Gray market in business aircraft charter occupies the center stage in most of the business aviation forums in recent times. It is believed around 50 percent of the charter operations are taken away by this unscrupulous sector of industry.
Reasons like uninformed customers attracted by immediate gains of lower rates, fly by night charter operators out to make a quick buck and indifferent aircraft owners who are unaware of the misuse of their equipment are often quoted for the growth of gray market, especially in times of economic downturn that afflicted the entire globe recently.
However, the complete picture concerning consequences of this part of business is yet to be understood by all the players in business aviation since no major incident has occurred so far to focus on this and realize the hidden risks in such operation. So far gray market operation has remained as illegal but not unsafe, but it may not remain so for ever.
While a lot of talk has taken place about the dangers of this style (gray market) operation, no major breakthrough concerning the steps for arresting its growth is in place. However, all industry professionals are unanimous in their assessment that eliminating this illegal practice is a complex task.
It is my opinion that in such complex cases a collective effort by one and all in the industry need to be mobilized and channelized to the right quarters at the right time and place to act. Here comes the role of business associations like MEBAA to focus the attention of all players under its membership to create a situation that would make it difficult for the growth of gray market.
The first step in this endeavor needs to start from the passengers who knowingly or otherwise promote this market.
In the recently concluded EBACE2011 in May 2011, European Business Aviation Association (EBAA) took the major initiative of taking this message of illegal flights to all the passengers throughout a brochure titled “Is my flight legal? Your rights as business aircraft charter passenger.”
This brochure explains in simple terms important aspects like Air Operation Certificate (AOC), fight permits to regions, flight plan, safety aspects, crew qualification, etc., all those meant to educate a passenger as to what he should expect from the operators as a matter of right and not as an add on part of customer service. Also it highlights consequences of illegal flights on their personal insurance as well claims on other legitimate parties in case of accident or indents that can be denied by the insurers just because the flight taken by the passenger is illegal. More such initiatives are needed to educate naive as well semi-informed passengers in all parts of globe and we in MEBAA desire to commence this shortly. I am sure many more associations will follow suit to cover their regions.
Apart from passenger education at one end, there need to be some methodology to identify an illegal flight. Right now it is restricted to few ramp checks mostly based on the information provided by some whistle blowers within such illegal operation. Hence such checks are able to address a very insignificant portion of this area of malpractice.
One of the areas that can be considered as potential contributor to this effort could be the Air Traffic Control (ATC) of respective nations who clear such flight operations. A careful watch on the movements of aircraft from such infrequent operators with unknown credentials needs to be monitored as a potential illegal flight. Exchange of information between the ATC authorities on such operators and their patterns of operation could throw some light on such illegal activities. Based on such leads from ATC, ramp checks at right places could be a way of detecting and further legal action as a deterrent measure is to be in place. Over the period of time, collectively we may be creating a massive and meaningful database that can be accessed by many connected in this effort to eliminate this illegal activity.
Intelligence is the key to arrest and eliminate any illegal activity and so is its importance here. Trade associations like MEBAA with its membership drawn from various branches of business aviation like operators, maintenance and repair agencies, fixed base operators (FBO), airworthiness authorities, airport authorities, equipment manufacturers, training agencies, etc., could be the nodal agency for collection of such relevant data from all their members analyze, collate into meaningful information and disseminate to concerned agencies to initiate action on the ramp in case of such suspicious operation. Such an effort would call for resources but in the interest and welfare of business aviation it could be a worthwhile effort. This is an area of further research and I am sure many genuine operators may welcome such initiative.
Before I sign off, one strange thought on passenger education from the economic parameters of aircraft operation comes to mind. We could calculate and publish a basic cost band per flight hour of operation of commonly used aircraft and stress that anything lower than this band is indicative of an illegal flight. Many operators could be averse to this suggestion but please note and be assured we are talking of cost and not the price of operation. If we believe nothing drives the message more than the money terms, this approach could be viable. However, I am open to corrections as well disagreements.
— Ali Ahmed Al Naqbi, president of Private Aviation Union in the Middle East.
