New study refutes allegations that bizav doesn't pay fair share

By Gordon Gilbert

November 1, 2004
Financing, Insurance and Taxes

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.

“This study refutes recent suggestions [by the airline industry and the FAA] that the general and business aviation community does not pay its fair share of the costs of operating the nation’s ATC system,” said NBAA president and CEO Ed Bolen. “Not only does business aviation pay what it owes, it actually pays more.”

Although the FAA has stated that general aviation underpays, the study claims that the agency’s methods of calculation and assigning cost responsibility have varied widely for years. In fact, the study said that the FAA based its most recent estimates on a methodology that Congress rejected for other federal transportation agencies.
Noting that the debate about cost responsibility has dragged on for decades, the study urged Congress to act to bring more fairness to aviation funding. The HLB study is available online at http://web.nbaa.org/public/news/stats/hlb_report_costalloc.pdf.

Back

Insurance firm offers mx plan September 25, 2007 EPG Insurance introduced a out-of-warranty maintenance plan that the company said covers almost all unscheduled repairs on small business jets... [more]
McKinney Aerospace closes up shop September 01, 2006 McKinney Aerospace, apparently struggling with financial problems, closed its doors in July, putting some 70 employees out of work. The... [more]
Tronair acquires JETporter May 05, 2006 Tronair, manufacturer of ground support equipment for a range of users including general aviation and corporate aircraft operators, has acquired... [more]
Aircraft acquisition planning seminar January 01, 2006 Tax law change garners attention at annual Conklin & de Decker course [more]
With Planning, Aircraft Acquisition Is Less Taxing January 01, 2006 Conklin & de Decker part owner Nel Sanders-Stubbs, for years the NBAA’s prime source of tax knowledge and expertise, gave Conklin & de Decker... [more]