|Topics in this Volume
|FAA Shutdown Continues|
As the aviation industry enters week two of the FAA being partially shut down due to Congress’ inability to approve a long- or short-term extension, prospects of an immediate agreement continue to look dim. Capitol Hill staff has indicated that an FAA extension has been put on the “backburner” until Congress can come to resolution on a debt ceiling agreement, which is needed by tomorrow, August 2.
For more on the continuing shutdown, please read this week’s Inside Washington Blog by NATA Vice President of Government and Industry Affairs Eric Byer.
NATA issued two member updates last week and recommends the following for members on the application of federal excise taxes:
Federal Excise Tax Update
The IRS has posted several questions and answers related to the expired taxes on their Web site. NATA encourages operators and FBOs to review this information.
Click here to view the IRS information.
NATA offers the following additional guidance for air charter operators and FBOs.
For any transportation that occurs between July 23 and the eventual reauthorization of the FAA’s taxing authority, charter operators may not charge their customers for the following items:
• 7.5% passenger tax
• Segment fees
• International Facilities Fees
• Alaska/Hawaii Fees
• 6.25% cargo tax
Some operators have expressed concern that the taxes could be retroactively imposed. Based upon historical precedent (from when aviation excise taxes have previously expired) it is highly unlikely that the taxes could be applied retroactively. NATA cautions operators that they may not charge a tax that doesn’t exist.
When quoting trips for future dates, operators may wish to consider a statement that the quote does not include federal excises taxes, which may or may not be imposed on that transportation depending on when it occurs and when it is paid.
Charter operators should inquire of FBOs as to whether fuel that they purchase is taxed and retain records so they may be able to document potential future refund requests for fuel used in commercial operations. Operators should also note when/if they are purchasing untaxed fuel.
Other fees imposed by Customs, Immigration and the Agriculture Department on certain international arrivals are not impacted by the FAA reauthorization status and remain in effect.
Most fuel currently in FBO tanks has already been taxed. FBOs need not alter their pricing for fuel they currently hold. Noncommercial operators and FBOs would not be entitled to refunds on fuel that was properly taxed prior to July 23, 2011. Due to the so-called fuel fraud tax, FBOs holding an ultimate vendor registration from the IRS would still be eligible for the 2.5-cent-per-gallon refund that they currently obtain on any jet fuel taxed at the highway rate
FBOs receiving new fuel deliveries should check with their fuel supplier to determine if the fuel has been taxed and be prepared to inform their customers about the tax status of the fuel they sell.
Not all components of the federal taxes on fuel have expired. According to IRS information, the deficit reduction tax and the Leaking Underground Storage Tank fund tax are still in effect. The tax rates on aviation gasoline and kerosene used in noncommercial aviation, during the FAA authorization lapse, are 4.4-cents per gallon.
The IRS is expected to provide additional specific guidance on how the industry should handle specific circumstances; however, that guidance is not yet available.
As soon as further information becomes available, NATA will alert the membership.
Please contact Jacqueline Rosser at email@example.com with questions.
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|Congress Reaches Compromise On Debt Ceiling; No Tax Increases Included |
Late Sunday evening, a deal was reached on a long-term extension of the nation's $14.3 trillion debt ceiling. The deal extends borrowing authority by at least $2.1 trillion. The compromise does not include tax increases sought by President Obama. However, the President was able to protect Social Security, Medicaid, children's health insurance and veterans from any cuts — governed by the new spending caps or the so-called super committee charged with finding at least $1.5 trillion in additional spending cuts by November. If the committee and Congress fail to act, across-the-board spending cuts would be triggered to achieve those savings — half of the cuts would apply to defense spending, the other half to non-security discretionary spending. The enforcement mechanism was included as an incentive for lawmakers to act. The deal specifically shields Social Security, veterans’ benefits, unemployment benefits, military pension and children's insurance from cuts under the special committee jurisdiction. Additionally, domestic spending cuts of non-defense spending and allocations for defense, homeland security and the State Department amount to $350 billion savings over 10 years.
On the tax side, Republicans are certain the rules of the compromise will nullify higher taxes. Democrats are equally convinced the magnitude of future spending cuts through caps or across-the-board sequestration will prove so politically unpopular that Republicans will relent and raise taxes. With that choice, President Obama had to simplify his demands and his one unquestioned victory in the debt deal was a boost in U.S. borrowing authority until 2013.
Of the $917 billion in discretionary cuts on the table now, only $7 billon occurs in this fiscal year. Another $3 billion will be cut in next year's budget from the 2010 spending levels. This long-debated compromise concluded with a $900 billion debt ceiling increase for $10 billion in hard cuts over two years — with half coming from defense.
A timetable for final passage is expected today after leadership in both chambers confer with their members. The Senate is likely to move first on passage.
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|Poberezny Retires As Chairman Of EAA|
In a press conference last week held at AirVenture in Oshkosh, Wisconsin, Experimental Aircraft Association (EAA) Chairman Tom Poberezny announced his retirement. Poberezny assumed the EAA leadership role in 1989 after his father Paul Poberezny, who founded EAA in 1953, retired from day-to-day activities running the association. “Tom, like his father, has been a visible leader for EAA and a mentor to thousands of flight enthusiasts, especially the countless young people that he has helped understand and become involved in the wonder of flight and the importance of aviation to our society,” said Louie Andrew, EAA Board vice president and Executive Committee chairman. “We will miss his daily involvement and valuable input, but we are happy to know that he will continue to be a good friend and an informal adviser as we move into an exciting future.”
According to Poberezny’s biography, an “accomplished aviator in his own right, Poberezny was a member of the U.S. National Unlimited Aerobatic Team that captured the World Championship in 1972. The following year, he won the U.S. National Unlimited Aerobatic Championship. He subsequently flew for 25 years as one wing of the legendary Eagles Aerobatic Team (originally the Red Devils), the most successful civilian precision flying team in history.”
Click here for more information on Tom Poberezny
Click here for more information on EAA
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|August Recess Approaching - Host A Congressional Tour Of Your Facility|
Members of the U.S. Senate and the U.S. House of Representatives, in addition to spending a lot of time in Washington, spend valuable time in their states and districts during scheduled congressional work periods and recess periods such as the upcoming August recess. The congressional August recess is scheduled for August 8 through September 7, 2011; however, it is possible that the recess may be postponed a week or more if the debt ceiling and the lapsed extension of funding for the FAA aren’t resolved.
Members of Congress use recess opportunities to visit with constituents, making this the perfect time for NATA members to invite their Senators and Representatives to tour their facilities. A tour of your facility is a valuable way to inform key congressional leaders on the principal issues confronting our national air transportation system while allowing you to address other issues affecting your business.
This one-on-one interaction will give Members of Congress and their staff a better understanding of the value of America’s aviation businesses and airline services companies. Host a tour today!
To learn more about how to host a Congressional tour, please click here.
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|Operators Encouraged To Participate In GA and Part 135 Survey|
The 33rd annual General Aviation and Part 135 Activity Survey (GA Survey) for reporting on calendar year 2010 has mailed out by Tetra Tech, the FAA contractor conducting the survey. Your help is needed to provide accurate information on aviation activity.
If you have received a survey from Tetra Tech, your timely participation is important!
- The GA Survey is a scientific sampling of aircraft from the Civil Aviation Registry. Your responses are important. They represent many other aircraft like yours and allow for preparation of accurate statistics on aviation activity.
- Your response is needed even if you did not fly your aircraft during 2010, you sold it, or the plane was damaged. Information on these aircraft is just as important to calculate accurate statistics.
- The GA Survey is the FAA’s primary source of information about the size and activity of the general aviation and on-demand Part 135 fleet.
A wide range of aircraft, aircraft operations, and types of ownership are included in this survey. If you receive a survey, please complete it so accurate data is collected on…
- all types of aircraft: rotorcraft, fixed-wing piston, turboprops, turbojets, gliders, hot air balloons, amateur-built, light-sport aircraft, experimental and non-experimental aircraft
- many different aircraft operations, including:
- General operating and flight rules (Part 91)
- On-demand Part 135 (air taxi, air tours, and non-scheduled commuter)
- Agricultural aircraft operations (Part 137)
- aircraft owned/operated by individuals and by companies as well as:
- Flying clubs, flight schools, fractional ownership programs
- Government agencies (federal, state, local)
- N-numbered military aircraft used for civilian purposes
Please be assured that your responses are confidential. The information will be used only for statistical purposes and will not be released in any form that would reveal an individual participant. Tetra Tech is an independent research firm that conducts the GA Survey on behalf of the FAA.A short form is also available for owners/operators who receive three or more surveys. Please contact Tetra Tech with questions toll-free at 1-800-826-1797 or via email to firstname.lastname@example.org.
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|Listen To Last Week’s Insurance Webinar On Back Strain Today For Free|
Last week, NATA Workers’ Compensation Insurance program partner USAIG hosted the first in a series of webinars addressing the types of Workers’ Compensation Insurance losses that participating members are experiencing. This webinar series follows on the heels of a study that USAIG conducted of ten years of Workers' Compensation Insurance-related accident data. USAIG is utilizing this data to address workers’ injuries and recommend training to assist in the reduction of future workplace accidents. Last week’s webinar focused on back strain, including aviation-related back strain statistics and how they measure up to other industries as well as a real-world case study that reviews accident circumstances, seasonal influences affecting losses and USAIG’s comments on the case study accident. To review this webinar in its entirety, please click here.For more information on the NATA Worker’s Compensation Program, please click here.
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|Don’t Miss Tax Seminar Early Bird Registration And Discounted Hotel Rates!|
Today, August 1, is the last day to register at the discounted rates!
COTS is the Commercial Operators Tax Seminar. A two-day seminar presented by NATA and Conklin & de Decker, COTS provides operators with detailed information on federal excise taxes (FET), how those taxes intertwine with FAA operational regulations, tips for surviving an FET audit and other key tax issues. For 2011, COTS is in Ft. Lauderdale, Florida, on August 23 - 24. Early registration ends close of business today! All sessions are designed to answer the questions most commonly faced in an on-demand operation and provide attendees with clear, concise guidance to take back to the office.NATA and Conklin & de Decker know that those involved in the air charter industry often have numerous tax questions. This is why ample question-and-answer time is provided to make sure everyone has the opportunity to have their unique situation addressed.
Don’t miss out on discounted hotel room rates!
Hyatt Regency Pier Sixty-Six
2301 SE 17 Street Causeway
Ft. Lauderdale, FL 33316
Tel: (888) 421-1442
Click Here Discount Room Rate: $99 per night, plus all applicable taxes. Room rates are guaranteed local time, August 1, 2011. Please call the hotel directly and mention Commercial Operators Tax Seminar for discount room pricing. For more information about the Commercial Operators Tax Seminar on August 23-24, including how to register, please visit
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|NATA 2011 Fall Committee Meetings To Be Held In Conjunction With NBAA Convention|
Save the date, October 9, and plan to attend the committee meetings in Las Vegas
The NATA Fall Committee meetings will be held at the Las Vegas Hilton, adjacent to the convention center on October 9. The NBAA 64th Annual Meeting & Convention begins October 10. You may register online at www.nata.aero/events ; there is no registration fee for these meetings.
Schedule of Meetings:
8:00 a.m. – 12:00 noon: Environmental Committee
12:00 noon – 5:00 p.m.: Air Charter, Aircraft Maintenance & Systems Technology, Airports, Business Management, and Safety & Security Committees
Make your hotel reservations through the NBAA Web site www.nbaa.org/events ; NATA will not secure a separate block of hotel rooms.
Please contact Diane Gleason at email@example.com or Celeste Clark at firstname.lastname@example.org or (800) 808-NATA (6282) with any questions or special assistance you require.
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|NATA’s E-Learn Summer Fuel QC Webinar Series Featured Walter Chartrand And Frank Clark|
NATA’s Quality Control (QC) webinar was well received by more than 15 FBO locations attending to hear Walter Chartrand, Air BP Aviation, and Frank Clark, Facet International, discuss “If you didn’t write it down, did you actually do it?” and “contaminants in fuel and how to detect them.” Chartrand stressed when you perform your QC checks, you must write them down; otherwise, how can you prove you did them? Chartrand also had sage advice on the use of wing decals, nozzles, forms/online recordkeeping and the key to maintaining a sharp QC attitude. Clark covered the leading causes of contamination and what your operation can do to prevent or stop future occurrences.
Attendees posed many pertinent questions such as, “When is the best time to sump tanks?” and “Our hydrant carts were contaminated by surfactants but our fuel trucks were not (loaded from rack off same fuel system); what are the suspected causes for the contamination?” Other questions asked by attendees may be reviewed on the recorded webinar.
There’s still time to join the last two QC webinars in August. Take advantage of valuable industry advice and ask pertinent questions during the live webinars August 3 and 17.
You may also want to view and listen to the first two recorded QC webinars. Single webinars are available for purchase or take advantage of the special package pricing on the entire series. The Fuel QC webinar series lineup includes:
August 3, 2011, 13:00-14:00 Eastern
The Straight Scoop On Additives by Carl Hammonds with Hammonds Companies and Filtration And Separation Options by Frank Clark with Facet International.
August 17, 2011, 13:00-14:00 Eastern
An Aircraft Operator’s View Of QC by Trace Talley with Flight Options and Filter Equipment Maintenance Procedures: How And Why – What ATA-103 Requires by Frank Clark with Facet International.
Previously held/recorded webinars in this series include the following:
Fuel Receipt Procedures by Reed Fuller with Ascent Aviation and The Basics of Aviation Fuel Filtration And Mandatory Specifications by Frank Clark with Facet International.
If You Didn’t Write It Down, Did You Actually Do It by Walter Chartrand with Air BP Aviation and Contaminants In Fuel And How To Detect Them by Frank Clark with Facet International.
Visit www.nata.aero/webinars to view individual webinar and package pricing and to register today!
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|NATA Members Can Get Up To 4 FREE Weeks Of Service From ARAMARK|
Looking for savings with your uniform services? Look no further…NATA members receive special savings when they sign up or renew their contract with ARAMARK Uniform Services.
2 Weeks of Service FREE, when you sign up for a new 3-year service agreement!
3 Weeks of Service FREE, when you sign up for a new 4-year service agreement!
4 Weeks of Service FREE, when you sign up for a new 5-year service agreement!
Offer applies for new customers and existing customers who renew their contract. Some restrictions apply. Offer expires December 31, 2011.
How to Get Started
Now is an excellent time to take a fresh look at uniform services, upgrade your business image, and improve your company and employee safety record –– all while saving money!
Contact the ARAMARK National Account Service Center
Mention NATA and national account ID # 93137
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|Fact of the Week – Industry News|
In a study released by Aircraft Owners and Pilots Association (AOPA) last year, it was noted that nearly 80% of all students who begin flight training do not complete their training. There are numerous reasons for this high dropout rate, one being cost. According to www.avweb.com Redbird Flight Simulators is taking a novel approach to finding ways to reduce cost while providing quality flight training experience.
“Redbird Flight Simulations makes tabletop and full-motion flight simulators for flight schools all over the world and this November will open a simulator-centric flight school. The company is opening what it's calling an aviation laboratory in San Marcos, Texas, to study the effectiveness of simulation in flight training. Jerry Gergoire, president of Redbird, says that creating ’a lab environment with a high volume of students coming through will allow us to objectively measure the impact of these tools and correct and refine as we go.’ At the core of the lab is a Part 141 flight school promising a $9500 private pilot license using new Cessna 172s and the Redbird simulators”
Click here to read the full article
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