NBAA and the National Air Transportation Association are creating a joint working group to address the fuel tax provisions of the Highway Bill that was signed by the President earlier this month. “Of particular concern is that taxes on jet fuel will be assessed at the diesel fuel rate [24.4 cents per gallon instead of the 21.9-cent per-gallon jet fuel rate] and deposited into the Highway Trust Fund,” NBAA said.
While the fractional market continues to expand, shareholder growth is advancing at a slower rate, according to data from the Union Bank of Switzerland (UBS).
The House of Representatives approved the American Jobs Creation Act of 2004 (H.R.4520) on June 17, paving the way for a one-year extension of the time allotted to place into service business aircraft purchased under the accelerated-depreciation tax bonus.
Personal use of corporate aircraft is coming under increasing attack by Congress.
A bill has been submitted in the House of Representatives that seeks to restrict a company’s ability to deduct certain portions of a flight conducted for personal use.
Titled the Corporate Jet Tax Shelter Reform Act of 2004, H.R.4352 was referred to the House Ways and Means Committee for further action.
Andre Dosé resigned his post as CEO of Swiss International Airlines last month amid a continuing investigation into the Nov. 21, 2001 crash of a Crossair Avro RJ100 near Basseldorf, Switzerland. Swiss chairman Pieter Bouw has replaced Dosé as CEO.
Effective April 1, the commercial passenger tax on international operations increases from $5 to $5.50 per passenger. Commercial operators, including Part 135
air-taxi operators conducting international passenger operations, are required to collect and remit a commercial passenger user fee to U.S. Customs.
Profits soared last year at Warren Buffett’s holding company, Berkshire Hathaway, though not all of the company’s divisions did well. In his annual letter to shareholders released last month, the investment mogul summarized the reduced performance of FlightSafety International and NetJets– the two largest companies in their respective fields of simulator training and fractional ownership.
Although the accelerated-depreciation bonus has been credited with a pickup in orders for new business jets, the General Aviation Manufacturers Association is encountering rough going in the Senate over its efforts to get the tax break extended.
Avcard, the aviation services provider and credit-card company based in Hunt Valley, Md., has established a European office in London with the aim of increasing services to a broader range of customers. Twenty-five-year aviation veteran Stefan Jaeggi will head the office as general manager.
Avantair, the Clearwater, Fla.-based fractional that operates Piaggio Avantis exclusively, reported an 85-percent increase in Q2 revenue over the same period a year earlier. Sluggish deliveries from Piaggio contributed to an overall loss, though the company does expect to break even upon reaching 40 aircraft in service. If current estimates hold, that will happen by the end of this year.