Organizations Say President's Remarks During White House Press Conference Are Damaging To Industry

Two more of the industry's trade associations have joined the chorus of those criticizing President Obama's remarks concerning "corporate jets" during a White House News Conference Wednesday.

The President repeatedly made damaging remarks aimed at corporate airplane owners and operators, and he urged Congress to eliminate or reduce tax depreciation schedules for general aviation airplanes, something he agreed to last year as part of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

Aircraft Electronics Association President Paula Derks took issue with the President's criticism of the general aviation industry during the news conference. "General aviation employs millions of workers and is one of the few industries providing a trade surplus for the United States," Derks said. "The President's proposed tax changes would adversely impact an industry that is vital to the nation's economic recovery efforts.

"Most businesses that rely on business and general aviation aircraft do so in order to reach small towns and airports with very little airline service. These entrepreneurs seek investment opportunities needed to create job growth. During the past few years, many aircraft owners and operators have deferred or delayed many aircraft and avionics equipment upgrades due to the concern for the economic future of their businesses. The President's comments directly contradict his own efforts to accelerate depreciation schedules last fall in order to help stimulate an industry critical to the nation's overall economy."

Aerospace Industries Association President and CEO Marion C. Blakey expressed a similar sentiment. "We're disturbed by President Obama's remarks on business aviation today (Wednesday)," Blakey said. "It seems odd that he would undermine the aviation industry one day after visiting Alcoa's factory and praising the workers who make parts and materials that are critical to producing business jets. General aviation plays an important role in our economy and took a substantial hit in the recent recession. We feel that disparaging comments from the president regarding business jet users are not conducive to promoting jobs, investment and economic growth."

Marion Blakey

The President made about half a dozen references to "corporate jets" and those who use business aircraft as a symbol of people who "do not need tax breaks" while making a case for changing certain tax exemptions.

FMI: www.aea.net, www.aia-aerospace.org