Business aviation groups urged Congress to consider additional, targeted relief to assist the many business and general aviation businesses and airports that have suffered as a result of the Covid-19 pandemic. “Since early March, general aviation operations have declined more than 70 percent, resulting in severe economic consequences for a wide variety of businesses, from aircraft operators to airports and aviation manufacturers,” NBAA CEO and president Ed Bolen said in written testimony for a Wednesday Senate Commerce Committee hearing on the state of the aviation industry.
Bolen pointed to the closure of flight schools and layoffs of airport workers, as an example. He noted the 95 percent of traffic at Pierce County Airport in Puyallup, Washington, and the 70 percent decline in traffic and fuel sales at Boeing Field in Washington.
While the recent CARES Act provided some relief, Bolen added, “We believe additional assistance will be necessary. The uncertainty as to the longer-term prospects for aviation requires us to think creatively beyond the CARES Act.” Specifically, he pointed to the suspension of the excise taxes for commercial aviation, but not for private aviation.
The National Air Transportation Association similarly asked for assistance. NATA president and CEO Timothy Obitts, added, “Commercial aviation in the U.S. can only function because it is a part of an interconnected industry that relies heavily on a general aviation workforce for supply chain, service, support, and workforce development,” but said much of the aviation support in the CARES Act prioritized the airline industry, leaving out “rural America” under the aviation targeted support.
The ability of aviation businesses to meet lease obligations remains one of the largest vulnerabilities, Obitts warned. “But because the airport sponsors rely on this revenue to finance the day-to-day operation of the airport itself, when tenants are unable to meet payroll obligations and the terms of their tenancy agreement with their airport sponsors, it imperils the ability of the airport to operate safely and efficiently,” he said.
While the CARES Act set aside $10 billion or airports, it designated only $100 million for general aviation facilities, he added. “This led to thousands of general aviation airport sponsors being eligible to receive $30,000 or less under the CARES Act, with many receiving only $1,000, while general aviation airports report declines in activity between 75 percent to over 95 percent,” explained Obitts.
Todd Hauptli, president and CEO of the American Association of Airport Executives, agreed as he testified before the committee on Wednesday, saying the set aside is “nowhere near what is needed going forward.” Airports in general, he added, will need at least as much as provided under the CARES Act to weather the pandemic and implement all of the necessary changes.
Aerospace Industries Association president and CEO Eric Fanning also testified, outlining the harm to manufacturers, noting aerospace businesses of “all sizes are making the difficult choice to furlough or lay off employees,” pointing to just a few examples. “One company had to lay off 50 percent of its engine manufacturing staff. Another furloughed most of their 7,000 employees. And because this crisis has continued, a third was pushed to let 1,500 employees go,” he said.
Fanning said he anticipates the trend will continue and expressed worries about the growing challenges within the global supply chain. “Illness, business closures, and reduced operations are leading to transportation and logistics issues, parts shortages, and other significant problems,” he warned.
A central focus of the hearing centered on airline operations and the need to implement measures to ensure a safe return of travel, such as accessible manifest information so health officials can quickly follow up on potential illness. Other suggestions included spacing between passengers aboard airplanes and the reduction of contact points in airports.
