Fractional-share operator Avantair released its fiscal fourth-quarter financial results yesterday, which included growing revenues, declining operating losses and an EBITDA profit. Avantair operates a fleet of 52 Piaggio Avanti twin turboprops. The company added one more Avanti to the fleet during the fiscal quarter that ended June 30 and sold one core aircraft.
According to Cessna Aircraft, enhancements made to business aircraft this year might qualify for the new bonus depreciation tucked into the recently passed federal stimulus legislation, depending on the tax accounting treatment.
Cessna Aircraft is reminding Citation owners that enhancements made to their business aircraft this year might qualify for the new bonus depreciation tucked into the recently passed federal stimulus legislation, “depending on the tax accounting treatment a company uses for the upgrade.” Upgrades to business aircraft from other manufacturers could potentially benefit from the bonus depreciation rule as well.
For business aviation, the latest $787 billion economic stimulus bill–H.R.1, the “American Recovery and Reinvestment Act”–giveth with one hand and taketh away with the other.
A wide-ranging coalition of aviation interests that includes both general aviation and the nation’s airlines has proposed a $4 billion stimulus package that could–among other things–accelerate the Next Generation Air Transportation System (NextGen) by creating 100-percent government-funded grants to retrofit both commercial and GA aircraft with NextGen equipment such as on-board avionics, electronic flight bags, cockpit displays, surface movin
Sparta, N.J.-based business aviation consultancy Brian Foley Associates today said it believes the recovery of the business jet market will be sooner than previous estimates, despite “being nowhere near the bottom” of the current market cycle. “It’s hard to think recovery in this environment, but there’s reason to believe that we may come out of this a little sooner than widely expected,” noted company president Brian Foley.
As AIN launches this column, “SOP: Strategies, Options & Perspectives,” I find myself in the new capacity of NBAA president emeritus, self-employed entrepreneur based at Morristown Municipal Airport in New Jersey and commenter on the passing scene.
A new federal tax-cut law contains an increase in the bonus depreciation percentage from 30 percent to 50 percent in the first-year allowance for the purchase of capital goods, including new aircraft. The rate will be available for any new aircraft–regardless of value if used under Part 91–acquired after May 5, 2003, and before Jan. 1, 2005. The aircraft must be placed in service before Jan. 1, 2006.
Insight into the competitive performances of FlightSafety International and Executive Jet can be found in a candid and personal letter by Berkshire Hathaway CEO Warren Buffett to shareholders in his company. In the midst of the financial data, he singles out the leaders of these two divisions, Al Ueltschi and Richard Santulli.
Under a provision of President Bush’s economic stimulus package, purchasers of new aircraft can take a first-year depreciation deduction of 30 percent for the taxable year in which it is placed in service. H.R.3090, “The Job Creation and Worker Assistance Bill of 2002,” included a 30-percent bonus depreciation provision on the value of certain capital assets for 36 months.