AirVenture funding crisis - Facebook statements.

[waraton]

For those not on Facebook the following three statements are cut from Facebook today, relating to the funding of AirVenture this year.

 

Heading to AirVenture Australia? Where is AvPlan EFB?

 

We’ve recently been notified in writing from the organisers of AirVenture Australia that we will not be permitted to attend, be allocated booth space or speaking spots during their event in October 2017. We were notified in writing this has been performed under direction from the major event sponsor.

 

We have been supporters and sponsors of this event in the past (under the Oz-kosh name and AUSFly/NATFly before that) so this action has come as a complete surprise (and contrary to what has been written elsewhere, we were not formally approached to provide sponsorship this year). We hope that this policy is short lived and we can once again support this great cause of bringing Australian pilots together to enjoy one another’s company and celebrate what it is to be an aviator.

 

 

AvPlan EFB blocked from attending AirVenture Australia - AvPlan EFB - Electronic Flight Bag

 

The AvPlan EFB team have been barred from attending AirVenture Australia by the event organisers on direction from the major sponsor OzRunways

 

Learn More

 

AVPLAN-EFB.COM

 

 

Recreational Aviation Australia

 

1 hr ·

 

Statement regarding AirVenture 2017

 

Due to some parties launching a public attack on the single largest sponsor of AirVenture we are now facing the stark reality that we may not have the financial backing to make the event viable. We feel that it is important for our members to understand the events that took place in the lead up to this position.

 

Those parties who engaged in the public attacks were previously invited to be a part of AirVenture and advised us that it was not in their interests to sponsor AirVenture. OzRunways had the vision to see that AirVenture is an important event. They understood that it would complement other air shows and provide those things that our members and the broader aviation community wanted such as education, exhibitors and an opportunity to mix with likeminded individuals. To this end they stepped in and provided generous financial support. Those who chose not to support AirVenture at the outset were offered participation in a more limited manner and were provided with event information again in late May 2017 in line with what other exhibitors had agreed to. In early August, the AirVenture team had not received any commitment so OzRunways worked collaboratively with AirVenture to provide more funding in return for an exclusive arrangement. This would protect the sizeable investment of OzRunways and would not affect those that had already expressed their intent to not attend. Discussions between the organisers of the event and OzRunways revealed a willingness to continue working with AirVenture and adjust their contribution and terms should this exclusive agreement need to be reviewed. This additional support from OzRunways reinforced their passion for the industry and their willingness to support an event designed specifically for pilots and aircraft owners.

 

In recent days details of negotiations between AirVenture and OzRunways have been leaked leading to a barrage of negative comments directed towards the most significant financial backer of the event. In light of these comments it is no longer beneficial for OzRunways to be associated with AirVenture and so they have made the tough decision to withdraw from the event. Moreover, the attempts by some bodies to assert their relationship with the event despite having no agreements in place have compromised the existing commercial relationships with OzRunways and other participants who have also withdrawn leaving a potential shortfall of more than $60k. As a direct result of this the event may not go ahead as planned.

 

We understand that those individuals who had committed to AirVenture, the aviation businesses, small and large alike, who were planning to attend, and the local Narromine public who support us will all be adversely affected as a result of any decision relating to moving forward with the event. We would like to express our appreciation to all of those who have supported and contributed to AirVenture and hope that we can continue to cooperate with each other to produce an event for aviators.

 

OzRunways remains an important partner to RAAus and we will continue this relationship and look forward to working together to deliver true benefits to the aviation industry in the future.

 

RAAus is expecting to be in a position to release more information about the future of the 2017 AirVenture event by the close of business on 10 August 2017.

 

.

 

 

OzRunways

 

4 hrs

 

G'day aviators,

 

Yesterday one of the member based organisations involved with AirVenture leaked a confidential draft contract to our principal competitor and others in order to undermine the AirVenture airshow. A hostile misinformed smear campaign was launched to undermine OzRunways, the event and all of the beneficiaries including yourselves (aviators), the Narromine township and the aviation industry in general.

 

Accordingly, OzRunways has taken the difficult decision to remove our major sponsorship of the event and will be a regular attendee.

 

To clarify some facts again, OzRunways committed to become the major sponsor of the airshow in March 2017. A little while later, the event was picking up steam and while there was a lot of interested vendors, no other major sponsors had been secured. We were approached by the organisers to be the naming sponsor with exclusivity of our product at the event, in exchange for an increase in our cash contribution. We were stretching our budget but the event needed a little more capital to get things locked down. Now, at this point we were told that our exclusivity wasn't a major issue because competing organisations had advised they were not going to sponsor the event and had made no commitments to the organisers that they would exhibit at the event. We took the extension feeling comfortable it wouldn't really have any effect on anyone but it would give us the ability to make sure we had prominence our funding deserved if competing products were to later decide to attend. We told the organisers if things changed to get in contact with us so we could work through it.

 

Additionally, any talk of excluding other member based organisations from attendance is wrong and lacks context. When the information was leaked, we were in active discussions with AirVenture on how best to include varying organisations to attend in a capacity without "taking over", and helping AirVenture ensure they had the funds needed. This I think you'll all agree is very reasonable request for the major sponsor to be ... the major sponsor! And for the airshow organisers to be financially viable.

 

To summarise, we believe a campaign of deliberate misinformation aimed at the ONLY confirmed sponsor of the event has been undertaken. We were trying to do the right thing by the airshow, attendees, the city of Narromine and vendors alike.

 

But not all is lost!

 

OzRunways typically donates to a variety of organisations throughout Australia normally without seeking any form of credit or publicity including HARS, AWPA, Angel Flight, RFDS, RAAus, SAAA, Dreamsky Indigenous Pathway, AAC, dozens of local flying clubs and more.

 

We now have a sizeable budget set aside to support the aviation industry (around $30,000). We would like to redeploy this back into the community, preferable across a bunch of not-for-profit organisations who need a break. If you have any good ideas for whom to support, even if it's just a club needing a couple of free subscriptions for a door raffle, please get in touch with us athelp.ozrunways.com and we'll be glad to help out the industry that has helped us.

 

Again it's regrettable that false facts have been taken advantage of and I think from now on we'll just stick to writing good software and helping our customers - aviation politics isn't for us

 

 

[Nobody]

I was just emailed this from SAAA.

 

AirVenture Australia - Narromine - 2017

 

Dear Member,

 

 

 

A long-held dream within the general aviation community in Australia has been to bring together all Australian general aviation member groups together under one sky. To achieve something similar to the EAA in the United States.

 

 

 

A step to achieve this began in 2016. General aviation member organisations were invited to become stakeholders in the original 2016 Event, which was named OzKosh. OzKosh was created to encourage aviators, sponsors and suppliers to come together under one sky. After the success of the 2016 Event, OzKosh was renamed Airventure Australia in response to participant feedback.

 

 

 

Airventure Australia Pty Ltd (AVA) was established with three founding Member organisations being RAAus, SAAA and APF to take the 2017 event forward. The objective remains to bring the general aviation community together and to meet the interests of the Members not only of the founding Member organisations, but those of all in the aviation community – in essence to deliver annual events that are founded on fly-ins which provide entertainment, education and an opportunity to socialise with likeminded people.

 

 

 

SAAA is largely a volunteer run organisation, with very limited employed administrative or technical support. The volunteers work hard to maintain and enhance the SAAA community with services that meet Member needs, and keep them safe. We are not interested in making a profit, nor can we as SAAA is a not-for-profit organisation, and we are not interested in politics other than those associated with advancing the richness of SAAA and the broader general aviation community.

 

 

 

Our involvement in AVA inevitably exposes us and the other founding Member organisations to commercial relationships with supporters of the industry (product and service providers) who we look to for financial support of events such as AVA. Commercial decisions and arrangements are entered into with the best of intentions to create a win-win outcome for all stakeholders. Not surprisingly, there will be occasions where commercial reality and the pressures to develop sufficient pledged financial support to provide confidence by event organisers to “press the button” conspire to produce outcomes that are unpalatable to some in the community.

 

 

 

Sadly, there has been one such outcome which stems from an agreement entered into between AVA organisers and OzRunways. All parties acted in good faith and with proper business conduct. OzRunways were the first industry supporter who quickly recognised the opportunity to become the “Naming Rights” sponsor for AVA 2017. The AVA organisers were delighted that OzRunways made this significant commitment that provided AVA with the impetus and confidence to push forward with the 2017 Event.

 

 

 

There are some in the broader community, which includes SAAA, who were not comfortable with certain aspects of the conditions under which OzRunways were engaged, in particular those which resulted in certain parties being unable to exhibit at AVA. Why – simply because this is not consistent with the dream - All aviators, sponsors and suppliers coming together under one sky.”

 

 

 

This said, it must be put on record that OzRunways have acted in good faith and have not acted improperly. Accordingly, OzRunways do not deserve to be vilified, and neither should any of the founding Members of AVA. SAAA encourages its Members to not do so. However, sadly, and we believe largely as a result of public response, OzRunways have elected to withdraw from the AVA 2017 Event.

 

 

 

There will now, sadly be a shortfall in funding.

 

 

SAAA is asking the membership if there are members out there who would consider pledging any amount to support the event.

 

 

 

If you, as a member can see your way to support this event – please click the button below:

 

 

 

President, SAAA – Tony White

 

 

[Geoff13]

Bloody Politics.

 

It can ruin so many good things.

 

The trouble with social media is that one hotshot behind a keyboard and slander/ruin so much.

 

There are no checks and balances.

 

 

[poteroo]

AirVenture is an airshow, and it has to stand on its' own 2 financial feet. The costs of running airshows are massive, and more so when professional display groups are contracted to perform. Why not ask the general public for higher entrance fees if the budget is in the red? What's that - the GP will not pay it because they can view the whole thing from outside the airport? If that's the case, then it's a bit rich seeking financial input from members of the organisations which created AirVenture. Back to smaller, non-public, regional Fly-ins methinks. happy days,

 

 

[KRviator]

I am pointing the finger squarely at AvPlan for this one... OzRunways stumped up the cash initially, then more again when they were offered essentially the naming rights to cover the $$ shortfall.

 

I note AvPlan has come out with "We were not 'officially' invited". RAAus says they were. OzRunways says they were - though a cynic would suggest "of course they would say that". And AvPlan is the one having a whinge about not being invited to an event now sponsored exclusively by their competition? Really?

 

Personally, I use OzR, having tried AvPlan previously but found it too buggy and prone to crashes, however I had considered going back as I am coming up on replacing my iPad and was thinking an Android unit would be the go. Not anymore. Hopefully, the rest of those so-called outraged pilots on FB vilifying OzRunways will be eating humble pie now the full story - as opposed to AvPlan's "We are blacklisted because we are AvPlan" - is out there.

 

I would love to know which "member-based orginisation" leaked the contract to AvPlan, but reading between the lines of the SAAA release above suggests it may have been someone within that organisation. This is extremely disappointing if it is indeed the case.

 

At the end of the day, it's a sad day for all concerned...

 

 

[Head in the clouds]

Finger pointing isn't going to help, and neither is suggesting that in today's world any event could possibly be fielded without massive corporate sponsorship - to pay the bloody litigation insurance first and foremost ...

 

I also think it's pathetic that RAA and the two potential sponsors see an early need to hang their dirty washing out so soon, shame on them all, grow up kids, work it out ... find a new major sponsor and let the competing EFB companies be even co-sponsor ... whatever works. RAA directors draw good salaries to get these things done without putting it in front of the members.

 

 

[Dave English]

It seems to me that Avplan has the right not to be a major sponsor, and also has the right to state that they have been barred form the event. No break in good faith there. It would be nice if every aviation business made a contribution to the Narromine dream, but that is unrealistic. I dont know their financial plans or situation.

 

It also seems reasonable that Ozrunways took the opportunity at the organisers offer to be the major sponsor, and it is laudible that they would make the commitment.

 

So I cannot find blame with either company. They have done what seems right to them in good faith and have not broken any contracts.

 

What seems much more murky is why an organisation would announce a major sponsor and start to ward off competitors before contracts had been signed. I will say no more because of possible breach of slander laws.

 

 

[jetjr]

There is no way these events "stand on their own", they would be a financial loss to every exhibitor.

 

Nebulus advertising or brand promotion value, maybe but a few magazine adds might go further.

 

What it does do is provide a promotion to light aviation generally. If someone is prepared to stump up big money to be an name or even exclusive sponsorship, good on them. If you want them to donate even more then more has to be offered..

 

Those who want to just be exhibitors have to take whats on offer, tent, stand or if they run out before you commit ..... no stand

 

Sure as anything, flogging someone elses deal on facebook resulting in damage to them, will result in people not wanting to be involved.

 

The events been cancelled before due to lack of funds and looks like it could happen again.

 

RAA dont run the event, they sponsor too id guess. Members money saved the event before I believe when SAAA had trouble.

 

A sponsor of the size OzRunways offering would be a very valuable thing for the organisers. Risk that to keep a single other potential exhibitor happy? Not likely.

 

 

[planesmaker]

Forget the airshow side of things, that will cut the expenses down. I don't know about anybody else, I find airshows a tad boring. I am quite happy to fly in, meet with other aviators, inspect aircraft, check out forums and vendors products. Then be free to fly home without the limits of restricted airspace due airshow. Just my thoughts

 

 

[Brett]

I wonder what the event would cost and how much sponsorship would be required if the insurance factor wasn't part of it. The ol Insurance company never seems to miss out.

 

 

[jetjr]

Unfortunately without airshow or a drawcard, few show up. Especially the non aviation crowd the industry badly needs the support of.

 

Ausfly relied on members support, like a fly in, and it dried up.

 

There was last year over zealous closure of airfield. Dont think it actually happened as published.

 

 

[bexrbetter]

Unfortunately without airshow or a drawcard, few show up. Especially the non aviation crowd the industry badly needs the support of..

After attending myself to Narromine, I only saw plenty of greybeard aviators and generally others who I would suggest were already involved in aviation, maybe a few townsfolk. The amount of aircraft parked to crowd ratio suggested to me very few outsiders.

 

Getting "non-aviation crowd badly needed" to peak their interest in Narrowmine? I can't support a position on the value of that.

 

 

[jetjr]

Plenty of aircraft last year, 200 + i recall

 

Biggest light aircraft event in AU i would have thought by a long way

 

Taking kids/ teenagers to this could easily create interest in flying

 

 

[KRviator]

I also think it's pathetic that RAA and the two potential sponsors see an early need to hang their dirty washing out so soon, shame on them all, grow up kids, work it out ... find a new major sponsor and let the competing EFB companies be even co-sponsor ... whatever works. RAA directors draw good salaries to get these things done without putting it in front of the members.

I think the only one airing their dirty laundry in this instance is AvPlan and their dummy spit. OzRunways was the target of much vitriol and threats to go to the ACCC for the commercially-sensible decision to preclude AvPlan from exhibiting at an event sponsored exclusively by them. And now they have published their reasons for withdrawing such sponsorship, which I find quite reasonable in the circumstances.What I do not find reasonable, is the leaking of the commercial-in-confidence contract by someone (pissed off SAAA member?!?) to AvPlan and their petty response "We've been blacklisted because we are AvPlan". This is only a half-truth. From what has been published by RAAus & OzRunways in an attempt to set the record straight, AvPlan were invited to sponsor the event and deemed it not commercially warranted. That is their decision, and one that is understandable, however, failing to disclose as such in their dummy spit has now led to the withdrawal of OzRunways (due to the hatred sent their way for "Banning your competitor") as major sponsor and left the event tens of thousands of dollars short of what it needs to run with only 8 weeks or so to fill the gap, to the point the SAAA is going hat-in-hand to their membership asking for funding. Now, given my past history with the SAAA, and the implication it was one of their members who is responsible for this debacle, I am not the slightest bit inclined to help them out, and I would question if any other member should contribute any funding either...

 

The big thing about AirVenture is its' remote location. Sure, it is handy for those that have a way to fly in, but apart from the townsfolk at Narromine, who else is going to go?!? It's a 5 hour drive from Sydney, and 9+ from Melbourne & Brisbane. That's an awful long way for not much. We are barely 2 months out and there is nothing listed in the AVA website about seminars, what is on for the 'airshow' other than the Roulettes, tucker, or even if an SAAA MPC is going to be run there (and don't get me started on that)...Not everyone can drop everything to attend should somethign pique their interest close to the event - believe it or not, plenty of people actually work weekends, and need to arrange leave in advance. Personally, I need a minimum of 10 weeks notice to get a leave request in and approved...

 

It seems to me that Avplan has the right not to be a major sponsor, and also has the right to state that they have been barred form the event. No break in good faith there.

I would tend to disagree slightly, for as above, it is one thing to say "We've been banned because we are AvPlan" - as they did. It is another thing entirely to publish the whole truth: "We were offered the chance to sponsor the event, turned it down, our competition did, and upped their offer when they were were asked and offered exclusivity, and that's why there's no AvPlan at OzKosh." Don't go spouting half-truths in an attempt to undermine your competition, because when you're found it, it is bound to backfire, as it has here, with the withdrawal of OzRunways as major sponsor. I can't see AvPlan chipping in $60K to cover the shortfall...And other than being an OzRunways customer, I have no association or connection with either of them - I simply don't like to see gutter tactics used in our sport aviation environment.

 

 

[kgwilson]

Airshows bring the public & they pay an entry fee and buy food. Flyins bring pilots and they meet other pilots and everyone tells lies. They also check out offerings from Aviation based retailers & sometimes sales are made but more often it is the contact that possibly leads to later sales that happens. Bringing the airshow and flyin together as 1 event is the balancing act. I think Aviation (private & sport) is too small to have exclusive sponsorship deals & if this was the case here it was doomed to failure. You just can't exclude a competitor organisation in a small industry or there will be trouble. In the end everyone is the loser including the economy of the host town

 

 

[jetjr]

The location of the event has been argued to death

 

Plenty to say about whats wrong with Narromine but few alternatives.Most other suitable places have crap weather, CTA or unwilling hosts.

 

Some of the cheapest regional flights in AU land up to 8 times a day 30 min up the road.

 

From the OzR info posted it would appear they werent against Avplan being there just that they stump up to do so.

 

 

[Head in the clouds]

Finger pointing isn't going to help, and neither is suggesting that in today's world any event could possibly be fielded without massive corporate sponsorship - to pay the bloody litigation insurance first and foremost ...I also think it's pathetic that RAA and the two potential sponsors see an early need to hang their dirty washing out so soon, shame on them all, grow up kids, work it out ... find a new major sponsor and let the competing EFB companies be even co-sponsor ... whatever works. RAA directors draw good salaries to get these things done without putting it in front of the members.

As an adjunct to my earlier post I'd like to point out that when I referred to 'Directors' I'd forgotten that the volunteers that used to be known as Area/Regional Representatives are now actually Directors of RAAus Pty Ltd - and I certainly didn't mean to suggest that they were receiving a 'good salary', in fact I'm quite aware that they don't receive any payment at all for their tireless work, for which I'd like to thank them very much ...

 

Also - although I didn't mean it that way, on reflection I think my comment was rather unkind, I'd rather missed the complexities of the situation that led to this position, my apologies to anyone who felt offended by my post.

 

 

[kgwilson]

I wonder who paid for the full (A3) page advert in this months Aviation Trader? It states "Presented by OzRunways" & has RAA, APF & SAAA endorsements at the bottom.

 

 

[Downunder]

Taking "exclusiveness" to an extreme.

 

If one aircraft mfg came up with the dollars could they then ban all other aircraft?

 

If one catering supplier came up with the cash, could they ban all other food venues/stalls/vans?

 

Wouldn't it be awsome that ALL cost were covered and the the event ran at a profit?

 

Unfortunately the only aircraft on dispay would be from Jabiru (for example) and there would be only one "hot dog" van selling food.

 

The 120 people that attended, ( most being Jabiru owners) loved it but there were a few complains about the lack of variety of food.

 

The RAA put out an email about how great the event was. Income exceeded costs due the generosity of the sponsors and they look forward to holding a successful event next year. They also said the new "exclusive supplier" format would be used in future years as this took out some of the uncertainty in funding such a large event.

 

Do we want the money, or do we want the event? No doubt there is the "middle of the road" ........somewhere.......

 

 

[robinsm]

Deja Vue...Temora version 2. We had it, wanted bigger and better, a la big business...now we have a cluster.... and no airshow. Yep, thats good management and progress. Just sayin..

 

 

[bexrbetter]

Besides insurance, can someone detail where the great costs come from?

 

Does anyone know what the insurance costs?

 

 

[ben87r]

This whole thing is just sad and, an unfortunate sign of the times with social media exposure. Keyboard warriors once again ruin something good, congrats.

 

 

[planesmaker]

Bex, I would think the display pilots and aircraft would be a substantial cost on top of the insurance

 

 

[jetjr]

There would be marquees, scaffolds, chairs, tables, PA, barricades, facilities like Aero club??, cleaners, several thousand L avgas for some display aircraft, pay for display aircraft and pilots.

 

Fair bit of travel expense for organizers, (they dont just turn up for the day).

 

Certain key people would need paying to turn up and work on the day.

 

All the volunteer help on gates etc take portion of gate fees,

 

But by far the greatest is Insurance Id guess. An event open to public, council liability requirements, small aircraft plummeting into crowds........can see dollars requested being significant.

 

I have no real info on this however can see significant expenses.

 

I would have thought the airshow would be a big consumer of funds but it also get lots to turn up.

 

Remember this event is the combining of two of three events and still it finds it hard to stack up.

 

What does that say for aviation in AU and those involved?

 

 

[kgwilson]

As soon as "Airshow" is mentioned then Insurance costs skyrocket. The risk may be reasonably low but the potential payout in the event of claims can be massive. Without the airshow it is a different ball game. We are holding our annual Wings and Wheels event at South Grafton next week and our insurer has agreed to cover the event at no additional cost to what we pay annually for Hangar keepers and Aerodrome public liability. It is a fly in, there is no airshow, there are static displays of aircraft, vehicles etc. There are also TIFs, joyflights and warbird adventure flights on offer. These are covered by the organisations own insurance.

 

At one point we looked at some airshow component and even a model aircraft aerial display but the management and huge amounts of paperwork (and time) required by CASA plus the extra insurance in the thousands of dollars meant we would run at a huge loss as the event is free for all.