Steve Podradchik, CEO November 22, 2011

Welcome The FAA is Not Evil But they are struggling to make sense of a post-paper world

The Problem

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)  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 and Twitter on Friday. Very limited quantities  Windows, iPad, Certified, etc.   Twitter:

Questions?