Much of the unprecedented recent growth in sales of business aircraft has been driven by the international market, where advantageous exchange rates have made dollar-denominated assets unusually affordable.
Nav Canada last month proposed a 3-percent reduction in its customer service charges, effective September 1. This is the second consecutive year that the country’s ATC provider has cut its charges, following an average reduction of 1.8 percent that took effect last September.
On Monday (June 13), the Internal Revenue Service is scheduled to officially publish IRS Notice 2005-45, Deductions for Entertainment Use of Business Aircraft. This notice will provide revised guidance to aircraft operators on the deductible amount of business expenses for use of a corporate aircraft for "entertainment" (personal use) that were imposed by the American Jobs Creation Act of 2004.
European Union (EU) Regulation 785/2004, which went into effect April 30 and requires minimum aircraft insurance levels for war risk and third-party liability, has resulted in "severe financial impacts" for operators far greater than expected, according to the International Business Aviation Council (IBAC).
Personal use of corporate aircraft is coming under increasing attack by Congress.
A bill has been submitted in the House of Representatives that seeks to restrict a company’s ability to deduct certain portions of a flight conducted for personal use.
Titled the Corporate Jet Tax Shelter Reform Act of 2004, H.R.4352 was referred to the House Ways and Means Committee for further action.
Although the accelerated-depreciation bonus has been credited with a pickup in orders for new business jets, the General Aviation Manufacturers Association is encountering rough going in the Senate over its efforts to get the tax break extended.
While 2003 general aviation shipping and billing numbers are hardly cause for celebration, the CEOs of GA manufacturers are generally upbeat and optimistic that a turnaround has been reached. And even though 2003 was a “challenging year,” it still ranks as the fifth best year for billings in GA’s history.
The “Safety Bucks” program from insurer USAIG (United States Aircraft Insurance Group) has contributed more than $4.3 million over the last nine years to defray the training costs or participants in its Preferred Policyholder Program, according to figures released here at Heli-Expo.
Comair has given its pilots until March 4 to ratify a tentative deal forged with union representatives last month after U.S. Bankruptcy Court judge Adlai Hardin ruled that the group cannot legally call a strike. The agreement came just as management prepared to impose $15.8 million in cost concessions, authority for which Hardin had granted in December. Whatever the result of the pilot vote, ALPA vowed to appeal Hardin’s ruling.
The continued weakness of the U.S. dollar on international currency markets is stimulating sales of U.S.-based business aircraft to foreign buyers. With the dollar recently reaching historic lows against the three-year-old euro, prospective buyers from Europe are pouncing on exchange-rate-based discounts.