Adios AOPA summit's.....

[CT Arrow]

A fellow pilot and I were chatting last night at a Seminar. He indicated that he had an opportunity to chat with an AOPA rep last week while down in South Carolina last week and that the AOPA summit's are history.
Looks like Texas is still on but Palm Springs and all future events cancelled!

Frankly, I think this is a wise choice and a bold move from Baker. Time will tell if AOPA can restore itself and win back the score of pilots who left while under Fuller's Command.


September 10, 2013

By AOPA Communications staff


AOPA has decided to suspend holding its annual Aviation Summit in favor of reaching more members “where they fly.” Aviation Summit in Fort Worth, Texas, from Oct. 10 through 12, will be held as planned and is shaping up to be one of the best ever. We are on track for thousands of members to join us and the exhibit hall is nearly sold out, with new exhibitors still signing up. But convention plans for 2014 have been canceled.

While Aviation Summit, previously called AOPA Expo and before that named Plantation Party, was a very good way for AOPA to meet with members and engage with valued industry partners, it no longer made sense for the organization and its members to invest in a single large event. AOPA plans to redirect the time and resources previously spent on Summit to meeting members at community airports and hosting more grassroots events.

“One of my biggest priorities is to meet members in venues that truly spark their passion. I want our members to make a personal connection with AOPA, and that is best achieved by meeting them where they fly,” said AOPA President Mark Baker. “We now have a wonderful opening to visit general aviation airports and engage pilots in a much bigger way that is also more affordable and accessible for members. This decision is about going out to where our members are, maximizing the number of pilots that we reach on an annual basis. And it will also give me a real opportunity to spend quality time with members and seek their honest feedback in a more comfortable and relaxed setting.”

In 2014, AOPA will host a series of enhanced pilot town halls and fly-ins. These Saturday events will give members the chance to share in a discussion with Baker and other AOPA leaders, partake in an educational forum, and enjoy a burger or a hotdog on AOPA.

“I know thousands of you are planning to see us in Fort Worth, and we are really looking forward to a first-class event,” Baker said. “We’re offering hundreds of hours of seminars covering everything from medical and legal issues to aircraft ownership and emerging technologies. And this year’s exhibit hall and Airportfest feature hundreds of displays from highly respected aviation companies. It’s a great place to get answers to all your questions or just browse around and discover what’s new. And don’t forget the fun! We’ve got a free concert by country music star and pilot Aaron Tippin, and a world-class rodeo at the Fort Worth Stockyards.

“I am truly looking forward to meeting members in Fort Worth in just a few short weeks and at community airports all over the country in 2014. We will be celebrating AOPA’s 75th anniversary next year, and I can’t think of a better time to go out and meet members, reaffirm AOPA’s commitment to our core mission of protecting the freedom to fly, and lay a new foundation for a fresh vision of the future.”
More details about next year’s pilot town halls and fly-ins, as well as activities around AOPA’s seventy-fifth anniversary year, will be released as they become available.

 

[wsuffa]

(speculation)

IOW, they're not getting the uptake on booth space and vendor displays that they expect, and they expect extra costs from FAA for ATC services. My bet is that the finances no longer work especially with an aging pilot population.

I agree it's a good move, but it's also symptomatic.

 

[steingar]

Never could see the point of the summit (and never cared to go to one) with all the EAA sponsored fly-ins out there. I actually like the thought of more local events, seems like a better way to accomplish their mission.

 

[airdale]

IMHO this is a positive move for a couple of reasons.

First, the "Summit" was a me-too activity that almost certainly cost them more than it brought in, especially when staff time is considered. It didn't even have the excuse that it was the annual meeting of the corporation. (That meeting, of course, is held in private.) So if it was a pointless loser, it deserved to go away.

Second, and more important, this may indicate that Baker is going to cut some fat out of the organization. A good next move would be to nix the staff toy, aka "sweepstakes airplane," which is an expensive distraction. Yes, they get a lot of free hardware and work, but they have to buy the airplane and probably spend one or two FTE salaries managing the project and playing with the toy.

I hope he's not planning to use The Jet for his "enhanced pilot town halls." That, too, needs to fly off into the sunset.

From his resume, he hasn't been too successful as a CEO but he certainly has plenty of experience cutting expenses out of organizations. Hopefully, this skill will serve members well and, in the longer term, attract former members like me back into the organization.

 

[Archammer]

(speculation)

IOW, they're not getting the uptake on booth space and vendor displays that they expect, and they expect extra costs from FAA for ATC services. My bet is that the finances no longer work especially with an aging pilot population.

I agree it's a good move, but it's also symptomatic.

That's what happens when you charge $105.00 just for an exhibitor chair... I mean come on.

 

[docmirror]

IMHO this is a positive move for a couple of reasons.

First, the "Summit" was a me-too activity that almost certainly cost them more than it brought in, especially when staff time is considered. It didn't even have the excuse that it was the annual meeting of the corporation. (That meeting, of course, is held in private.) So if it was a pointless loser, it deserved to go away.

Second, and more important, this may indicate that Baker is going to cut some fat out of the organization. A good next move would be to nix the staff toy, aka "sweepstakes airplane," which is an expensive distraction. Yes, they get a lot of free hardware and work, but they have to buy the airplane and probably spend one or two FTE salaries managing the project and playing with the toy.

I hope he's not planning to use The Jet for his "enhanced pilot town halls." That, too, needs to fly off into the sunset.

From his resume, he hasn't been too successful as a CEO but he certainly has plenty of experience cutting expenses out of organizations. Hopefully, this skill will serve members well and, in the longer term, attract former members like me back into the organization.

If he heads out to a "town hall" in a corp jet, all is lost. If he gets behind the yoke of some piston plane I'm good with this. For now, I'll give him the benefit of the doubt that this is a move in the right direction. I don't see this as a financial move cause they are flush with cash. I see it as more of a political move to stem the declining membership. In the 30s or 40s I think they would say; 'time to get out in the hustings'.

 

[airdale]

I don't see this as a financial move cause they are flush with cash.

Well, a good manager is always working to control costs.

The most sensible thing to do with the cash, IMHO, would be to give it back to the members from whom it was extracted, not to use it to support unnecessary costs. For example, declare a dues holiday of a certain number of months for each year of membership, spending down the hoard to replace the dues that would otherwise have supported the P&L.

Another thing he could do would be to rescind the recent dues increase and restore the medical benefits that members didn't, pre-increase, pay extra for. The P&L didn't need the dues increase in the first place and with some cost control could be put into fine shape at a lower dues income level.

The other shoe to drop here, of course, must be a small headcount reduction due to no longer having to deal with the "Summit." I'd guess there were 3-5 FTEs working on it. Maybe more. If the headcount stays the same, then the idea that cutting the Summit was good cost control becomes somewhat of a sham.

 

[CT Arrow]

Well, a good manager is always working to control costs. The most sensible thing to do with the cash, IMHO, would be to give it back to the members from whom it was extracted, not to use it to support unnecessary costs.

While I applaud the jesture, the chances of that are happening are slim to none! The coffers are full of cash and to give back, depending on how you view this, could backfire badly! Leave the reserves along and give back in other ways.

Another thing he could do would be to rescind the recent dues increase and restore the medical benefits that members didn't, pre-increase, pay extra for. The P&L didn't need the dues increase in the first place and with some cost control could be put into fine shape at a lower dues income level.

Maybe, but I don't see a cost giveback. See above.

The other shoe to drop here, of course, must be a small headcount reduction due to no longer having to deal with the "Summit." I'd guess there were 3-5 FTEs working on it. Maybe more. If the headcount stays the same, then the idea that cutting the Summit was good cost control becomes somewhat of a sham.

This makes more rational sense. I also agree that the summit's are probably not making anything and have become a loss leader for AOPA. Add in what one OP said, dwindling pilots and it becomes obvious to cut your losses.

I see first action as damage control; stop the members from leaving as well as improve retention. God knows when I cancelled my membership after 12 years of AOPA they could have cared less! Zip, notta, adios! I have had cell phone carriers do a better job in trying to keep my business!

AOPA can salvage itself if they really want to. Ending the summit series is a step in the right direction. See where it goes from here....

 

[flhrci]

I thought the "Summit's" were just for the rich aircraft owner's and not the lowly pilot that only flies occasionally. I would have felt out of place had I ever been to one.

The only thing I liked was the parade of planes but even that shows who has the "money."

David

 

[Fly-Fla]

They could always offer up a service for everyone like legal assistance coverage as part of your base membership instead of an add on.

 

[RV10flyer]

It appears they are already visiting grass roots fly-ins. Six showed up in a Caravan at Triple Tree Friday 9/6/13.

 

[CT Arrow]

It appears they are already visiting grass roots fly-ins. Six showed up in a Caravan at Triple Tree Friday 9/6/13.

Yup, that's were he met the AOPA gent.

 

[N747JB]

I thought the "Summit's" were just for the rich aircraft owner's and not the lowly pilot that only flies occasionally. I would have felt out of place had I ever been to one.

The only thing I liked was the parade of planes but even that shows who has the "money."

David

I never attended a "Summit", it's not my cup of tea, but I do think that parading airplanes through the streets, while neat, just proves that airplanes are toys for the rich and famous.
As with any organization, times change, if the summit's don't make sense financially, then drop them! NBAA has a big show for the jet and turbo-prop crowd, EAA and local fly-ins are more for regular guys/gals.
I imagine it's getting harder to make financial sense out of a big production like a summit, the costs of putting it on have to be tremendous: renting space, renting tents, catering, (wine clubs), renting furniture, eveything is expensive when you go off site!

 

[PW_Plack]

I suspect the lavish event, the very costly "AOPA Live" initiative and the name change from the trade-show-sounding "expo" to much more pretentious "summit" were all part of an effort to make AOPA look bigger to federal lawmakers, more like a campaign contributor worth courting.

 

[airdale]

The coffers are full of cash and to give back, depending on how you view this, could backfire badly! Leave the reserves along and give back in other ways.

I don't see any risk in a sensible program to return a substantial portion of the hoard to the members. $10-20M would be an adequately luxurious reserve level for an organization like this one and they have something like $70M plus.

I promise you this: Even in his dreams, Baker never thought he'd be running an organization with cash on hand equal to 2x annual revenue!

Microsoft and Apple both have cash in the neighborhood of 1x annual revenue and investors are constantly complaining about it:

"... it's smart for Corporate America to be saving for that proverbial rainy day. But they seem to be hunkering down for a biblical flood." (http://buzz.money.cnn.com/2013/02/12/apple-cash/)
​

I wonder what that author would say about AOPA, whose hoard (as a percentage of revenue) dwarfs what he is complaining about at Apple and Microsoft, and whose business is far more stable and predictable.

 

[frfly172]

Have attended two summits,thought the cost was high,did get to see some new aircraft. Much prefer smaller fly ins and town hall meetings, more personal. Glad to see they are working on getting the little guy back.

 

[dell30rb]

Second, and more important, this may indicate that Baker is going to cut some fat out of the organization. A good next move would be to nix the staff toy, aka "sweepstakes airplane," which is an expensive distraction. Yes, they get a lot of free hardware and work, but they have to buy the airplane and probably spend one or two FTE salaries managing the project and playing with the toy.

I disagree. The sweepstakes airplane is a nice tradition and the cost to AOPA is very low. If you want to cut some fat, try cutting the cords on Craig Fuller's golden parachute.

 

[MBDiagMan]

I looked hard at going to the Summit in Fort Worth because I hangar about 100 miles away and my wifes twin sister lives in Fort Worth.

When I started looking into it, I found that it cos $300 for the whole 3 days. Okay, a lot of money, but that sounded doable and maybe worth it. I could not find out on any publication, so I called and asked what it would cost for my wife and twin sister to attend each of the evening events and it was $75 a head!

I was hesitating, but still considering it until my wife got surgery scheduled for the Wednesday before the event.

I'm sure that these events are chock full of great information and I'm sure that they are not inexpensive to produce, but that's a lot of money for a few days of safety seminars and a party or two.

I understand why they are trimming them back. Maybe what they come up with will be more practical for more folks.

 

[Lawreston]

I thought the "Summit's" were just for the rich aircraft owner's and not the lowly pilot that only flies occasionally. I would have felt out of place had I ever been to one.

The only thing I liked was the parade of planes but even that shows who has the "money."

David

Truth is, the "Summit's" expectations are that an "aircraft owner's" desire of seeing the latest offerings and/or learning from various lectures will enhance the knowledge of all owners. Note that, if one refers to more than one summit or more than one owner, what's the point of putting the ' in either of the references?

I recently read a lengthy article about the spate of ramp checks which were alleged to have been under questionable circumstances. A respected writer peppered his dissertation with references to the "FAR's." Each should have been FARs, of course, except in an instance of referring to "the FAR's Chapter X, Section X1 which states" - - - . Though the premises were well-stated, I frown on careless journalism. PROOF before publishing.

HR

 

[Tony_Scarpelli]

Microsoft and Apple both have cash in the neighborhood of 1x annual revenue and investors are constantly complaining about it:

"... it's smart for Corporate America to be saving for that proverbial rainy day. But they seem to be hunkering down for a biblical flood." (http://buzz.money.cnn.com/2013/02/12/apple-cash/)
​

I wonder what that author would say about AOPA, whose hoard (as a percentage of revenue) dwarfs what he is complaining about at Apple and Microsoft, and whose business is far more stable and predictable.

I'm not sure this can be directly correlated since most Fortune 500 have off shore moneys they do not yet have to pay taxes on. When they repatriate them they pay taxes on them. I suspect this money is not included in the 1x corporate revenues figure.

 

[Tony_Scarpelli]

I disagree. The sweepstakes airplane is a nice tradition and the cost to AOPA is very low. If you want to cut some fat, try cutting the cords on Craig Fuller's golden parachute.

I think they should keep the sweepstakes airplane as well.

 

[Tony_Scarpelli]

The Summits I have attended are very much like Sun N Fun and Oshkosh without the bird sized mosquitoes and nasty meter-maids of WI.

The comradery of fellow aviation enthusiasts is fantastic and the main reason I enjoy them so much. The view at all the too expensive toys and avionics is just a air conditioned walk through the mall, so to speak.

I always go to airshows with a pocket of cash but come home with most of it since I can barely get a chance to talk to the salesman about the toys I came to shop for. I end up researching and buying (gps, ox system and such) online. But I do get a look at things that are impossible to view online which helps with the buying decision.

I hate to see the summits go away but if they are not effective then so be it. AOPA and other organizations supporting aviation should be at every event of the 20+ airshows even the military airshows if possible, to recruit and encourage the idea of aviation as a hobby to all the young people.

I thought the "Summit's" were just for the rich aircraft owner's and not the lowly pilot that only flies occasionally. I would have felt out of place had I ever been to one.

The only thing I liked was the parade of planes but even that shows who has the "money."

David

 

[Tony_Scarpelli]

I always go to AOPA Summits when they are in a locality that I can reach. I usually can make Palm Springs or the mid-west or Florida. I tend to avoid any fly ins in New England or WI.

I am definitely going to Ft Worth this year. I usually attend the even for at least the $55- 1 day just to go see the toys and airplanes and hang out at the lounge later that night and talk to all the other pilots as well as walk the tarmac of airplanes in transit at the airfest.

In Tampa, someone gave me a set of tickets to a diner event and it was nothing short of fantastic. My understanding is that the $75 was about half cost of my meal, and then entertainment and the rest to a fundraiser. The event was so wonderful I doubt much was left for fund raiser but I sure had a good time. Great night and I never doubted the value of the tickets since. Although I do not always attend them and I would not take another couple or family who were not aviation enthusiasts. If budget it tight, take 3 other aviators down in your plane, split gas and hotel, buy one ticket to one premium event and a days entrance to the airfest and convention and call it good. Or Buy 1 day to go to the seminars that match your needs. I seldom do the seminars as I find safety seminars and Comanche seminars in other venues.

I usually go with a few buddies and not even my significant others want to be bothered with going. My last Summit was Tampa, they sat us with Mike Busch Savvy Aviator seminars and I knew him as I was one of his attendees. It was great. But I would not have paid $300 for myself and my significant other and $75 ea for another non aviation couple of members of her family.... Better to take them to outback steakhouse on a night that was free.

I've sometimes driven to these events and ends up costing less than a couple of hours of flight time. I think everyone should attend a few of these functions.

I looked hard at going to the Summit in Fort Worth because I hangar about 100 miles away and my wifes twin sister lives in Fort Worth.

When I started looking into it, I found that it cos $300 for the whole 3 days. Okay, a lot of money, but that sounded doable and maybe worth it. I could not find out on any publication, so I called and asked what it would cost for my wife and twin sister to attend each of the evening events and it was $75 a head!

I was hesitating, but still considering it until my wife got surgery scheduled for the Wednesday before the event.

I'm sure that these events are chock full of great information and I'm sure that they are not inexpensive to produce, but that's a lot of money for a few days of safety seminars and a party or two.

I understand why they are trimming them back. Maybe what they come up with will be more practical for more folks.

 

[airdale]

I suspect this money is not included in the 1x corporate revenues figure.

No, the offshore cash is on their balance sheets. Has to be.

From the linked article: "I realize that a big chunk of this cash is being held overseas for tax purposes." (The sentence before the two I quoted.)

 

[Tony_Scarpelli]

No, the offshore cash is on their balance sheets. Has to be.

From the linked article: "I realize that a big chunk of this cash is being held overseas for tax purposes." (The sentence before the two I quoted.)

I'm confusing income switching where they keep realized income off shore vs not repatriating income. One is a legal tactic the other is not, I suspect most corporations do a bit of both.

 

[Bob Noel]

Well, a good manager is always working to control costs.

The most sensible thing to do with the cash, IMHO, would be to give it back to the members from whom it was extracted, not to use it to support unnecessary costs. For example, declare a dues holiday of a certain number of months for each year of membership, spending down the hoard to replace the dues that would otherwise have supported the P&L.

I would vote for a very low (or zero) dues for the first X years for new members. I went with this so it would not appear that I was looking for a freebie from AOPA.

 

[Tony_Scarpelli]

I do not understand why anyone would think they they should do anything to diminish their capital reserves.

AOPA is a mission based non prof similar to the Kohmen foundation but without the pink ribbons. While not trying to aid cancer issues it still has its cause which is not served by refunded money nor diminish its financial strength.

It is not a magazine nor social club non prof that seeks to keep its head above water but one year from financial disaster. That is not a practical business sense.

 

[Jeff Oslick]

I do not understand why anyone would think they they should do anything to diminish their capital reserves.

Because pilots are a bunch of cheap .... looking for a free lunch...

They should diminish their capital reserves, but only by spending on activities that will provide a return, either through growth of the membership or value to the mission (lawyering-up to fight DHS, for a start).

 

[airdale]

I do not understand why anyone would think they they should do anything to diminish their capital reserves.

Because they have no need for such big reserves. It's really that simple.

They aren't going to acquire anyone (nonprofits can't be bought and sold). They don't need a new building. They don't need the reserve for large and unanticipated expenses like the Red Cross might, for example, hold reserves for disaster relief. Their business is very stable, changing little from year to year. Even if it is slowly declining, that is something to manage rather than looking to reserves to fund the insiders' party at its historical level. Finally, their level of reserves (as a % of revenue) is far higher than their peer organizations.

Try spending a evening on guidestar.org looking at peer organization tax returns. I did, and found only one very small medical specialty society with a similar reserve ratio (and it's possible they were saving to buy themselves a building.) NBAA's reserves are around 2/3 of revenue. NRA's are less than 20% of revenue.

If you poke around the web, you will see that a common recommendation for nonprofits' reserves is 3-6 months of expenses, with larger amounts recommended for organizations with unpredictable income or expenses. AOPA's income and expenses are as predictable as a metronome.

Charitable foundations really aren't comparable to member-dues funded organizations. They are often created by a bequest (like the Ford Foundation) and the money they distribute is from the earnings of the endowment. That is what AOPA is trying to do with the umbrella successor to the ASF. I wouldn't even gripe if AOPA took $50M from the hoard and gave it to the AOPA Foundation. The fact that such a transfer would roughly triple the foundation's assets should be another clue that AOPA is sitting on too much cash.

The hoard is, simply stated, money unnecessarily taken from members' pockets. Putting through a dues increase to further build the hoard is adding insult to injury.

 

[docmirror]

Canned response to my email to Mark. I asked specific questions, and gave specific opinions on the new town hall format. No info on anything. Almost like it was from my HR rep. The bold part does not bode well for my return to the fold. It's like they are taking a cold dead Mackerel and thwacking me across the face for my impertinence.

Mr. xxxxxxxxx,

Thank you for your email. We appreciate you taking the time to write
us. Mark is out of the office at the moment so he asked me to respond
to your email.

Mark thanks you for your well wishes as he begins a new era of
leadership for AOPA. Transitioning into the role of president is always
a challenge and he is very appreciative of all the support he has
received from members as well as former members.

Mark is a very inclusive person and one of his goals for AOPA is that we
make sure AOPA represents all of general aviation. After all, general
aviation includes everything except the military and the airlines. That
means AOPA's hangar should be a very big one and include aircraft such
as the Piper Super Cub which is Mark's favorite plane to fly, to a
Cessna Citation which Mark is type rated in and has flown for many
enjoyable hours to anything and everything in between. Whether you fly
a Schweizer 1-26, an Ercoupe 415D, a Cessna 172, a Robinson R22, a Piper
Seneca, a Beechcraft King Air, or a Gulfstream G150; all should be
embraced, welcomed, and celebrated as part of the general aviation
family. Incidentally, Craig was also type rated in the Citation and
flew it himself to most AOPA outreach events.

Mark is extremely passionate about flying. His and the board's decision
to suspend AOPA's annual convention after this year and focus more on
smaller town hall style gatherings is a tribute to his desire to meet
the members where they fly and to hear from as many as possible. Mark
also has an extensive background in customer service which will serve
him and AOPA well in the coming years.

We look forward to you being a part of this year's AOPA Summit in Fort
Worth, Texas. Many individuals including the city of Fort Worth, the
Convention and Visitor's Bureau, Fort Worth Meacham International
Airport, Dallas Fort Worth TRACON, FTW FBOs, and others have worked
hard over the past year in preparing for this year's event. We expect a
good time for all at the last AOPA Summit.

On behalf of Mark--



All the best,


xxx xxxxxxxxxxxxx
AOPA

 

[Henning]

(speculation)

IOW, they're not getting the uptake on booth space and vendor displays that they expect, and they expect extra costs from FAA for ATC services. My bet is that the finances no longer work especially with an aging pilot population.

I agree it's a good move, but it's also symptomatic.

I stopped in at the one in Long Beach hoping to talk to TCM, they weren't there, neither were a couple of other vendors I hoped to see.

 

[Dav8or]

(speculation)

IOW, they're not getting the uptake on booth space and vendor displays that they expect, and they expect extra costs from FAA for ATC services. My bet is that the finances no longer work especially with an aging pilot population.

I agree it's a good move, but it's also symptomatic.

Seriously, you nailed it in the first post. There has been some blah, blah, blah here, but in the end, I'm sure they can't afford the big show anymore. We are shrinking in numbers and spending less. GA is in a death spiral and big conventions like this are bound to dry up. I think we'll see Sun n' Fun pass too as well as Oshkosh shrink in size and scope.

I'll miss the Summit as I have attended many. I hope that whatever they have planned for the future is fun and exciting too, but I kind of doubt it. There are loads of grass roots fly ins all over the country all the time, what can they add? Hope I'm wrong.

 

[Dav8or]

I thought the "Summit's" were just for the rich aircraft owner's and not the lowly pilot that only flies occasionally. I would have felt out of place had I ever been to one.

The only thing I liked was the parade of planes but even that shows who has the "money."

David

See, this is where you are wrong. Dead wrong. I attended my first three Summits in a rent a wreck rattle trap club planes. I had a great time and each time I came home with something I could afford. The people there treat you all the same. You get bonus points just for flying in.

Yeah, there is tons of pretty stuff there I could never afford, but you get to play rich guy pilot for a day, All the sales people treat you as the same prospective buyer, so you get to sit in, fiddle with and ask all the questions you want. It's fun! Lots to learn and you know what? I eventually did buy a plane and then I was one of those guys buying stuff at mind bending prices. Don't sell yourself short.