The Aeronautical Repair Station’s efforts to create a risk-retention group to provide commercial liability insurance for its members is closer to fruition. In late June, the Aviation Alliance Insurance Risk Retention Group (AAIRRG), established by ARSA and Polaris Enterprise Group, received its certificate of authority (insurance license) from the state of Montana.
The nation’s foremost aircraft repossessor is counseling his bank and leasing company clients not to take back delinquent aircraft. “We are telling banks not to repo,” said Nick Popovich, president of Sage-Popovich, the global aircraft repossession, aviation parts and services company.
The Aviation Alliance Insurance Risk Retention Group (AAIRRG), developed by the Alexandria, Virginia-based Aeronautical Repair Station Association (ARSA) and Polaris Enterprise Group, received its certificate of authority (insurance license) this week from the state of Montana. AAIRRG will provide product-liability insurance exclusively to repair stations that are ARSA members.
The aerospace industry has been more resilient than expected to the impact of the financial crisis and, as a consequence, the long-anticipated steep downturn in airliner output has not materialized and probably will not materialize. This was the uncharacterically bullish perspective of GKN Aerospace CEO Marcus Bryson, who since 2008 has been warning of a decline in output and income and bracing the aerostructures maker for impact.
Berkshire Hathaway’s first-quarter financial report notes that revenues at its NetJets subsidiary grew by 18 percent year-over-year, generating positive pre-tax earnings of $57 million versus a pre-tax loss of $96 million in the same period last year.
Piaggio Avanti fractional provider Avantair’s revenue increased 4 percent, to $36 million, in its fiscal third quarter (which ended March 31) compared with the year-ago period. Its earnings before interest, income taxes, depreciation and amortization also rose to $1.8 million, up from the $1.5 million reported in the same period last year.
The recently passed Senate FAA reauthorization bill eliminates the so-called fuel fraud tax that has been causing major annoyance and expense for U.S. FBOs, according to the National Air Transportation Association. The bill does increase fuel taxes to 36 cents from 22 cents per gallon.
Barely two years ago prospective business aircraft buyers in Europe were among the most sought-after clients for a banking industry attracted both to the high rates of growth in this market sector and to the exceptional strength of asset values, driven largely by soaring demand and long delivery backlogs.
The February 6 collapse of the Dulles Jet Center roof under a heavy blanket of snow– and the estimated $300 million worth of corporate jets damaged or destroyed in the event–has raised questions about insurance liability.
Two congressmen have sent a letter to the House Ways and Means Committee asking the tax-writing body to extend the bonus depreciation incentive for noncommercial aircraft purchases.
Under bonus depreciation, companies and individuals were allowed to claim an additional depreciation of up to 50 percent during the first year after purchase on capital equipment used primarily for business and placed in service by the end of last year.