at reduced operating costs and more speed. With the PC-12 NGX, Pilatus just made the best even better. www.pilatus-aircraft.com Call Skytech, your nearest Authorized Pilatus PC-12 NGX Sales Center for further information on 888-386-3596. PilatusSales@skytechinc.com • PA, MD, DC, VA, WV, NC, SC, KY, TN, OH 8 • Owner & Pilot Advantage October 30, 2019 – Piper Aircraft announced today, the next generation M Series aircraft – the M600/SLS, standard equipped with the new HALO™ Safety System – enhancing Safety, Luxury, and Support for one of the world’s leading personal use, Basic Med compliant aircraft. It is now on track to be the first general aviation aircraft in the world to be certified with Autoland capability. SAFETY The HALO™ Safety System is a compilation of innovative technologies unique to the M600/SLS and the Garmin G3000 avionics suite. The system includes Auto-throttle, Emergency Descent Mode, Enhanced Stability and Protection, Surface Watch, Safe Taxi, Flight Stream connectivity and more. However, of greatest significance is the addition of Garmin Autoland – digital technology that safely lands the aircraft at the nearest suitable airport in the event that the pilot is incapacitated. The Halo system, once engaged either automatically or by a passenger, gains immediate situational awareness and assumes control of all systems necessary to bring you and your passengers safely to the best suited runway. During all phases of flight it communicates with passengers and appropriate air traffic control facilities regarding the new flight plan route and estimated time until landing. Halo continually monitors all aircraft system parameters and real-time external inputs as if the pilot were at the controls. It takes into account runway size and orientation, wind, time, fuel range, glide path and considers weather conditions and terrain en route to the nearest suitable runway. Once Halo has landed the aircraft, the braking system will activate and will bring the aircraft to a full and complete stop. Finally, the engine will shut down and instructions will be provided on how to exit the aircraft. LUXURY The M600/SLS raises the bar in Luxury with the addition of the EXP interior package as standard equipment. The interior package was designed with a focus on the personal travel experience and enables the customer to select from sophisticated interior color palettes with custom materials, stitching patterns and contrasting threads. Veneer and trim finishes further enhance the sense of unmatched refinement. Additionally, thoughtfully designed interior options, like two toned leather seats and Alcantara fabric have been added to elevate the passenger experience. SUPPORT Ownership of a M600/SLS is backed by an exclusive service program for the first five years of ownership. The Ultimate Care Program includes all scheduled maintenance, as well as hourly and calendar-based inspections. “The M600/SLS and its HALO™ Safety System with Autoland is the result of an unwavering commitment to safety as well as the desire to evolve our products based on market input, said President and CEO, Simon Caldecott. “The HALO System greatly enhances situational awareness and operational safety through the use of advanced technology and is one the most significant advancements in General Aviation history. The team at Piper Aircraft is proud that we continue on track to be first to market with Garmin Autoland, which will ultimately help pave the way for others.” Certification of the M600/SLS is imminent with deliveries beginning this quarter through the global Piper Dealer network at a price point of $2.994M. • For more information, visit www.piper.com. Piper Announces New M600/SLS. First GA Aircraft to be Standard Equipped with HALO™ Safety System and Autoland Capability. Available Q4 2019. OFFICIAL PRESS RELEASE Owner & Pilot Advantage • 9 Luxurious premium interior comes standard. The new HALO safety system includes Garmin’s Autoland technology. 10 • Owner & Pilot Advantage MESSAGE FROM the President The trajectory of major improvements to General Aviation aircraft is always the same. The military develops a system that enhances situational awareness, saves the pilot, saves the airplane, or does all three. Many times these systems are classified for years on end. Then one day they become mature enough and sufficiently common to be adapted to commercial operations and large business jets. They receive wide acceptance and are enhanced by multiple operating environments. Much later (although with the advent of digital technology and the application of Moore’s Law the time frame continues to shrink) the technology makes its way into General Aviation aircraft. The examples abound: autopilots, flat-panel displays, traffic avoidance systems, weather radar, lightning detectors, GPS, head-up displays, and the list goes on and on. The development of long-range airliners in the late 1960s heralded the development of a system that would allow an airplane to land in conditions that were essentially 0/0. After all, if you had just flown from Tokyo to San Francisco, but the West Coast was experiencing one of its famous all-day fog events, you had a problem. By 1968 a new system made its way into the cockpit, relegating the crew members’ function to essentially that of an Observer. Not only would the system control the throttles and land the airplane, it would deploy the reversers and apply the brakes. In some Airline Operations Manuals once one of these “Category III” approaches was initiated the crew was not allowed to touch the controls until after the reversers had been stowed. That system – Autoland – is still awaiting its debut in General Aviation. Or was until today. Enter the 2020 model Piper M600/SLS. The first “S” stands for Safety and it is safety in a whole new light. The SLS features the first emergency Autoland system in the industry. The push of a button by a passenger or a woozy pilot sets in motion a sequence of events born of the estimated 3 million flight hours on unmanned aircraft. Specifically, the airplane selects an appropriate airport based on runway length, weather conditions, available approaches, wind direction and speed, and available emergency services. It tunes the transponder to 7700 and the radios to both the emergency frequency and the appropriate Center/Approach/Tower frequencies. It initiates automated broadcasts through both radios every 15 seconds on 121.5 and every 30 seconds on the others, stating that an emergency has occurred and giving automated position and intention reports. It selects the best route to the prime destination while taking convective weather into account and activating the de-ice system. If the weather changes it can change the route while considering the fuel available. And it does all this while talking continuously to the passengers and giving them updates and instructions on how to talk to ATC if they would like. And how, you might ask, do the passengers lower the flaps and the landing gear on approach, or apply the brakes? Or shut down the engine? They don’t. Automation of the flaps, landing gear, and throttle/speed configuration is part of the package – but there is much, much more. As of today, an M600/SLS does not need a Co-pilot in an emergency that incapacitates the Pilot. It just needs a passenger with the ability to push a button and the confidence to keep their hands off anything except the microphone. Rounding out the SLS moniker is a standard Luxury package loaded with useful features for the connected world. Support completes the package with a standard Five-Year maintenance package, effectively meaning all you do is purchase the consumables…fuel and oil… that run the M600. Taken in the aggregate, the 2020 M600/SLS is the most advanced Personal and / or entry-level Business aircraft ever manufactured. Buck Rogers would be proud. So would Steve Jobs. To get a first- hand look at this incredible machine contact Skytech. And bring your favorite passengers, with confidence. • -John Foster, President of Skytech, inc. + Autoland: If necessary, HALO takes over the controls and guides the aircraft to the nearest runway for a precision landing. Automatically acti- vates when autopilot is in LVL mode for two minutes or when Emergency Descent Mode is activated at 14,000 feet. Can also be engaged manually by a guarded switch on the instrument panel. GFC 700 Autopilot with Advanced AFCS Fully integrated flight control system for exceptional flight automation with a dual AHRS-based system. Seamlessly integrates a flight director, autopilot, automatic trim and yaw damper into the G3000 suite. + Automatic Level Mode: Returns the aircraft to a wings-level attitude with zero vertical speed at the push of a button. + Autothrottle: The M600/SLS includes a fully integrated, standalone auto throttle, which reduces the pilot workload. The single-lever auto- throttle automatically adjusts the aircraft’s power settings based on the preset flight profile – from climb-out to the landing approach. + Hypoxia Recognition System with Automatic Descent Mode: Monitors pilot interaction when autopilot is engaged at cabin altitudes above 14,900 feet. If needed, the system brings the aircraft to a lower altitude to allow recovery from hypoxia. + SafeTaxi®: A highly detailed, georeferenced airport map that displays your aircraft’s position on the airfield. Also shows an overlaid map of hold short lines. + TerminalTraffic™: Syncs with SafeTaxi maps to display all ADS-B equipped aircraft and ground vehicles for increased situational awareness. + SurfaceWatch: Its clear visual and aural cues direct you to the correct runway on takeoff and approach. + Flight Stream 510: A wireless gateway that streamlines your work- load by connecting preflight planning to your mobile device from the G3000 avionics system. The revolutionary emergency Autoland feature can be activated with the push of a button. The aircraft will autonomously land at the closest airport while also notifying Air Traffic Control. Owner & Pilot Advantage • 11 SAFETY LUXURY SUPPORT Watch the Garmin Autonomi video at www.garmin.com Skytech is an Authorized Piper Sales & Service Center PA, MD, DC, DE, VA, WV, NC, SC 888-386-3596 • PiperSales@skytechinc.com Image Source: Garmin Autonomí: Autoland Activation (video) Source: www.piper.com A TIGHTENING INSURANCE MARKET You may not have paid much attention to it over the past several years, but insurance is bound to get your undivided attention sooner rather than later – if it hasn’t already. As operators, we’ve enjoyed a soft market for a historically long time. Competition amongst the players led to favorable rates, good coverage limits, and very achievable pilot transition/training requirements. This started to change about two years ago as many underwriters in the aviation business began to exit due to weakening profits and increasing liabilities (Boeing’s 737 MAX to name an obvious one). This left the remaining carriers with little to no choice but to implement a market correction. As is often the case in many situations, the correction may prove to swing the pendulum further in one direction at first until the market settles down. WHAT DOES THIS MEAN FOR YOU? Beyond the obvious price increase for the same or lesser coverage, there are other implications depending on where you are in your aviation journey. For existing owners, don’t wait until your policy comes up for renewal to start the conversation with your broker – preferably a specialized aviation insurance broker. Explore ways to mitigate any changes now and give yourself the time it may take to ensure the new plan is in place. Don’t assume that your exiting plan will always renew at some cost either. The underwriters on your old plan may not exist anymore and new ones may not want to assume the same policy. Plan well ahead. For new or potentially new owners, make sure that the insurance discussion takes place well ahead of your scheduled closing. It needs to be in your purchase decision making to avoid the very real potential of owning an aircraft that you can’t find coverage on. STRATEGIES TO MITIGATE IMPLICATIONS As we’ve stressed already, a proactive approach and using an aviation insurance broker is key. Beyond that, there are ways you can mitigate a future increase/quote if you have time to plan-ahead. Experience and history are key in insurance policies. Prioritize safety in your operations – both with flight and ground policies and procedures. Standard Operating Procedures (SOP’s) and aviation Safety Management System (SMS) adoption may be prudent if not already a part of your operation. Take a page out of professional flight departments/management companies if you aren’t one or using one already. Hangar keeper claims continue to be a major thorn in the industries side so review your set-up to ensure risks are mitigated. For owner-pilots, continue to add not only flight-time, but prioritize the type of flight-time you put in your logbook. Turbine experience is a major topic for any aspiring Jet-A jockey. It’s entirely possible that advancements in aviation have a role themselves in reducing risk for underwriters. This issue speaks to two major industry announcements from Pilatus and Piper that respectively work to make a pilot’s job easier and provide a revolutionary option for not only pilots but also passengers. That option not only saves the people, but also remarkably the aircraft. As we see how this unfolds along with any other changes to the market, heed the advice to plan-ahead. You’ll be happy you did. • 12 • Owner & Pilot Advantage 200 Airport Drive Westminster, Maryland 21157 www.skytechinc.com FIRST-CLASS PRESORT U.S. POSTAGE PAID LUTHERVILLE. MD PERMIT NO. 171 BY JUSTIN LAZZERI - Vice President of Aircraft Operations AIRCRAFT CHARTER • SERVICE • SALES MANAGEMENT • ACQUISITION • FBO SERVICES