Mx Group Seeks Monetary Relief from Effects of Covid-19

 - March 18, 2020, 10:07 AM

This story is part of AIN's continuing coverage of the impact of the coronavirus on aviation.

The Aeronautical Repair Station Association is seeking a relief package of tax credits and $11 billion in grants and loan guarantees from the federal government in the wake of the effects of the Covid-19 pandemic. The association, which represents FAA-certified repair stations and parts manufacturers and distributors, outlined its request in a letter yesterday to President Donald Trump and congressional leaders.

ARSA said it is hearing from members concerned about cash flow in light of maintenance work being canceled and customers potentially unable to pay bills. It proposes a 50 percent tax credit for airline contract maintenance work performed at repair stations in the U.S., as well as $11 billion in relief: $8 billion in grants and $3 billion in loan guarantees.

“The simple fact is that we don’t know how long the coronavirus disruptions will last and what the impacts will be,” said ARSA executive v-p Christian A. Klein. “Congress needs to act swiftly to limit damage to the aviation maintenance industry, which has both a huge impact on the economy and which is so essential to the safe operation of aircraft.”

According to ARSA, the aviation maintenance industry employs more than 250,000 workers and generates about $50 billion in direct annual economic activity.