NBAA Update Archive

NBAA Update #05-51
Monday, December 19, 2005

NBAA Update is the National Business Aviation Association's weekly e-mail newsletter, providing the latest operational, regulatory and political news for the business aviation community. Subscribe for free or review the archives at www.nbaa.org/update. Send your comments about NBAA Update to update@nbaa.org. Send address changes to membership@nbaa.org.

Business Aviation News & Issues

Congress Breaks Without Action on Bill With Harmful Provisions for Industry: Time Remains to Contact Congress
Congress is expected to break for the holiday season this week without taking action on the Senate version of S. 2020, the Tax Relief Act of 2005, which contains two very harmful proposals for business aviation. One provision expands limitations on entertainment use of business aircraft to all employees, rather than just senior executives. Another, broader provision substantially increases taxes for some uses of a company plane. If enacted, the provisions will reduce business aviation activity, impacting tens of thousands of individual employees. NBAA recently added a letter to the Association's online Contact Congress resource at http://www.nbaa.org/action to help Member Companies voice their opposition to the measures with their members of Congress. NBAA President and CEO Ed Bolen today noted that Congressional inaction on S. 2020 provides additional time for Members to send the letter before Congress reconvenes in January. "Thanks to the NBAA Members who have communicated their views on this issue with Congress," Bolen said. "We hope Members who have not yet contacted Congress will have an opportunity to do so over the holiday break through NBAA's Contact Congress resource." To access the letter now, visit:
http://www.nbaa.org/govt/action/?ISSUE=nbaa0006

ECAC Discusses Fractional Operations
On December 7, the members of the European Civil Aviation Conference (ECAC) met in Paris, France, with a full agenda that included briefings on recent progress related to fractional aircraft programs. A recent letter sent from TSA Administrator Kip Hawley to ECAC Executive Secretary Raymond Benjamin stating TSA intention to establish a security protocol for fractional operations appeared to answer questions regarding the U.S. commitment to security. Additionally, ECAC agreed to establish a task force to review and implement a European fractional regulation. NBAA remains close to the issue and will assist the task force as it begins its work. For additional information, contact NBAA's Doug Carr at dcarr@nbaa.org.

FAA Announces 30/30 Operational Trials in Oakland Oceanic Sector 3
The FAA has announced that it will begin operational trials of 30 nm lateral and 30 nm longitudinal separation in Oakland Oceanic Sector 3 (OC3) on December 22 at 0901 UTC. These 30/30 operations require not only RNP 4, but also CPDLC FANS capabilities, so for the near term the FAA will continue to provide full air traffic services, including appropriate separation, to non- participating/qualifying aircraft during these trials. While not mandatory now, this approach to navigation represents the future direction of long-range remote navigation. NBAA recommends that operators (1) begin addressing how to meet these specifications now, before they are mandated, and (2) discuss the issues with OEMs and avionics suppliers while the time for reasonable research and budgeting exists. For more information, visit the web at http://www.faa.gov/ats/ato/cns.htm and review the FAA's Domestic/International NOTAM publication at http://www.faa.gov/ntap/. Direct comments to FAA's David Maynard at David.Maynard@faa.gov or Ann Moore at Ann.Moore@faa.gov.

What Are the Federal Excise Tax Rates for 2006?
Federal excise tax (FET), or air transportation tax, on commercial transportation of persons includes three elements: a percentage tax, a domestic segment fee and a head tax on international transportation. Section 3.30 of IRS Revenue Procedure 2005-70 contains the applicable rates for 2006. The rates for 2006 are: domestic segment fee, $3.30; international arrival/departure tax, $14.50; and international arrival/departure tax for Hawaii or Alaska flights, $7.30. The Revenue Procedure did not modify the 7.5-percent percentage tax that applies to the amount paid for domestic commercial transportation, nor did it change the 6.25-percent percentage tax for transportation of property. The Revenue Procedure, the NBAA Federal Excise Tax Handbook and other aviation tax resources may be found on the NBAA web site at:
http://www.nbaa.org/taxes

In Katrina Relief Act, Congress Makes 'Technical Corrections' to BizAv Provisions in JOBS Act
Last week, Congress enacted and the President signed into law the Gulf Opportunity Zone Act of 2005 (H.R. 4440), which contains a package of technical corrections providing the IRS with guidance on the definition of "specified individuals" and tax deductibility for non-business use of business aircraft, as outlined in the American Jobs Creation Act of 2004 (the JOBS Act). Several previous editions of NBAA Update have provided the business aviation community with information about how the JOBS Act applies to company use of business aircraft. NBAA Members are encouraged to consult with a professional tax attorney to determine whether the technical corrections included in H.R. 4440 apply to their companies. Review a copy of H.R. 4440 online at:
http://www.nbaa.org/govt/109th/hr4440.pdf

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Regional News

Spaceport Plans for New Mexico Unveiled
On December 14, New Mexico Governor Bill Richardson and Sir Richard Branson of Virgin Galactic announced the partnership for development of a New Mexico Spaceport to be located in southwestern New Mexico. The $225-million project will put civilians in space at a cost of approximately $200,000 dollars. New Mexico legislators and representatives from the Economic Development Department, Office of Space Commercialization and aviation community, including NBAA, were present. For more information, contact NBAA's Paul H. Smith at psmith@nbaa.org.

Grassroots Campaigning Effective for New York Business Aviation Community
As a result of NBAA and the New York Aviation Management Association (NYAMA) urging Members to contact local political representatives and voters, the Transportation Bond Act was passed. Over the next five years, the Act allocates $76.4 million primarily to business-oriented airports with runways exceeding 3,000 feet. Local aviation organizations such as the Long Island Business Aviation Association and Westchester Aviation Association supported the Bond Act. NBAA thanks Members for their participation but recognizes that more work lies ahead: two bills, S. 3655 (Larkin) and A. 681 (Schlimminger), aim to exempt tax on the sale of general aviation aircraft. NBAA urges Members to contact their representatives in support of these bills. For more information, contact NBAA's Dean Saucier at dsaucier@nbaa.org.

Santa Fe Begins Noise Study Process
The City of Santa Fe, NM, is beginning the process of preparing a Part 150 Noise Compatibility Study for the Santa Fe Municipal Airport (SAF). The key to the success of these studies is public input and participation. A planning advisory committee (PAC) has been formed to assist in providing objective evaluation and input. The process will involve approximately three meetings over the next several months and review and comment on the study material as it is prepared. NBAA is represented on the Santa Fe PAC. For more information, contact NBAA's Paul H. Smith at psmith@nbaa.org.

Meeting Held to Examine Economic Opportunities at Los Alamos Airport
A meeting recently was held in Los Alamos, NM, to discuss existing and near-term economic opportunities for Los Alamos Airport (LAM), business aviation and the very light jet (VLJ) air transportation model advocated by manufacturers such as NBAA Member Company Eclipse Aviation. This meeting was the first attempt to establish dialogue between all parties and to build a foundation for future collaboration. During the event, attendees had an opportunity to preview a new NBAA DVD focusing on the importance of community dialogue in addressing challenges and opportunities at regional airports. For more information, contact NBAA's Paul H. Smith at psmith@nbaa.org.

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NBAA News

NBAA Recognizes 25th Anniversary of Staff Member
NBAA formally recognizes Senior Manager, Office & Support Services Linda M. Eaton for 25 years of service as a staff member. In the period of time between 1980 and 2005, in which the NBAA Membership more than tripled and the staff increased from 12 to 65 people, Eaton has contributed to the smooth operation of several divisions, including Administration, Membership, Communications and the Office of the President. For more information, visit:
http://www.nbaa.org/news/pr/2005/20051219-076.php

Applications for Next CAM Exam Due Jan. 10
Through the certification process, NBAA and the Certified Aviation Manager Governing Board (CAMGB) seek to recognize excellence in the field of business aviation and raise the level of professionalism and quality of management within flight departments. The next Certified Aviation Manager (CAM) Examination will take place on February 24 in Dallas, TX, in conjunction with the NBAA Leadership Conference. Applications for the exam should be submitted no later than January 10, 2006. For more information, contact cam@nbaa.org or visit:
http://www.nbaa.org/cam

Reminder: New PDP Course Approval Deadline Is Jan. 4
NBAA has revised and expanded its Professional Development Program (PDP) objectives and now seeks new educational providers to develop courses that meet the new PDP objectives. The new PDP objectives are more closely aligned to the NBAA Certified Aviation Manager objectives. Potential providers seeking to have their current courses approved for the NBAA PDP must submit the PDP Course Proposal Application by January 4. Since its launch in January 1998, there have been more than 5,000 PDP Course completions. For more information, contact NBAA's Jay Evans at jevans@nbaa.org or visit:
http://www.nbaa.org/pdp

Call for Speakers: 2006 Flight Attendant Conference
The NBAA Flight Attendants Committee has issued a call for speakers for the Association's 11th Annual Flight Attendants Conference, to be held June 23 and 24 in Denver, CO. Agenda topics of interest include those related to business aviation cabin safety and security, and flight attendant training issues. Also of interest are sessions addressing how flight attendants can work with FBO, airport and maintenance personnel. Last year's Conference was well attended with 197 participants in Atlanta. To submit a proposal for a Conference session, contact NBAA's Jay Evans at (202) 783-9353 or jevans@nbaa.org by January 5. For Conference hotel information, visit:
http://www.nbaa.org/cs/fltatt/2006

Travel$ense 3.77 Update Released
On December 18, NBAA released version 3.77 of its business travel productivity-tracking software, Travel$ense. This update adapts to changes in the reservation system used by Travel$ense that prevented users from obtaining first-class fare data in some cases. Travel$ense is a tool to help management better analyze and understand business travel by automatically calculating the actual business hours, productivity, trip expenses and family time saved by traveling via business aircraft versus airline alternatives. For more information, visit:
http://www.nbaa.org/ops/adm/travelsense/update

Upcoming NBAA Headquarters Office Schedule
NBAA's Washington, DC, offices will be closed for the Christmas holiday at 1:00 p.m. on Friday, December 23, and will reopen on Tuesday, December 27 at 9:00 a.m. The office will close early again for the New Year's weekend at 1:00 p.m. on Friday, December 30, and will reopen at 9:00 a.m. on Tuesday, January 3. (All times are Eastern.) The Association wishes its Members a safe and joyful holiday season.

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