With the rancor over business jet use now receding in Congress’s rear-view mirror, House and Senate lawmakers are jumping in line to extend accelerated depreciation for major equipment purchases– including general aviation aircraft–in 2010.
Generally Accepted Accounting Principles
In written testimony delivered yesterday to the U.S. House Committee on Small Business, NBAA president and CEO Ed Bolen repeated the business aviation community’s support for legislative proposals to renew bonus depreciation for investments in strategic business assets, including aircraft. The committee held a hearing yesterday about extending the bonus depreciation for business investments that expired 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.
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.
Fractional provider Avantair reported revenues of $35.8 million for its Fiscal Year 2010 second quarter ending December 31. It recorded operating income of $1.4 million versus an operating loss of $628,000 in the year-ago period, and earnings before interest, income taxes, depreciation and amortization stood at $2.8 million.
Fractional provider Avantair reported revenues of $35.8 million for its fiscal year 2010 second quarter, which ended December 31. It recorded operating income of $1.4 million, versus an operating loss of $628,000 in the year-ago period, and earnings before interest, income taxes, depreciation and amortization stood at $2.8 million.
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.
Clearwater, Fla.-based fractional provider Avantair reported another quarter of positive EBITA profits in a difficult economic environment, clearly putting the Piaggio Avanti fleet operator on the path to health after years of losses. In its fiscal third quarter that ended March 31, the company saw year-over-year revenues climb 15.7 percent to $34.7 million.
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.
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.