The U.S. government claims that NetJets owes the Internal Revenue Service (IRS) nearly $643 million in federal excise taxes, assessed penalties and interest. The amount is just $125 million less than the $768 million in pre-tax earnings that NetJets parent Berkshire Hathaway reported in its last financial report for the “other” category of subsidiaries that includes NetJets, FlightSafety International and other businesses.
ExecuJet Aviation is offering aircraft buyers a more direct and straightforward way to finance and operate business jets through its relaunched SimplyFly program. The package offers a quick decision on financing and the opportunity to have the aircraft managed.
In an era when the Internet is eliminating many forms of privacy, the charter industry remains somewhat opaque, leaving charter clients without essential information about their trips, in the opinions of James Chitty and Nicolos Bozzo, founders of PlaneClear, based in Long Island City, N.Y.
Chitty, PlaneClear’s president, worked for Liberty Jet and vice president Bozzo for Gama Aviation before they founded PlaneClear in 2008, “to bring unprecedented transparency to the private charter market,” according to a PlaneClear statement.
In a statement released last week, Standard & Poor’s rating services said its ratings and outlook on Wichita-based Hawker Beechcraft (HB) are not affected by the aircraft manufacturer’s retention of Perella Weinberg Partners to help assess its revolving credit agreement, the terms of which were last amended more than two years ago. The HB decision followed an announcement by Standard & Poor’s on December 1 that it would cut its credit rating of HB to Caa3, saying the manufacturer may be facing a distressed debt restructuring.
Accelerated depreciation for private aircraft became a hot topic again this past June when President Obama repeatedly cited it as a prime example of special tax breaks for the rich he wanted to eliminate.
Teddy Forstmann, the man who was credited with turning around Gulfstream Aerospace in the 1990s, died Sunday, reportedly from brain cancer. His investment firm, Forstmann Little, acquired Gulfstream in 1990 for $800 million.
The Middle East Business Aviation Association (MEBAA) launched an aviation insurance group discount program for members on Tuesday at the Dubai Air Show.
Four of NetJets’ subsidiaries–NetJets Aviation, NetJets International, NetJets Large Aircraft and Executive Jet Management (EJM)–are suing the U.S. government over a $642.7 million IRS tax bill for past federal excise taxes (aka “ticket tax”) and assessed penalties and interest.
The Middle East Business Aviation Association (MEBAA) and Gates & Partners, the London-based international law firm, will hold a free one-day seminar at the Dubai Air Show on Wednesday, November 16.
If you’re gainfully employed in business aviation, odds are you vote Republican and cheerlead for robust capitalism, and that’s understandable. Nobody with a mortgage and kids to educate is inclined to bite the hand that feeds, and capitalism-created wealth is what pays the bills for all of us in this business.