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A Group Effort

By Vertical Mag

by Elan Head | January 13, 2012

Published on: January 13, 2012
Estimated reading time 17 minutes, 50 seconds.

As North American airspaces go, its hard to find two that are less alike than Los Angeles and Alaska. One of them is a congested urban airspace that ranks among the busiest in the world; the other is the bush, as remote and empty as anything the United States has to offer.

A Group Effort

By Vertical Mag | January 13, 2012

Estimated reading time 17 minutes, 50 seconds.

Although its growth and diversification has led to having two locations more than 2,000 miles apart, Group 3 Aviation continues to see itself as a small, tight-knit family.

A Group 3 Aviation Robinson R44 flies over the Knik Glacier near Anchorage. Located on the northern edge of Alaska's Chugach Mountains, the glacier is a popular sightseeing destination.Heath Moffatt Photo

A Group 3 Aviation Robinson R44 flies over the Knik Glacier near Anchorage. Located on the northern edge of Alaska’s Chugach Mountains, the glacier is a popular sightseeing destination.Heath Moffatt Photo

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As North American airspaces go, its hard to find two that are less alike than Los Angeles and Alaska. One of them is a congested urban airspace that ranks among the busiest in the world; the other is the bush, as remote and empty as anything the United States has to offer. Yet, these radically different flying environments do have at least one thing in common: both attract helicopter pilots looking for a challenge. 
For Peter Lowry and Claudia Herrera, owners of the Van Nuys, Calif., based flight school known as Group 3 Aviation, that was the rationale behind recently opening a satellite location in Anchorage, Alaska. Herrera and Lowry saw a niche for additional primary flight training in Americas 49th state, but they also realized having locations on opposite ends of the West Coast would dramatically expand training opportunities for all of their students. Appropriately, Group 3 has begun offering its students a unique exchange program between these two most desirable of U.S. flight training environments.
Group 3s Alaskan venture is also an example of the creative, diversified approach that has helped the company achieve its current level of success, although its not a blueprint for massive expansion. For this husband-and-wife-owned company, relationships matter more than revenue, and Herrera and Lowry dont expect that to change: even with its far-flung satellite location, Group 3 remains like a family.
Continuous Evolution
Founded in 1993, Group 3 takes its name from the fact that it had three original owners. Peter Lowry and two other pilots had been flight instructors together at a Santa Monica Airport school until it went out of business. They then decided to strike out on their own, setting up operations with a single helicopter (a Robinson R22) and borrowed ramp space at the Beechcraft fixed-base operation at the Van Nuys Airport. After a month, they were able to secure hangar space and erect a makeshift office essentially a desk, a plastic table and an AstroTurf carpet.
It definitely went through a lean time, Lowry recalled about the business. Slowly but surely, however, Group 3 managed to build up a viable student base and establish itself as a reputable flight school. Although the other two original partners left for other pursuits, Lowry kept the business running, gradually adding aircraft and employees, including Group 3s first flight instructor, John Horsman, who eventually became its chief pilot and stayed with the company for six years. 
When Claudia Herrera came to Group 3 in 1995 as a helicopter student, Horsman was her instructor. Herrera worked through her training as finances permitted, eventually achieving her private pilot certificate in 1997. Lowry said he remembers being impressed by Herreras dedication; it was an admiration that grew quickly the two began dating shortly after Herrera achieved her private certificate, fell in love, got married and have been inseparable ever since. 
With her passion for helicopters and keen business sense, Herrera naturally became a driving force in Group 3s continuing evolution (today, she is the companys co-owner and president). Claudias involvement has really driven the company, said Lowry. In fact, Herrera helped establish the schools VA (U.S. Department of Veterans Affairs) program, which allows veterans to use their G.I. Bill benefits for training at Group 3, and its M-1 visa program. She has also spearheaded aircraft acquisitions and led the application process for Part 141 approval from the U.S. Federal Aviation Administration, which provides the school with an oversight structure that gives it that much more credibility. We want to be able to offer students that structure and that peace of mind, said Herrera.
Although Group 3 began operations with a single R22, once the lean times were over it diversified its fleet relatively quickly. Today, it has five Sikorsky (formerly Schweizer) S-300CBi helicopters, one Robinson R22, three R44s and a fixed-wing Cessna 172. The S-300CBi has become Group 3s primary training helicopter, appreciated for its relatively docile handling characteristics and ability to accommodate those larger students that cant meet the weight limitations of the R22. The R22 is a great helicopter, and I think most people would agree with what its done for the civilian helicopter industry, said Lowry, but we definitely saw a need to diversify away from the R22. . . . I think the 300 is a very viable alternative.
Despite this preference for the S-300CBi, Group 3s professional helicopter students typically gain experience in all three of the schools helicopter types by the time they finish their ratings. The school has essentially sidestepped the question of which helicopter type is best for all levels of training; as far as Lowry is concerned, why not train on more than one? If you just train in one helicopter, there can be complacency. Youre not being challenged as much as you could be.
Group 3s diverse fleet has also helped it expand beyond primary flight training, with the R44s being a particularly versatile addition. Group 3 uses its R44s for initial instrument and flight instructor instrument training, and was in fact one of the first flight schools in the Los Angeles area to offer helicopter instrument training. Said Herrera, We knew there was going to be a need in the industry for instrument-rated helicopter pilots.
The company also uses its R44s for a variety of commercial work, including its long-standing sightseeing and photo-flight services. Lowry said the R44 is a mainstay in the companys heli-tourism work, and its range and endurance are very useful in the aerial photography role. 
More recently, Group 3 took the next step with its photo-flight services, entering the aerial filming market with a new venture, Indie Aerials. Using a Cineflex camera mounted to the R44, this new production company is able to offer high-definition, aerial video at a competitive price. Were looking at trying to fill a market slot, explained Lowry. Particularly with the R44, we saw that was a price break that was needed in the [aerial filming] market.
Of course, as a provider of aerial sightseeing and photography services including paparazzi flights Group 3 has been thrust squarely into the middle of recent controversy over helicopter noise in L.A. (see p.16, Vertical, Oct-Nov 2011). Although Herrera and Lowry have argued against potential restrictions on helicopter activity, they also recognize the critical importance of flying responsibly. Our company is very much about flying neighborly, emphasized Lowry. We are actively working with PHPA [the Professional Helicopter Pilots Association] and Claudia in particular volunteers in answering noise complaints in and around Los Angeles.
North to Alaska
In 1996, a friend in Anchorage, seeing room for another provider in the local flight training market, suggested to Lowry that he open a satellite location in Alaska. It took Herrera and Lowry over a decade to make an exploratory trip to Anchorage, but once they did, both said, It was a pretty quick decision that it was actually [a good opportunity]. 
Additionally, both had sensed stagnation in the California flight training industry, which in 2010 also became threatened by burdensome regulation (see p.37, this issue) from the California Bureau for Private Postsecondary Education. (As with the helicopter noise issue, Group 3 became actively involved with the industrys advocacy efforts here, too). Alaska, on the other hand, still seemed to offer untapped opportunity. In our industry, youve got to be aware of how the currents move, observed Lowry. 
With the expansion decision made, he and Herrera put a plan together and opened their Anchorage location at Merrill Field in August 2010. Assistant chief pilot and Group 3 Alaska manager Gene Zalutsky oversees day-to-day operations here, but both Herrera and Lowry make regular visits.
As might be expected, Group 3 brought both Sikorsky (S-300CBi) and Robinson (R44) models with it to Alaska, where the company offers Part 141 flight instruction, as well as tours, Part 135 charter services and a variety of utility operations. The Anchorage program is really a mirror of what were doing [in Van Nuys], said Lowry. 
Of course, while the satellite location borrows heavily from Group 3s established reputation and business structure, it does have its own identity. It has also had its own challenges, including separate application processes for insurance and VA approval. We see Alaska as a start-up, said Lowry. It needs to go through the same establishment and growing pains as any new business.
As Group 3 Aviation establishes itself in Americas northern most state, the company is discovering exciting new opportunities, including spectacular flightseeing, film production and aerial photography options; and contracts for lodge support and external-load work. And, as previously mentioned, it now has the ability to exchange students between its two very different locations, exposing Anchorage students to L.A.s busy airspace, and Van Nuys students to Alaskas demanding weather and terrain. But, its not only Group 3s regular Van Nuys students who are drawn to Alaskas exotic appeal; already, the Anchorage location has hosted visiting pilots from as far away as Hong Kong and Europe. Alaska is a destination for pilots who want to have the experience of flying there, remarked Lowry. For rated pilots and students alike, Group 3s Anchorage location offers an affordable, accessible way to add a few Alaska hours to their logbooks.
Keeping it in the Family
For all its potential, Herrera and Lowry granted that expanding into Alaska has been challenging. As Lowry put it, Committing to starting a new enterprise is always interesting. . . . But, commercially, diversification is something we see as important.
Diversification will also be a key part of Group 3s business model in other areas, too. Well keep drawing the student body from as wide and diversified a base as possible, said Lowry. And, the company will also be diversifying its training offerings, including adding a Part 141 course for external-load training. We have a lot of exciting things in store! said Herrera.
There will of course be definite limits to all this planned growth. According to Lowry, Group 3 has always remained a relatively small, close-knit company, because That sort of culture and philosophy is something we cherish. 
Herrera, in turn, called Group 3 a team effort, with much of the companys success owing to its instructors, such as Zalutsky in Alaska, and its support personnel, like Alicia Pontious, Van Nuys office manager.
Indeed, Herrera and Lowry take as much pride in the careers of their students and instructors as they do in their own success. Currently, their alumni can be found with numerous organizations throughout the helicopter industry, ranging from California public safety agencies including the Los Angeles Police Department and California Highway Patrol to big-name commercial and air medical operators, such as PHI, Helinet Aviation, CALSTAR, REACH Air Medical and Era Helicopters. But, no matter where a student or instructors career takes them, Herrera and Lowry are proud of having had a role in their development, and feel validated that the effort and dedication they and their staff have put in to making Group 3 a truly reputable flight school has benefitted countless lives.

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