StarNet s Experience in General Aviation Alliances
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1 StarNet s Experience in General Aviation Alliances Paul Masson Managing Director On-Demand Mobility Workshop October 21-22, 2015 Strategic Alliances Resources Network, LLc 1806 Belles Street, #8A San Francisco, CA
2 Outline Who & What: StarNet Network Types: Alliances & Partnerships How: Fundamental Model Aviation: GA Alliances GA: AGATE Alliance GA: PATA Alliance Next Alliance: NextGen Software
3 Network of five specialists organize R&D alliances to innovate technology & business models Who is in the network? Paul M- Organizational Process, Finance, Law Keith Gale- Tech Commercialization Bill Lennett- Government Contracting & Audit Alyson Greenlee- Economic Development Josette Ferrer- Intellectual Property What do we do? Map Innovation Needs Design Manage Administer Secure Funding Strategic Alliances Resources Network, LLC
4 Types: Focus on alliances that create systems of technologies that can impact industry business models Types Equipment & Facilities Projects Programs Commercial Lab Sharing Single Project Partnership Consortium Multiple Tech National Public/Private Test Facility Single Project Partnership National Scale Public/Partnership Regional/Local Public/Private Engineering Facility Innovation Cluster Sub-Teams Innovation Clusters University or Research Institute R&D Campuses Project Partnership Topical Center
5 Scope: Range across different economic sectors Types Equipment & Facilities Projects Programs Commercial City Protocol Society GA: Air Taxi National Offshore Wind Public/Private GA: AGATE & SATS Regional/Local Public/Private Connecticut and Colorado: Aerospace & Advanced Manufacturing State of Connecticut: Eight ongoing programs University or Research Institute WSU Innovation Campus
6 How: Alliance design is based on needs assessment like designing any system Map Stakeholders Assess Innovation Needs Strawman Design of Alliance Test with Stakeholders, Finalize Design Draft Legal and Operations Agreement Implement Enforce the Agreement StarNet for PATA
7 Design: Alliances design is like any system design such as a vehicle Performance: What want to accomplish? Charter: What s purpose? Why different other existing groups? Structure: What are functions, roles, relationships? Governance: What is representation, mix, decision process? Management: Who and how manage? Operations: What are functions of administration? Output: How to secure, protect and distribute outputs?
8 GA Aviation PPP s cover a wide range of objectives, incentives, structures and working relationships Vehicle Systems: Advanced GA Transport Experiments (AGATE) Propulsion: General Aviation Propulsion Systems (GAP) Transportation Systems: Small Aircraft Transportation System (SATS) Aviation NetCentric Operations: Airborne Internet Consortium (AIC) On-Demand, Air Taxi: Personal Air Transportation Alliance (PATA)
9 AGATE: AGATE Alliance was designed for discovery flexibility to develop & certify technology & vehicle systems AGATE PPP Partnership Agreement Public (NASA-LaRC) NASA+ FAA DOD Executive Council Sets Strategy Approves Management, Plan & Budget Program Management Team Implements Plan, Tactical Tradeoffs Team #1 Product #1 Systems Integration Systems Assurance Team #2 Product #2 Team #N Product #N Archival and Distribution of Final Outputs Private Consortium (501-c-3) (anti-trust exempt) AirFramer Avionics Icing Systems Propulsion Applied Innovation e.g. WSU/NIAR RTI, ERAU
10 PATA: An air taxi alliance to promote a business models &, define technology needs Industry-led Mutual benefit innovation alliance, not a trade association Support common approaches to expand air transportation with focus on small airports and aircraft serviced by air taxi Pool information, support and facilitate research Personal Air Transportation Alliance (PATA)
11 PATA members agreed to compile information under NDA to prepare white papers NexGen Modernization White Papers: Modernization Air Taxi Companies White Papers: Definition, Market Suppliers- OEM, Engine, Avionics White Papers: TBD-Environment Airport Operators White Paper: Airport Upgrades/Investments Benefits White Papers: Safety Security TBD Air Space Use Economic Impact Research and Technology: White Paper: R&T Priorities
12 PATA was asked to forecast the on-demand, air taxi impact on national transport Members Survey: Five largest air taxi Aircraft: 500 within 3 years Altitude: 21K to 28K feet Airports: Community airports outside urban areas with only one exception for approximately five planes over next two years Update: Semiannual Expanded Survey: Four new air taxi for a total of Nine
13 PATA pooled operator information to identify market demand Sector: Outside hub-and-spoke Only one PATA member intends to base or even offer hub airport coverage Need: Provide time and travel disruption savings Market: Business travelers (80%) of small to medium sized businesses Volume: Total size in 240,000 trips per annum or 1.5% of total 200 to 1000 mile business trips Key Range: 195 to 450 miles Growth: Est. 4 to 5% per annum
14 StarNet is evaluating the feasibility of launching a NextGen software development alliance Objective: Shared software architectures and code Organizers: StarNet and WSU/NIAR Analysis Sponsors: FAA Tech Center CISCO Transportation Group Next Meeting: NBAA, November 17 in the afternoon, room and time to be announced
15 Questions? Paul Masson Managing Director Strategic Alliances Resources Network, LLC White Papers on Website Fundamentals of Innovation Alliances 1806 Belles Street, Suite 8A San Francisco, CA Ph:
16 Appendices
17 Public/private partnership is a term that encompasses four concepts about public vs. private sector economic activity Two political concepts What role government vs. private sector What issues infrastructure, innovation, job growth Two organizing concepts What scope government, private corporation, academia, bridge organizations What structure. advisory, consortia, university programs, research institutes
18 Public/private partnerships normally take the form of specific conjoint programs, projects & ongoing operations. Level Political Policy Program Project Ongoing Operations Description National and regional needs; national and regional interests; political organizations; think tanks; special purpose councils, etc Areas and policy positions for energy, transportation, innovation, fiscal (tax), sector regulations, etc. Continuing topical areas of activity impacting economics regarding energy, transportation, research, development, testing, standards, etc. One time activities intended to achieve a specific outcome such as a specific ethanol test, vehicle test of biodiesel, aircraft flight efficiency test, etc. Operating functions where public organizations and private vendors constantly coordinate such as transportation system development, IT security, etc.
19 Relevant because PPP s are the mechanism to build economic growth, supply chain development and profitability. Examples Transport: NACA-annual event, rail and auto consortiums Agriculture: USDA university funded farm extension Energy: USGS surveys used by petroleum syndicates Common Industry Values from PPP Co-Development of Standards Lowered Cost of Capital Skills/Workforce Development Public Infrastructure for Commerce
20 Innovation partnerships create organizations that span the full spectrum of technology development and beyond..the scope expands and structure is formalized Science & Basic Research Applied Research Technology Development Product Design Certification & Regulation The 20th Century Innovation Life Cycle (Integrated within the innovation organization) Operation Recycle Science & Basic Research Applied Research Technology Development Product Design Certification & Regulation Operation Recycle 21st Century Innovation Organization PPP & Alliances The 21st Century model for innovation requires new organizational processes. NASA: APPO, Bruce Holmes, Innovation Alliance Strategy and Design, April 2007
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