Working With Congressional Leaders On Follow-On Assistance Legislation

The U.S. Senate has passed a COVID-19 relief package designed to prop up the economy during the pandemic. A vote on the floor of the U.S. House is expected on Friday.

NATA offered an analysis of the provisions of the bill that will be particularly be relavent to various segments of the aviation industry.

Part 135 operators are eligible for the following:

• For those providing passenger operations:
  • $25bill. in loans and loan guarantees (Sec. 4003)
  • $25bill. for wages, salaries and benefits for employees (Sec. 4112)
  • For those providing air cargo:
  • $4bill. in loans and loan guarantees (Sec. 4003)
  • $4bill. for wages, salaries and benefits for employees (Sec. 4112)
• Excise Tax Exemption:
  • Part 135 exempt from paying 7.5% ticket tax (Sec. 4007) through Dec. 31, 2020
  • Fuel Tax Exemption:
  • Part 135 exempt from paying Jet fuel tax (Sec. 4007) through Dec. 31, 2020
  • Part 145 maintenance facilities are eligible for the following:
  • $25bill. in loans and loan guarantees (Sec. 4003)
• FBOs that provide ground handling at Part 139 certificated airports to commercial airlines are eligible for the following:
  • $3bill. for wages, salaries and benefits for employees (Sec. 4112)
• Caterers that are providing services to commercial airlines are eligible for the following:
  • $3bill. for wages, salaries and benefits for employees (Sec. 4112)

A company that receives a relief under the Bill would have to “maintain its employment levels as of March 24, 2020, to the extent practicable” until the end of September and would be prohibited from cutting its employment levels by more than 10 percent from what they were on that date. Additionally, companies that receive grants or loans would also face limits on executives’ compensation and stock buybacks. In addition, the legislation would allow DOT to order any carrier accepting federal assistance to maintain certain air routes. That authority would lapse March 1, 2022 .

The bill also provides $10 billion for airport sponsors, the vast majority being reserved for commercial service airports. $100 million is set aside for general aviation airports to be distributed based on proportional needs as determined by NPIAS at 100% federal share (no local match) and used for any purpose lawfully allowed by the Airport Improvement Program.

NATA continues to be contact with congressional leaders, who will now begin work on the next relief package entitled COVID 4, rumored for release sometime after Easter.

(Source: NATA news release)

FMI: www.nata.aero