The URL can be used to link to this page

PROPOSAL FOR MANAGEMENT AND OPERATION OF THE FIXED BASE OPERATION AT CLEARWATER AIRPARK ~ .. '. - p,.,.~ .._ HnWTfJorn~ FLYING SERVICE I"" ~r.~t"7 ;'5r&"Jtr~.cw7ii fl~a-:-~(IKI su,~ ~' IJ ' '~,"" ':;:- -', . . . . . . . . . . . . . . . - ~ "', ~ ~rJ .~' ~.. -.-' SALES r 1..~ii.~" IiAW'lf'I1()RN.li:AVlA'fl{li\l,lNC. Fresents d. Vropu!wl [01' IvIttHag011t~:;nt and UJJeJ.1tltJtl .Jf 'the l:"iged Base OtJl.'7tiTlltin at Clearwater Aitptuk tu the City of Clearwatel, Florida Jaauatv,:J. J ') 97 1lfuwfl}tl~ AVIATION. '" ----,~_.-.._._--------_..__......._.......,.-,..,.------ -- _......__...__~__"".....,,_~_...,,__......_.,_ ,_ .M"..~..".._ .-",,,,,c ~'. .<,., ~ '~~-'-',,"-"N_.'''''''''''~''''' '_Hi"."", ", ,"--"".'-',' 6543 Fain Streel PO Box 61000 Charlestoll. SC 29419 .)anllary 24, 1997 803-797 -8484 , ~Mr:; George McKibben ", ,;i'purchasing Manager ;City of Clearwater/Purchasing !) p.;O, Box 4748 CI~arwater, FL 34618-4748 Dear Mr. .McKibben: It gives me great pleasure to submit this proposal for the management and operation of the fixed base operation at Clearwater Airpark We feel that the combination of our ownership ofFBOs, our airport and FBO contract services management, and our facility management experience make us uniquely qualified to provide this service at Clearwater. Nothing would please us more than to provide FBO services to the Clellrwllt~r~oIlUI),unity. Toward that end, we stand ready to clarify or discuss our proposal at any time, Sincerely, wav ~ h-- Dean Harton President ....', .' J .. I .':" T 4 .,/. r. ...~.... f'"tt" '~' . ~. '. . .- ;.. AnOTher Progressive Hawthorn8 Company . A Proposal for. Fixed Base Operation at Clearwater Airpark . By: Hawthorne Aviation, Inc. Post Office Box 61000 Charleston, SC 29419 January 24, 1997 . . _ CONFIDENTIALITY STATEMENT The information contained within this proposal is provided solely and expressly for the use of the City of Clearwater, Florida and its advisors in evaluating Hawthorne Aviation, Inc. ' s qualifications, experience and proposed methodology for the Fixed Base Operation at Clearwater Airpark. It is not to be released to the general public. This proposal contains financial information and approaches to management of fixed base operations which Hawthorne considers proprietary. Because the fixed base operation contract award is subject to negotiation, Hawthorne would be placed at an extreme competitive disadvantage if information contained herein were made available to other industrial competitors prior to contract award. . . -- . -- ~ '1:1;''-, ,/:Y:;" '/, /)>- " ,~/;/ r ,"I I . / , "'.-/ / / if ');'" "~""~~ ,~';:// !/<I/r, ~ '> _, ~;/ Ii) I' "-.. '::-.. . -, '" I J ) L "~ :~~C~"" "-, i/ ,;'/~":-, '" ~r':'0._~ . ~, ; ':;:;J' '", , -........:. ~~-: ~ " " A>' ;1/ .') r . TABLE OF CONTENTS PAGE I. Experience and Qualifications . Corporate History 1- 1 . Experience and Qualifications 1-8 . Testimonials 1-28 II. Operational Plan . Introduction II - 1 . Listing of Services II - 3 . Proposed Hours of Operation II-13 . Staffing Plan II - 15 . Support Equipment II - 16 . Fuel Management II-17 . Employee Training II - 21 . ID. Human Resources . Resumes of Key Personnel III-l . Job Descriptions III-3 . Organization Charts III - 4 IV. Financial Plan . Overview IV - 1 . Financial Analysis, Proforma, and Proposed Fees IV - 3 . Credit References IV -7 . Financial Statements IV - 9 v. Appendix . Training Manual Example A-I . . . . A. I W} . . 1_ ~ ! C :::-: i LJ L' i~ . . . . .i _I '-- -,/ ~~~; ;,:!.~~"~.'~~; ; ~ '_.~~_.._~.... ...,,~ .-...., - _.,~ . .' '~'.jj'~"", . .. .... ._....._...........~.. ~!~ ;. ..".. .*.~ _..!I.or.' ,__.~~.t~... _ .'- .~ ;.1 j \.. "I, ll' .:~~~~~::' , "I ... "--~-'~I -..., ..,_:~~~:.:.. .~~\~ ':~ltJ ._j .~:-;l' . I , \,. \ l. U : il d i ..-........._1L..:._...cJ II L r 1 . THE HAWTHORNE ORGANIZATION . . . INTRODUCTION As an organization with over 64 years experience in aviation operations, real estate, manufacturing, finance, and government contracting; the HaWthorne Group of Companies is uniquely qualified to provide a wide range of services to industry and government. We have a higWy qualified, motivated, and experienced staff dedicated to providing the highest level of service to our customers. Over the years, HaWthorne has developed into a multi-faceted organization with interests in four main areas. These are listed below: . AVIATION Airport and facility management FBO and airline service Consulting . TECHNICAL SERVICE CONTRACTING . Federal, state, and local government contracting Contracting for private industry Facility Engineering Grounds maintenance . REAL ESTATE On and off airport commercial development Residential development Property management Commercial brokerage Equity investment . FINANCE Finance and Leasing Investment banking . I - 1 .wt~llrne . HISTORY The original_Hawthorne company, Hawthorne Aviation, was chartered in South Carolina in 1932. The company was originally formed to do business as a fixed base operation on the Charleston Municipal Airport. Hawthorne maintained that fixed base operation in Charleston continuously until 1990 when it was sold to a New York investment banker. These years have seen a one airplane company operating from a small shack on a grass runway airport grow into a nationally known general aviation company with operations in six states. Much of the early success and progress of the Charleston operation can be attributed to one individual who joined the company as a Line Service employee. This man was Beverly E. Howard. For him, it was the start of an aviation career that would bring great business success as the eventual owner of Hawthorne Aviation as well as national prominence as a famous aerobatic pilot. In 1936, "Bevol! Howard bought Hawthorne Aviation. To support his purchase, Howard had to join Eastern Airlines as a pilot. At twenty-one, he was the youngest airline captain in the United States, and possibly the most determined. Money earned from Eastern was funneled into Hawthorne in order to keep it going. Howard flew for Eastern for two years before returning to Charleston and his operation on a full time basis. . In 1937, Hawthorne took its first major step toward expansion. It was then the company's first Piper Aircraft distributorship was acquired. The distributorship called for the wholesale marketing of Piper aircraft and parts to a network of Hawthorne contracted dealers in the state of South Carolina. Undertaking the responsibilities and contractual commitments of such a distributorship represented a bold step for Hawthorne in 1937, but led to a relationship with Piper Aircraft Corporation that continues today. The year 1941 marked Hawthorne's entry into the field of government contracting. The company contracted to furnish primary flight training for the U. S. Army Air Corps at Orangeburg, South Carolina. During the four years of service in Orangeburg, Hawthorne graduated over 6,000 pilots. This contract was only the first of many. Its importance to company history is that it marked entry into the field of government contracting. This activity continues today and has become a significant part of Hawthorne's business. For forty years, government contracting has been a primary factor in the company's organization. Immediately after W orld War II, Bevo Howard was becoming acknowledged as one of the nation's foremost aerobatic pilots. For three consecutive years, he won the National Light Plane Aerobatic Championship, and in 1946, 1947, and 1949 won top honors in the International Aerobatic Championship. He was the first person to outside loop a light plane, a feat which he performed in a 1933, 37 1/2 horsepower Piper Cub. His many trophies include . 1-2 lIawt90rne . the RS. Evans trophy and the AI Williams Gulf Oil National Aerobatic Championship 1st Place Trophy, all of which are on display in the Hawthorne main office. In 1951, Hawthorn~ began its primary flight training contract operation at Spence Air Force Base in Moultrie, Georgia. This contract was operated from 1951 through 1961, during which time Hawthorne gave more than one million hours of flight training and graduated 7,670 pilots. In addition, Hawthorne operated the entire Air Base for the Air Force. In 1964, the company planned an acquisition program that lasted for several years. The first step in this plan was the naming of Vernon B. Strickland to the position of Vice President and General Manager of the Charleston operation. Strickland had initially joined Hawthorne in 1942. He left Hawthorne to serve in the U.S. Navy during World War II and returned to the company in 1949. The acquisition program was carefully measured and deliberate, so that by 1971 Hawthorne owned a shopping center in Atlanta, mobile home parks in South Carolina and Florida, a Ford automobile dealership in Summerville, South Carolina, an interstate trucking line in Hickory, North Carolina, and a credit collection agency in Atlanta. In 1970, Hawthorne had opened a fixed base operation on the Johns Island Airport, 12 miles south of Charleston. The main purpose of this operation was to relieve student pilot operations at the Municipal Airport location and to allow expansion ofRO.T.e. flight training activity. Throughout its operation, Johns Island was used primarily as a training base for Hawthorne. . The year 1971 brought tragedy to Hawthorne. On Sunday, October 17, Bevo Howard was killed while performing in an airshow at Greenville, North Carolina. Though he had once been one of the highest paid airshow pilots in the country, Howard used his aeronautical ability and expertise as a means to raise money for numerous charities. In Greenville, he was performing for the benefit of a North Carolina boys' club. The aircraft Howard was flying at the time of his death was a Buecker Jungmeister, an airplane that had been brought from Germany on the dirigible Hindenburg. The aircraft had been owned and flown by Howard for twenty-five years. Some years before, Howard had agreed to donate the aircraft to the Smithsonian upon his retirement. In order to keep that commitment, Hawthorne rebuilt the aircraft. The famous Buecker, along with a likeness of Bevo Howard, has been on display in the Air and Space Wing of the Smithsonian. It was the company's management concepts and philosophies that assured its continuous success after Howard's death. In January 1971, nine months before the October accident, Vernon B. Strickland had been named President of Hawthorne. Strickland and the already established management team led the company through succeeding years of uninterrupted operation. . 1-3 1Iawtl)nrttt . The years between 1973 and 1975 were extremely eventful and important to Hawthorne. Through 1971, the company had expanded from its original and continuing interest in the aviation and government contracts businesses to businesses ranging from credit to trucking. It was time to make changes. These changes were made according to a plan and timetable that called for a multi-pronged approach to ensuring future company prosperity. There were three basic goals in the adopted plan. Permanent ownership needed to be established (upon Howard's death, ownership of the company had been placed in trust though its operation continued without management changes). A program aimed at divesting the company of several non-aviation, non-government operations was adopted to return Hawthorne to its primary business of aviation. Lastly, government contracting was to be expanded. Further aviation expansion came in late 1973 when Hawthorne joined four other Piper distributorships to form a retail marketing organization to handle Piper turbo-prop airplanes. This company was responsible for the sales and service of top of the line Piper aircraft throughout the southeastern United States. Hawthorne was then in the jet aircraft business. . Several months later, in April of 1974, Hawthorne acquired a neighboring Piper distributorship and, as a result, doubled its territory and market potential. The Hawthorne distributorship for Piper aircraft now included all of South Carolina, south central North Carolina and the entire state of Georgia. Since the company that was purchased was also a partner in the turbo-prop dealership, this move also served to reduce the company's partners from five to four. It was concurrent with the distributorship expansion that Hawthorne's plan to divest itself of non-aviation subsidiaries produced the first results. The Ford automobile dealership was sold in April of 1974. This was followed by the sale of DeHart Motor Lines in August 1974. In June of 1975, Vernon B. Strickland purchased Hawthorne and became the company's sole stockholder. On that date, the company was on target with its plan. In March of 1975, Hawthorne had phased out its Johns Island operation. This was the result of decreasing RO.T.C. training activity. There remained the Charleston aviation operation, the turbo-prop dealership, the Piper distributorship, the Government Contracts operation and the Atlanta credit agency. Several small companies had been sold at the time of Strickland's purchase. The sale of Creditor's Mercantile in December of 1976 completed the plan. The company was now in the business of aviation and technical service contracting. Its management team was committed to developing these areas and to building reserves for a strong, aggressive organization. In 1978, the company acquired another Piper territory, thus increasing its area to include Kentucky and half of Tennessee. With this acquisition it became one of the largest Piper affiliates in the nation. . 1-4 1Iawt9orne . Vernon Strickland moved to the office of Chairman in 1981, and John H. Allen was elected President. Allen had joined the company in 1974 and had overseen much of the company's divestiture effort. In the years following1976, his primary emphasis had been on expansion within the Technical Service Contracting Division through the DOD arena. Another expansion program was undertaken in 1982, this one aimed at rekindling the company's real estate development and finance interest. In addition, a single corporate acquisition was targeted. The result was three separate efforts, all occurring in 1983. First Merger Corporation was formed as a merger and acquisition advisory company specializing in Fortune 500 company acquisitions and divestitures. It was later merged with the company's finance and leasing concern, Atlantic National Corporation. A 5.5 acre complex including a 32 lane bowling center and a fast food restaurant was developed in a nearby community. The entire complex was developed and sold within a three year period. Late in the year, the company acquired Sharp Controls, a North Carolina based distributor of hydraulics and pneumatics products. Over the next seven years Hawthorne managed Sharp's growth throughout a four state area. . In 1986 Dean Harton succeeded John Allen as President of Hawthorne. Harton, who had joined the company in 1968, had served as Aero Sales Division Manager, Chief Financial Officer, and Executive Vice President before becoming President of the organization. Harton set off to further strengthen the company's real estate and financial arms, while at the same time reemphasizing Hawthorne's aviation expertise through a program that had begun in 1985 with the award of a management contract for the Charleston International Airport's new international terminal and co-op fuel storage facility. The next four years were active ones for the company. In 1987 Hawthorne was awarded the right to develop a new FBO on the Washington Dulles International Airport. The operation opened in 1990 and was followed a year later with completion of a fifteen acre "build to suit" corporate complex. In 1988 the company was awarded an FBO contract in Ocala, Florida, and bought out an existing company in order to ease the transition. The original FBO in Charleston was sold in 1990. The sale surprised a number of industry watchers, but it was quickly demonstrated that the sale was not part of any strategic plan to de- emphasize aviation. In fact, immediately following the sale, the company successfully competed for award of another five year term of the Charleston International Terminal contract, and purchased a second Florida FBO, this one in Lakeland. Also in 1990, Hawthorne sold the Charlotte based company, Sharp Controls. The sale of this non-strategic company returned Hawthorne to its basic businesses; aviation, contracting, real estate, and finance. In a transaction purely limited to family members, in 1991 the company was reorganized from a parent and subsidiary structure to a group of individually owned affiliate . I - 5 1Iawtl)orne . corporations. This resulted in a combination a "S" and "C" corporations within the Hawthorne group. Since that time, Hawthorne Aviation has formed several subsidiaries for the performance of various contract and investment activities. Following this reorganization, the company saw an opportunity within the aviation industry to provide airport, airport facility, and airport service operations management services on a non-owned basis. In 1991 Hawthorne Corporation Airport / Aviation Management and Consulting was formed. A commitment was made to establish this entity as a recognized management company that could offer a full range of management and consulting services. Though there were numerous early consulting engagements, the first management contract came in 1992 when Hawthorne took over management of a failing FBO located near Atlanta and owned jointly by Citicorp Venture Capital and management of the company, RES Associates of Georgia. In 1993, Hawthorne acquired the majority interest in the operation from the managers and now operates the venture on behalf of itself and Citicorp. In 1994, Hawthorne took over management of all air-side services at Lehigh Valley International Airport in Allentown, Pennsylvania. That same year, the company entered into an agreement to manage a new airport in West Palm Beach, Florida. The contract includes operation of the FBO. . 1996 was an active year for the company. In January, a joint venture between Hawthorne and Johnson Controls World Services was awarded the FBO and airline fueling privileges at Louisville, Kentucky International Airport. In May, Hawthorne took over complete management of all five of the general aviation airports in the state of Rhode Island. The company is also contracted to provide consulting services at the state's airline airport, T. F. Green, an engagement that includes project management for development of a new airline fuel storage facility on the airport. Also in 1996, Hawthorne took over management of facilities and services at the Allentown, Pennsylvania Queen City Airport and for several months provided interim management services at the East Cooper Airport, near Charleston, South Carolina. During the same period that the company was developing its aviation management and consulting effort, progress was also being made in the other parts of the company. The technical contract division of the company received several new contracts, including operation of a municipal water and sewer facility and distribution system. The real estate division started several new residential subdivision developments and a major step was taken in the finance area. . 1-6 1Iawtl)tlrttt . Through the years, Atlantic National Corporation had continued to be active in the investment banking and venture capital . areas, but the effort. had not received major attention. In 1994, a commitment was made to establish a full time, multi-person investment bank specializing in small and middle market companies. the activities in Atlantic National and the financial consulting arm of the aviation consulting program were merged with an outside firm, Vance and Company, to form Hawthorne Investment Banking, LLC. This effort has been very successful and has led transactions or acted as advisor in several industries and on an international level. . While not limited to aviation, RIB has developed a presence in the financial community as an aviation specialist in investment banking. The Hawthorne Group of Companies has evolved into an organization with two distinct sides. The operations group, led by William Thrift, Senior Vice President, is a hands on organization operating both owned FBO's and various types of operations management contracts. The other side of the company is the finance group which specializes in the fee based activities of consulting, investment banking, and real estate. . . 1-7 ]fuwt1)llrtte . . . . . . , - ", ,',.: ~ih3:.~.: ~r" "..:--;", il~~~:;, · 'A p .:~,~:)i' \\l\\V\~'>-----7 .' - .,.~ -" . . '. AIRPORT EXPERIENCE ,. . . PRESENT AVIATION SERVICE COMPANIES Hawtporne currently is operating an airline_ service company at Charleston International Airport, and fixed based operations at Dulles (Washington, DC); Ocala, Florida; Lakeland, Florida; Palm Beach, Florida; Allentown, Pennsylvania (2) and Gwinnett County, Georgia. , Hawthorne also is providing extensive Aviation Management and Consulting services for airport sponsors and FBO owners nationwide and has six separate airports under management. Fixed Base Operations FIXED BASE OPERATION AND AIRLINE SERVICES ALLENTOWN, PENNSYLVANIA Under contract with the Northampton-Lehigh Valley Airport Authority, Hawthorne provides both airline and general aviation services for this busy airport. Hawthorne employs over 40 people at this location and services 6 airlines as well as an extensive corporate business. . FIXED BASE OPERATION MANAGEMENT QUEEN CITY AIRPORT ALLENTOWN, PENNSYLVANIA Under contract with the same Authority, Hawthorne manages all services and facilities at this reliever to Allentown's Lehigh Valley International Airport. Airport Contact: Mark Brewer Deputy Executive Director 3311 Airport Road Lehigh-Northampton Airport Authority Allentown, P A 18103 (610)266-6001 HAWTHORNE DULLES, WASHINGTON, DC In 1990, Hawthorne completed construction and opened the doors on a new corporate FBO near the nation's capital. With over 190,000 square feet of facilities, this operation is one of the largest and most modern FBO's in the United States, and has been the recipient of numerous industry awards. Awards have included PROFESSIONAL PILOT magazine's top 10 FBO's in . 1-8 1Iawtl)orne . the country and AVIATION INTERNATIONAL NEWS' Top FBO's (Hawthorne was rated #2 in North America). - Airport Contact: Charles Erhard, III, Manager of Finance & Administration Metropolitan Washington Airport Authority West Service Road, Shop & Warehouse Bldg. Dulles International Airport Washington, DC 20041 Phone: (703) 661-2905 FIXED BASE OPERATION - OeALA, FLORIDA On January 12, 1988, Hawthorne was awarded a 30-year contract to operate a full service fixed base operation at Ocala, Florida. Twenty days later, on February 1, 1988, Hawthorne opened its doors to the general aviation public. On November 1, 1989, Hawthorne dedicated a new 16,000 square foot facility located on 28 acres, including a new state-of-the-art above ground fuel farm. This FBO is now a focal point of community pride for the City of Ocala. . Airport Contact: Richard Lewis, Airport Manager P. O. Box 1270 Ocala, FL 34478 Phone: (904) 629-8401 FIXED BASE OPERATION - LAKELAND, FLORIDA On November 19, 1990, Hawthorne acquired the Lakeland, Florida, fixed base operation and operating assets of Lake land Air Center from Mid-South Aviation. Hawthorne Lakeland, Inc. is now one of the fastest growing operations of all affiliates. It is also the center of activity every year for the annual SUN "N" FUN Air Show and Fly-In, one of the largest aviation shows in America. Airport Contact: Gary Quill, Airport Manager 3450 Drane Field Road Lakeland, FL 33811 Phone: (813) 499-8250 . 1-9 lIawt90rne . FIXED BASE OPERATION - PALM BEACH, FLORIDA _Hawthorne provides full airport management and FBO services at the new North County General Aviation Airport at Palm Beach, Florida. This contract includes development of hangars and the responsibility for grounds maintenance for the airport. Airport Contact: Michael Sinunons Finance Manager Palm Beach County Department of Airports Palm Beach International Airport West Palm Beach, FL 33406-1491 Phone: (407) 471-7400 FIXED BASE OPERATION - GWINNETT COUNTY, GEORGIA In late 1992, Hawthorne reached an agreement to assume full operational control and the controlling ownership interest in this growing Atlanta area FBO since that time. Hawthorne Gwinnett has overseen the development of two new 12,00 square foot hangars and has totally renovated its office and terminal areas. . Airport Contact: Scott Fuller, Director Gwinnett County Airport Authority Administration Bldg. Airport Road Lawrenceville, GA 30245 (404) 822-5196 Airline Services HAWTHORNE AIRPORT SERVICES - CHARLESTON, SOUTH CAROLINA Under a long term contract with the Charleston County Aviation Authority, Hawthorne provides airline services for the new International Airport Terminal. Primary responsibilities are to provide ground handling for major air carriers and commuters, and to maintain a 420,000 gallon fuel farm to service all airlines. Airport Contact: Sam Hoerter, Director Charleston County Aviation Authority Charleston International. Airport . 1-10 1Iawtl)orne . 5500 International Boulevard !:harleston, SC 29418-6911 Phone: (803)767-1100 Airport/Facility Management Hawthorne has responsibility for facility management at several airports where it also manages FBO and / or airline services. These have been detailed in the previous pages. Also included earlier was the full airport management and provision of FBO services at North County Airport, in West Palm Beach, Florida. Not mentioned, but of note, is an FBO and airline fueling operation at Louisville, . Kentucky International Airport. This is a joint venture between Hawthorne and Johnson Controls World Services. Hawthorne manages specific parts of the venture and acts as consultant on retainer to the company. . RHODE ISLAND MANAGEMENT PROGRAM . Beyond these combined FBO / facility management / airport management operations, in 1996 Hawthorne was awarded a full management contract for five general aviation airports in the state of Rhode Island. This contract includes responsibility for snow removal, mowing, airfield maintenance, FAA regulatory coordination, and capital improvement projects. Unlike the other management programs, it is also Hawthorne's responsibility at these airports to award and administer operating and lease agreements for FBO's and other airport service providers. Operations at these airports are outlined below: . NORTH CENTRAL AIRPORT - SMITHFIELD, RHODE ISLAND Located in Northern Rhode Island near the Massachusetts border, this is the largest general aviation airport in the state in terms of operations. The airport has two FBO's and serves a large industrial district in that part of the state. . QUONSET STATE AIRPORT - NORTH KINGSTOWN, RHODE ISLAND The original Quonset Point Naval Air Station was closed and turned over to the state. The entire base is slated for full development as an industrial complex which will include a port, rail, air, and over-the-road intermodal cargo capability. It is the major industrial development program within the . I - 11 1tlawt9orne . state, and Hawthorne has participated in several planning sessions and is directing airport related development. Hawthorne is currently providing FBO services on the airport, but an FBO solicitation is planned for 1997. . NEWPORT STATE AIRPORT - NEWPORT, RHODE ISLAND This airport serves the resort area of Rhode Island. An FBO, a maintenance operator, a flight training company, and a helicopter sightseeing company operate from the airport. . BLOCK ISLAND AIRPORT - NEW SHOREHAM, RHODE ISLAND Block Island is located thirteen miles off the mainland coast and is a resort island just south of Nantucket and Martha's Vineyard. The airport is served by New England Airways. . WESTERLY STATE AIRPORT - WESTERLY, RHODE ISLAND . Two FBO's and an aircraft maintenance operation serve this airport. The airport also serves as the origination point for a New England Airways shuttle between the mainland and Block Island. The Westerly terminal facility includes a restaurant and both short and long term automobile parking. PAST AVIATION SERVICE COMPANIES FIXED BASE OPERATION - EAST COOPER AIRPORT MT. PLEASANT, SOUTH CAROLINA In 1986 Hawthorne Corporation was awarded a contract to operate a fixed base operation at the new East Cooper Airport near Mt. Pleasant, South Carolina. Due to the anticipated slow growth in the general aviation business, Hawthorne proposed, and was accepted for a "management only" contract by the Charleston County Aviation Authority. From the original construction through the development of a terminal, maintenance hangar and storage hangars, Hawthorne worked directly for the Charleston County Aviation Authority to manage the operation of this reliever facility. Actual airfield operations started from a mobile trailer and were conducted efficiently by Hawthorne staff during the entire construction phase. . 1- 12 1Iawt9orne . At East Cooper Airport, Hawthorne provided both avgas and jet fuel, paved tie-down, facility maintenance and on-call aircraft maintenance, avionics repair, and air taxi services. - In 1996, Hawthorne again took over management on an interim basis after the lease of an existing operator was terminated.- FIXED BASE OPERATION - CHARLESTON INTERNATIONAL AIRPORT CHARLESTON, SOUTH CAROLINA Charleston is where Hawthorne began in general aviation. Started in 1932, this operation expanded until it became one of the best known FBO's in the southeast United States. Hawthorne provided hangar, tie-down service and maintenance on all types of general aviation aircraft, including reciprocating and turbine powered aircraft. An Air Agency Certificate included ratings in airframe, power plant, propeller, avionics, accessories, instruments and specialized services. The operation was an approved service center for Piper aircraft with repair authorizations for Cessna, Beech, Mooney, Aero Commander and most other general aviation aircraft. In addition, Hawthorne maintained a large general aviation fuel farm providing both avgas and jet fuel to general aviation and charter aircraft ranging in size from the Piper Tomahawk to DC-lO's. Both East Cooper and the Charleston International FBO Operations were sold in 1990. . AIRLINE SERVICING CONTRACT - MYRTLE BEACH JETPORT MYRTLE BEACH, SOUTH CAROLINA Early in 1989 Hawthorne began servicing American Airlines flights at the Myrtle Beach, South Carolina Jetport. Hawthorne provided all ground handling functions and baggage handling until November 1989 when rescheduling of American flights precluded the need for continued servIce. AIRLINE SERVICING CONTRACT - SAVANNAH INTERNATIONAL AIRPORT SAVANNAH, GEORGIA This contract was operated during 1992, but was discontinued when American reduced their flight schedules and transferred their services to a commuter operator. . 1- 13 1Iawt1)orm . PAST GOVERNMENT CONTRACT AVIATION ACTIVITIES The following list is provided to illustrate the depth of aviation experience acquired by Hawthorne in the field of aviation. Affi.CRAFT DEVELOPMENT TEST ACTMTY FORT RUCKER, ALABAMA Affi.CRAFT MAINTENANCE AND SATELLITE BASES FT. SilL, OKLAHOMA BASE OPERATIONS AND TRANSIENT Affi.CRAFT SERVICING FT. HUACHUCA, ARIZONA Affi.CRAFT SERVICING DUGWAY PROVING GROUND, UTAH AVIATION MAINTENANCE AND SUPPLY FORT BLISS, TEXAS Affi. SUPPORT FOR RESEARCH AND FLIGfff TESTING YUMA PROVING GROUND, ARIZONA . AVIATION MAINTENANCE AND TRANSIENT Affi.CRAFT SERVICING FT. KNOX, KENTUCKY TRANSIENT Affi.CRAFT HANDLING SERVICES TINKER AFB, OKLAHOMA TRANSIENT Affi.CRAFT HANDLING SERVICES CHARLESTON AFB, SOUTH CAROLINA TRANSIENT Affi.CRAFT HANDLING SERVICES COLUMBUS AFB, MISSISSIPPI TRANSIENT Affi.CRAFT HANDLING SERVICES MAXWELL AFB, ALABAMA TRANSIENT Affi.CRAFT HANDLING SERVICES ROBINS AFB, GEORGIA PRIMARY FLIGfff TRAINING SPENCE AFB, GEORGIA (prior to closing Hawthorne graduated over 7,600 pilots) . 1- 14 lIawt9tlrttt . PRIMARY AND ADVANCED FIGHTER TRANSITION TRAINING FOR THE ROYAL P AKIST ANI AIR FORCE JACKSpNVILLE, FLORIDA PRIMARY FLIGlIT TRAINING UNITED STATES NAVAL ACADEMY AIRCRAFT CORROSION CONTROL CHARLESTON AFB, SOUTH CAROLINA RECENT AIRPORT DEVELOPMENT & FACILITY MANAGEl\fENT PROJECTS Throughout its corporate history, Hawthorne has been active in the development of a variety of different projects ranging from FBO's, to fast food restaurants, to mobile home parks, to shopping centers, to airport industrial parks. The list below is indicative of airport related Hawthorne projects: . NORTH PALM BEACH COUNTY AIRPORT WEST PALM BEACH, FLORIDA - New airport including all facilities. ALLENTOWN-BETHLEHEM-EASTON INTERNATIONAL AIRPORT ALLENTOWN, PA - Project management of Authority owned 25,000 SF storage hangar complex. GWINNETT COUNTY AIRPORT LAVfJRENCEVILLE,GA - Project management and leasing of two 12,000 square foot corporate hangars. WASHINGTON DULLES INTERNATIONAL AIRPORT CORPORATE HANGAR AND OFFICE COMPLEX - $35 million dollar FBO and corporate hangar complex. . 1- 15 1Iawtl)orne . GENERAL AVIATION TERMINAL FACILITY OCALA, FLORIDA - Development of terminal, office, and hangar facility including restaurant. AIRCRAFT MAINTENANCE FACILITY OCALA, FLORIDA - Replacement of existing maintenance facility including shops, offices, parts storage, and test areas. ON-AIRPORT BUSINESS DEVELOPMENT AND LEASE MANAGEMENT EXPERIENCE In the field of aviation related leases, Hawthorne has not only the experience of operating on numerous airports, but of the added responsibilities of negotiating and administrating leases with other companies as part of its business. . This experience came about because of the promotion and development of airports and their related activities. When Hawthorne Corporation starts the process of building an airport business, numerous other aviation activities and businesses can be attracted to the facility. Furthermore, Hawthorne managers and supervisors actively pursue compatible and supporting operations for these airports to enhance the total services available to the general aviation public. The following is a brief summation of recent leasing experiences: . JIM T AYLOR FIELD - OCALA, FLORIDA Operating under contract since 1988 with the City of Ocala, Hawthorne is the sole FBO on one of Florida's premier general aviation airports. As part of the agreement with the City of Ocala, Hawthorne has negotiated the leases with a diversity of other airport tenants including: . Pegasus Restaurant - a full service restaurant located in the new Hawthorne-built FBO terminal. . Wal Mart Photo Processing - a film processing distribution office for Wal Mart. . 1- 16 1Iawtl)orne . . Quest Avionics - a full service avionics shop. . Signature Aircraft Sales - aircraft sales organization for singles through turbo props. . Classic Aviation - a warbirdslvintage aircraft sales company. . Customer Cabin Cover, Inc. - an interior refurbishment and repair shop for light aircraft. . Aircraft hangar tenants on city-owned facility (Hawthorne determined the rates and negotiated the leases on behalf of the City of Ocala.) . Chuck Wagon, Inc. - Food Service Company producing food service vehicles. . LAKELAND REGIONAL AIRPORT - LAKELAND, FLORIDA Located between Tampa and Orlando, Hawthorne is the only Fixed Base Operator on this very busy general aviation airport. As part of its agreement with the City of Lakeland, Hawthorne leases land, offices and facilities to a variety of companies including: . . Executive Wings - a turbine engine maintenance and overhaul facility for Pratt and Whitney and Garrett engines. . Gibson Aviation - a FARPart 135 Jet Charter Company. . AN-FIL Aircraft - a transport aircraft parts broker for obsolete and hard to find aircraft parts. . A. T.P. - an advanced flight training company specializing in commercial and multi- engine training. . MAC Avionics - avionics repair and installations. . Phillips and Jordan - Helicopter Charter and Corporate Helicopter Operation. . Civil Air Patrol - origination ofLakeland squadron . Cypress Aviation - provided expansion facility for transport aircraft overhaul as an alternative to having the company move to another location (in progress) . 1- 17 1Iawt90rttt . . S & S Flight Training - relocation from another airport . Anheuser-Busch - provision of handling and fuel program that allowed company to open a corporate hangar facility on the airport . Airline Career Academy - airline air and ground professions training. Hawthorne made the initial contact with this Philadelphia based company upon learning that it was considering relocation from the northeast, and working with the local development board brought the company to Lakeland Airport. The company leases 55,000 square feet of space, operates 15 aircraft, and has 30 employees. . W ASIllNGTON DULLES INTERNATIONAL AIRPORT - W ASillNGTON, D.C. The pride of Hawthorne's FBO operations is located at our nation's capital. Opened in 1990, Hawthorne developed this FBO as not only a facility for transient operations but as a home base for major corporate tenants. Some of these tenants now under lease for office and hangar complexes include: . Mobil Oil Corporation - a 40,000 s.f hangar with 20,000 s.f offices and attached ramp/auto parking. . . MCI Corporation - a 32,000 s.f hangar with 14,000 s.f offices and attached ramp/auto parking. . Gannett Corporation - a 32,000 s.f hangar with 16,000 s.f offices and attached ramp/auto parking. . GWINNETT COUNTY AIRPORT - ATLANTA, GA Hawthorne's metropolitan Atlanta operation is Hawthorne Gwinnett, purchased in April of 1991. Located twenty nUnutes from downtown, Hawthorne Gwinnett offers the corporate flyer easy access to the entire Atlanta area. Based at one of the nation's fastest growing airports, we offer both the transient and based customer a viable option to the downtown airports. Our facilities currently include over 60,000 square feet of hangar and 14,000 plus square feet of office space. These facilities are composed of properties that we own, lease from the county and manage for outside interests. Some of our based corporate clients include: . 1- 18 1Iawt1)Ortte . . Smithkline Beecham Clinical Laboratories - six based aircraft that represents their Southeast operation. . Elan Pharmaceuticals - International based flight department. . Apple Restaurant Management Company - Corporate flight department for Applebee's Restaurants. . Micro Equipment Corporation - corporate jet aircraft. . Two of the largest flight schools in the area. . An independent avionics sales and maintenance company as well as an aircraft sales company, maintenance facility and detail company. A VIA TION l\fANAGEMENT AND CONSULTING . As an operationally aligned management and consulting company, staff specialists provide services for airport sponsors and business owners. Services include operational and financial management, consulting for all types of airport and aviation activities, and a complete menu of programs tailored to meet the needs of individual clients. In recent months, specialists have completed projects across the US and in a number offoreign countries. Projects have included privatization studies, development programs, economic rent studies, feasibility studies, operational analysis, valuations and appraisals, descriptive memorandums, services studies and general consulting work. Aviation management and consulting services is one of the fastest growing operation in the fanlily of Hawthorne comparues. Aviation Management Services In response to a growing need within the industry, Hawthorne offers various management programs ranging from interim oversight to full staff, turn-key operations. Hawthorne provides oversight, planning, and control when on-site management and an employee force are already in place, oversight plus general management only, or general management plus a full workforce. Programs are tailored to fit the specific needs of the customer. . 1- ] 9 1Iawt9nrne . . FOR THE FINANCIAL INVESTOR OR NON-INDUSTRY OWNER FBO management requires industry and operating knowledge that only_experience can provide. Hawthorne not only brings 64 years of FBO experience but its own network of aviation companies from which it recruits management and support. . FOR THE BANK OR FINANCIAL INSTITUTION Hawthorne provides experience and is well respected in the aviation industry. From a practical stand point, Hawthorne is in a perfect position to take over the operation and management of a facility that has come into the hands of a financial institution. . FOR THE AIRPORT SPONSOR . In addition to Hawthorne's direct aviation management experience, the company has over fifty years of providing contract services to federal, state, and local governments. Hawthorne is in a position to take over daily operation of a city or county owned airport or FBO and manage it for the benefit of the local community. On a combined management and consulting basis, Hawthorne will manage an existing company or a start-up operation until the operation is on-line and efficient and can be offered to the private sector. Aviation Consulting Services . FOR THE BUSINESS OWNER Hawthorne's 64 years in the industry and its staff of qualified aviation professionals provide a consulting service that considers not only general business precepts but the uniqueness and vagaries of the aviation industry. Because of the network ofFBOs and other aviation service organizations, Hawthorne calls on many layers of talent and many professional disciplines to work on the specialized problem areas. . IMPROVING PROFITABILITY AND STREAMLINING OPERATIONS Hawthorne implements programs and controls to reduce expenses and take maximum advantage of available business or market conditions. . 1-20 1Iawt1)nrtte . MARKET AND FEASIBll..ITY STUDIES . Whether considering the purchase or development of a new operation or simply the offering of a new service or product, Hawthorne improves the odds of success through properly conducted research. A well-done feasibility study also makes bank financing easier to obtain. . BUSINESS VALUATIONS AND APPRAISALS To properly value an aviation business, an appraiser has to know what is happening in the industry and what prices are being paid for similar operations. This is extremely difficult in an industry where most companies are privately held and reporting is nil. Hawthorne is experienced in the aviation merger and development business and experienced in independent appraisals of other FBOs and can draw upon internally produced industry norms. . :MERGER AND ACQUISITION ADVICE . Due diligence and valuations are performed for the buyer. Fair market appraisals and preparation of a company for divestiture are offered to the seller. Hawthorne's experience is not just in running aviation companies, but in selling, acquiring, and developing operations at airports around the country. Hawthorne performs the full gamut ofM&A functions including assisting in negotiations. Advice is not swayed by the promise of transaction fees. Also, services are contracted for whatever part of the transaction is needed. . FINANCING PROPOSALS AND BUSINESS PLANS Hawthorne generates business plans and compiles the information for a bank presentation. Corporate experience helps overcome the complicated problem of how to finance capital improvements built on operating lease land. . AVIATION ACCOUNTING AND COMPUTER SYSTEMS Hawthorne sets up or streamlines accounting systems and assists in evaluation of the many available aviation accounting software programs. . AVIATION CONSULTING SERVICES FOR AIRPORT SPONSORS Unique to management consulting companies, Hawthorne specializes in providing consulting services to airport sponsors in need of advice on general aviation issues. Because of the network of FBOs and other aviation service organizations, along with . 1-21 1Iawt1)orne . over 50 years of contract service to all levels of government, Hawthorne calls on many layers of talent and professional disciplines to work on specialized problem areas. . FEASIBILITY STUDIES Feasibility studies include analysis of types of services provided and whether these services meet the needs of the general aviation public. As part of this type of study, Hawthorne reviews services being offered at similar airports in the U.S. Emphasis is placed on the marketability -of services at the sponsor's airport not currently being offered by present operators and the potential for expanding services in the future. . RFP PREPARATION, DISTRIBUTION AND SELECTION With a complete staff of general aviation professionals and an extensive library of RFPs, minimum standards, operating leases, and other supporting documents, Hawthorne is ideally positioned to provide services to prepare a RFP that reflects industry standards and the unique requirements of the sponsor's airport. . Through our extensive trade contacts (NATA, SAMA, AAAE, GAMA, NBAA) and our marketing staff, Hawthorne is prepared to advertise and distribute the RFP nationwide, conduct pre-proposal. conferences as needed and select the operator most beneficial to the airport sponsor. . 1-22 1Iawt9nrne '. TECHNICAL SERVICE \. CONTRACTING . . TECHNICAL SERVICE CONTRACTING The following sections provide a review of the company's service contract activities: Aviation Facility Maintenance - Dulles International Airport Facility maintenance on airport operations is currently being provided to Mobil, MCr, and Gannett Co. at their corporate aviation facilities on Dulles International Airport. At these facilities Hawthorne provides total exterior facility maintenance services including: . Maintenance of paved areas Ramps, roads and taxiway sweeping and vacuuming Foreign Object Damage (FaD) control Restriping taxiway, roads and parking lots . Maintenance of landscaped areas Lawn, shrub and tree care Fertilizer, herbicide, and insecticide application Litter control . . Maintenance of lighting systems Taxiways and ramps Parking lots and roads Signage . Snow removal and ice control Both airside and non-airside . Maintenance of fire pump house systems . Exterior painting . Maintenance of security fencing _. Maintenance of environmental systems OiVwater separators . 1-23 1Iawt~orne . Water and Sewer Plant Operations & Maintenance - Seabrook Island, SC In May, 1996, Hawthorne began operation and maintenance of the water distribution, sewage collection, and sewage treatment systems for the Town of Seabrook Island, Sc. Serving approximately 1600 customers, Hawthorne also provides complete utility billing and accounting services. lntt~rstate Rest Area Maintenance - Statewide South Carolina Hawthorne has provided full custodial and maintenance services for 24 interstate rest areas (1986-1995) and 9 travel information centers (1987-1996) throughout South Carolina under contract to the SC Department of Transportation. In addition to providing janitorial services for the public restrooms and visitor reception areas, our staff of 190 employees maintained over 390 total acres of landscaped areas and provided all structural, plumbing, painting, electrical and pest control functions. We also operated and maintained 17 wastewater treatment plants in compliance with NPDES requirements in conjunction with this program. Interstate Rest Area Maintenance - Charlotte, North Carolina . From 1989 to 1990, Hawthorne provided custodial and maintenance services around the clock at three interstate rest area facilities in the Charlotte area under contract to the N.C. Department of Transportation. In addition to providing janitorial services for the public restrooms and picnic areas, we maintained approximately 50 acres of landscaped grounds, including snow and ice removal. Our maintenance and repair responsibilities included all structural, plumbing, and electrical functions, in addition to the upkeep of our powered equipment. Family Housing Maintenance - Ft. Jackson, South Carolina From 1986 through 1989, Hawthorne provided total maintenance and repair services for 1,149 Army Family Housing units at this Basic Training Post. Employing a cadre of carpenters, plumbers, tile setters, air conditioning mechanics, appliance repairmen, painters and laborers, we provided a full service maintenance function for occupied quarters and change of occupancy. Base Operating Services - Dugway Proving Ground, Utah From 1983 to 1986, Hawthorne provided total facility engineering, base supply, family housing management, and equipment pool services to the U.S. Army at this Test and Evaluation Center. . 1-24 1Iawt9orne . The full range of facility engineering functions included engineering design and specifications, maintenance of all roads and grounds (improved and unimproved), maintenance of all buildings and structures, refuse collection, snow and ice removal, vehicle and equipment maintenance, and pest control services. In addition, we operated and maintained all heating and cooling, refrigeration, power distribution, water and sewage systems. Facility Maintenance - Lake Sidney Lanier, Georgia From 1978 through 1981, Hawthorne provided total facility maintenance services under contract to the U. S. Army Corps of Engineers for this 38,000 acre recreational facility which served over 20 million visitors annually. Our responsibilities included maintenance of. 48 miles of paved and gravel . roads, landscaping, mowing of 300 acres of lawn area, trash removal, public restroom cleaning and maintenance, and operation and maintenance of drinking water and sanitary sewage systems. In addition, we maintained 629 camp sites, 578 picnic areas, and all building structures including mechanical, plumbing and electrical systems. Primary Flight Training - Spence AFB, Georgia . For over ten years, Hawthorne was responsible for a contract to conduct Primary Flight and Academic Training for the Air Force. While the primary mission was to train pilots, we were also responsible for all base support operations. Initially, we reopened this base which had been closed since the end of wwn. This required extensive renovation and new construction of all facilities and utility systems. Our operation and maintenance responsibilities included all buildings and structures, roads and grounds, base utilities, HV AC and refrigeration, vehicles, communications systems, and fire protection. Other Related Facility Maintenance Experience Hawthorne has provided water meter reading services to the Berkeley County (SC) Water and Sanitation Authority since 1986, servicing approximately 7,500 meters montWy. In October 1994, Hawthorne began providing similar services to the Dorchester County (SC) Water Authority, and in April, 1996, to the St. John's (SC) Water Company. . 1-25 lrIawt90rne L___ :. - . INVESTMENT BANKING . . HAWTHORNE INVESTMENT BANKING, L.L.C. Hawthorne Investment Banking, LLC, was formed in early 1995 through the consolidation of Atlantic National Corporation's investment banking activity, the financial consulting arm of Hawthorne's aviation/airport consulting division and the merger with Vance and Co., a pre-existing investment banlc The consolidation of these entities provides a wide array of experience across many industries. The Hawthorne organization has led or advised on transactions in the following industries: . Industrial & Commercial Equipment . Air & Land Transportation . Home Furnishings & Giftware . Facility Maintenance . Municipal Services . Contract Packaging . Food Processing . Electronic & Electromagnetic Components . Disposable Medical Products . . Specialty Retailing . Recreational Products . Commercial Printing Transactions have included startups, later stage financing, equity placements, recapitalizations, workout plans, divestitures, and acquisitions. Industry Expertise For Larger Transactions In addition to its focus on small and middle market companies, the experience of Hawthorne in certain industries, plus the expertise of individual Hawthorne representatives, allows Hawthorne Investment Banking, LLC, to play an active role in large transactions where these resources can be applied. One example is aviation. The company has dealt at all levels of the industry. A separate division of the company, Hawthorne Aviation; houses a consulting and management group that has provided merger, acquisition and financial advisory services to industry companies of all sizes. Additionally, Hawthorne has an attorney on staff who specializes in aviation and airline regulatory matters. . 1-26 1Iaurt1)llrtte . Convenient Technical Assistance Corporate decisions concerning capital investment are normally rendered after extensive due diligence. Corporate management is often constrained in that vital effort by conflicting schedules. Hawthorne can provide corporate management with another alternative; that of engaging Hawthorne Investment Banking to complete the due diligence effort for a modest per diem consulting rate. We know the questions to be asked and the material to be gathered. We have the flexibility to quickly get on site, conduct the exercise and complete the assignment with a comprehensive report. . . 1-27 ]fuwt1)orne . . . . TESTIMONIALS AND AWARDS Throughout our 65 years in the aviation industry, Hawthorne has always emphasized customer service. The following customer testimonials and awards are indicative of our continued emphasis on customer service and the success that we have experienced in meeting our customers' needs. . . 1-28 1Iawt1)nrtle . a 0'" ~d~ G~t ~~ ~~ ~~ ~oo ~~~ ~ THE REX RILE,)/ 8~M~ffd (tf-/leJI1///'fYr(JJ4!fJa/hl . "_cY;tlrl'J! (;';r/ ;; HAWTHORNE AVIA liON TRANSIENT ALERT Robins Air Force Base, Georgia ;flJ~ vr?/;kt?~r6;~y t5~rt?~Jte?~/ /Jl(~H~/e~ ,rp/tce (t?~r/ Je/Il/tee ttfA;c-h &tl/e CO?~t5,t/titkr/ ?nt~i:-!?lta/fY to (tt/;~C?lcyfJ~(y r(?~r/ CO?Jt,/;t~r/e4~tta/ ~') /pJ :J) p"/ j (;:~/,,",f")7 0, ~;- "the I ~(?ltrea .:/!rtte;) ,,--/t?~ ~"_//tljlce / . Presented this 12th day of Ma.rch 1985 A~{~ I~ E - E V A L IJ t\ TEll 2CJ ,lAN.1988 BrigacJicl- General, USf\F Director of Aerospace Safety ',I-:CER'1"l :clj LJ JUL')' . l)() 27 A,'iat;on Internalional News Midland Park. I\.J. ~Iav 1. 19% - je three brightest stars selected by working business aviators ArrFlite Ask the Chicago Bull~. Victory is tough to repeal. Nevertheless, thi~ year"s top scorer in Avialion International News' North American FBO ~llr\'ey-i~ AirFlilc.lhc Toyota-owned operation at Long Beach ICallf.) Airport. The class leader this year was a150 the front runner in AIN', 199.. suney. the laSltime North American FBOs were rated. In the interim. .AirFlite. among other clite ,A,'itat FBOs. has also won Exxon's Tiger Spirit award. COI'ering 14,5 ~cres. AirFlite' s leasehold includes 1960x hangars. :=. 29,OUO~sq-ft _,wrage hangar. and a 3S.0004sq-ft [o'ur-story termin~1l building. The r~Jrbk ;:md f:\J:-;s t~rmin;:1l is impre~~i\'e. yet under:,tatcd in its elegance. Topping .';~rF]ile's section of the builJing is To\'ota"s 0\\.'0 top.~ecrt:l aviation development S::1b~idi;:H'Y. Th~ di\'ision recentlv rc\"C;led the existcnce of its VS piston aircraft e:;;,~ine wh~,:n it \\"'-lS ccrtifjc::J.t~d bv FAA. The F;].dcc-cquipped. singlc-power-Ic\'cr. ~SO-hr turboch::J.rged engine bC'g3~ ,life under rhe hood of a Lexus, automohile, Downstairs 3t the Lono Be::J.ch f::lcilitv, AirFlite general man~l.l~er Tommv \Valkcr attributes' mu~h of his FBe)" s success to ;ervice standards and tr3i'-ning that stem from Toyota's experience In customer sen'ice, Tnking carc of thousands of Lexus owners is apparently good grist for establishing lOp-notch stondords in the FBO business. AirFlite's exper11se in line seryice w",-exemp]ified in this year's AIN surye)' with its number-two [3tin[: in that catC2:orv. Still. Walker s;id the Toyot~ b;sses leove the ayiation side to those who know il. A lifetime ,,'iation industry veteran. Walker said the top office hos never foiled to come throu~h on the requests he has made. Besides ;ircraft stora'ge and line service. AirFlire also serves as 3 dealer for used business turbines. -.,:;;~ .. .' C \.. Hawthorne/Dulles !\bntaining a solid hold on third place in Aviation International Ne"!s' pilot S'J;\'C:', Hawtho:-neiDulles continue~ to mec~ :k: biz3\. needs of corporations mo\.jn; headquarters to rural northern Virginia. Four Fonune 500 companies. up from three ir. 199... lease hangar 'pace from Hawthorne, and its $35 million com- plex 0: lAD is poised for funher growth This summer,;] new 1 S.OOO-sq-ft hJn- gar and J 10,ODO-sq-ft offic~ building w'll be addec. The S:' millIOn exponsion will help ~.::commod;]te hoth b~sed and -transicn: aircrJft Jnd operators. included in the current campus are three hangars of60.000. 30.000. and 28.0(>0 sq ft. A common J 8.000-sq-ft hangar is a\'aila\:1le for transient aircraft storage. The flagship facility forthe Hawthorne chain. the Dulles base has a carpeted lobby with period furniture. oi] paintings. and a fireplace. The distinguished tone is echoed throughout the passenger and pilot lounge are3.:;. Also 3vailable are J flight planning [c-om and pri\'3te c:-e\\' qU3.rt~rs wilh sho\vers. , II lakes the best equipment. right. above, and a dedicated staff with top-notch leaderShip. left. and training to nail down the number one rating twice in a row. AirFlite, Long Beach. Calif.. had the horsepower to pull it off. Hawthorne/DuJles manager David Brinso:1 expects business to expand when new hangar and oHiee space are added this year. I\.1JJl3:2Cr David Brinson oversees activit\' z! H3\""~ thomeiD~lles. located adiacent 10 the appro;ch end of 11.501-f( Runway 19R o~ the airport' 5 north s!de. He said, "\\'e ov.'e our success to H3\\'thorne's 60-year business philosophy of friendly. quality ser,l=e. My goal has Jeen to create an em'ironment here t1"12.: people \\'Jnt to \'i ~il .- BJ.~ec in Chariestol1, S.C. (an airl:ne rcfueli::~ ba5et the H3\.:thorne chain of FBOs includes f:.!:,.:ties at OCJ1J.. LJkel:1nd, and \\'est Palm Be2ch. Fl3. : C......innen C',~!unty. J'Jtsicle, Atlanl,3, G:L: and AJknlO\\'r:, Million Air/Addison The MiIJion Air FBO franchise chain now includes 24 members nationwide. with the flagship facility. AIN's number-two scoring FBO. at Addison .Airponjust outside Da]las. Tex. Company president Lou Pepper is based there. where he has been known to park his Harley Davidson Sofl;)i] Nostalgia motorcycle durir!f- working hours. Owned by Richard Rogers. chairman of the Mary Koy cosmetics company. MillionAJr is a fcan.:hise opera!ion known 10 encourage the independence of its members. In Addison. FBO manager Jock Hookins routinelv Joins Pepper in mecling ;::,il(l!~ J.nd po.ssengers alike. soliciting recommendations for improving seryicc Pepper said, "\Ve have the mJrble floors and a beautiful facility, but thaI doesn't me-J-n anything v,'ithou' top-n'Jtch seryice. \\'c pny our people well. ~md do our best to keep them happy. \Ve hold week.ly meeting..: with line service and .:.'uS!cmer servicc :::!.gcnb to reinforce hov,: impor1.Jr.t service is 10 our busi~l"ss." \lillion Air AJdi"on pump" ju:;;t under three miilion gJIlons of fuel annuJIly. ~r\it roug:--.\: 85- ] 5 betwee::jt:t-.'; JnJ J\.gJs. The 1 ]5-mt:rnb~r >o;t:1ff :..;1:..(1 Jncludes aircT'Jfl _'''';Jles :1nd refurbishmem specialist::.. Over;;.]l rc".enues J.re d:\.ideu into fu~J >;;J-!c<:;;ll ~O m~iI:ite- n~mce and rerure." one nircrJ.ft per month. or. ~l\'t':f;}g~." '~lid Pepper,) 3t ~O percent. \\-ith the remJincJe~ u'::- ri\ eo flOm u\ed ,:l1rcfJfl ,,;t1es. Peppn \Jld income hJ\ incr::J.~ed ..:1 \olid 2() ptfCeni ~Incc lhe ]aq sur\"t~y in 1994" He \;~e" corporate jet businesc, migrJtin;; to his ]ocJtilJn from Dallos L",e Field as area. cor- rations mo\'e northward toward Jdison. The ~lillion Air complex Jt the busy reliever airport includes 75.000 sq ft ofhang"r area Jnd ..0.000 'q ft of office 'pace. Pepper IOlks glowingly of the ..OO.OO() gal of av- g3S i\1illion Air/Addison pumps an~ nually. TTlostly to based night schools, "We're proud of our jet service. and we're v.'ell known for it. But we [rcat everyon_~..the sJme:' he said, "whe[h. er lhev're flvinp a liphl sinl'\e or a AMR-Dallas Sp'::Ci:l1 :cc ,::.::niti;Jfl ~\)C'\ 10 the- ,i:":~:ib(.'r-eic-. -~nishe: ['l\'cr~dj In Aviation International ,\-tws' su;-','~>-.A!\1R Cor-;-;bs J[ [l;JllJS LCl\"c Field, The lanJr;--,,-Hk for;;-,,:- CillJ-:t L1Ci:it:~ ~t:u'ivc.d red (7 7.5Cl (If ht't1c~~ :Jl.lng( t:-. ::11 fCPJi LJtiii':; cJlc);orie\-onc of only three rJ~:il\\i.:s 10 ": = ::0_ The ollh~r'. \\ ere lhe ;md nU;-:lhcr-!\\".-' ~-~-:i~hn:~, AirFlite JilrJ i'>iillion Air It:::r~ctivel> \l,'hat's most nOlewonhy j<., thJ\ ,Ai\1R Comh.'. :~::":ived.::! red rJ~i;:~ (7.758) in the survey' C c3tego~~ f.:-; pilot amenities 3::ld services-the toughest amon~ the fou:"c3te~o- ries in which FBOs were scored, While the thlrd-:~rough- seventh-place FBOs in the survey had betler Jvera;~ score~ than eighth-place AMR Combs/Dalla,,, Ihey co""e in a smid~en below red in the C -"lot P:lc,ts clearly rate AMR Combs' Da!las base o:;:>ly fOf it" ~1:\enli(HI to theIr individu:!l ncr:ds In this YCJ!'" :; surn':', e\'alu:~tors were encouraged 10 ernph3SJZt {he SCince sidr of the equation rather than the facilitie.~. The alm:--st COTl- stan! refrain slressed "service and personnel attitud~'-' abcw~ ph)'<ical facilities every time, Hots off to AMR Comb, a! fJ"!;'J' I",,,. J:;i"lrl -.,' '~.~.- - -":-: :.-~ .....~-_...- -:-~~~-~.:-:~':~-~- -,~_.-'" --~:':. Pilots and passengers may love the marble and glass al Million Air/Addison, . BIENNIAL FACE-OFF Two of our experts put each other to the test. . BY TOM BENENSON AND RICHARD L. COLLINS . "It's only a re\~ew; you can't fail. It's only a revievl; you can't fail," I kept repeating over and over to myself as I flew to Lehigh Valley International Airport in Allentown, Pennsylvania. It was bad enough I was going there to take my biennial ftightreview (BFR) but it was going to be conducted by Richard Col1ins. I'd never flown with Richard, but his reputation for precision and perfection are well knovm, and admittedly I was a bit intimidated by the prospect ofha\~ng him critique my flying. But it wasn't going to be al1 one-sided; I would llave the opportunity of returning the favor and giving I<icharcl his BFR. fLY] 1, c; iSEf'TE:.l E Ej.: ] 'i95 75 1lI.. ' . RICHARD & THE BIENNIAL As I checked in with Allentown ap- proach, I was given vectors to allow an incoming Centurion-N40RC-to pre- cede me on the approach. It didn't seem fair that Richard got to go ahead of me just because his airplane could fly faster, but I decided not to complain. As it was, we both ended up having to do-si-do with a Dash 8 before flying the approach in weather that was 400 overcast and a mile and a half in fog-much lower than forecast. Allentown-particularly the Haw- thorne FEO-turned out to be an excel- lent choice for our midpoint rendezvous. Having accepted complimentary coffee, but neither the newspapers nor the fruit offered temptingly by Mercedes and Sue, who know how to make pilots feel welcome, we settled comfortably into the pilots' lounge with our pilot's operat- ing handbooks, a copy of the F ARs and the AHvl, and sectional, en route and approach charis. For the next several hours-as we waited unsuccessfully for the weather to improve suf- ficiently to let us do the flight review-we con- ducted the ground por- tions of our EFRs. I'm convinced that much of the value of a BFP-either giving or receiving-is in the preparation. It may not be a test, per se, but a review by any other name is still an evalua- tion and no-ne of us wants to look dumb, so the tendency is to cram for the exam. Taking a BFR makes you go back to the books-and that's a bene- fit in itself. In the week before Richard and 1 got together, I read through the POH for my Cardinal, reviewed the re- cent airspace reclas- sification, and went through Part 91- General Operat- ing and Flight Rules-of the regs. My prepa- ration was as much for getting ready to give the EFR as to take it. As Richard and I discussed and some- times argued about abstruse regs, we were like two jailhouse lav.'Yers looking for a point of law on which to hang an ap- peaL A EFR worthy of its intent should result in Jots of flipping back and fortll through the pages of the regs and AI\I. Ours did. Vie came up with some questions for which we couldn't find an answer. VORs have to be checked within 30 days to be used for IFR; what about an IFR- approved GPS? Ac- cording to Richard, his GPS flight manual Richard had been supplement requires an annual check (but doesn't describe the requirements for the chaHenged. ~ d;ca check). Is an airplane with an approved GPS required to also haVe' a VOE on board in orcln to be qualiiied to Oy in- struments' Is a certi- fied G PS sufficient for a clearance into Class B airspace. which re- taxied [;.~ iha2 he quires a VOI\ during instrument conditions? We were both aware that after maintenance on an airplane and be- fore passengers can be carried, there's a requirement that a test flight may be required. What neither of us realized was that the test flight has to be recorded in the aircraft Jog. 'nle rule, FAI~ 91.407, states that the flight tcst I hoped that sufficgentiy take a pe.v8rs8 pleasi..=r-e i:1 no'dcti'19, EtS v-.:e: had wo~~keci U;:::i a s~-''Jaa'i. 70 and log entry are required if the aircraft "has been maintained, re- built, or altered in a manner that may have appreciably changed its flight char- acteristics or substantially affected its operation in flight. . . "Who's to say? Richard reminded me that the rule for night currency requires both three takeoffs and three landings. The landing requirement is much easier to satisfy than the one for takeoffs since we more often complete flights at night than originate them. This was the first time I'd ever taken a biennial from an instructor who actually owned an aircraft. It made a difference. YVe discussed required minimum equip- ment and Richard pointed out that the POH for most airplanes contains a list that indicates what is required or optional equipment It's interesting to compare different airpl,mes. For example, a spin- ner is required on the Cardinal but not on an Arrow; the tachometer is required on both; bu: only the Cardinal requires the navigation lights and flashing beacon. Thinking about it later, I was im- pressed by the scope of items we were able [0 cover during the bour each to which we agreed to limit ourselves. 'We considered requirements of reporting DWI infractions, medical exams, cus- toms at Canada, IFR radio failure proce- dures, airspace classifications, changes to the sectionals, requirements for alter- nates, and how to safely depart an un- control1ed airpori in IMC (simply fly the approach in reverse), recurring mainte- . ~ ,/ . . Since 197 4the FAA has required (FAR Part 61.56jthat every pilot successfully com- plete a biennial flight review. The review is just that. It's not a test and there's no way to octually foil it. Nevertheless, while you can't technically bust o BFR, you con foil to success- fully complete one and-while there's no official record that goes in your logbook-the consequences can be pretty dire. Very simply, 0 pilot- any pilot, including instructors and A TPr-<:an't oct os pilot in command (including solo flight) unless "since the beginning of the 24th calendar month before the month in which that pilot acts os pilot in command" he has "successfully complet- ed" 0 BFR lor otherwise satisfied the requirements). Although there was 0 lot of grumbling at the time it was instituted-particularly from pilots' organizations concerned about what they saw as 0 further erosion of pilots' free- doms-it's hard to argue against the intent of the BFR, and it has probably resulted in a reduction in accidents. Prior to 1974, once someone had earned their piloting privileges and .had been kicked out of the nest, they were free to fly with- out ever again being subjected to the scrutiny of on instructor. In an unusual demonstration of reasonableness, the FAA decided that, since the BFR is intended to periodically evaluate 0 pilot's continued ability to perform up to the standards of his certificates and ratings, other evaluations could allow pilots to toke 0 bye on 0 BFR. Pilots con bypass 0 BFR if they've earned 0 new nance requirements, logging flight time, and finally, where to go for lunch. I have to admit that if we were keeping score, I got a lot more out of the ground review than Richard did. Not only was I able to benefit from his impressive flight experience in general but also from his years as the owner of a Cardinal. The weather hadn't improved after lunch, so we made arrangements to again convene at Hawthorne (an oppor- tunity to see if the service we had en- joyed was typical-it was) to complete the flight portions of our BFRs. The weather was good VFR when we again met at Allentown. As with the ground portion, we agreed to limit the flight review to the single hour required by the regs. For a BFR to be meaningful, it should be tailored specifically to the pi- lot's experience level and type of flying. It's also a good idea to dust off some of the maneuvers or procedures that the pi- jot hasn't performed recently-or fre- quently~and to make sure there's noth- ing lurking in the shadows that might suddenly reach up and grab him on a dark and stormy night. Most pilots are aware of maneuvers or procedures FLYING/SEPTEMBER 1995 certificate or rating; completed o Port 121, 135, or military pilot proficiency check; completed 0 proficiency check for on aircraft requiring more than one pilot crewmember; completed 0 pilot examiner annual flight check or on FAR 141 chief pilot proficiency check; or completed 0 phose of the FAA's Wings program. An instrument competency check does not constitute 0 BFR, although on instructor con agree to concurrently conduct an ICC and 0 BFR. Initially the scope and content of the biennial review were left entirely to the discre- tion of the instructor conducting it, but the FAA now requires it include at least one hour of flight and one hour of ground instruction. There is still no specific requirement for what is to be covered except the they're uncomfortable with and-while reluctant to try them on their own- should welcome the opportunity to practice (and review) them with an in- structor. Since both Richard and I-in evaluating airplanes-get lots of oppor- tunity to do slow flight, stalls, short and soft field takeoffs and landings, and air- work (the stuff of which most BFRs are made), we needed to structure our BFRs to include things we don't often get to practice. 1I05t (won?) the coin toss and went first. When Richard asked me if there was anything I particu]arly wanted to re- view, I asked to do some instrument work-particularly partial panel and transitioning from an approach to a go- around. With my Cardinal's directional gyro and artificial horizon covered-and ref- erence to the loran declared a no-no-I navigated to Lehighton's Arner Memori- al Airport (22N) about 20 miles to the northwest of Allentown for the NOB ap- proach to Runway 26. I'd like to be able to blame my altitude excursions entirely on rising thern1a]s and ridge waves, but I had a hand in them too. For the most ground instruction must now include "0 review of the current general operating and flight rules of Port 91 . . . " and the flight portion should provide "0 review of those maneuvers and procedures which, at the discretion of the person giving the review, ore necessary for the pilot to demonstrate the safe exercise of the privileges of the pilot certificate." The review may be conducted in any aircraft in which 0 pilot is rated, not necessarily the most complex or sophisticated. A multiengine rated pilot may toke the BFR in a single-engine fixed-gear VFR-only-equipped airplane- providing of course that the person conducting the review is satisfied the pilot is capable of safely acting os pilot-in- command in the aircraft he's rated to fly. -T.B. part my tracking during the approach wasn't too bad, although I did fly through the final approach course. Not good-particularly in light of a note on the chart that said, "Airport located in valley. High terrain up to 1700 feet north and south of airport running paralle] to final approach course." If it had been an actual partial-pane] situation-a condition that should a]- ways be considered an emergency-I wouldn't have attempted an NOB ap- proach but would have instead asked for vectors to an airport with clear ap- proaches, radar, and an ILS. After the missed at Lehighton we headed back to Allentown-still partial panel-and re- quested an ILS. I foolishly ignored Richard's offer to let me request a "no gyro" approach from the approach controller (a given in an actual emergency) and followed vec- tors to intercept the localizer. Eventual- ly, after chasing the needle almost to the stop, I managed to get things stabilized and down the glideslope. It hadn't gone as well as I would have liked. I~ichard generously suggested it would have been easier for me if my 77 . Cenlennlal A1rpoll 7395 S. Peoria S . Box G-S Englewood, CO I o,,~ OffIce: (303) 257.5695 FAX: (303) &49-9542 ~'TELE-CXtMMUNICATIONS,INC. FLIt IHY OPEIlATIDNS May 15, 1992 David Brin:;on, General Manager Hawthorne )ullesr Inc. Washington D1.llles Int'l Airport P.o. Box 17089 Washington, D.C. :~0041 Dear David: . I just wanted to drop you a note to congratulate you for having Hawthorne I>ulles be one of only six operations to receive a perfect score in the recent Aviation International News FBO survey. Your people wor]: hard and do a great job and this recognition is richly deserved. , CONGRATULA~~IONS ! Sincerely, ---._---~~ .. ehn FurstE mberg Chief PiJei. JF/jca u. . April 28, 1994 COBOTYX @ farmstead Telephone Group ~.V Mr. Dean Harton, President Hawthorne A-B-E, Inc. 600 Hayden Circle Allentown, PA 18103 Dear Sir: On April f7, 1994 at approximately 4PM during an IFR cross country, I encountered a complete electrica~ failure that forced an immediate landing at the Allentown airport. I ta~ied to Hawthorne, identified the problem as a failed alternator belt and set out to find a solution. By that time, general business hours had ended and everyone had gone home. . A young lady at your counter, Mercedes, took it upon herself to identify a parts supplier in the area, then called that person and arranged to have the part driven over to the airport. When I found out that I had no tools, Mercedes contacted one of your maintenance professionals, Ollie, who came back to the office from his home to help me. This individual not only made tools available, but he went and installed the heltl If that wasn't enough he then assisted the test and battery jump operation to get my Bonanza started and back in the air. This was not my first in flight emergency and, general aviation being what it is, it won't be my last. I can only hope that whatever aircraft demon is planning to take me out, he does it over Hawthorne at Allentown. The level of care, consideration and excellence exhibited by these two individuals is the standard that I can only ,hope to achieve in my own business. Your company should ta~e care to protect these important people with the same level of care that they have exhihited to your customers. Back home, there is a family waiting for every pilot that ~nters your business. My family is very happy that there are people like Ollie and Mercedes in this world. My sincerest thanks and best wishes to each of them and to your organization for setting such excellent standards. . 6# ... - .- . . FLORlDA BOARD OF REGENTS James F. Hub'l, Jr. ChainnaTl, Board of Regents I'o.<rt Office Bar 2S()9 Orlando, Florida 32802-2809 (407) 843-4600 March 6, ~-996 Mr. Paul M. Schweitzer General Manager Hawthorne Palm Beach Post Office Box 32937 Palm Beach Gardens, Florida 33420 Dear Mr. Schweitzer: I had the opportunity recently to fly into North Palm Beach County General Aviation Airport for a Florida Board of Regents function involving Florida Atlantic University and its north Paln Beach campus. Your staff was pleasant and the service they provided was efficient. I found the line crew and, in particular, Michelle at the front desk to be very helpful and professional in servicing my aircraft and providing travel directions. I wanted you to know that your employees present a tremendously positive image for your company and for Palm Beach Co~nty's general aviation airport. Keep up the good work. Sincerely, F. Heekin, Jr. ol.W/er 0,,"8/)4082 02<,S6<,!. ";> 07:03:pe 00:16 F^I 7~~3116 TO\\~ {)F .Jl'P ITER -\(l (l0.3 . 'i/?tHUl(.{ 7X. Ad 2352 Palm Harbor DrI,,& Palm Be~ch Gardens, FL 33410 407-625-4242 - June 2~, 1996 Mr. Dcan Harton Hawthorne Corporation PO Box 610000 N.Chano~on,SC 29419 Dear Mr. Harton: . I would like to take this opportUnity to congratulate Deanna Applebaum, of' Palm Beach North County Airport (F4S), for doing an o~tanding job in her capacity as General Manager. She goes out of her way to help an pllots end st~ft based at North County as well as welcoming frionds and gues.ts who visit the facility. The ability to effectivoly Juggle muttiple priorities makes Deanna a va1u?bl(1 asset to the Ha..wthome Aviation Organl?9tion. Sho dElmands much of herself and her staff to the great benefit of all of us Sincerely, d4~ Ronald M. Ash Private Pilot N2466E cc. Deanna Applebaum / . 7443116 P.o:!' T I 11_ ~ - G " W r- n 13:04 . r-f"ItUI"'- "\...I'" """M . I ., '" kayUOWl Airn..O Con>J>any 31667';7111 r 0 IJor. !S Wdlila ~ 1>7201-0015 USA Modcl(s): B200 Raytheon AIrcraft Comparri <<Geecl1c:I'".ut ~Jt..,. February ) 6, 1995 Mr. George Luaces. Manager Ocala Regional Airpor1 1200 SW (,Oth Avenue Oc:ala. Florida .34474 Dear M r. l..uaces: J would like 10 thank you for the wonderful hospitality that you provided for us during our stay hack in Decembe.r. We appreciate. the use of your facilities. nnd please thank your staff for lending US H hand when wen~eded it. . S.... had promised Mr. Dudley a hat and a pin. So I am enclosing some hats and pins for you D, jour staff. . . Again. on behalf of our test crew: Bill Vavra. pilot~ Warren Gould. Flight Test Engineer; Ron Hund. Structural Dynamics Engineer~ Steve Lasiter, Mecll4~nic~ and Wes Roberts. Inspcc\or, 1 would like to send my 010$\ sincere thanks to YOll and your staff. Very truly yours, RAYTHEON AIRCRAFT COMPANY or O. AJ"idres, Powerpinnt Engineer ;>owCl-plant J nstallations -JOA:ho3 FROM:KONICA ....AX IU. .LC,,",,-\IJI...I'...IU . OCALA REGIONAL AIRPORT . P. O. BOX 1270. OCALA. FLORIDA 34478.1270 (904) 629-8401 · Fax (904) 629-839J w~ o/C%a& ~ovember 9, 1995 George Luaces, Genernl Manager Hawthorne Oeala, Inc. 1200 SW 60th Avenue Ocala, Florida 34474 Dear George: . 1 would like to take this opportunity to thank you for all your efforts concerning th~ recent airport Open House and Air Show. This was an outstanding public relations program for both the Ocala Regional Airport and Hawthorne Ocala. The coordination was outstanding and the short timeframernade it imperative that someone like yourself be the catalyst to put together all the activities. N~xt year's program will be Btarted earlier and I b~lieve we can get many more people to attend other than the 600 - 1000 people we had this weekend. I would also like to thank you tur all your efforts on behalf of the airport and the cooperative atti tude that you have in developing customers and working with people to solve problems. This has been a partnership and through your efforts 1 believe that we have increased that good working relationship here at the local level. 1 beli~ve we need to get together fairly soon to discuss this past weekend and to have a critique so that we can put down a checklist as to how we will proceed n~xt y~ar and how to get more people illvulved. These efforts will help to expand our airport and continue ~o make i~ a major part of our community. Sincerely, ~ (/r Richard K. Lewis Deputy City Manager/Airport Manager . RKL:BZ c: Dean Harton ~irport Advisory Board Frank Lee . Marit~a Baker IJome of the Florida Emcrl:ellcy Training Facility . . . t-~UM;KUN1'-H rH^ '."\ I '.r ., ~~: ' OCALA REGIONAL AIRPOR~ P. O. BOX 1270, OCALA. FLORIDA34478-J: (904) 62~-8401 . F:lX (90.;) 629-8391 w~ o/@ca& October 20, 1995 Mr. Michael T. McCarthy 285 Plantation Street 1822 Wcr'::ester, MA 01604.. Dear Mr. McCarthy: It was a pleasure receiving your letter regarding your experience at the Ocala Regional Airport, more ~pecifically the attentions you received from our Fixed Base Operator. Receiving feedbacK on our operations is always important, specially when it is positive. Your corr~ents are appreciated and we will make sure those individuals, as well as our Airport Board, are made aware of your co~~ents, We are glad you enjoyed your stay in Ocala and I hope yeu ceme back to see us. . VJ7~ Richard K. Lewis Assistant City Manager Airport Manager c ~~w~~o=ne C=&la, :~~. Ocala Airport Advisory Board Home of the Florida Em~rgency Training Facility . JAMES R. HERfllTT . 567 RIVERSIOE DR P!,U~ BEACH GfJlDENS. Fl33~'O H^WTHonNE PALM BFACH .. UR PAUL U. SQ-{WEIT7ER Gr:NEML~^N^GER 11600 AVIATION BLV'O.. . ..,VEST PAL M BF".AGH. Fl 33~12 August 5. 1995 DrAR PAUL . SOMETIMFS worms SPOKEN DO NOT CONVE"Y THE FULl. INTENT OF THF MF5S.f\GE WI tEN IT IS DH.IVERED. PlEASE AllOW ME TO TAKE THIS OPPORTUNITY 10 . HANK YOU AG^lN FOR THE EXCFll ENi SERVICE Wl t1CH YOU AND YOUR S T Af' FPF10V\DH ME:. A.S YOU KNOW A.N AJRCRAn: IS A MAJOR JNVEST~FNT FOR MOST PEON. E A.~D MMtY TIMfS HOLDS A LARGE SEN"TIMENTAL VALUE. DURING A TIME OF MAJOROONCER.N yOU A.ND YOUR 5 TAfT WD1E THEf1F n IS NOT ONL Y THIS "TIME YOU HAVE SHOWN WIIAT GOOD SERVICE IS ALL AOOU'T nu 1 SINCE HAVE Bf.EN ONE OF YOUR CUSTOMERS SINCE THE FIELD OPENED THE SERVICE:: OF YOU ANI: YOUR S 1 Af'F IS SECOND .0 NONE. To kz."L J ~y Af"PRE'CIAT10N. 1J.f A vk.- Vf cr0 {:.&L l1 O1JL ~~ AtJ"O '~(ft1D"J. 1)J~ uP ~O M I ~ Sf::o/\~D ~ . ~OUL-h ~E" u&t-f1 R{'!vJ~-a~ (rJb-. ? ~,... SINCEREL Y. ~ . G ~f~?~c.=~ ~ . . GENERAL AVIATION TECHNICAL SERVICES, INC. P.O. BOX 73 · LOCK HAVEN, PENNSYLVANIA .'17745 · 717~74a.93E Februa:y 3, 1992 Hawtho.:ne Dulles, Inc. Washin'}ton Dull.:s Int'1. Airport P.O. Bc>x 17089 Washinlj.to~1, OC 20041 Atten: Mr. Dave Brinson Dear Dc lve : On behHlf of Er lC Leaver of Aero Mercantil S.A., General Aviation 'fechnkal Services, Inc. of Lock Haven, Pa. and myself, I want ':0 thank you and your people, especially Dana Javadp< lur on th,~ great job they did for the presentation of the Ga, 'ilan. We feeJ t.he pre:;entation provided the answers to many questic1ns regaJ:<iing the over all program. We think at this time tIe Gavilan will continue into production, however, that decisicn \-,ill bH made at a later date. Tnanks again Dave. If you are in the Lock Haven area any time please feE!l fn~E! to give me a call. ~egaI'ds: .; ~. ,~ erry 7.. ~~:. Consultant to m.TS, Inc. JLW/rrrne ~--- ... -- ... ., . iATlONAL ASSOCIATIOr ~ JF FUGHlINSTRUC1O~ i .lack J. fQgapuehler. Pn:aident Bemanll\. Geier. Executive Director Wallhl"llton Office . 502 J Po_II Road Falrfa". Virginia 22032 (703) 323.11763 Ollk> State {Jniwerslty AJrpol'1 8ax 793. Dublin. Ohio 43017 (614) 1189-6148 August J.:~, 1992 David Br.~nE;on ,General Manager Ha~"'thornl~ D'..1llE:E;, Inc. Washington Dulle:s International Airport P.o. Box 17089 Washington, D.C. 20041 Dear DavE!: . You cert,Linly are aware of the critical nature of trying to bring busy people together for meetings. Such was the case yesterday with our E~ecutive Committee of the National Association of Flight Illstructcrs. As it turned out, we had a very productive day. Dave, yotlr facility is truly magnificent. What a credit to aviation. Our service and handling was as professional as I have ever expE:rienced. Thanks to you and Dave Teetor, we managed to significc.ntly advance our goals for the association. If I can ever retl..rn your great favor, I certainly would jump at the chance. Sincerel~ yours, q~/' ~ck J. Eggspuehler JJEjsks cc: Dave Teetor Berr. ie Gei.~ r Ral~h Nelso:1 . rJ . US Deportment of Transportation Federal Aviation Administration The Administrator August 24, 1995 Mr. Thomas E. Zollars General Manager Hawthorne, A-B-E 600 Hayden Circle Allentown, P A 18103 Dear Mr. Zollars: Thank you for your hospitality during my visit to Allentown yesterday. I appr~ciate the high level of service that your team provided; you cieariy run a first-rate operation. . I had a very productive visit to the Allentown area, and am very optimistic about future opportunities for the Lehigh Valley International Airport. I enjoyed talking to you at your facility, and I look forward to my next visit to Lehigh Valley. I wish you the best of luck for continued success. Sincerely, , .' . . . i ..:? I#' " (tcC~'!:c C/../..i/ G/,Y'yJ or0 David R. Hinson LETTER FROM DAVID HINSON ADMINISTRTOR FOR FAA . -. QII Gulfstream Aerospace Corporation P.O. Box 2206, Savannah, Georgia 31402.2206 Telephone: (912) 964.3000 Telex: 546470 October 12 1992 Mr. David Brir:.son, General Manager Hawthorne A "i ati on \Vashingtor Dulles International Airport P. O. Box: 7089 \V ashingtOI i, DC 20041 Dear David: - . On ~half of Gulfstream Aerospace, I would like to thank you personally for allowing us to display 3ur Gulfstream IV -SP and Gulfstream V exhibit at Hawthorne Aviation. l'he response we received from our guests to our new products was overwhelm ng. The number of visitors to our exhibit greatly exceeded our expectations. Being the first stop or our introdJctory tour, we were expecting some minor "opening day" gli~hes. Thanks to the professionalism of your crew everything went better than we could have expected. I'lea;e pass along our regards to Jenni, Christina and Michelle for their understanding md hetl' with getting people into the hangar. Also, please let your line crew know how much we al'preciated their help. I certainly hope everyone had an opportunity to tour our I:XhlbiL Tha 1k you agam for your support during our stay in Washington. If there ever is anything I can do for you here at Gulfstream, please don't hesitate to call. Sincerely, ~:s-~ ~.~ James A. G 11l:1~hcr Direi.:tor, M lrkl.~ting Strategies J AG/alt . -. !II n COLE ~~?!~~ INC.~_~ . I/, \. Stroudsburg, PA 18360 . .. -~ 717 -992-5544 5/8/96 Mr Dean-Harton, Presicent Hawthorne Corp. P.O. Box 61000 Charleston, S.C. 29419 Dear Dean, My name is Brad Cole and I operate Cole Aviation, inc. based at ABE. We are a Part 135 operation with two King- airs and a Lear 35. We have been based at ABE since 1984. The purpose of this letter is to compliment you on the Hawthorne FBO at ABE. In all the years we have been based there this one is the best. Special recognition should go to Torn Zollars who put this team together. In addition to just plain good ser- vice Torn has helped us complete some flights with special handling and late night maintenance that would not have gone otherwise. . Dean, don't mess-up and lose this guy and keep up the good ""ork. -"'"t ,,!,~ !\\; .rl - i.'t-\. t\,~ C:i.Y'ii ,,~: . . ~ ,'Ut}S; ~'. \...:'~--::,. .~ . :. . . fRl~D B. SI.tOCUM -"--- ~ l81.^KI:!"If)f: D~I\'p.. N('ITII PAU.1 BEA('U. FI~ 334-08. 407-626-7382 .-"=AX: 4(l7-h.16-"l3$.~ AugU!ll 1. 1994 Ann: l1ctl\'t'al Manager Ht1wtlw01C' Avialilm 11000 Avi..timl Blvd.. BlIiltling 11600 WCf'l P"lm Bcach, FI. 33.H7. Dear 8;~: I apologizC" [l,r n(ll sending this lcHcr sooner hut I have heen ilW.1Y f,'r lItE> r.'Jfl\ m('11lk Appwxim;'llcly 5 or 6 weeks ago, 1lamll.J al tllc new N(,rllt Cnunly f."\dlu)' hl ll'Xlk t1flnmJ ;,n,1 wa~ uncxpcdcdly delayed due' 10 S("\'CIe wcalhc-r in the aIea. Your hne manager, (I bcliC'\.(' hi!! llinnC was GC(lfg(.~), Wt1P (In Juty and he wenl ah(YVc and hC)7cmd llle call of duty l,' apI"'" n\('. Dunng a t"lTenlial I.lin ~llld ilmnJCllllonn, l,c rCTSClnal1y nlClvcJ my air('I"fl \" the line :mJ 1ICC\ll"rd il with lic Jpwns becaUl~e he was conccmcJ ahout it, not bc-catl.Clc I :IF-ked him. I suhsequenlly {,"ltlT\d out that he W,lII gelling off w,lrk but etayeJ to securc 111Y aircrdft. whC"1l I,.. come' hl'l("k in \hc lC'nl1in<ll, floi\kcd I migl\l aJd, I thankctl bin\ alld hied to give \li111 a grilluily folr l1ifl scrvi.:cs hul he rcfU!ll..J to lake iL 1 was so irnprC1l9cd with this gcn~1(,Il1;m'8 lll<"l\glllf\\IIl(~~ :'\l1l1 JC'tlkatic\O to his j(1b. I had jU!;lt ]("ft PBI and so didn't ('\rcn need fuel, but lllill (hdn', m."lUct \..l (J{'("lrgc. Ill.wc ullcd H.lwt h,'rne .'11 Gwinnclt Cmmly Georgia (r1f' 9t"\1CTi\l yearp And havE' .,lw,'ytl lWt'" fl.,liflfi"d ...ah the IlCMC€! hul n('l1lC! of i\ Cinl m<tlch ll,e service 1 received at Y("Iur fcH,'ilily. If I\,ip is typicoll of thc scrvkc one could expect al Hawtlu'nlc Palm Beach, I will scriou!';ly Ctl!1siclcr nH'T\.'ill~ myaircrah \0 y,"It\I facilily whcnlhe airport gels its U.s. J vcry m\1(.-1, hI:!," lhat Yl1U win pass this letter on lo your C'l"Irpllralc Hc-:Hlq"'1l1crs. 1 w(.ul,) ~('n.l lhen a copy bu1 did n(\1. know where they Olre 10C",lf,d. FROM:KDNICR ~HX IU. .---.-.---- -i. sAMARETAN ~- Mark 1 Jnyw'lUd Flig.ht Ops. Cuol'dina\or- 5\umori'an Air Snviccs T mOI"O ()J\1m.in.Cnnadil Umd (jusun~y(.'r l icncr;tl Mi,".I~.l.:r Iluwthonll: Ocah\ I!\(: . Rcgn-lI}"lnr hdJ (k;;tIR. FllJri,~a Dc:u Hr....t . I wmild like \1.) lake thi.. opportunity to pcn;~.mally extc:nd our c:omf\Ctnic~ lhunk~ t(l yllU 41nd vom sl:ltr Ii)! the- out~U1nding service provided on Tue~ay, 'Nlwcmhcr s. ^~ )lllU will r~<':lll\. u disahku King Air was blockinS Rwy 1&136, with t'lLr M\I-2, 45 minlltcsuut frum lhl. rlclll K"nwi ng thi!' night wotS a mcdicu\ t"vncuntion flight, .md th<\llimc is \If the 6:-'L'flCl,.: tllT :illch nights. 1 wmlld like to commend. in pnnicllh,r, Mike (.ns~Y for hi:,> quick lhillkin~ tn iIlf('lrm tnysdf n~ well us Jac.ksonvilh: Approach nf t\l~ ~illlati"Il, Ilis pm- <il:\ivL: dl:cisiull ntH ..mty hcl~J tel dc:fL1SC: i\ potentially costly silun1inll. hut in wrl' rrnvld~J It:' ..... ilh :l smooth transition, Once again. tMnk you fur yom US!;;~tam.c. :Il'ld kc.::f' up thl: p.()()(\ W~)rk 1.~)('\\O;in~~d \0 doing businec;.~ with yClU, /- "...-:/; ~ (-----/' ,~1E-~&C ,~ ," _" r~ ' .' - ~ M~lrk llavw~lllJ . SAMARIlAN AIR SERVICE LTD.. Toronto. International AIrport 2450 Derry Road fast. Hanasr 9. Bo~ g. Mississaugs. Ontario LSS 182 . . _ _ __ ...._.. r' .,..,..,u,'" mnc\ ~ 7~_ ~,?D nPH~ATln^,S (905) G7?-90DD t-t<Ul"1'~UNI'-t-t rH" lFAX I Dot~ 12115/95 i. I Nllmbrr of p/!'1!8S In~/lIdl"K C'Ov~r shur I TO: Mr. George Lucas Hawlhrone Den/a, fnc. Ocala Reponal Airport . J 200 S. w: 6o'h A \010. OcaJa. FL J4./7-1 FROM: Thomas s. Redm~rskL 43 Brookside Lane Mansfield Center, CT 06250 Phone Fax 1.904.237.3444 1.90./.237.24 JO Phone Res. Fax Res. Phone Bus. Fax Bu.t. J.860.429-/U82 1.860.429.4800 J.508.384.7811 J.508.384.8j54 Ice. REAfARKS: o Urgmr o For your review o Reply ASAP o Please Comment . On December 14, 1995. a fellow pilot and myself were flying a recently purchased Mooney M20E N6984U from Sarasott1 to Connecticut when we experience complete electrical failure in flight about 10 miles south of Ocala. Having been on an IFK flight plan, we immediately located the a1rpon and made an unscheduled stop. Upon notifying ATe of our safe landing. we. requested you companis maintenance dep~rtment to advise us of the problem Ron immediately took the aircrdt and after s. few hours informed us the alternator failed. This Along with a few other problems he and Ed found on the Wrcraft prompted me to - Conlact The Mooney Mart in Venice (941.4&4.0801) to discussed the situation. The Mooney Man agreed to accept responsibility of the repairs plus any additional repairs Ron and his staff thought necessary. Your entire staff the line crew, office personnel, and maintenance crew wer~ courteous, prompt, and extremely helpful in aiding us to deal with our problem. I have never encountel ed an FBO that took car~ of a maintenance problem so quickly and professionaUy. You should he proud of your entire staff Please relay our thanks and gratitude to Ron and Ed. They are truly profess.ionals, and made e. difficult SilunIIOn a pleasant one. I certainly wish your FBO was located near Connecticut You cert&inly would get all efmy business. Having returned yesterday in a snow storm and 140 F cold, you may see me at your facility next December for t 11[" ltnnual inspection. Sincerely, I -~ /2P . ~,,~7~ ~~...~....: :..::~.;:' 'Z.o 0 ..~<~,o;"':~~.:.."~=--: :....~t:~~~~~;!.:--:. :.~ l .~.. ......:;~....-: '.:-'. .:,....., -..-':' -. (io *ougn the prof~ionaI.s_. I ~tl s&:, tlit WOT!ri... I- I January 30, 1992 Mr. Davi.d Brinsoll Hawthon.e Dulle:;,. Inc. P.O. Eo}: 6G8 Herndon. V::I\ 22070 ~ Da,'idj~ I 'WOuld liJ~e to thank you and your staff for. all your efforts to make OUI:" SUp:}::txJwl Carnival Airlines charter a great success! I will : .CXJk forward to working with you in the future' for any fort.hc<Jr dnq char.:ers 1 . warmest regards, I. ~ ..ld~.: ~(f)/.../.Le.k,) Ui'7f~'2'/)Z('9-.j) Beth Au~ ler.:!.IlOS, (~ Herndon W:>rldwi.de Travel . . GEORGE C. DOUGLAS, JR. ATTORNEY AT LAW 2112 CROSSRlDGE LANE BIRMINGHAM, ALABAMA 35244 TELEPHONE (205) 9R7.8522 August 6, 1994 . Ms. Sue Knauss Senior Customer Representative Hawthorne A-B-E, Inc. 600 Hayden Circle Allentown, Pennsylvania 18103 Dear Ms. Knauss: Thank you for your nice note recently. We enjoyed our visit to Allentown and eastern Pennsylvania very much, and appreciate Hawthorne's hospitality and service. Your line people made us feel like we had landed in a Gulfstream instead of a Bonanza. I noticed your extensive library in the pilot's lounge, which I expect your transient corporate crews really appreciate. We will look forward to another visit next year. Sincerely, ~~1>t-.f. George C. Douglas, Jr. . r _ II("'~ . ~o-- ONE AVIATION A COMPANY OF AIR REGENT INVESTORS, INC. j~di 2H, 1 ~94 ~r(\:u ~~!::;.-r. Mao~ li~'~\'thorne ARE. Inc ISDO H.;lY~:U Cj[~k AHento'l,\.'D. PA 18103 D....ar Tom; . I wy;te tn compliment )'00 and your staff: We arrived in our Merlin very lale in the evening last SUa1d~ and were greeted by an enthusiastic sta1f. '\\'hen 1 asked for helv with accommodations ~tlf'. from your stafi'got involvcci. It was very impressive to heat' she had pen>onatty visited the f~ijities she r<<'O'_'tJm?nt,le.d. It also made things easier to learn Hawthorne had arranged a crew l-ale ~-b~ntjaHy bei()....~ '!lCi'mrJ holel rcm-s. Everyone our party came in contact with from -gc.-cedes :it the frO!rt de~k ta th~ !le1"Sc:1 !hat &rove us to the ddi were a ple~t!..rt:. : ~i'-'~;:; to] return s\'lDn artd pi(;k Hp.....h~rc we kfi off on our fishing adYenturcS. }il=1rJ~ ag;!ir'l /J . --.. ~v~ #erry~oo . ST. PAUL DOWNTOWN AIRPORT. 515 EATON STREET. ST. PAUL, MINNESOTA 55107-2474 AIRCRAFT MANAGEMEf"T. CORPORATE AND PERSONAl. AIRCRAFT TRAVEL 612-227-7801. FAX 612-227-5448 ft- "':1 . 'if .:....f.J'X. '-'.g ,:._~. ~ ,).. . -. ". '. . .~' .' - . .;,-. . ;" -\. "\ ,. INTERNATIONAL, INC. August 22, 1992 Mr. David Brinson General M mager HA WTHO:~NE DULLES, INC. Washingtol Dulles Intematio lal Airpor:: P.O. Box 17089 Washingtor, D.C. 20041 Dear :Mr. I.rinson: I would pel sonally like to thank you and your staff for giving us the opportunity to use your facilities wllich provic.ed our students real-world experiences in conjunction with our training program. ] ~o amouIlt of classroom exercises can give the students the background that role- playing can . Being in a ~ er\'ice-orit:nted business ourselves, we truly admired the professionalism afforded to us by YOl I staff. ] "NouId like to convey a special tha.nks to Bill Sneesby, Bruno Potesta and the rest of your staff. The assistance they provided Skip Flanagan, our Advance Team and the Protective r 'etaU went above and beyond the call of duty. The service provided by your entire staff was tnly :ruperio:~ in every respect. Thank you 2gaiJl for y(mr assistance, flexibility and responsiveness and I hope our visit did not unduly c1isru Jt your oJX:rations. We at Alexis iook forward to having the opportunity of working with you agiLin. Very truly yours, .'.... r C 1. ' ~.;,., "'. . ) . ~~ (tu...t.I ~ --.eF~~{)"" .J TERRENCE R. DOUGLa..; President TRD/leb . '.-. j 'W ~.....-\. ~....4 ~& ....A. ""-C. ~ (Jl. u ...Ie c......L J..~ - I - ,F ...'" e) . . . IA...., .; i.1 . ~. _ . .c....- ~ - '- ~.' ....:::~ L-I~(\:-.1 ',' , .' I, )-'1 ('. :l_i'-ji-I U (I ;.- .- . . . RELATIONSHIP OF HAWTHORNE COMPANIES The first Hawthorne company, Hawthorne Aviation, was. fonned and incorporated in Charleston, SC in 1932. In 1941, a Government Contracting Division was fonned, and later a number of additional enterprises were begun or acquired.. In 1984, Hawthorne Corporation was fonned as a holding company and the various divisions of Hawthorne Aviation were incorporated as subsidiaries. In 1990, in a transaction that did not change ultimate ownership but affected only structure, the holding company concept was abandoned, and the individual subsidiary corporations, including Hawthorne Services and Hawthorne Aviation, became personal holdings of the Strickland and Harton families. There are now eighteen operating corporations and a number of partnerships that are owned by the two families and operated under the umbrella of the Hawthorne group of companies. As part of the 1990 transaction, Hawthorne Corporation was refonned as a management company responsible for the operation and oversight of all Hawthorne entities The Hawthorne group of companies consists of the following: . . Hawthorne Corporation . Hawthorne Services, Inc. . Hawthorne Dulles, Inc. . Hawthorne Lakeland, Inc. . Hawthorne Aviation and subsidiaries: - Hawthorne Airport Services - Hawthorne Ocala - RES associates of Georgia dba Hawthorne Gwinnett (51 %) - Hawthorne Palm Beach - Hawthorne A-B-E - Hawthorne Aviation - Queen City - Hawthorne Aviation - Rhode Island . Hawthorne Investment Banking, L.L. C.y. Hawthorne Properties, Inc. . Hawthorne Country Club Properties . Louisville AvCenter (Joint Venture) . Atlantic National Corporation . Trident Group Partnership . Wakendaw Place Corporation . 11- 1 1Iawt~llrne . This proposal is being submitted in the 'name of Hawthorne Aviation. It is Hawthorne's intention to form a new corporation of which Hawthorne Aviation will be the sole stockholder, for the purpose of managing and operating the FBO. The new company will likely be named Hawthorne Clearwater, Inc. Hawthorne Aviation will remain responsible to the City for the new company's contract performance. The company will be managed by Hawthorne Corporation, and melded seamlessly into the Hawthorne Aviation system ofFBO's and.airport management operations. . . II.2 ltawt90rne . I I . . . ---"--~RANGAJ:f-7 of" ."'n~; nlft ililn nil! \ i\\~\\ i\\~\l !Inr '\ 1111 11111\1111'1,. i III IIW" , 11'1\1' 1\11\ I \ .111 ~ I ,- ... "., ; ~... '" ~ .~~~~-~,-~ w..LL ,', .. ')11 ....:. '---- A-B-E, Inc. Hawthorne PA Allento\vn, . SERVICES DESCRIPTION . It is the goal of Hawthorne to provide the Clearwater Airpark with a first class general aviation operation. Because the operation is located in close proximity to our other .. Florida operations, it will receive maximum attention from senior officers in the organization. Hawthorne will hire employees and managers of high caliber and experience and train them in all segments of customer servic.e, operational procedures, and safety. Moreover, Hawthorne will provide an organization that supports the aviation community with a variety of services. Initially these services will include aircraft handling, fueling, and aircraft storage. Hawthorne's "Concierge Service" will be provided by the on-site staff who will be trained to be responsive to the needs of pilots and passengers. Services include arranging transportation, making hotel and rental car reservations, providing business services, and otherwise being available to act as a customer's liaison with the local community or the aviation industry. A detailed description of services is included below: . Customer Relations The basic policy under which all customer relations at Clearwater Airpark will be controlled. is to provide the highest quality and most timely service through proper and safe management of men and materials. To do so, Hawthorne feels it is necessary to establish policies and procedures that would relate directly to the employees to motivate their handling of customers. These policies will include: . Management will be familiar with the services being provided and assure employees represent the company in a fair and equitable manner. . Management will give attention to employee problems before they affect customer relations. . Management will recognize the responsibilities of individual employees in their assigned areas and assure they strive to maintain good customer relationships at all times. . II - 3 1Iawt9orne . . Manpower will be fully used to ensure all customers are allowed the complete services oftheFBO. Aircraft Operations and Ramp Management (Line Service) It will be the responsibility of the Lineman to coordinate all aircraft movements, equipment requirements and employee actions for all services on the airport requiring Hawthorne FBO involvement. Specifically, these are as follows: . MEETING ARRIVING AlRCRAFT. It will be the responsibility of the Lineman to assure that all aircraft are met when they arrive. Using procedures spelled out in the line manual, the lineman will use available space to park all aircraft. . MARSHALING. In conjunction with meeting arriving aircraft, the lineman will marshal all aircraft to their parking positions by hand signals. These hand signals will be part of the training program in conjunction with the line manual and the Exxon Line Training Course, and are the same hand signals as depicted in the Airman's Information Manual. During the training program, all linemen will be made aware of wing tip and tail clearance limits to properly direct each aircraft with the emphasis on safety. . . CHOCKING. All aircraft, after they have been marshaled into the appropriate position, and after all engines have come to a complete stop, will have the nose gear chocked, both for and aft of the wheel, to assure that the aircraft will not roll. Chocks utilized will be composed of a good quality wood approximately one foot long and cut to the triangular shape. During times of inclement weather, both main gear will be chocked, and not the nose gear, to assure the aircraft does not move due to gust wind conditions. Whenever possible, aircraft will be tied down or hangared if winds exceed limits stated in the emergency procedures section of the policy manual. . GREETING THE CUSTOMER. Since the lineman is the first contact the transient customers will have with our operation, it is important that all employees be trained in not only greeting the customers in a friendly and courteous fashion, but also be prepared to answer whatever questions they might have about services available. . BAGGAGE SERVICING. All line employees will be trained in handling and caring for personal luggage of passengers and crew arriving at and departing from aircraft on the flight line. . OVERWlNG/CENTERPOINT FUEL SERVICE. Following FANIndustry safety procedures, overwing and centerpoint fueling require specific knowledge of the type of . 11-4 Bawt90rne . aircraft, type fuel, and specific fuel systems on each aircraft. UtiliZing. the line manual training course and the Exxon course, all line personnel will be certified' on all procedures prior to commencing fueling of aircraft. . OIL SERVICING. Line personnel will be responsible for engine oil service whenever requested. The Lineman will have the responsibility to assure that oil stocks and oil storage areas are serviced with the quality and quantity of the type of oil necessary for aircraft transiting the general aviation facility. Furthermore, each individual lineman will be trained in the particular types of oil and their compatibility with aircraft and other aircraft engine oils. . AIRCRAFT INTERIOR AND EXTERIOR CLEANING. The line employees will provide exterior or interior cleaning as an additional revenue producing service of the fixed based operation. Interior aircraft cleaning will consist of vacuuming, emptying of ashtrays, bulkhead and interior upholstery cleaning. Exterior cleaning will consist of complete top to bottom wash, utilizing high pressure hoses and aircraft approved soaps and solvents. Special emphasis will be maintained to assure that critical systems are not inadvertently harmed due to the ingestion of water and cleaning materials. . · TOWING AIRCRAFT. Towing will be allowed on all ramps and in and out of hangars. No other towing will be conducted unless approved by the General Manager. All personnel designated as tow qualified shall have completed that portion of the line manual and be signed off by the General Manager. Training in towing aircraft will always have special emphasis on wingtip clearance and vehicle and aircraft movement safety. Customer Service Supervised directly by the General Manager, the FBO will be manned 14 hours per day. Customer service will be the primary goal and the following functions will be coordinated by our Customer Service Representative/Bookkeeper and the Linemen: . TAKING ORDERS FOR FUEUSERVICE ETC. The primary function of the customer service desk is to coordinate all fuel and service orders with the line department. Assuring that each customer makes the request as accurately as possible for fuel and other services, the customer service desk will then relay to the appropriate line service employee the quantity and type of fuel necessary and the time frames needed to complete this function, i.e. quick turn or fuel at a specific time. · SECRETARIAL SERVICES. Secretarial services may be provided when requested by the customer. The customer service desk will be the scheduling center for whatever - . 11-5 1lawt~tlrne . functions are necessary. If necessary, the General Manager will arrange for temporary services when in-house secretarial service is not available. . TWO-WAY LINE COM:M1JNICATIONS. The customer semce desk is the communications center for all service performed by the line department. Utilizing the equipment available, they will have continuous communications with all areas of the flight line during primary operating hours. Through this medium, Hawthorne will provide immediate service and response to all customer requests, and as a secondary function, provide a communications net that will enhance the flight line safety program. . CUSTOMER INFORMATION. The customer service representative and linemen will be available to provide information to the customers on different services in the Clearwater area. Some of this information will include: . Availability of hotel rooms. . Availability of transportation off airport including limousine service. . Tourist attractions. . Location of government offices and major business centers. . . Availability of catering. . :MESSAGE CENTER. The desk will receive and on a timely basis forward all messages to waiting crews or passengers. A message board will be maintained in a conspicuous place to post messages when people are not immediately available. . ORDERING CATERING. As an additional function of the communications center, the customer service representative or lineman will arrange, upon request by the crew, catering of the quality and quantity requested. A detailed menu from several catering or restaurant organizations will be maintained for quick reference by anyone requesting this service. It will be the responsibility of the desk to assure that catering arrives in a timely manner. . RENTAL CAR AVAILABILITY. Rental cars will be available 14 hours/day at the FBO terminal through a cooperative agreement to be established with the local office of a national rental car agency. The customer service representative or lineman will process the rental transaction and arrange for vehicle availability . 11-6 ltawt90rne . Building and Ramp Security The General Manager of the FBO will be desi~ted as the securityinanager for all FBO security functions. As security manager, it will be his responsibility to assure compliance With the Hawthorne Security Plan by all company employees. The Hawthorne Security Plan will reflect the specific procedures for ramp control of all of our assigned areas and the proper conduct of employees so designated for work on other airport areas. In additiop to our plan, the General Manager will be responsible for training and certifYing that our employees comply with the current Airport Security Program. He will maintain a copy of Federal Regulations with all amendments and changes. Training and certification for Hawthorne employees will consist of the following: . Review of Airport Security Program. . Confirmation of five year background check. . Control of ramp/hangar entrance ways. . Escort requirements for passengers and crew to aircraft. . Protection of customer's aircraft from unauthorized entry. . . Movement of line vehicles on controlled areas of the airfield. . Emergency procedures. Disabled General Aviation Aircraft Removal Hawthorne's General Manager will be responsible for removal of all disabled aircraft. He will designate a Lineman as an assistant. During all duty hours the General Manager will be available for recovery of any aircraft from the operational areas. The following procedure will be adhered to whenever feasible. Recovery crews will consist of the General Manager and two helpers. Each individual will have specific duties and a working knowledge of all positions. Recovery crews will be augmented at the discretion of the General Manager with available personnel from line service. Notification of the disabled aircraft will be through the FAA and the central dispatch/reception center at the FBO. No member of the on-duty crash recovery crew will be assigned additional duties which would preclude a 15 minute response time after notification and verification. . 11-7 1Iawt9orne . After his arrival at the accident site, the General Manager will keep his equipment well clear of the aircraft until assistance is requested by either medical or firefighting control representatives or until aircraft has been released for recovery operations by proper authority. He will also evaluate at this time the extent of recovery operation and mobilize any additional manpower and/or equipment required for rescue or recovery. After release of the aircraft to recovery crew, manpower and equipment will be moved into position and runways cleared as quickly as possible. During the recovery, the FAA will be kept informed by the Manager as to the progress of the recovery and estimated runway open time. Facility Maintenance and Repair Hawthorne's General Manager will have full responsibility for all airport operations including maintenance and repair of airport facilities, not otherwise maintained by the tenants or the City. To accomplish the maintenance and repair mission in the most cost effective manner, the General Manager will utilize his line staff for routine and minor repair functions and judiciously subcontract specialty tasks. In a manner consistent with sound airport operating and safety practices, Hawthorne will: . · Visually check for, clean and remove all foreign objects from the runway and taxiway on a daily basis. · Inspect all paved areas for damage at least weekly and following severe weather occurrences. · Inspect daily all navigational aids (NA V AIDS) and visual aids available including, but not limited to: Runway lighting Taxiway lighting The rotating beacon The wind sock Visual approach slope indicators · Provide regular surveillance of the airport perimeter fencing and gates to insure structural integrity. . Inspect all signage located on the airfield to verify readability and satisfactory condition. . 11-8 1Iawtl;tnrue . . Inspect the Airpark semi-annually for compliance with the Airpark Rules and Regulations. Hawthorne will maintain and repair (structurally and otherwise) in a good, workmanlike manner and/or enforce the obligations of any tenant to maintain or repair in such manner: . All paved areas to include: Sweeping of accumulated gravel and debris. Routine inspection for damage. Coordination, inspection and acceptance of major repair or renovation projects. . All perimeter fencing and security gates to include: Routine inspection for damage and integrity. Lubrication of gates, locks, and other moving parts. Minor repairs to webbing and posts. . All airfield lighting, encompassing runway. and taxiway lights, approach lights, and lighted markers, to include: . Inspection to ensure proper operation. Replacement of burned out bulbs, damaged light covers, transformers, etc. Touch-up painting of light mounts as needed. . All airfield grass areas not otherwise assigned to tenants to include: Mowing as required so that height does not exceed 6" or obscure visual airfield aids. Application of growth retardant around airfield lighting, signage, etc. to provide mowing control. Removal ofloose trash and debris from the airfield operating areas. Maintenance oflandscaping in and around the tenninal area. . All airport buildings and structures assigned to Hawthorne including, without limitation, plumbing, electrical, and the provision of janitorial services as required by normal use. . II - 9 1Iawt~orne Contracts with Third Parties . Hawthorne will perform all obligations pursuant to eXlstmg and future agreements with general aviation tenants and concessionaires at the Airpark. All obligations pursuant to agreements with governmental entities, ~cluding the Federal Aviation Administration, will be performed. In addition, Hawthorne will negotiate all new leases and agreements or renegotiate existing leases and agreements as necessary. Hawthorne will develop and prepare written documents in accordance with applicable federal, state and local laws, rules and regulations, for the procurement of such aviation and related services, equipment, materials and supplies as may be necessary or desirable for proper operation of the FBO facility. In connection with the solicitation of proposals and negotiation of such leases, concessions and other agreements as may be necessary or desirable for ,the proper operation of the FBO facility in accordance with federal, state and local laws, rules and regulations, Hawthorne shall implement such programs and courses of action in conformity with applicable law and procedures. . Hawthorne will administer all agreements with airport general aviation concessionaires, tenants and contractors, including construction contractors, to: ensure full and complete compliance with the terms and conditions contained in such agreements; ensure that such agreements are carried out in a manner which is consistent with the proper operation of the Airport; provide coordination to avoid or minimize disruption of airport operations and services; perform or cause to be performed all obligations imposed on the corporation pursuant to such agreements; prepare lease abstracts; monitor the current status of agreements; and issue timely billing change notifications. Hawthorne will anticipate at least four months in advance, the forthcoming expiration, change or other deadline relative to leases, contracts and agreements at or concerning the FBO facility and will procure such aviation and related services, equipment, materials and supplies as may be necessary for its proper operation. Lease Negotiations Development of airport properties will require transaction and lease negotiations with tenants, developers, financial sources and others. Transactions and leases will be structured in accordance with established government policy. Transaction structuring and lease negotiation will be an intimate part of the process in bringing new business activities to the airport. Negotiation and structuring will also be required when dealing with private developers interested in building on airport facilities, and with underwriters of bond issues should the issuance of Industrial Revenue or other such bonds be involved in an . II-lO Wawt90rttt . airport development project. These are only a few of the possible areas where knowledge and experience of airport related leases and transactions will be a vital ingredient. - In the business development area, Hawthorne will utilize a program encompassing the marketing and solicitation of prospective airport tenants; negotiation of structure and. terms, assistance in financing, closing of the transaction, oversight of resulting building and improvements projects, and long term administration of the leases and agreements entered. Accounting and Financial Services In accordance with generally accepted accounting principles, consistently applied, Hawthorne will process airport receipts and documents, prepare montWy income and expense statements, and prepare quarterly income and expenses statements on both a cash and a modified-accrual. basis. Hawthorne will also balance and reconcile airport operating accounts, prepare montWy airport billings and accounts receivable reports. . In addition, we will bill all monies due to Hawthorne in connection with the FBO facility, including, but not limited to, monies due pursuant to leases, contracts, concession agreements, and arrangements with other persons' conducting general operations at the Airpark. Hawthorne will collect all monies billed and will collect all airport fees. We shall deposit on a daily basis all monies collected from the operation of the FBO facility in an account established for such purpose, disburse as required to meet expenses incurred pursuant to the Hawthorne Operating Budget, and process aging accounts receivable. Operating and Capital Budget Projections Prior to January 1st of each year, Hawthorne will prepare and submit to the City, a projected operating budget for the coming year. This projection will include all anticipated general aviation revenues, operating expenses, and capital expense requirements. Attendance at Conferences and Meetings The General Manager will attend meetings of the Authority as required and assist. as requested in conducting airport business. He will confer with the Authority and attend meetings with officials and other persons as reasonably requested by the Authority to discuss matters relating to general aviation. . II-ll 1Iawt9orne Miscellaneous Services . Hawthorne will cooperate in dealing with the FAA, and all federal, state and local agencies in all matters relating to the general aviation operation of the airport. We will provide technical advice on general aviation operations, maintenance and development programs.and projects. Hawthorne will actively encourage the investment of private capital at the Airpark and the economic development of the area in and around the Airport. Hawthorne will use its best efforts to attract such prospective tenants, concessionaires and users as may be desirable for the FBD facility. We will maintain the property and equipment records and prepare capital control inventories of all equipment, vehicles, machinery, tools and personal property situated at the FBD facility. In the performance of all activities related to the operation of the FBD facility, Hawthorne will comply with all applicable federal and state requirements regarding affirmative action and the utilization of minority-owned, women-owned and disadvantaged business enterprises. . . 11- 12 Bawt90rtle . . . . PROPOSED HOURS OF OPERATION The FBO will be open to provide fueling, customer services, and ancillary services continuously to the public 14 hours per day (7:00 a.m. to 9:00 p.m.), .seven days a week, including holidays. Hours of operation will be extended when business conditions warrant. . . 11-13 liawt1}orne -. DAILY SCHEDULE FOR MANAGEMENT AND STAFF General Manager Monday - Friday Linemen (2 FT, 2 PT) Day Shift Night Shift Daily- Bookkeeper/Customer Service Representative - - Monday - Friday . . II - 14 8:00AM - 5:00PM 7:00 AM - 2:30 PM 2:00 PM - 9:00 PM 8:00AM - 5:00PM 1Iawt90ntt . . I. . STAFFING PLAN Our professional staffwill initially consist of the following: - · General Manager . Linemen (2 full-time and 2 part-time) . Bookkeeper/Customer Service Representative As business conditions change, our staffing will be adjusted to maintain a consistent high level of customer service. . . II - 15 1Iawt9orne . . . .- SUPPORT EQUIPMENT To effectively establish a first class FBO, Hawthorne recognizes that all service and support equipment must be dependable, well-maintained and convey the concept of professionalism and safety. Ramp Service Equipment : . Tug (John Deere Model 850 Tractor) . Portable Radios . Universal Tow Bar Maintenance Equipment . John Deere Model 850 Tractor (Also used as a tug) . Woods 6-foot Grooming Mower . String Trimmer . Back-Pack Blower . Push Mower . Office Support Equipment . PC Computer . Printer . Fax Machine . Copier . Typewriter . Calculator . Miscellaneous Office Equipment . II - 16 .wt9orne . . . FUEL MANAGEMENT . Safety of personnel, equipment, and facilities, as well as aircraft, passengers and crew, is of primary concern to Hawthorne. The procedures described in this section are designed to provide all personnel who perform fueling operations with standard procedures acceptable for all types of aircraft operations. This information is provided to the City of Clearwater and the Clearwater Airport Authority to emphasize Hawthorne's commitment to quality control and safety in all fuel servicing. SAFETY PRECAUTIONS - The following procedures are standard for all Hawthorne operations and will be complied with by all fueling personnel. The provisions of ATA Specification 103 will be followed in its entirety. The only exception to these procedures is when there is a conflict with FAA regulations, in which case the FAA regulations, if more stringent, take precedence. . A trained and qualified person will be in direct control of all fuel unloading, refueling, and defueling at all times. . . Hawthorne personnel will depend entirely on mechanical safeguards built into the equipment. Thorough training, extreme care, and good judgment are essential for safe operations. A knowledge of the line shutoff valve locations, the pump motor contro~ and the tank overflow controls will be known by all line employees. . Smoking or open flames will be forbidden in fuel storage areas, m or around fuel pumps, and within 50 feet of fueling operations. . Fueling and defueling will be done in the open air. Under no circumstances will fueling take place in the hangar. Aircraft tanks will be drained of residual fuel in the hangar only after defueling has been completed outside. . Only equipment which has been approved by the General Manager for use at the FED will be used to fuel aircraft. . Before handling fuel at any storage or dispensing facility, not less than two 20 lb. BC Type fire bottles will be readily available to the line crew. Each fire bottle will be fully serviceable and. have a valid inspection tag. All employees involved with refueling aircraft will be familiar with the types, location and operation of fire extinguishers. . 11-17 1Iawtl)orne . . Fuel dispensing equipment _ will be operated with due caution to prevent injury or damage to aircraft and ra.rnp equipment. The Linemen are held responsible for any carelessness in use of operating equipment. . If there are overhead power lines near any tank vehicle which is being unloaded, care will be taken that no part of the vehicle, such as metal rods or pipes protruding through the dome, will come in contact with the overhead lines. . Since there is a possibility of fuel spills whenever maintenance is being performed on fueling equipment, maintenance will not be performed on any fueling equipment within 50 feet of an aircraft. . Fuel-soaked rags will not be carried in pockets and will be kept away from flames or sparks. . When servicing or checking any fuel tank on airplanes or ground installations, the lineman will make sure his breast pocket does not contain any objects such as tools, pencils, cigarettes, lighters, or matches that could fall into tank. . PERSONNEL PROTECTION - All fueling personnel will take care to prevent fuel from coming into contact with the skin, open cuts, mouth and eyes. The following actions will be taken immediately if an incident occurs: . Iffuel comes in contact with skin, wash thoroughly with soap and water. . If fuel gets into open cuts, mouth or eyes, immediately wash or rinse the affected parts freely with clear water and obtain medical attention as soon as possible. . If clothing is saturated with fuel remove clothing as soon as possible and wash affected skin with soap and water. FUEL VAPOR - Fuel vapor is extremely hazardous. All fueling personnel will maintain constant vigilance against leakage of fuel, either liquid or vapor. Whenever leakage is discovered, it will be stopped promptly and ample ventilation will be provided. GROUNDING - Whenever fuel is being handled, we will insure appropriate regulations on adequate grounding are observed. . II - 18 ltawt9tlntt . PRECAUTIONS DURING INCLEMENT WEATHER - During inclement weather when metal surfaces become wet and slippery, or whenever wind velocity is over 25 miles per hour, extreme care and good judgment will be exercised when overwing fueling is . being accomplished. . Anytime lightnIDg is discerned within 5 miles of the airport, the Linemen will suspend all fueling activities. FUEL SPILLS - Every possible precaution will be taken by fueling personnel to prevent fuel spills and thus eliminate the danger these spills present and the necessity for using the following procedures. A fuel spill is an accidental or abnormal release of fuel from the system. Any normal or unusual release of a few drops of fuel associated with a disconnect or other normal fueling operation will not be classified as a spill. Any time an amount of fuel must be cleaned up and removed from the area, it is by definition a spill. Established procedures must be followed to clean up spilled fuel and eliminate the danger of fire or fume inhalation. Safety of personnel, equipment, and facilities is of primary concern to Hawthorne, and these procedures are binding on all personnel who perform fueling operations. . Spilled fuel creates a major threat to persons, equipment, and facilities. All line personnel will regard a fuel spill as a hazard that is to be eliminated immediately. If a spill occurs, the person in charge of the fueling or maintenance operation shall take the precautionary and cleanup measures necessary. Environmental rules do not allow fuel spills to be flushed away. Hawthorne personnel recognize these restrictions and absorption of the spill will be accomplished by using one of the following: oil dry, absorbent pads, or blankets. FUEL STORAGE AND DELIVERY Responsibility for fuel ordering at FBO ~ be the function of the General Manager. Quality control will remain the responsibility of the fuel supplier up to the receiving point. Fuel purity and testing authority will be assumed by Hawthorne with acceptance at the FBO Fuel Storage Facility. The following describes the procedures that will be followed in storing fuel and testing for fuel purity . ACCEPTANCE OF FUEL Prior to acceptance of fuel from a supplier for storage, the following steps will be taken to ensure its acceptability: . . The type of fuel will be ascertained from load manifest and it will be determined that the consignee is the correct recipient. . . 11-19 1IawtQllntt . · The fuel load will be given the White Bucket check for contamination. STORAGE F ACILITlES The . following requirements will be checked by Hawthorne whenever fuel is stored in any facility. · No leakage is permitted in 'plumbing, valves, or filters; all exposed plumbing is rust free. · Ground wires and post are properly maintained. · "No Smoking" signs are conspicuously displayed in storage areas. · A fire bottle, in accordance with the National Fire Code, is permanently located in storage area. · Permanent signs denoting fuel type are prominently displayed at each inlet port, each outlet port, and at each pump switch. · The Emergency Shut-Off will be clearly identified. · The area is litter free. Waste cans are provided. . Storage tanks used for the storage of fuel will be inspected regularly by the Linemen. The Fuel Facility Inspection Form will be used to record this inspection. The following inspections will. be made by Linemen and confirmed by the Hawthorne General Manager: · A calibration of meters. · An inspection of tank vents. · An inspection of tank bottoms and removal of excess water (greater than 1/4"). · A change of filter/separator elements. · Leaks and housekeeping . II - 20 liawt90rne Ie . .. . EMPLOYEE TRAINING Recruitment Methods It is the goal of Hawthorne to provide the City of Clearwater with an executive class Fixed Base Operation. Hawthorne will accomplish this goal by hiring employees, supervisors, and managers of high caliber and experience and training them in all segments of customer service, operational procedures and safety. To supplement unsolicited resumes and applications, an active advertising program is used and directed at potential sources of qualified applicants. This advertising is initiated any time the master applicant file level drops below a quantity necessary to ensure the selection of qualified applicants to support known and future requirements. Specific recruitment for the Clearwater Airpark FEO will be supplemented by placing advertisements in local newspaper. In addition, each employee at our other operations will be a personal ambassador for this program. This has resulted in many qualified applicants in the past. . Hawthorne's external source for recruiting is the State Employment Service which has local, inter- and intra-state national job banks. and applicant infonnation. The pooling for these resources for filling job openings is without cost and permits us to meet various Affirmative Action Program requirements. The Job Service Veteran's Affairs Section maintains a comprehensive, current listing of qualified veteran by trades. This source permits us to employ personnel who have been trained by the Armed Forces who possess the skills, knowledge, technical expertise and supervisory abilities to effectively carry out our operations. We have designed our personnel programs so that we may achieve the fullest utilization of every employee assigned to the Clearwater Airport. These programs recognize the necessity for constant improvement of skills, with opportunities for employee recognition and promotion, resulting in long-term retention of a satisfied employee. This contract lends itself to the use of permanent part-time employees, and to job-sharing. We have found part-time employment to be especially attractive to persons in areas with large populations and comparatively few such opportunities. Job-sharing, another method for providing part-time employment, contemplates a "buddy system", where two persons agree to arrange their home schedules and share outside responsibilities so that each may receive part- time income. We believe that both of these employment programs will attract and maintain significant segments of our work force. . 11-21 .wt~tlrne . Professional and Technical Recruitment Our recruitment program for professional and technical personnel was established with Hawthorne's founding in the early 1930's. Our program is simple, yet it produces the quality of personnel required. To supplement this program, we use all of our existing operations to recruit and keep and ~ active file of all related technical and management personnel that might be needed within the Company and a pool of qualified applicants to respond to future new requirements, such as this solicitation. Each operation is responsible to the Vice President for the program, and, upon request, will recruit additional personnel to fulfill requirements. This method has worked very effectively for all past requirements of this nature. . We have in the past successfully obtained, by personal recruitment, the service of those key management personnel who have completed a career in the military or related industry and who have vast experience in the field and in management concepts. To further define the qualifications, our key personnel must have all served in parallel positions in aviation or related fields. We can assure the City of Clearwater and the Airport Authority that our management personnel for the FBO are not strangers to the Industry. . All personnel will either be personally recruited by the General Manager or Corporate Office or transferred from other contract locations. The standards and qualifications for selection are simple: . Recruit and select the best, most experienced, qualified management . personnel available. . Follow-on recruitment will be conducted continuously in order to maintain a list of qualified candidates should a vacancy occur. The same consideration and emphasis will be placed on follow-on recruitment as it was for the initial recruitment. The applications will be placed on file and updated periodically to ensure that we have a comprehensive listing of qualified applicants to fill the position should an unexpected vacancy occur. Employee Training and Development Our philosophy regarding training and development of our employees is a long-continuing program. Development starts with hiring. When we hire a new employee, they are hired for a specific purpose or to meet a particular goal. The objective is not only to fill an immediate position, but to have in mind the hiring of a person capable of taking on. additional responsibilities and growth. Therefore, a careful hiring process is the first start of development. . II - 22 1Iawt9tlrtte e- The training provided in any situation would depend on an assessment of the employee's potential, the linking of that potential with actual duties supporting contractual requirements, and the cost to support the training requirement. We will establish and maintain a comprehensive and aggressive employee trammg, development and upgrading program. To be included will be formal, informal and on-the-job training tailored to meet the needs of the contract, the individual and Hawthorne. Management Training Career development for the manager and his staff consists of a combination of motivation through the Incentive Plan and continuing education through the Management Training Plan. Our management at this operation will take advantage of all educational programs offered within the community that would enhance their expertise as managers and supervisors and provide them with an instrument for future advancement. . Specific training for our Manager at the Clearwater Airpark will be in two stages. The first stage will be a community orientation that will provide the Manager with an introduction into the business activities that provide the corporate aircraft traffic on the airport. The second stageofthe training will be orientation provided by the Airport Authority. This orientation will include a review of the goals and the portions of the master plan that pertain to general aviation activities. Additional training will be provided by Hawthorne corporate executives. This training will be centered on goals established by that office for the operation of the FBO. Total orientation for community airport and corporate programs are estimated to take no more than 30 days. . Line Training The line training programs consist of three separate training programs. The first program is a Hawthorne program that requires basic orientation to line service and completion of a workbook prior to the employee starting at Hawthorne. The second training program is a video tape flight line service course provided by Exxon Aviation U.S.A This program is completed by the employee within the first week of employment. The third training program is an on-the-job training program conducted by the General Manager, and is usually completed by the second week of employment. Issues covered include the following: . Customer Service . Safety . II - 23 Uawtl}orne .~ . Security . Vehicle Operation · Fuel Operations . Aircraft Identification . Towing · Emergency Procedures An example of a typical Hawthorne Line Manual is included as Appendix A Customer Service Training Customer service representatives and linemen are provided with an on-the-job training program conducted by the General Manager. This program requires approximately one week, and covers the following issues: . . Customer service . Telephone system . Products and Services . Line Operations . Security . Basic Bookkeeping and Accounting Other Training Additional training will be provided to all employees on the following topics: . Safety (regularly scheduled safety meetings) . Hazard Communication Standard · Blood-borne Pathogens . Confined Space Entry . Handling and Storing Hazardous Substances and Materials in Accordance with FAA Standards . Other, as appropriate . II - 24 ltawt90rne . . . i.' . ~. l-.! . .,(. ,,:,c :'. "\';~:~;."'"'w~~"~~,"" ':'~'i '~(;\\~~'~~"'J" A ~... --(: .~ {,:. :'~ ":C": ~~~'>~t~ . , --r'...._..... :-Ll\\Ii:l-~()rn,:::: i-.'_~-:: ;'::'; L c'LILl 2:=. [-1 . . . . PROPOSED GENERAL MANAGER: Steven P. Wilkinson EDUCATION CERTIFICATES AWARDS ACTMTIES EXPERIENCE 1996 - Present . 1991 - 1996 1988 - 1989 1989 - 1992 1986 - 1989 REFERENCES . Associate of Arts, 'Po~ Community College Associate of Science in Aviation Technology, St. Petersburg Junior College Certified Commercial/Instrument Pilot Air Force Achievement Medal Airman of the Quarter Air Force Association Citation March, 1993 April/June, 1988 April, 1985 Member Alpha Eta Rho International Aviation Fraternity Line Service Supervisor, Hawthorne Lakeland. Responsibilities include quality control, personnel and safety management, fuel and oil purchasing, staff scheduling, project supervision, inventory control, facility upkeep and coordination of maintenance on ground support equipment. Line Service Technician, Hawthorne Lakeland. Light maintenance of ground support equipment, ground handling of aircraft, customer service, and upkeep of facility appearance. Line Service Technician, Lakeland Air Center. Flight Engineer, USAF Reserves. Duties included pre- and post-flight of C 141B airlift aircraft, coordination of maintenance, performance of in-flight checklists, and coordination of Emergency Checklists among the flight crew members. Crew ChiefC-141B, USAF Reserves. Performed pre- and post-flight checklists, maintained aircraft maintenance forms, coordinated maintenance actions among the various shops and performed arrival and departure functions. Glenn Robinson Tower Chief, Lakeland Linder Regional Airport (941)648-3305 III-I 1Iawt~orm -. Gary Quill (941 )648-3299 Airport Manager, Lakeland Linder Regional Airport Justin Edwards (941 )648-3299 Asst. Airport Manager, Lakeland Linder Regional Airport Don Beaty (941 )648-1648 President, Executive Wings, Inc. Jeff MacDonald (941)646-8790 Owner, Mac Avionics Steve Glenn (941)647-5799 Chief Mechanic, Phillips and Jordan George Kahrs (941)647-5799 Chief Pilot, Phillips and Jordan Linda Hemmis (941 )683 -6177 General Manager, Advantage Car Rental Daryl Geddle (800)394-2767 . Policy Services Manager, L.S.S.G., Inc. ext. 361 . III-2 1Iawt~nrttt -e- e e ~. JOB DESCRIPTIONS General Manager The General Manager will be responsible for all operations at the Clearwater Airpark FBO. He will report directly to the President of Hawthorne or to the Sr. Vice President in charge of operations. As General Manager, he is responsible for providing adequate equipment, material, and trained/qualified personnel to operate the services of the FBO. He is the main contact with the Airport Authority, FAA, or any governing agency as it pertains to his operations. He is responsible for employee and customer relations. He will administer the contract and work with the Authority and its staff to assure that the FBO is managed and maintained in a professional manner. Line Staff The Line Staff works directly for the General Manager and is responsible for the following: . Meeting arriving aircraft and directing to parking area. . Proper chocking and tiedown of aircraft. . . Marshaling all aircraft out of the line service area and insuring proper wing tip clearance. . Proper fueling and servicing of aircraft (general aviation and air carrier). . Proper cleaning of aircraft. . Towing aircraft. . Any other miscellaneous services called upon to perform in service to the based and transient customers. . Facility maintenance operations (custodial and grounds) when assigned by the General Manager. . Collecting for products and services. . Providing customer assistance by arranging for catering, rental cars, taxis, hotels, tour guides, etc. . 1lI-3 .wt~ome . . . . . . CORPORATE ORGANIZATIONAL CHART I1I-4 . MANAGEMENT ORGANIZATIONAL CHART HAWTHORNE CLEARWATER, INC. . 111~IBilllilIII ;,;111..11111\ . III-5 . . . . ~ ...... ~ '-:.r . :q!.. ". . ~.:;:1;:},:": .' ..~~iI~;.~~~t~. H.,j ~...' c :1;.) ::- :12 \) L.1 ~ ,1 . i:)l.>l L ~'l , . . . . Financial. Proposal OVERVIEW In addition to proposing fixed and incentive management fees, in this section Hawthorne has set forth its recommendations and proposed approach to financial mapagement and administration. All proformas and incentive fees are based on our recommended approach. The company wants to make its position clear, however, that it is open to any financial management and administration structure that the City feels is appropriate. In the event an alternative structure changes the profit and loss projection indicated on the proformas included, only the incentive fee would need to be restructured. AVAILABLE OPTIONS Cost reimbursable contracts can be structured in a variety of ways. At one contract management location, Hawthorne invoices and collects 100% of all tied own, hangar, and ground rents, all fees, and all sales revenues (fuel sales, aircraft maintenance, etc.) generated by the operation. At another, Hawthorne invoices and collects only the core sales revenues, while the City invoices rents and fees on a direct basis. The mechanics of handling revenue and reimbursement can also differ. All revenue from one cost reimbursable operation is paid to Hawthorne and deposited in a Hawthorne bank account. Similarly, all operating expenses are paid from the same account. Technically, at the end of each month, we forward an amount equal to that month's revenues to the City and they reimburse us for P&L expenses and pay us our monthly management fee. In practice, we submit a monthly P&L and forward to the City the difference between revenue and expense/management fee (City profit). At another operation, all revenue is collected by Hawthorne but is deposited into an City bank account. In this instance, Hawthorne receives a monthly payment equal to the previous month's expenses plus its monthly management fee. RECOMMENDATION At Clearwater, Hawthorne is proposing total management of not just the general aviation facilities and operations, but also of all financial administration functions related to the operation. Hawthorne would be responsible for the monthly invoicing and collection of all hangar, tie-down, and space rent and would collect all sales revenues. This will remove the burden of invoicing and accounts receivable management from the City. All other rents and revenues would be reflected on the Hawthorne profit and loss statement. All expenses of the operation would be similarly reflected. IV - 1 1Iawt~orne -. . . When collected, all cash receipts would be deposited into a Hawthorne bank account. Hawthorne would pay all expenses and fund all operating capital needs. At the end of each month the revenues and expenses would be reconciled and Hawthorne would pay all indicated amounts due the City (or the reverse in the event of a loss month). MANAGEMENT FEES Hawthorne is proposing a fixed ,management fee of $3.200.00 per ~0I!!h paid in arrears. Further, Hawthorne is proposing an annual incentive fee of 10% of all revenues and sales ~ i!l.. excess of $440,000.0~. This affords Hawthorne the opportunity to earn a slightly greater amount in incentives and use the incentives as a motivational tool to bring new business to the Airpark. Hawthorne will not assess the Clearwater operation with any corporate G&A fees. The operation will have a bookkeeper on staff for basic accounting functions. All accounting management and review will be performed by Hawthorne's corporate accounting department without charge to the operation. There will be no other charges to the operation except for direct, out-of-pocket travel and lodging expense for management visits, which will be charged to the operation and recouped as a reimbursable expense. PROFORMAS The following. proformas contain projected revenues, expenses, and operating profits (after Hawthorne's annual $38,400.00 management fee) for the five year period. Also included is a listing of required equipment. The proforma assumes that Hawthorne will provide the funds to acquire these items. IV - 2 .wt~tlme . . . Proforma P & L . Sales Index Fuel 102.50% 102.50% 102.50% 102.50% Sales 102.50% 102.50% 102.50% 102.50.'" Salaries 102.50% 102.50% 102.50% 102.50.'" Expenses 100.00% 100.00% 100.00% 100.00% Labor billing $ 40.00 $ 42.50 $ 42.50 $ 45.00 Year 1 Year 2 Year 3 Year 4 Year 5 I AVgas gallons 121,600 124,640 127,756 130,950 134,224 I revenue $2.16 $262,656 $269,222 $275,953 $282,852 $289,923 Hanger rents - C.orporate hanger (8) $400 0 0 8 38,400 8 38,400 8 38,400 8 38,400 Hanger rents - New T hanger (17) $220 17 44,880 17 44,880 17 44,880 17 44,880 17 44,880 Hanger rents - T hanger (10) $220 10 26,400 10 26,400 10 26,400 10 26,400 10 26,400 Hanger rents - Shade hanger (40) $130 40 62,400 40 62,400 40 62,400 40 62,400 40 62,400 Tie down rents - Sod tiedowns (60) $37.50 58 26,100 50 22,500 50 22,500 50 22,500 50 22,500 Tie down rents - Paved tiedowns(30) $45 0 0 0 0 0 0 0 0 0 0 Maintenance hanger rent $1,000 1 12,000 12,300 12,608 12,923 13,246 Aircraft sales office rent 1,200 1,230 1,261 1,292 1,325 Flight school office rent 1,200 1,230 1,261 1,292 1,325 Pilot supplies 1,800 1,845 1,891 1,938 1,987 Car rental 300 308 315 323 331 Sales-oil 2,400 2,460 2,522 2,585 2,649 Total sales $441,336 $483,175 $490,390 $497,785 $505,365 Cost of sales I AVgas gallons 121,600 124,640 127,756 130,950 134,224 I . cost $1.38 $167,808 $172,003 $176,303 $180,711 $185,229 Oil/pilot supplies 2,000 2,050 2,101 2,154 2,208 Total cost of sales $169,808 $174,053 $178,405 $182,865 $187,436 Gross profrt $271 ,528 $309,122 $311,985 $314,920 $317,929 . 5 year base projections IV-3 . labor efficiency 50.00% Salary & wage Manager Line Bookkeeper FICAlFUT AlSUT A Total Salary . Expenses Advertising Dues & subscriptions Auto/truck expense Credit card fees Group insurance Freight Bank charges PosUstationary Professional Landscape/grounds maintenance Public & personal Shop expense Uniform rental Telephone Travel Insurance-aviation Insurance workers comp Power & Lighting Repairs/maintenance - building Repairs/maintenance - equlp/AClheaUetc. Taxes & licenses Rental equipment Startup/mobilization Total expenses Total direct Management fees Revenue to city Additional revenue to city as savings for grounds maintenance Incremental revenue recognized by city . Wages & expenses Index - Fuel 102.50% - 102.50% 102.50% 102.50% Sales 102.50% 102.50% 102.50% 102.50% - Salaries 102.50% 102.50% 102.50% 102.50% Expenses . 100.00% 100.00% 100.00% 100.00% Labor billing $ 40.00 $ 42.50 $ 42.50 $ 45.00 2,080 avg. hrslyear Year 1 Year 2 Year 3 Year 4 Year6 1 $25,000 $25,625 $26,266 $26,922 $27,595 2.5 $7.00 35,770 $36,664 $37,581 38,520 39,483 1 $9.62 20,000 $20,500 $21,013 $21 ,538 $22,076 5,447 5,583 5,723 5,866 6,012 86,217 88,372 90,582 92,846 95,167 2,400 2,400 2,400 2,400 2,400 1,800 1,800 1,800 1,800 1,800 2,400 2,400 2,400 2,400 2,400 3,990 3,990 3,990 3,990 3,990 5,400 5,400 5,400 5,400 5,400 2,400 2,400 2,400 2,400 2,400 240 240 240 240 240 2,400 2,400 2,400 2,400 2,400 4,800 4,800 4,800 4,800 4,800 3,600 3,600 3,600 3,600 3,600 1,200 1,200 1,200 1,200 1,200 2,400 2,400 2,400 2,400 2,400 936 936 936 936 936 4,800 4,800 4,800 4,800 4;800 6,000 6,000 6,000 6,000 6,000 11 ,000 11 ,000 11,000 11,000 11 ,000 6,192 6,192 6,192 6,192 6,192 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 4,800 4,800 4,800 4,800 4,800 1,200 1,200 1,200 1,200 1,200 4,800 4,800 4,800 4,800 4,800 3,600 0 0 0 0 88,358 84,758 84,758 84,758 84,758 $174,575 $173,130 $175,340 $177,604 $179,925 38,400 38,400 38,400 38,400 38,400 $58,553 $97,591 $98,246 $98,916 $99,603 $18,700 $18,700 $18,700 $18,700 $18,700 $77,253 $116,291 $116,946 $117,616 $118,303 5 year base projections IV-4 . Furniture, Fixtures, and Equipment _Line/Office Equipment: Tug Radios Towbar Computer Fax Copier Typewriter Calculator Misc. Use John Deere tractor $1,000 500 3,000 - 500 900 500 100 1,000 Total $7,500 Grounds maintenance equipment leased from Atlantic National Corporation: John Deere # 750 Deck-Groom mower Weedeater Blower Push mower . . IV- 5 . It) M 0 M 0 M 0 0 0 0 0 0:: 0_ ~ CO_ f'-_ M_ e:( ex) ex) m ex) ex) W M M m ..- -..- >- ..- 69- 69- ..- 69- -069- 'lilt "CO 0 CO 0 CO ..- 0 ..- 0 ..- 0:: M_ ~- m f'-_ CO_ e:( f'- ex) ex) ex) f'- W M M m ..- ..- >- ..- 69- 69- ..- 69- 69- CW') CO 0 CO 0 CO ~ 0 ~ 0 ~ 0:: CO_ ~ N.. f'-_ m_ e:( CO ex) ex) ex) CO W M M m ..- ..- >- ..- 69- 69- ..- 69- 69- >- N ..- 0 ..- 0 ..- 0:: m 0 m 0 m e:( 0:: m_ ~- LO_ f'- N ~ e:( LO ex) f'- ex) CO ~ W M M m ..- ..- >- ..- 69- 69- ..- :) 69- 69- en W - M 0 M 0 M W 0:: LO 0 LO 0 LO CO . u.. m ~- LO f'- N .- e:( CO ex) ex) ex) f'- > W m M LO ..- f'- Z >- 69- 69- 69- 69- W ~ W C) ~ e:( =: Z (.) e:( Q) ~ (.) ~ c .c ns " en c Q) Q) Q) .~ .! - c c - .- C) c ns 0 Q) E (.) E Q) en Q) .! ~ Q) " Q) C) - C ::::J ca C ::::J C C Q) 0 Q) ns E - ~ E It: C) > Q) 0 Q) C) ~ E ~ e ns ~ 0 ns .e c C) ~ - ns .... c Q) E c en Q) .c ;:; C) E - " ~ C It: Q) Q) Q) 'S; ~ ~ .~ ~ ns (.) c.. u.. 0 en c . . . .- . CREDIT REFERENCES FUEL: Eastern Aviation Fuels, Inc. P.O. Box 12327 New Bern, NC 28561-2327 (800)334-5732 Robert Stallings, President Exxon P.O. Box 2180 Houston, TX 77252-2180 (713)656-4017 Don Tibideau, Vice President INSURANCE: . Marsh McLennan 1166 Avenue of the Americas New York, NY 10036-2774 (212)345-5309 Peter Schmitz, Vice President Willis Corroon 1441 Main Street Columbia, SC 29202 (803)256-1193 Drew Evans, Vice President FINANCIAL: Lehigh Valley Airport Authority 33 11 Airport Road . Allentown, P A 18103 (610)266-6000 Michael Burris, Director of Finance . . IV-7 .wt~tlrm . CharlestQn County Aviation Authority 5500 International Blvd, #101 Charleston, SC 29418-691 f (803)767-1100 Sue Stevens, Director of Finance BANKS: National Bank of South Carolina P.o. Box 62319 Charleston, SC 29419 (803)724-7023 Johnny Jordan; Vice President Sun Trust 2100 Harden Blvd. Lakeland, FL 33811 (941 )965-611 0 Bonnie Carr, Branch Manager . . IV - 8 .wt~orne . . - . . . . . -. - AUDITED CONSOLIDATED FINANCIAL STATE:MENTS HAWTHORNE A VIA nON Charleston, South Carolina . December 31, 1995 . . . . CONTENTS Audited Consolidated Financial Statements Independent Accountants' Report - Page Consolidated Balance Sheets Consolidated Statements of Income and Retained Earnings -- Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements 2 3 4-5 6 7 8-18 FINCH, HA!\fiL TON, FITZGERALD, RlSH & CO., LLC. CERTlnED PUBLIC ACCOVl'o"TANTS . SVlTE 504 1330 LADY STRE:ET P.O. BOX 11~7. COLUMBIA. SC 29%11 MEMBERS AMERICANVJSTTTVTE OF CPA'S S.C, ASSOCIATION OF CPA'S PIUV A TE COMPANIES PRACTICE SECTION .11 N. LAKE DRIVE LEXINCTON. SC 2907% TELEPHONE (803) 79S>"1J.44 FAX (803) %.56-10Z1 TELEPBOl'o"E (803) 359-99%1 FAX - (803) 359-513:L:z ll\'DEPENDEl'.'T ACCOUl'.'T M'T"fS' REPORT To the Board of Directors of Hawthorne Aviation We have audited the accompanying consolidated balance sheets of Hawthorne Aviation (the Company) as of December 31, 1995 and 1994, and the related consolidated statements of income and retained earnings and cash flows for the years then ended. These fmancial statements are the responsibility of the Company's managemenL Our responsibility is to express an opinion on these f'mancial statements based on our audits. . We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatemenL An audit includes eX:lmining, on a test basis, evidence supporting the amounts and disclosures in the fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated fmancial statements referred to above present fairly, in all material respects, the consolidated fmancial position of Hawthorne Aviation as of December 31, 1995 and 1994, and the results of its consolidated operations and cash flows for the years then ended in conformity with generally accepted accounting principles. Our audits were made for the purpose offorming an opinion on the basic consolida1..ed f'mancial statements taken as a whole. The supplemental information presented on pages 20 - 27 is for the purposes of additional analysis and is not a required part of the basic consolida1..ed fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic consolidated f'mancial statements and, in our opinion, is fairly stated in all material respects in relation to the basic consolida1..ed f'mancial statements taken as a whole. 3 ~/ H~, 3~~J ~ ., Va.) L L C. February 8, 1996 '.. - 3 - . . . CONSOLIDATED BALANCE SHEETS HAWTHORNE AVIATION ASSETS-Note B CURRENT ASSETS Cash-Note K Trade accounts receivable Inventories Prepaid expenSes Note receivable, current-Note H Prepaid income taxes TOTAL CURRENT ASSETS OTIIER ASSETS Due from 'affiliated companies Deposits Unamortized costs-Note F Deferred income taxes Note receivable, less current maturity-Note H PROPERTY AND EQUIPMENT Buildings Leasehold improvements Furniture, fixtures, and equipment Less accumulated depreciation -4- December 31, . 1995 1994 S 489,851 S 396,433 611,501 630,530 210,565 .183,346 22,720 16,469 - 105,322 105,322 34.393 1,474,352 1,332,100 364,965 381,652 5,965 9.229 297,116 334,866 22,800 22,800 976.505 1.081.827 1,667,351 1,830,374 205,551 205,551 430,539 408,023 1.214.933 1.162.709 1,851,023 1,776.283 l.n1.841 1.031.481 719,182 744,802 $ 3.860.885 $ 3.907.276 . r- !. . llABn..ITIES AND STOCKHOIDERS' EQUITY CURRENT LIABILITIES Note payable to bank-Note M Credit balances in accounts receivable Due to aviation authority AcCounts payable Income taxes Employee compensation Accrued expenses Taxes. other than income taxes Due to affiliated companies-Note E Current maturities of long-term debt-Note B TOTAL CURRENT UABll..1TIES LONG-TERM DEBT, less current maturities-Note B DEFERRED INCOME TAXES MINORITY ll'.'T"fEREST -Note L STOCKHOLDERS' EQUITY Common stock, par value S 1 a share Authorized 2,000 shares Issued and outstanding 1,608 shares (including 1,604 shares held in treasury) Additional paid-in capital Retained earnings Less cost of treasury stock COM:MITMENTS-Note D CONTINGENCY-Note N See notes to consolidatedjinancial statements. -5 - December 31, 1995 1994 S 125,000 S 110,000 2,500 17,653 52,143 115,476 219,466 223,805 65,516 104,955 92,470 54,054 50,003 27,828 36,893 407,478 317,168 385.205 ~57.000 1,378,629 1,385,984 2,237,103 2,385,347 6,400 6,400 37,167 45,560 16,080 13.229 781.326 16,080 13 ,229 663.725 810,635 (609.049) 693,034 (609.049) 201.586 83.9gS $ 3.860.885 $ 3.907.276 . .. . CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS HAwrHORNEAVlATION Revenue Net sales - Olber-Notes D. E and I Costs and expenses Cost of sales Selling, ~rtministrative, and general-Notes D and E Interest-Note E Depreciation and amortization Rental-Notes D and E Contractual expenses incurred to airport authorities-Note D INCOME BEFORE CORPORATE OVERHEAD. INCOME TAXES. EXTRAORDINARY ITEM AND MINORITY INTEREST Corporate overhead-Note E INCOME BEFORE INCOME TAXES. EXTRAORDINARY ITEM AND MINORITY n.."TEREST Provision for income taxes-Note C INCOME BEFORE EXTRAORDINARY ITEM AND MINORITY n..7EREST Extraordinary item-Note J INCOME BEFORE MINORITY n-.7EREST Minority interest--Note L NET INCOME Retained earnings at beginning of year RETAINED EARNINGS AT END OF YEAR See notes to consolidated financial statements. -6- Year Ended December 31. 1995 1994 $ 6,408,710 959.9~8 7,368,648 2,530.243 3.348.219 251,863 138.111 354,999 495.090 7.118.525 250,123 116.415 133.708 24.500 109,208 109,208 8.393 117,601 663.725 $ 781.326 $ 5,756,210 677.614 6,433,824 2,083.150 2,873.181 220,732 153,643 360,943 484.835 6.176.484 257,340 140.717 116,623 67.460 49.163 24.126 73,289 13.894 87,183 576.542 ~ 663.725 CONSOLIDATED STATEMENTS OF CASH FLOWS . HA WTHORNE.A VlATION Year Ended ~ecember 31, 1995 1994 Cash in-flows (out-flows) from operating activities Net income $ !17,601 $ 87,183 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 138,111 153,643 Deferred income taxes (reversal) (5,200) Minority interest (8,393) (13,894) Business interruption insurance proceeds (28,426) Changes in operating assets and liabilities 39.727 96,431 (Gain) loss on sale of equipment assets (12.428) NET CASH PROVIDED BY OPERATING ACTIVITIES 287,046 277 ,309 Cash in-flows (out-flows) from investing activities Purchase of property and equipment assets (74,740) (172,088) Proceeds from sale of equipment assets 21,534 r Insurance proceeds. net of replacements and repairs (98.908) NET CASH USED BY INVESTING ACTIVITIES (74.740) (249,462) .. Cash in-flows (out-flows) from financing activities Collection of notes receivable 105,322 105,312 Advances from (to) affiliated companies (119.171) (730,513) Proceeds from long-term borrowings 119.800 209,100 Principal payments--long-term borrowings (239.839) (200.071) Purchase of treasury stock (5,000) Principal payments-short-term borrowings (110.000) Short-term borrowings 12.t:i.000 11 0.000 NET CASH USED BY FINANCING ACTIVITIES (118.888) (511.172) NET INCREASE (DECREASE) IN CASH 93,418 (483,325) Cash at beginning of year 396 433 879.758 CASH AT END OF YEAR S 489.851 S ~96.43~ SUPPLEMENTAL CASH FLOWS INFORMATION-Note G . See notes to consolidatedfinancial statements. -7 - . . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE AVIATION December 31, 1995 and 1994 NOTE A - SUMMARY. OF SIGNIFICANT ACCOUNTING POUCIES The accounting principles followed by Hawthorne Aviation (the Company) and the methods of applying those principles which materiallyllffect the determination of consolidated financial position, consolidated cash flows, and results of consolidated operations are summarized below: Basis of Consolidation The consolidated :financial statements include the accounts of Hawthorne Aviation and its consolidated subsidiaries and division. Significant intercompany accounts and transactions have been eliminated in consolidation. The Company's corporate structure and principal activities consist of: Hawthorne A viation--parent--contract services Wholly-owned subsidiaries: Hawthorne Airport Services, Inc.- Hawthorne Ocala.. Inc.- Hawthorne A-B-E. InC'- Division Hawthorne Palm Beach 51 % owned subsidiary RE.S. Associate of Georgia.. Ltd. a South Carolina corporation d/b/a Hawthorne Gwinett- Cash Charleston County Aviation Authority contract City of Ocala.. Florida fixed base operations contract Lehigh-Northampton Airport Authority in Allentown, Pennsylvania fixed base operations contract Palm Beach County in West Palm Beach, Florida. fixed base operations contract Gwinett County Airport Authority contract in Lawrenceville, Georgia For financial statement reporting purposes, the Company considers all short-term cash investments and other highly liquid investments such as treasury bills, commercial paper and money market funds with a maturity of three months or less to be cash. -8- . r- ! . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HA WI'HORNE AVIATION December 31, 1995 and 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES-CONTINUED Reclassifications For comparability, the 1994 amounts have been reclassified where appropriate to conform v.ith the financial statement presentation used in 1995. There has been no change in accounting principles employed or restatements of amounts previously reported. Inventories Inventories are stated at the lower of cost (first-in. first-out method) or markeL Concentrated Credit Risks The Company is principally engaged in providing airport related services to commercial airlines in the Southeastern United States. Consequently, the Company's ability to collect the amounts due from trade receivables may be effected by economic fluctuations in the commer-cial airline industry in this geographic region. Financial Instruments Rnancial mstIUIDents which potentially subject the Company to concentration of credit risk consist primarily of cash equivalents. and accounts and notes receivable. The Company places its temporary cash equivalents with high credit quality financial institutions. The credit worthiness of the counterparties to these transactions is subject to continuing review in accordance with the Company's aedit policies. Subject to appropriate allowance of uncollectible receivables, the Company anticipates full performance by its counterparties. In addition, the carrying amounts of cash equivalents. receivables and long-term debt at December 31, 1995 approximate fair value. The Company estimates the fair value of its fixed-rate long-term debt using discounted cash flow analysis, based on the Company's current borrowing rates for similar types of debL -9- . . . NOTES TO CONSOLIDATED FINANClAL"ST ATEMENTS HAWTHORNE AVIATION December 31. 1995 and 1994 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES-CONTINUED Pronerty and Eauipment Property and equipment assets are maintained on the basis of cost less applicable accumulated depreciation. Costs of additions and major improvements are capitalized. The costs of assets retired or otherwise disposed and the related accumulated depreciation are elirnin~fP..d from the accounts. The net book value of assets traded is added to the cost of the replacement asseL Expenditures for maintenance and repairs are charged directly to operations as incurred. Depreciation charged to operations for financial statement reporting is computed on the straight-line method over the estimated useful lives of the respective assets as follows: Buildings--5 - 31 years Leasehold improvements--10 - 31 years Furniture, flXtures and equipment-3 - 10 years Deferred Income T:v.:es Deferred income taxes are generated by differences in timing between the periods in which the transaetions affect taxable income and the periods in which they enter into the determination of pretax accounting income for financial statement reporting. The Company's timing difference results from depreciating equipment assets on the straight-line method for fmancial statements and under accelerated methods for income tax purposes. Unamortized Costs Loan costs are being amortized under the straight-line method over the life of the related indebtedness. The cost of the non-compete is being amortized under the straight-line method over the life of the agreemenL Lease concessions are being amortized under the straight-line method over the life of the related lease. Organizational costs are being amortized under the straight-line method over 60 months. - 10- . . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE A VlATION December 31, 1995 and 1994 NOTE B - LONG-TERM DEBT Long-term note indebtedness of the Company is: To financial institution, collateralized by Hawthorne A-B-E, Inc. fixed base operations agreement.. payable in monthly installments of $2,083 plus interest at prime plus 1 %. Final maturity is May 1999. $ December 31, 1995 _1994 83,333 $ To bank. collateralized by substantially all assets of the Company except the assets of RES Associates (Hawthorne Gwinnett), payable in monthly installments of$13,8oo plus interest at prime plus .0375%. Final maturity is August 2003. 1,698.586 To individual, without collateral, with interest payable monthly at 8% and all outstanding principal and interest due on demand. 70,000 * To a shareholder of Hawthome Gwinett. collateralized by assignment of lease rights, payable in 48 monthly installments of $4.330 beginning May 1994 including interest at 8%. . A final balloon payment is due April 1998. To bank. collateralized by property and equipment assets, payable in monthly installments of $3,142, including interest at 9.39%. Final maturity is March 1999. To vendor, collateralized by line equipment.. payable in monthly installments of $1,142, including interest at 6%. Final maturity is November 1999. To affiliated entity, payable in monthly installments of $165 plus interest at prime plus 2%. Final maturity is June 2000. To financial institution, collateralized by 6 airplane hangars, payable in monthly installments of $3,197 including interest at 10%. Final maturity is April 2001. Revolving credit note due to vendor, collateralized by inventories, accounts receivable and airplane hangars, plus interest at 7% payable monthly. Final maIllrity is October 1996. Less current matllrities 400.000 * 118,787 47,752 18,810 145,040 * 40.000 * 2,622,308 385.205 1,864,186 70,000 * 400,000 * 144,045 58,249 165,867 * 40.000 * 2,742.347 357.000 $ 2.237.103 $ 2.385.347 * Debt of RE.S. Associates of Georgia, LID. and without recourse to the Company (See Note L.) - 11 - ,. I I - I . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE AVIATION December 31, 1995 and 1994 NOTE B - LONG-TERM DEBT -CONTINUED .~ - , Future principal maturities of the aforementioned debt for each subsequent twelve month periOd follow: 1996 1997 1998 1999 2000 Thereafter $ 385,205 282,709 289,872 270,505 226,780 1.167.237 S 2.622.308 NOTE C - PROVISION FOR INCOME TAXES Year Ended December 31, 1995 1994 Provision (credit) for income taxes is: Federal-Current S t.a.te-Current Deferred (reversal) $ 22,500 $ 2,000 57,660 15,000 (5.200) 67.460 $ 24.500 $ NOTE D - COMMITMENTS Hawthorne Airport Services is party to a oontract with the Charleston International Airport. O1arleston, South Carolina 1his contract expired June 30, 1995 and a one (1) five year renewal term was entered into July I, 1995. Under the expired contract, following are certain contractual obligations of the parties involved: a The Company is to pay the Authority $90,680 annually for lease of processing and office facilities. b. The Company is responsible for collecting and remitting monthly to the Authority all landing, airfield use and gate use fees as' established by the Authority. ,These fees are payable monthly to the Authority as earned and not as the Company receives collection from the various carriers. c. The Company is to charge an annual management fee from an affiliated corporation to operations equal to 3% of the ann~al ~ss revenues ~ed under this contract - 12- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ; i-:.,--- HAWTHORNE A VlATION December 31.1995 and 1994 _ NOTE D - COMMITMENTS~ntinued --.. ::- d. During the five year term of this contract the Company is to pay the Authority twenty perc:clt of before tax net profit earned from operations under this contract (See Note C). Under the new contract. following are certain obligations of the Company. which are. in effect. the equivalent of -rent: a b. c. d. e. f. . Pay the Authority $50.000 annually for exclusive office space. Pay the Authority $3.375 annually for equipment parking space. Pay the Authority $15,480 annually for maintenance facilities. Pay the Authority monthly $150 per departure for baggage make-up space. Pay the Authority monthly 2% of gross revenues earned from groundhandling services performed and any sales of Company owned fuel to airlines. Pay the Authority a fuel flowage fee equal to 3 cents per gallon if less than 6.000.000 gallons pumped during a contract year or 2 Yz cents per gallon if in excess of 6.000,000 gallons during a contract year. Under the aforementioned agreements, the Company incurred $87,717 and $90.680 rental expense for the years ended December 31. 1995 and 1994, respectively. Hawthorne Ocala is party to a contract with the City of Ocala. Florida to provide airport related services at the Ocala Municipal Airport. Ocala. Florida The agreementis for a period of thirty years expiring January 2018 and may be terminated by the Company with a 180 day notice prior to termination. Under this agreement. following are certain contractual obligations of the parities involved: a The Company is to pay the City monthly a base rental fee of $3,078 for lease of land and buildings. b. The Company is to pay the City monthly 3-1f2c for each gallon of fuel delivered to Company's fuel tank for retail sale, up to 1,000,000 gallons. The fee varies for gallons pumped in excess of 1,000,000 but maximizes at 5c per gallon. c. The Company is to pay the City monthly 3% of all accrual basis gross revenue, excluding fuel sales, aircraft sales, and sales to affiliated divisions or entities of the Company. . In connection with the aforementioned agreement. the Company incurred $67.871 and $58.204 rental expense during the years ended necember 31.1995 and 1994. respectively. - 13 - .. ru \ I I .. e. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE AVIATION December 31. 1995 and 1994 NOTED .:. COMMITMENTS-Continued Hawthorne Gwinett is party to a contract with the Gwinnett County Airport Authority to ... ,;-. operate and maintain the Gwinnett County Airport - Briscoe Field, Lawrenceville,. Georgia. The agreement is for a period of twenty. years expiring March 2011. . . This agreement provi~ certain contractual obligations of the parties involved as follows: a. The Company is to pay the Airport Authority a base rental fee of $2,000 per month through December 1994. This fee increased to $5,853 per month beginning January 1995. b. The Company is to pay the Airport Authority a fuel flowage fee of $.04 per gallon of fuel delivered to the Company. In addition, the Company must pay an annual fee of $24 per gallon of fuel received for resale in excess of 350,000 gallons. c. The Company is to pay the Airport Authority 2% of accroal basis gross receipts excluding fuel sales, aircraft sales and sales to governmental agencies. The Company is also to pay a gross sales percentage of 1110 of 1 % on aircraft sales. In connection with the aforementioned agreement.. the Company incurred $98,703 and $59,632 rental expense during the year ended December 31, 1995 and 1994, respectively. Hawthorne Palm Beach is party to a fixed base operations contract with Palm Beach County (the County) in West Palm Beach, Florida expiring March 1999. Under this contract, following are certain contractual obligations of the parties involved: a. The Company is to receive annual management fees as follows: Year 1 Year 2 Year 3 Year 4 Year 5 $ 166,000 144,000 119,000 94,000 54,000 Other income for year 1994 includes S138.333 (10 months, as contract began March 1, 1994) management fee income from this contract and the year ended December 31, 1995 includes SI49,500. b. The Company is to pay the County 50% of all pretax profits annually in excess of $25,000. c. The Company is to remit monthly to the County 50% of tie down fees collected and 95% of certain other rentals as agreed on. In this connection, S 149,165 and $53,631 for years ended December 31,1995 and 1994, respectively, are reflected in these fmancial statements as contracwal expenses incurre(j to the County. - 14- -. . I i. NOTES TO CONSOLIDATED FlNANClAL STATEMENTS HA WfHORNE AVIATION December 31,1995 and 1994 ".~ " NOTE D - COMMITMENTS-Continued Hawthorne A-B-E, Inc. is party to a fixed base operations contract with Lehigh- North3mpton Airport Authority in Allentown, Pennsylvania expiring March 31, 1999. Following are certain contractual obligations under this agreement: , - a. The Company is to receive management fees equal to $5,000 per month plus 7% of gross revenue from $1,000,000 - $2,000,000 and 10% of gross revenue in excess of $2,000,000. Accordingly, OthC7 income for the years ended December 31,1995 and 1994, respectively, include $199,597 and $111,515 applicable management fees. b. The Company is to submit payment monthly to the Authority for all gross revenues earned by the Company. c. The Authority is to reimburse the Company monthly for all approved operating expenses incurred by the Company. The Company incurred net contractual expense (equivalent to rental) of $345,925 and $431,204undC7(b) and (c) above for the years ended December 31,1995 and 1994, respectively. NOTE E - RELATED PARTY TRANSACTIONS The Company has executed the following related party transactions: a. Rental expense includes $54,457 and $91,148 paid to an affiliated company for monthly rental of equipment during 1995 and 1994, respectively. b. Interest expense includes $18,174 and $7,168 paid to an affiliated company during the years ended December 31, 1995 and 1994, respectively. c. The Company borrows monies from affiliated companies plus interest at the bank's prime rate. The net amount of these advances is presented as a current liability at December 31, 1995 and 1994. d. General and ~r1ministrative expenses include $30,235 and $42,765 management fees incurred to affiliated companies during 1995 and 1994, respectively. e. Interest expense includes $31,660 and $31,660 paid to a shareholder of Hawthorne Gwinnett during the years ended December 31, 1995 and 1995, respectively. f. The Company incurred corporate -overhead expense to an affiliated company of $116,415 and $140,717 for the years ended December 31, 1995 and 1994, respectively. g. See Note D. - 15 - e-- r- l e . -- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE A VlATlON - Decem~ 31, 1995 and 1994 - - - NOTE E - RELATED PARTY TRANSACTIONS-Continued g. Other income includes $104,603 and $93,797 interest from an affiliated company outing the years ended December 31, 1995 and 1994, respectively. - In managenrJlt's opinion, th~ aforementioned related party tranSactions were consnmm~t"..d at terms no more or less favorable to the CO~pany had the relationships not existed. NOTE F - UNAMORTIZED COSTS Unamortized costs are: December 31, 1995 1994 S 292,254 $ 300,690 4,862 25,054 9.122 $ 297.116 ~ 334.866 Year Ended December 31, 1995 1994 $ (34,182) $ (238,239) (6,251) (15,801) (27,219) (72,464) 3,264 621 (63,333) 3,281 264,225 133,057 (4,339) 157,611 12,485 48,581 4,051 11,353 (9,065) 17,414 (99.909) 51.017 $ 39.727 $ 96.431 $ 248.040 $ 234.321 ~ 119.550 $ 25.855 Lease concessions Loan costs Organizational costs NOTE G - SUPPLEMENTAL CASH FLOWS INFORMATION Changes in operating assets and liabilities- (increase (decrease) in cash flows) Trade accounts receivable Prepaid expenses Inventories Deposits Due to aviation authorities Due to affUiated companies Trade accounts payable Employee compensation Accrued expenses Taxes, other than income taxes Income taxes Cash payments for interest - Cash payments for income taxes -16 - .. I I NOTES TO CONSOLIDATED FINANOAL STATEMENTS HAWTHORNE A VlATION December 31,1995 and 1994 NOTE H - NOTE RECEIVABLE Note receivable in the amount of $1.081;827 at December 31.1995 is due from an affiliated company inmonthly,inst::l.llml"nts of $8,779 through August 2003 plus interest at 8% per annum. Future principal maturities for each subsequent twelve month period are as fo~lows: 1996 1997 1998 1999 2000 Thereafter - $ 105--322 105,322 105,322 105,322 105,322 555.217 ~ 1.081 Jl27 NOTE I - OTHER REVENUE Other revenue includes: Year Ended December 31. 1995 1994 . . . Management fees $ 360.151 $ 249.848 Hangar and office rental 443.959 310.805 Interest 104.603 93.995 Other 51.225 22.966 $ 959.938 $ 677.614 . NOTE J - EXTRAORDINARY ITEM On March 13. 1993. the Company sustained tornado damage to its premise facilities and experienced a period of business interruption. The fmal insurance settlement was negotiated on - July 1. 1994. Accordingly. the following is reflected in the fmancial statements: Year Ended December 31, 1995 1994 Balance of amount deferred Insurance proceeds received Expenditures incurred for repairs and replacement Ammmt recognized as an extraordinary item for business interruption $ $ 127,334 61.920 (160.828) (28.426) Amount deferred $ '$ . Extraordinary item presented for the year ended December 31. 1994 is business in~rruption insurance proceeds received of $28.426, less $4,300 applicable income taxes. - - 17- '. . . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HAWTHORNE AVIATION December 31. 1995 and 1994 NOTE"K - CASH Of the $489,851 cash balance at December 31,1995, S18.318 is identifiable to Hawthorne Gwinett and none of Hawthome Gwinneu's cash has been mingled with other subsidiaries of the Company. NOTE L - BUSINESS ACQUISITION In February 1993, the Company acquired a 51 % interest in R.E.S. Associates of Georgia Ltd., (R.E.S.) a newly formed South Carolina Corporation. and began operations under a workout plan with a bank. As a result of acquiring more than 50% the Company reflects R.E.S. assets and - liabilities on its consolidated fmancial statements. R.E.S. operates on a stand alone basis, however, from other consolidated Hawthorne entities. There is no co-mingling of cash or other assets by the Company. The debt ofR.E.S. has a considerable negative effect on the Company's consolida1.ed balance sheet but there is no recourse to the Company for any of the debts or other obligations ofRE.S. Similarly .51 % ofRE.S.losses impact the Company's statements of income and cash flows. Since operations ofR.E.S are isolated, the effects ofRE.S. cash flows are not felt by the remaining Hawthorne Aviation entities (see supplemental information). NOTE M - NOTE PAYABLE TO BANK Note payable to bank in the amount of S110.000 at December 31. 1994 represents cumulative advances under a S 150.000 line of credit and is without collateral and due April 1995 plus interest at prime. This note was satisfied in 1995. Short-term note payable in the amount of S125,000 at December 31, 1995 represents net cumulative advances under a $200,000 unsecured line of credit expiring November 1996 (interest is at the bank's prime rate). NOTE N - CONTINGENCY The Company bas aggregate cash risk of loss in the amount of $228,200 at December 31. 1995. The cash risk of loss is the concentration of cash held by a imancial institution in excess of the S100.ooo insurance coverage by institution. - 18 - . . . . Hawthorne Aviation. Consolidated Balance Sheet November 30,1996 ASSETS Current Assets Cash 616,593 Accounts receivable 797,521 Inventories 250,517 Prepaid expenses 84,807 Total Current Assets 1,749,438 Other Assets Due from affiliated companies 269,569 Note receivable 1,089,251 Investment in subsidiaries Unamortize costs 265,577 Total Other Assets 1,624,397 Property and Equipment Building 289,110 Leasehold improvements 330,891 . Furniture, fixtures and equipment 1,305,226 Total Property and Equipment 1,925,227 Less accumulated depreciation (1,214,278) 4,084,784 Liabilities and Stockholders Equity Current Liabilities Line of Credit 290,000 Trade accounts payable 116,872 Accrued expenses 407,613 Taxes,other than income taxes 45,440 Total Current Liabilities 859,925 . Deferred income taxes (47,270) Notes payable 2,536,413 Minority interest 63,694 Stockholders' Equity Common stock 16,080 Additional paid in capital 13,229 Retained eamings 781,327 . Less cost of treasury stock (609,049) Current year profit or loss 470,435 Total Stockholders' Equity 672,022 4,084,784 - . .. Hawthorne Aviation Consolidated Income Statement November 3D, 1996 Revenue Net Sales 7,858,696 Other 354,896 Total Revenue 8,213,592 Cost and expenses Cost of sales 3,055,649 Salary and wages 2,321,198 General and administrative 1,518,270 Interest 218,936 Depreciation and amortization 114,075 Contractual expenses incurred to airport authorities 488,502 . Total cost and expenses 7,716,630 Income(loss) before income taxes, minority interest 496,962 Minoirty interest 26,527 Net income{loss) 470,435 . . . . . . . EXAMPLES OF TRAINING MATERIALS The attached Line Manual is an example of some of the training materials utilized by Hawthorne at our current FBO operations. This sample is provided only to illustrate training tools in use, and is not meant to be all inclusive. Prior to beginning operation at the Clearwater Airpark, Hawthorne will prepare specific training programs and manuals designed exclusively for our Clearwater operation. A-I 1lIawt1)orne , ..- HA Vt'THOR1\TE A-B-E LINE AIANUAL . . - . e. ;:. AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING RESPONSIBILITIES Whenever the flight crew wants interphone contact with the ground crew, the beacon light will be turned on as a signaling device. The ground crew person will answer this signal by initiating interphone contact as, "Ground to Cockpit, Go Ahead, Beacon Light OFF." The crew will then turn off the light and continue the interphone conversation. . A. The signal person is to be identified by extending both arms perpendicular above his head to indicate he is assuming responsibility for guidance of the aircraft by initiating directional signals. NOTE: When signaling the movement of aircraft during daylight hours, high visibility red wands shall be used. At night, two (2) flashlights will be used with amber wands attached. B. If the gate is not equipped with directional guidance lights, the ground signal person shall be responsible for signaling the aircraft into the parking spot, making every effort to ensure the airplane is properly centered over the center line on the ramp even if it requires another go around. . . AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING RESPONSIBILITIES (continued) C. If directional guidance lights are used to park an aircraft, the signal person should check that the area is clear of ramp equipment. He shall monitor the progress 'of aircraft being parked and observe the area for approaching hazards. When parked at a gate, engines should not be shut down until the signal person has checked for aircraft position and jetway clearance and has given the captain the "Cut EngInes" signal. . NOTE: If the captain does not choose guidance lights, he will flash the LANDING LIGHTS and the signal person will guide the aircraft in, using hand signals. D. The signal person's responsibility on departures includes - among other things - verification that personnel and ground equipment are clear of the aircraft and to give the departure salute to the captain. E. The signal person must be alert for: 1. Ground Operations agent requests to shut down 1 or 2 engines and/or to reposition passenger loading stands or jetways to board additional passengers. 2. Last minute baggage loading and the need to cut engines. -. ~. AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES A. The signal person shall assume a position from which eye-to-eye contact between the pilot and himself can be maintained at all times. B. When the signal person ascertains that the aircraft is in correct line of position for maneuvering to park, he shall place himself in line with the left wing tip and slightly forward of the cockpit window. . NOTE: Exceptions may be made in the event position is impractical due to local conditions, wide body aircraft, etc., or when approved by local station orders. When dispatching an aircraft, if the signal person's position must vary from the approved position, advise the captain where the signal person will be before interphone conversation is terminated. C. The following are standard ramp signals associated with aircraft movement and parking at the station or other ramp areas. Arms above head in vertical position witll palms facing inward. 1. THIS GATE or PARKING AREA . '. .AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 2. TURN "OFF" TAXI LIGHTS To indicate to the pilot that the signal person's vision is impaired due to taxi or landing lights being ON. . 3. TURN TO YOUR LEFT Rigllt arm downward, left arm repeatedly moved upward-backward. Faster arm movement indicates shorter radius of turn. 4. TURN TO YOUR RIGHT Left arm downward, right arm repeatedly moved upward - backward. Faster arm movement indicates shorter radius of turn. . i.. . AIRCRAFT GROUND HANDLING PROCEDURES GROUND-OPERATIONS TRAINING SIGNALING . PROCEDURES (continued) 5. STRAIGHT AHEAD ~~J~ Arms a little aside and repeatedly J--~~;~ moved upward and backward, -.;:.\ beckoning onward. ,/\. . Arms down at sides with palms toward the ground, then moved up and down several times. 6. SLOW DOWN 7. SLOW DOWN ENGINE(S) ON INDICATED SIDE Arms down with palms toward the ground, then either the Tight or left hand waved up and down, indicating that the left or righ' side engine{s) respectively should be slowed down. . . AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING -SIGNALING PROCEDURES (continued) 8. APPROACHING POINT STOPPING Slow down arm movement and progressively move wands together until wands are crossed at point of stop. . 9. ABNORMAL STOP Arms repeatedly crossed above head. The rapidity of the arm movement should be related to the urgency of the stop. The faster the arm movement, the quicker the stop. 10. CUT ENGINES Either arm and hand level with the shoulder, the hand across throat, palm downward. . c ) . .......- .. -.. " .- - ... ~. - - AIRCRAFT GROUND HANDLING PROCEDURES- GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 11. INSERT CHOCKS Arms down and palms facing inward, swing arms from extended position inward. 12. ALL CLEAR TO POSITION JETWAY . Right arm raised at elbow forming a 90 degree angle. NOTE: All clear signal may also be given by voice or nod of the head. @ ~ft~ 13. 727/MD80/DC9 AFT AIRSTAIR LOWERING When ground to cockpit interphone contact is not used, the ground signal person will indicate to the cockpit that the aft airstair is clear and may be lowered by the right arm straight out level with shoulder, pointing to the aft end of the aircraft and giving a downward motion. This signal will verify that personnel and equipment -are clear of the aft airstair area. "* -- NOTE: MDBO/DC9 Aft airstair can only be operated from a panel located on the exterior of the aircraft. . -I. AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) . 14. STA8T ENGINES Engine starting instructions will normally be by interphone. If the interphone cannot be used, stand forward and to the left of the aircraft. Signal the pilot as each engine is dearto start, by a circular motion of right hand at head level with the left arm pointing to the engine. At no time shall. signals be relayed through an entrance door, nor shall a pilot start his engines until he has received the proper signals. 15. DOOR WARNING LIGHT SIGNAL When the flight crew is not in contact with ground personnel and the door warning light comes ON, the captain shall signal from the cockpit by extending two (2) closed fists in an upward thrust motion, indicating to the signal person to check closing of cargo doors. The signal person shall return the same signal to the captain after checking the doors, at which time the captain will salute if ready to taxi. During night operations, to make signals from the cockpit discernible to ground personnel, make certain tile cockpit is illuminated. . '.. I, - AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 16. REMOVAL OF GEAR PINS The THUMBS UP gesture is. a signal that can indicate: a) Permission requested or granted to remove the gear pins. b) "Are tile gear pins removed?" from the captain. . c) The gear pins are removed. 17. REMOVING CHOCKS Arms down and palms facing forward, swing arms outward. . @ .r .0 A1RCRAFT GROUND HANDLING PROCEDURES GnOUND OPERATIONS TRAINING - SIGNALING - PROCEDURES (coritinued) 18. PARK BRAKES Arms raised from side to horizontal position. @ . NOTE: Tllis signal is provided primarily for pushout operation during a thunderstorm if the interphone is not used. This signal is not required when parking arriving aircraft, since standard procedures call for the captain to park thebrakes after the STOP signal. The cockpit will acknowledge by clenching fists and bending at the wrists to indicate the brakes are parked. ,8' 19. RETRACT FLAPS Arms extended in front of chest, with one arm horizontal, palm facing downward. The other arm is placed directly underneath, lowered to 45 degree position with palm facing upward. Raise lowered arm to horizontal to indicate retract flaps. \/1~'.~.~'.~... f:' .~~ ~.~ , . -;,-. AIRCRAFT GROUND HANDUNG PROCEDURES GROUND OPEnATIONS TRAINING SIGNALING PROCEDURES (continued) 20. RECONNECT INTERPHONE CAUTION: The following procedure MUST be followed when the signal person wishes to re-establish interphone communication with the cockpit. The signal person shall alert the captain by flashing the signal wands (night-time) or by waving the head-set patch cord (day-time). The captain shall acknowledge the request by flashing the left wing landing light two (2) or more times. . Should the captain wish to re-establish interphone communications with the signal person, he shall flash the left wing landing light repeatedly (on the DC-9/MD-80, the nose taxi light shall be flashed). The signal person shall acknowledge the request by flashing the signal wands (night-time) or by waving the head-set patch cord (day-time). The aircraft brakes shall remain parked until such time as the "READY TO DEPART" and "FINAL DISPATCH" signals are given by the signal person anti acknowledged by the captain. . '. - AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 21. RELEASE BRAKES Arms lowered from h-orizontal to 45 ~ degree position. - - - ,,;;~-- ~ '~-'! NOTE; This signal is provided for .~~ tf pushout operation during a ji.i thunderstorm if the interphone tL is not used. For normal operations, Interphone communlca\lon Is required to release the brakes. (. The cockpit will acknowledge by releasing clenched fists to a palm open position that the brakes are released. 22. PROCEED TO NEXT SIGNAL PERSON Right or left arm down, other arm moved across the body and extended to indicate direction of the next signal person. . - , ;. -AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 23. READY TO DEPART Signal person salutes to indicate to the pilot that work In connection with the fight has been completed. He Is ready to guide the aircraft away from the ramp or other parking areas until the aircraft is in the clear. . NOTE: At no time wHl any aircraft depart from any parking area until the saluie is executed by a signal person. - NOTE: For pushout operations, the salute will be given after the tractor and towbar are clear of the aircraft. The captain will acknowledge that he is ready to taxi by flashing the left wing landing light one (1) time (on the DC-9/MD-80, the nose taxi light shall be flashed) . 24. FINAL DISPATCH SIGNAL To indicate to the captain that the aircraft is clear of station congestion and the captain should continue taxiing at his discretion. @, ~t..--.- -"':;'3 .:<~ <'~l'~'. ..i ,~ , , . i,~e AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 25. ENGINE FIRE Move right wand in URGENT fanning motion in front of body and below the waist. a) Left arm horizontal indicates Right Hand outboard or #4. b) Right arm horizontal indicates Left Hand outboard or #1. Ie c) Arm at 45 degrees indicates inboard. d) Either arm straight up indicates center engine. Establish Interphone communication with the cockpit as soon as possible. The captain uses his judgment in regard to using aircraft. fire extinguisher system. 26. TAIL PIPE FIRE A tail pipe fire is signaled by moving the wands to form a Mr-. One wand is then pointed at the engine with the tail pipe fire, the other wand is rotated to indicate to the crew to keep the engine turning. e @ , :. AIRCRAFT GROUND HANDLING PROCEDURES GROUND OPERATIONS TRAINING SIGNALING PROCEDURES (continued) 27. APU FIRE Move right wand in URGENT fanning motion in front of: body and below waist. Hold wands in front of chest as to form a letter ~ "P:'. 28. BRAKE FIRE . Move right wand in URGENT fanning motion in front of body and below waist. Point left wand to the brake. 29. PRESSURIZE HYDRAULICS ~ Arms down, curved inward and palms facing, swing arms inward to a crossed position in front of chest. .