Alaska Airlines, PenAir and Era Aviation are Shield Carriers, and 32 other airlines have at least one of the required five stars to become a Shield Carrier. The Medallion Foundation staff works diligently to carry out its mission statement — to reduce aviation accidents in Alaska by fostering a new safety culture and by promoting higher safety standards through research, education, auditing and advocacy. This program is aligned with the mission statement of the AACA, and it is successful, as evidenced by a significant reduction in air carrier accidents since its inception. We will continue to work closely with the staff and members of the Medallion Board to ensure that federal funding remains intact and that the program continues to benefit our membership.

The AACA board and staff prioritize legislative efforts to identify regulatory or public policy changes negatively impacting the industry. We remain neutral on economic policy that could potentially benefit some members and not others; however, we do address industry-wide issues such as the Air Tour rule proposals, the Forest Service user fees, and changes to the Alaskan airspace proposed by the military. Proposed policy changes, such as increasing the minimum flying altitude and aging aircraft maintenance requirements, greatly alter the dynamics for tour operators. We can also recommend revisions or changes to the expansion of military operations areas, which potentially impacts both FAR Part 91 and Part 135 operations. Most recently, the proposed expansion to create a Delta military operation area could restrict IFR flights to and from Canada. While comments are being taken, and the outcomes yet to be determined, we will continue to work with all federal agencies to minimize the negative impact our industry.

We believe our membership deserves optimum discounts and benefits to make the organization attractive. Our staff works hard to obtain discounts from car rental agencies and other service organizations. With continued focus in this area, more benefits will continue to be gained.

The Capstone projects, Phase I in Southwest Alaska and Phase II in Southeast Alaska, have considerably improved the safety aspect of flying in these demanding environments. These projects were a part of research and development programs funded by the FAA. A change to include the Phase III statewide program into the national program office — the National Surveillance and Broadcast Services Program Office — is well underway. With this change from research and development to a national program, the statewide Phase III program must meet stringent cost-benefit analysis criteria and fit into the national program. While the requirements are rigorous, the AACA will continue to work closely with the FAA and other statewide organizations. Our primary focus will be to ensure that Alaska receives a statewide ADS-B network. Our goal is to ensure that there are no compromises to the safety improvements we have already made.

While 2006 has presented new challenges for the industry, we look forward to a prosperous and safe new year. Wishing you all clear skies and tail winds.

Wilfred P. Ryan,