Idaho Governor Butch Otter has signed bill H.417, which exempts sales tax on aircraft parts installed on out-of-state aircraft. An emergency clause included in the legislation makes the bill take effect immediately.
The National Air Transportation Association (NATA) is calling on its members to urge their congressional representatives to include language in pending legislation to repeal the “fuel fraud” provision. The provision, part of the 2005 Highway Bill, changed the collection of taxes for non-commercial jet fuel and required them to be deposited into the Highway Trust Fund.
“We sense an eagerness for a pickup in the long-depressed business jet market, particularly at the lower end, but we continue to observe mixed signals,” JPMorgan Investment Research notes in its latest market report. Despite the conflicting signals, the investment research firm still predicts an 8-percent rise in business jet deliveries this year.
NetJets Europe launched the first direct financing product for the fractional industry in Europe, providing new clients with an alternative financing method with rates comparable to those offered by major financial institutions.
Italy’s parliament has approved plans for a new tax on all business aircraft, regardless of country of registration, as part of the effort to reduce the country’s massive national debt. Business aviation interests expect to learn the details of how the legislation will work by the end of February, but it could impose a tariff of several hundred thousand dollars on the owner of a large jet that spends more than 48 consecutive hours in the country.
The business aircraft finance world will converge at the second iteration of the International Corporate Jet and Helicopter Finance Conference, to be held in London next week. The February 7 and 8 event is expected to attract more than 200 delegates and speakers, including representatives from more than 30 international finance institutions from 17 countries. According to conference organizer Corporate Jet Investor, 70 percent of all worldwide business jet and helicopter purchasers receive financing.
Italy’s parliament this week approved plans for a new tax on business aircraft, but details of how the legislation will work in practice are not anticipated until later next month. However, it is expected that tariffs could reach about $385,000 for larger business jets that spend more than 48 consecutive hours in the country. The tax will apply only to privately owned aircraft and will exclude those operated under commercial air operator certificates, as well as aircraft operated by governments and for purposes such as emergency medical services.
Completion and refurbishment specialist Pats Aircraft Systems, has executed the final steps in a restructuring agreement with its lenders that formally establishes the Georgetown, Del.-based center as “a fully capitalized, stand-alone company with a significantly reduced debt structure.”
In a statement released December 14, Standard & Poor’s rating services said its ratings and outlook on Wichita-based Hawker Beechcraft (HBC) are not affected by the aircraft manufacturer’s retention of Perella Weinberg Partners to help assess its revolving credit agreement, the terms of which were last amended more than two years ago. The HBC decision followed Standard & Poor’s December 1 announcement that it would cut its credit rating of HB to Caa3, saying the manufacturer may be facing a distressed debt restructuring.
The U.S. government claims that NetJets owes the Internal Revenue Service (IRS) nearly $643 million in federal excise taxes, assessed penalties and interest. The amount is just $125 million less than the $768 million in pre-tax earnings that NetJets parent Berkshire Hathaway reported in its last financial report for the “other” category of subsidiaries that includes NetJets, FlightSafety International and other businesses.