In a filing in bankruptcy court just before Christmas, Hawker Beechcraft asked for court approval to shed two underfunded pension plans covering some 9,500 non-union workers and retirees. The request is part of an agreement with the federal government’s Pension Benefit Guaranty Corp. (PBGC) and the OEM’s machinists’ union. Terms of the agreement require PBGC to assume responsibility for the two terminated pensions, while Hawker Beechcraft will keep the pension plan covering its 8,200 current and former union employees. A hearing to consider the plan is scheduled for January 17.
Finding a pricing floor for many models has been as elusive as the search for Atlantis, but recent market action is giving hope to underwater sellers. The typical summer plumping of inventory never occurred this year, setting the stage for what could be an active wave of buying in the final quarter.
A bankruptcy court judge on Friday denied a request from Hawker Beechcraft to give eight of the Wichita OEM’s “senior leadership team” as much as $5.3 million in bonuses. HBC had filed the request with the U.S. bankruptcy court on August 15, describing the bonuses as based on the achievement of certain incentive goals.
NetJets parent Berkshire Hathaway reported yesterday that its other businesses, which includes NetJets, grew 2012 revenues to $2.152 billion in the second quarter and $4.199 billion in the first six months, up 3 and 4 percent, respectively. Earnings in 2012 reflected increased earnings at NetJets and earnings from the Omaha World-Herald.
Air Methods, the largest helicopter EMS provider in the U.S., posted an exceptionally strong second quarter. Revenue at the company increased to $222.5 million, a 48-percent jump from the same quarter last year.
In the first six months, Air Methods reported revenue of $413.3 million, up 47 percent versus the same period last year. Net income for the quarter increased 217 percent to $31.4 million, compared with the prior-year second-quarter net income of $9.9 million. For the first six months, net income increased by 181 percent to $43.9 million.
The Italian government has approved an amendment to the contentious tax on business aircraft that it made law on April 29. Now, foreign-registered aircraft operated privately will incur the tax only if they stay for 45 consecutive days, rather than the 48-hour threshold in effect until now.
The Italian government has approved an amendment to the contentious tax on business aircraft that it made law on April 29. Now, foreign-registered aircraft operated privately will incur the tax only if they stay for 45 consecutive days, rather than the 48-hour threshold in effect until now. The amendment, which is expected to be endorsed by the Italian parliament, would also reduce the rate of the tax by 50 percent.
Brazilian tax authorities, police and aviation officials seized nine business jets late last month and have targeted 13 more. Allegedly, Brazilians own and use the jets but registered them overseas to avoid state and federal taxes of nearly 35 percent. The value of the jets, $275 million, is almost equal to the country’s total customs seizures last year. Foreign aircraft can legally remain in Brazil for up to 60 days annually without paying import duties.
The recently approved highway reauthorization bill was passed without repeal of the fuel fraud tax, according to the National Air Transportation Association (NATA). The tax was part of the 2005 highway bill, an effort to prevent truckers from avoiding highway taxes by filling up with jet fuel. NATA plans to continue its efforts to repeal the tax, according to Eric Byer, v-p of government and industry affairs.