House Action Expected Friday
The aviation industry is universally welcoming passage in the U.S. Senate of a $2 trillion emergency relief package to inject money into the economy during the COVID-19 pandemic.
NBAA president and CEO Ed Bolen pointed to several provisions in the bill that will benefit the GA community, including business aviation. These include additional relief for airports through a $10 billion increase to Airport Improvement Program (AIP) funding, with $100 million specially allocated to general aviation airports, in recognition of their critical importance to communities, particularly in times of crisis.
The bill also contains relief from the 7.5% air transportation federal excise tax for general aviation commercial operations, including FAR Part 135 flights, and suspension of the commercial fuel tax until Jan. 1, 2021. NBAA successfully worked to have these measures extended to all GA operators that pay such taxes.
In addition, the CARES Act provides loans and grants to passenger and cargo air carriers, including general aviation commercial operators, such as FAR Part 135 charter providers. For these commercial passenger operators and FAR Part 145 repair stations, $25 billion in direct loans and loan guarantees are available. An additional $25 billion in grants are available to these entities for the continuation of wage payments to workers. NBAA led a general aviation industry letter to lawmakers to ensure that general aviation commercial operators were eligible for these programs.
Additional loan programs for small and mid-size businesses are also made available under the measure, and while they are not specific to aviation, they may offer further assistance to the thousands of small and midsize aviation businesses in the industry.
“On balance, this bill is helpful for general aviation,” Bolen (pictured) said. “The industry clearly made its voice heard in ensuring that the important provisions for general aviation airports, general aviation commercial operators and other small businesses were considered as this legislation was assembled, and we look forward to the bill’s passage into law.”
“ALPA is pleased that the U.S. Congress and the White House have reached an agreement and we urge Congress to swifly pass this bill to help stabilize the airline industry and protect frontline aviation workers," the union said in a statement released to the media. "From the outset, ALPA maintained that any economic relief bill must put workers first to keep airplanes flying and help move our economy. We are especially glad that this robust package to immediately stabilize the industry includes grants for worker payroll as well as protections for the integrity of collective bargaining agreements.
“As the world’s largest airline pilots union, ALPA’s resounding voice was heard through the halls of Congress this week as tens of thousands of pilots sent more than 130,000 letters to their elected representatives and engaged extensively on social media urging lawmakers to protect pilot jobs by bringing economic relief and stability to our vital industry.
“ALPA pilots applaud the fact that the economic relief package contains provisions to limit furloughs, protect our contracts, and ensure that federal assistance is used to pay airline employees’ salaries and benefits, not executive compensation or corporate stock buybacks.
“Now and always, airline pilots are adhering to the high standards of professionalism that we demand of ourselves—and that our passengers and shippers expect. Airline pilots are considered ‘essential’ to the U.S. economy, especially in challenging times."
The legislation provides Part 135 operators relief from the 7.5% air transportation federal excise tax and suspends the commercial fuel tax until Jan. 1, 2021. The bill also provides airports with $10 billion through Airport Improvement Program funding, and $100 million is allocated to general aviation airports.
“HAI strongly advocated for the vertical lift industry and its needs to Congress, and we appreciate that this bill includes measures specifically aimed at general aviation,” says James A. Viola, HAI president and CEO. “The loans, grants, and tax relief provisions of this bill can directly benefit many of HAI’s members, especially our numerous small businesses.”
"We thank the Administration, especially the President and Secretary Mnuchin, as well as the Senate for working together to take swift bipartisan action to support the American economy, including the 2.5 million jobs and 17,000 suppliers that Boeing, the aerospace industry and the U.S. rely on to maintain our world leadership in commercial, defense and services. The bill’s access to public and private liquidity, including loans and loan guarantees, is critical for airlines, airports, suppliers, and manufacturers to bridge to recovery," Boeing said in a statement posted on ite website.
"Boeing’s top priority is to protect our workforce and support our extensive supply chain, and the CARES Act will help provide adequate measures to help address the pandemic. We have also taken a number of measures for affordability and liquidity as we navigate the challenges our industry currently faces, including forgoing pay for our CEO and board chairman, suspending our dividend until further notice, and extending our existing pause of any share repurchasing until further notice.
"We appreciate the House taking swift action to support the American people."
(Source: News releases)
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