Steve Podradchik, CEO November 22, 2011 FAA DATA PRICE CHANGES Welcome The FAA is Not Evil But they are struggling to make sense of a post-paper world The Problem Paper Out, Digital In (Numbers not correct; only to make general point) 100 90 Percent of Pilots Using 80 70 60 50 Paper 40 Digital 30 20 10 0 2008 2009 2010 2011 2012 Agenda Seattle Avionics The FAA Paper The Capt. Jepp Era Digital The Google Era The Shape of Things To Come Black Friday Seattle Avionics The FAA Since 1926 (Air Commerce Act) 1956. FAA Mission Our continuing mission is to provide the safest, most efficient aerospace system in the world. Vision We strive to reach the next level of safety, efficiency, environmental responsibility and global leadership. We are accountable to the American public and our stakeholders. Exceptional Record of Digital Innovation (d-TPP, etc.) Congressional Mandate to Pay For Themselves but Not Make a Profit Paper The Only Way FAA vs. Jeppesen The FAA is the ultimate source of all data Jepp: $1,241 for Paper Only 48 states Not including VFR charts Leather binder - $94 FAA (AeroNav): $ 3,000+ for Paper $ 954 / year for all US Sectionals $ 787 / year for all US IFR charts $ 1,723 / year for all 16,000+ plates and apt diagrams Digital Jepp: $787 for Electronic Only 48 states, No VFR $899 for High Performance FAA: $0 or Nearly So But has not always been true Most iPad and PC-based solutions offer entire US data sets for between $75 and $300 per year Encourages Pilots to Fly with Full Set of Current, Legal, and Safe Data Relatively Easy to Download Very Different than Most Other Countries – Canada, Australia, Etc. Digital Safety and Innovation Digital means safer because it’s easier and cheaper to be legal Contrast with other countries Low base price allows – in fact forces – companies to be innovative Geo-Referenced Approach Plates Seamless Sectionals and IFR Charts More goodies to come FAA has said that some distribution is dangerous but there is no evidence for that – and plenty to the contrary What the FAA Did Recently During the summer, they simply didn’t publish some digital data on their usual schedule. No explanation given. A few weeks later, they stated that digital data would now be available just 24 hours in advance rather than the usual 2 weeks. No explanation given. Massively Bungled PR What Do They Plan To Do Unclear Meeting in Mid-December for Industry With paper, they recently stopped selling to small FBOs and just to major distributors like Sporty’s. Small FBOs buy charts from Sporty’s just like individuals. Safety impact? Saved $ Large $ Gap to Recoup Will Charge by Customer? By chart? Tiers? Pricing Unclear but hard to imagine prices not increasing The FAA has recently shown flexibility and openness Different pricing for IFR and VFR data? Differential pricing? Commercial use (United Airlines, Jeppesen) Corporate jets Light GA (C172, etc.) Any additional products? Some Thoughts Things are up in the air but the FAA is listening Many members of Congress are pilots AOPA is an exceptionally effective lobbying group User-fees come up all the time but are always defeated The US budget is in bad shape Congress can’t even pass a bill to keep the FAA alive for more than a year at a time Black Friday Specials Seattle Avionics has sold Lifetime ChartData subscriptions in the past For obvious reasons, we cannot continue to do this Last chance to buy Lifetime ChartData will be on Black Friday (this Friday) Lifetime is Lifetime Specials announced by email and Twitter on Friday. Very limited quantities Windows, iPad, Certified, etc. Email: Black.Friday@seattleavionics.com Twitter: http://twitter.com/SeattleAvionics Questions?