General Aviation Manufacturers Association president and CEO Pete Bunce says recent general aviation rallies held following disparaging remarks about business aviation by President Obama actually go back to the end of 2008 when the CEOs from the Big Three automakers took separate company airplanes to testify before Congress.
Business aviation may still be brimming with righteous indignation over recent attacks by President Barack Obama (in the row over bonus depreciation) and The Wall Street Journal (over the Block Aircraft Registration Request issue), but it now faces bigger and more tangible problems.
President Obama had barely concluded his June 29 press conference when my e-mail box began filling up with responses from the general-aviation industry. The NBAA expressed “dismay” and announced that it was sending a “strongly worded” letter to the President about his remarks, which it said “reflect a total lack of understanding” of the field.
In a resumption of his campaign against business aviation, President Obama yesterday called for an end to “tax breaks” for corporate jet owners.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which was moving toward the desk of President Obama at press time, would give business aviation a big boost. As NBAA v-p Mike Nichols explained to AIN, the proposal includes “100-percent expensing” of investments in capital assets, such as business aircraft, purchased between September 8 this year and December 31 next year.
On December 17, President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The Act includes “100-percent expensing” of investments in capital assets, such as business aircraft, purchased between Sept. 8, 2010, and Dec. 31, 2011.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, which could be passed in the U.S. Senate today or tomorrow before going to the House of Representatives and eventually President Obama for signing, would give business aviation a big boost.
To the General Aviation Manufacturers Association (GAMA), 2010 is proving to be a little worse than last year as far as shipments of aircraft are concerned, even as billings are up slightly. And many people are asking questions about that, said GAMA president and CEO Pete Bunce, and it is fairly easy to explain. “Most of the robustness is at the upper end of the spectrum of products that we have where profit margins are larger,” he said.
General aviation groups hailed the passage late last month of a bonus depreciation bill, H.R.5297, that will allow for accelerated depreciation of business aircraft. The House of Representatives already passed this legislation in June, but had to vote on it again on September 23 because the Senate’s version approved a week earlier contained minor differences.