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Fri, Nov 22, 2013

Partial Government Shutdown Costly To Aviation Industry

Delayed 156 Airplane Deliveries Worth $1.9 Billion

The White House Office of Management and Budget has released its estimates of the economic impact of the partial government shutdown in October. Among the specific items mentioned in the report was delayed aircraft purchases and deliveries caused by the closure of the FAA’s Aircraft Registry. GAMA estimates that this delayed 156 aircraft deliveries valued at $1.9 billion, the report says.

The report says that the FAA is currently working to clear the backlog of delayed registrations.

The Wichita Eagle reports that the fourth quarter is traditionally the busiest time for airplane shipments. NBAA president Ed Bolen said that "because business aviation is more regulated than other industries, the shutdown has had a far more dire impact on business aviation than for other industries.”

The shutdown also meant that prevented "the timely and full investigation of 59 airplane accidents by the NTSB," the report noted. "With the large majority of its workforce furloughed, the NTSB was only able to launch investigations into two aviation accidents during the shutdown, putting it behind schedule for these and other ongoing investigations. The NTSB was also forced to reschedule two important public investigative hearings."

FMI: www.whitehouse.gov/omb

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