As receivers of bankrupt regional jet manufacturer Fairchild Dornier awaited a takeover bid from a partnership led by Russian conglomerate Basic Element last month, another group of investors that hopes to prove more palatable to aircraft program stakeholders and the German government suddenly surfaced.
Financing, Insurance and Taxes
Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.
If you want to buy a big business jet, there’s no shortage of brokers and management companies that are eager to help you in the areas of mission analysis, acquisition, finance, accounting, legal contracts, insurance, refurbishment, maintenance, crew selection, training and day-to-day operations. But what if you’re interested in owning a smaller aircraft–maybe even flying it yourself?
Echoing a refrain that has been sung around Washington for years, Air Transport Association president and CEO James May reiterated recently that the airlines have been subsidizing general aviation, business aviation and government users of the civil aviation system for years, and he called for a sweeping reform of tax policies.
The International Civil Aviation Organization (ICAO) has ruled out introducing taxes on jet fuel for commercial operators for at least three years. In a hard-fought deal struck at the close of the organization’s assembly on October 8, ICAO delegates agreed that no fuel taxes or charges can take effect before its next triennial assembly in the fall of 2007.
Business aviation pays 102 percent of its share of the costs it imposes on the ATC system, according to a new study by Washington consulting firm HLB Decision Economics.
The study, funded by NBAA, showed that business aviation paid $188 million in federal excise taxes in FY 2001. That figure is $4 million more than the amount the FAA identified as business aviation’s share in FY 2001, the last year for which data is available.
EPG Insurance introduced a out-of-warranty maintenance plan that the company said covers almost all unscheduled repairs on small business jets and turboprops. The coverage plan, called Av-Guard, is restricted to aircraft that sell for $3 million or less. It is effective for 12 months or 500 hours of operation, whichever occurs first.
Tronair, manufacturer of ground support equipment for a range of users including general aviation and corporate aircraft operators, has acquired JETporter, a major player in the aircraft towing industry.
The products of the two companies are complementary, as EBACE visitors will quickly discover by visiting Booth No. 1213.
The National Association of State Aviation Officials (NASAO) is urging Congress to resist all attempts to “raid” the Airport and Airway Trust Fund, including airline industry calls for new tax breaks, and the National Air Transportation Association (NATA) reiterated its preference for having general aviation contribute to the fund through taxes on aviation fuels.
Conklin & de Decker part owner Nel Sanders-Stubbs, for years the NBAA’s prime source of tax knowledge and expertise, gave Conklin & de Decker aircraft acquisition planning seminar attendees some insights on what to expect in the way of federal passenger excise taxes as well as state sales, use and registration levies.
Taxes–when, where, how and why they must be paid–and how to avoid them captured a major share of attention among the users and providers of business aircraft transportation attending the fifth annual Conklin & de Decker aircraft acquisition planning seminar in Scottsdale, Ariz., this fall.