Closure Of Registry Office Has Halted Aircraft Sales, Revenue For Some Companies

The partial shutdown of the federal government, which includes the FAA's Aircraft Registry Office is hitting companies that sell airplanes directly in the cashbox.

In New Century, KS, companies such as Kansas Aircraft Corp are feeling the pinch, according to a report in the Kansas City Business Journal. Diane White, president of the sales firm, said that the closure of the registry office has halted pending and future sales.

Kansas Aircraft reportedly is unable to collect some $2 million in revenue because airplanes cannot be registered, and White says she is increasingly nervous about her business for the remainder of the year.

At Kansas City, MO-based fractional jet company Executive Air Share, COO Keith Plumb says that a new $9 million airplane is sitting in a hangar not producing revenue because it needs to be inspected, and the inspectors have been furloughed. Plumb said he is very concerned that the backlog that will exist when the partial shutdown is eventually lifted will have his airplane sitting idle for and extended time. But he expressed some optimism that there will not be long-term problems once the parts of the government that have been shuttered re-open. "Hopefully this is just a speed bump for us," he remarked to the paper.

FMI: www.faa.gov