The IRS has countersued NetJets for more than $360 million in alleged uncollected excise taxes. In November, NetJets sued the federal government for what it said were wrongfully imposed taxes, interest and penalties totaling more than $642.7 million. NetJets claimed that as a manager of private aircraft, it was not required to pay a “ticket tax” because its services were not taxable transportation.
Charter and Fractional » Fractional
News and issues concerning the fractional-ownership industry and markets, including company announcements, regulations, new developments and labor issues.
NetJets Europe announced today that it is extending its ferry waiver zone, in which fees on positioning flights are not charged, for flights between 21 “business critical” airports in the Middle East and Europe. The extension will add Jordan, Saudi Arabia, Bahrain, Qatar, the UAE and Kuwait to the waiver, which previously included Lebanon and Tel Aviv. The company said it has witnessed “strong growth” in flights to the Middle East in the last few years, with 9.2 percent growth reported last year alone.
Associated Aircraft Group (AAG), a Sikorsky Aircraft subsidiary specializing in S-76 operations on the East Coast, has marked “40,000 hours of safe flying” in 17 years. AAG president Scott Ashton emphasized that his company has implemented a safety management system “that encompasses a comprehensive culture of risk management and safety promotion and policies.”
AAG lays claim to being the only executive helicopter company to own and operate an FAA Part 145 maintenance facility.
Today at Abace, Shanghai Hawker Pacific Business Aviation Service Centre at Hongqiao International Airport was confirmed as Dassault’s new Falcon service center in China. The operation should be up and running by the end of June, Dassault said. The contract was signed on the show floor by Frank Youngkin, Dassault Falcon’s senior vice president for customer service; Carey Matthews, general manager of the Shanghai Hawker Pacific Business Aviation Service Centre; and SHPBAS deputy general manager George Lu.
The world leader in fractional ownership is coming to China, but fractional shares won’t be on its service menu here–at least for the time being. After years of looking to enter the Chinese private aviation market, here at the ABACE show yesterday NetJets finally confirmed plans for a new joint venture in the People’s Republic of China.
After years of looking to enter the Chinese private aviation market, NetJets finally confirmed plans for a new joint venture in the People’s Republic of China today at the Asian Business Aviation Conference & Exhibition (Abace) in Shanghai. Though NetJets is known as the company that pioneered the sale of aircraft fractional shares in the U.S. and Europe, its services in China “will begin only with managing and chartering aircraft that are wholly owned by customers” rather than fractional ownership.
Cessna Aircraft and the Aviation Industry Corp. of China (Avic) signed “two strategic agreements to jointly develop general and business aviation in the People’s Republic of China” on Friday. Together these agreements “pave the way for a range of business jets, utility single-engine turboprops and single-engine piston aircraft to be manufactured and certified in China,” Cessna said. “The details of our agreements are still under discussion,” a Cessna spokeswoman told AIN, “but aircraft to be produced in Chengdu and sold in China include the Sovereign and Latitude.”
China Business Aviation Group (CBAG), a Beijing-based business aircraft solutions provider, has signed a contract with Beijing Stem Cell Technologies (BSCT) authorizing CBAG to negotiate the purchase of three aircraft for the medical company. The company plans to purchase a long-range business jet, an ACJ/BBJ-type bizliner and a short-haul transport-category aircraft for regional and domestic use. One aircraft per year will be delivered beginning this year. BSCT currently owns two aircraft, but needs more to support the company’s growth.
NetJets has attained Level III of the FAA’s safety management system (SMS) pilot program. As such, NetJets is the first fractional operator, as well as the first fixed-wing Part 135 operator and the first combined Part 135/91K operator, to achieve Level III. The FAA SMS pilot program, which has a four-level system of acknowledgement, is intended to help operators develop and implement a comprehensive SMS for their entire organization through safety-centric policies and risk mitigation.
Atlanta-based Ascension Air is now offering three fully equipped 2012 Cirrus SR22Ts to individuals and pilots through its fractional ownership program. The company’s fractional ownership program requires about $10,000 down and a monthly management fee of $2,000. Ascension’s new SR22Ts include 60/40 FlexSeating in the back seat, which includes a third over-the-shoulder seat belt allowing for a fifth passenger and 60/40 fold-down seating.