September 28, 2015 – Volume 14 Issue 39
Legislation Introduced in House to Resolve Aircraft Management Tax Status
Last week, Representative Pat Tiberi (R-OH) introduced legislation (H.R. 3608) overriding a March, 2012 IRS Chief Counsel opinion that concluded aircraft owners employing aircraft management services and allowing the use of the aircraft for occasional charter operations should assess the 7.5 percent commercial ticket tax on amounts paid for those management services. In May of 2013 the IRS put the opinion on hold pending further clarifying regulations. In a statement, NATA President Thomas L. Hendricks praised the introduction of the bill, “This is an important piece of legislation for numerous small aviation businesses that are vulnerable to potentially enormous tax assessments. Representative Tiberi and the legislation’s original cosponsors recognize the imposition of such taxes represents nothing more than double-taxation on aircraft owners who may seek to defray the costs associated with ownership through the chartering of the aircraft when it is not in use. We look forward to working with Representative Tiberi and the bill's original cosponsors to enact this common sense legislation.”
Federal Government on Brink of Shutdown
The new fiscal year begins this Thursday, October 1st, and while the Senate has kicked off the process of moving of a short-term funding bill, the threat of a government shutdown still remains. In a note on Friday, NATA informed its members the association will continue to urge lawmakers to reach a solution and will monitor the situation and notify them of important milestones in the debate. The association also noted that some will attempt to use the budget impasse as justification for the corporatization of air traffic control. “It is unfortunate that a failure by our elected officials to perform their basic duties would have some propose to radically alter the world’s largest, most complex and safest system. Please realize that even if air traffic control were to be separated from the FAA’s safety function, the agency operations upon which you depend will still be at risk of future budget showdowns.”
Congressional Leaders Introduce Six Month Extension of FAA
Also expiring this week is the current authorization for the Federal Aviation Administration. On Friday, House Transportation Committee Chairman Bill Shuster (R-PA) introduced H.R. 3614, The Airport and Airway Extension Act of 2015, to extend current FAA authorities through March 31, 2016. The legislation was approved by the House today and the Senate is expected to also approve it in advance of the deadline.
NATA Members Meet with Key Senators to Discuss FAA Reauthorization
NATA members have been meeting with key members of the United States Senate to discuss the upcoming FAA reauthorization and proposals to create a user-fee funded, air traffic control corporation. On September 11th former NATA Board Chair Jim Sweeney (Fargo Jet Ctr) joined a small group of other North Dakota leaders to talk FAA reauthorization with Sen. Heidi Heitkamp (D-ND). This past Friday, NATA members Todd Duncan (Duncan Aviation), Scott Robertson (Ultra Air) and Jamie Walker ( Jet Linx) joined a small group of other Nebraska aviation stakeholders in a similar meeting with Senator Deb Fischer (R-NE), a member of the Senate committee that will write the Senate's version of the legislation. NATA members discussed the risks corporatization proposals pose to the operational costs of aviation businesses as well as general aviation's access to critical airspace and airport improvement funds.
Aviation Business Roundtable Features Extensive Lineup
The full agenda for the 2015 Aviation Business Roundtable is now available. This year’s exciting speaker lineup includes TSA Administrator Peter Neffenger, noted industry and political analysts Richard Aboulafia and Charlie Cook, Under Secretary of Transportation for Policy The Honorable Peter Rogoff, and Chief NFIB Economist Dr. William Dunkelberg.
NATA’s Aviation Business Roundtable annually brings together the industry’s senior business executives to discuss important and relevant issues with key government officials and other top industry leaders. The Aviation Business Roundtable begins Tuesday, October 20th, at 8:00 a.m. and concludes that evening with a dinner address by leading political analyst Charlie Cook. Please contact Rebecca Mulholland at email@example.com, to register for the Aviation Business Roundtable or if you have questions.
NATA Submits Comments on Advisory Circular (AC)- 21-29D, Detecting and Reporting Suspected Unapproved Parts (SUPs)
Today, NATA submitted comments on the FAA’s proposed revision to the Detecting and Reporting Suspected Unapproved Parts AC. The association's comments centered on maintaining consistency of the AC with the FAA's recently revised SUP Order 8120.16. For further information, please contact Megan Eisenstein (firstname.lastname@example.org).
Florence Regional Airport Seeks Proposals for FBO Management
The Florence Regional Airport (FLO) in Florence, SC, is seeking proposals from firms interested in managing its FBO. The Airport District currently operates the full-service FBO but desires to contract-out the FBO to a private-sector concern. FLO is a non-hub, commercial service airport with an active mix of commercial, corporate, general aviation (GA) and military aircraft operations. The Request for Proposals (RFP) is available at the Airport’s website (www.florencescairport.com); select the “Bids and Proposals” link under the “Business Opportunities” tab. Contact Chuck Henderson, the airport’s Executive Director for additional information.
Ask Your Insurance Broker How You Can Save Money with NATA’s Workers’ Compensation Insurance Program
NATA is proud to introduce a member benefit that lets your workers’ compensation insurance program work harder. The NATA Workers’ Compensation Insurance Program, underwritten by QBE, makes it possible to: enjoy an annual return on your insurance payment; save money with a highly competitive rate; and share in the profitability of the NATA group-purchasing power. Put your program to work for you. For more information contact: Tim Obitts at NATA (202) 774-1504 or have your broker contact Chuck Couch at QBE (770) 794-6414 email@example.com.
BBA Aviation Announces Proposed Acquisition of Landmark Aviation
BBA Aviation plc announced that it has entered into a stock purchase agreement to acquire Landmark Aviation, an integrated aviation provider offering end-to-end services for aviation customers, for a consideration of $2,065 million. BBA Aviation also announced the launch of a rights issue to raise £748 million in proceeds which will be used to finance in part the Acquisition. Read more.
Atlantic Expands to Salt Lake City
Atlantic Aviation announced that it has expanded its nationwide network of Fixed Base Operations (FBOs) to include a facility at Salt Lake City International Airport (SLC) in Utah. Atlantic expects to commence operations at SLC on December 1, 2015. Read further.
Final Safety 1st Regional Advanced Line Service Workshop in 2015 Takes Place in Fort Lauderdale
Following on the success of the Wheeling, IL Advance Line Service Workshop, NATA Safety 1st is pleased to bring its unique mix of technical and service training to Fort Lauderdale, FL on October 20-21, 2015. The Safety 1st Regional Advanced Line Service Workshop is designed to provide the knowledge and skills needed to make your line service team succeed and become new leaders within your company. This is the last Advanced Line Service Workshop in 2015. Don’t miss out, register now!
The FAA's Central and Northwest Mountain Regions have signed a memorandum of understanding (MOU) allowing charter operators, corporate flight departments and fractional program managers to participate in the Air Charter Safety Foundation's Aviation Safety Action Program (ASAP). The signing of this MOU means the ACSF-managed ASAP program is now approved in the contiguous U.S. Visit www.acsf.aero for more ACSF news.