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Issue #12-17,  April 23, 2012

TOP NEWS | ADVOCACY | FEATURED | INTERNATIONAL | REGIONAL | NBAA NEWS | MEMBERSHIP

TOP NEWS

Senate Committee Considers Funding Bill for DOT, FAA
Last week, the Senate Appropriations Committee considered a spending package for the Department of Transportation (DOT) and the Federal Aviation Administration (FAA) that covers the government's 2013 fiscal year. The legislation contains a number of issues in focus for the business aviation community. "For example, the bill supports the continuation of operator requests to have their aircraft registration number blocked, and disallows the FAA from raising fees for digital products until industry stakeholders have an opportunity to comment on the agency's plans. Also included is a provision continuing a ban on aircraft weighing over 100,000 pounds from using Teterboro Airport (TEB). Review the bill in its entirety (PDF).

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Idaho Governor: User Fees 'Will Do More Harm Than Good'
“Raising taxes on critical sectors of our economy will do us more harm than good by putting more jobs at risk,” Idaho Governor C.L. “Butch” Otter wrote in a letter to President Obama this month. “I encourage you to join me in opposing the new ‘user fee’ taxes that will be placed on GA operators.” Oklahoma Governor Mary Fallin and New Hampshire Governor John Lynch made similar pleas earlier this year, as did 100 mayors and city managers from across the country – asking the president to abandon his proposed $100-per-flight user fee due to the harm it would cause their communities. Read more about local leaders’ opposition to user fees.

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Bolen Meets With IRS Chief Counsel on Excise Tax Opinion
Last week, NBAA President and CEO Ed Bolen and members of NBAA’s Tax Committee met with Internal Revenue Service (IRS) Chief Counsel William J. Wilkins to express the industry’s significant concerns with the recent IRS chief counsel advice (CCA) on the taxability of aircraft management fees. Bolen conveyed that this CCA has caused significant consternation throughout the business aviation community, and the industry is eager to convene constructive policy meetings with IRS staff to quickly work towards the fair and equitable treatment of excise tax liability for business aircraft ownership and operations. While opposing this change in policy, NBAA urged that, at a minimum, the IRS apply the policy on a prospective basis so as to avoid all the problems associated with a retroactive change in the law. Learn more.

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New Resources, Tax Seminar Explain IRS Excise Tax CCA
John Hoover and Phil Crowther of NBAA's Tax Committee each have prepared detailed articles for NBAA Members explaining the real-world implications of the IRS’s chief counsel advice on the taxability of aircraft management fees. Aircraft owners with managed aircraft, as well as aircraft management companies, are in a difficult and delicate position now in light of this significant IRS policy change. While NBAA continues to work with the IRS on a fair and equitable solution, affected aircraft owners and service providers should review these Tax Committee articles and consult with qualified tax advisors. The impact of this CCA and potential strategies to minimize the impact of this IRS legal opinion will be addressed at the NBAA Business Aviation Taxes Seminar in Denver, CO on Friday, May 4. View the seminar agenda and register.

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NBAA Submits Comments on IRS Deduction and Capitalization Regulations
Recently, the IRS published temporary regulations that provide guidance on the application of sections 162(a) and 263(a) of the Internal Revenue Code (IRC) to amounts paid to acquire, produce or improve tangible property, including business aircraft and their components. Among other things, these temporary regulations provided certain bright-line tests (for example, a de minimis rule for certain acquisitions), as well as guidance regarding the accounting for, and dispositions of, property subject to IRC Section 168. The temporary regulations became effective on January 1 and the IRS invited industry comments. NBAA submitted technical comments last week, addressing tax treatment of inspection and maintenance programs, aircraft repairs and overhauls, the routine maintenance safe harbor, deductions on previously owned aircraft and restorations. View the temporary regulations and NBAA’s comments.

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NBAA Comments on Proposed Changes to Emergency Certificate Actions
Due to the work of NBAA and a coalition of aviation associations, the National Transportation Safety Board (NTSB) is working to revise several regulations dealing with its review of emergency certificate actions taken by the FAA. While some of the proposed changes are positive, in comments on a notice of proposed rulemaking (NPRM) issued in February, NBAA expressed concern that the NTSB still assumes FAA allegations to be true during emergency proceedings. To ensure a fair review and due process, NBAA believes that it is unfair for NTSB to make a factual presumption of FAA allegations in advance of the hearing. The NPRM is now closed for comments and NBAA will provide updates to Members as the rulemaking effort progresses. Learn more about NTSB reviews of emergency certificate actions.

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FAA Warns Pilots of ILS Signal Interference
The FAA has acknowledged several reports submitted by both pilots and controllers concerning erroneous localizer and/or glideslope signals while navigating ILS approaches. As a result, the agency has issued InFO 12007, which reminds operators of the potential for signal fluctuations caused by movement of aircraft and equipment through ILS critical areas. Interference with these signals is known to cause problems with aircraft automation and autopilot functions and has caused aircraft to pitch and roll excessively on approach. ATC offers protection of ILS critical areas under poor weather conditions, but only for arriving aircraft positioned inside the final approach fix. The FAA underscores the importance of pilot risk awareness with respect to critical area movement and protection, and emphasizes positive aircraft control particularly when using autopilot. View FAA InFO 12007.

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Classic Community Airport Film Now Available Online
Made by independent filmmaker Brian Terwilliger in 2005, One Six Right is a documentary film with a strong following among pilots and general aviation (GA) enthusiasts. Now, the film is available in high-definition streaming video on Hulu Plus. The documentary chronicles the history and struggles of Los Angeles’ Van Nuys Airport (VNY), home to 28 NBAA Member Companies. In 2006, as part of the industry’s ongoing effort to educate legislators about the value of community airports, NBAA and three other GA organizations screened the film for the U.S. Congress. Learn more.

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INDUSTRY ADVOCACY

Bolen Emphasizes Importance of Advocacy to Wichita Chamber
NBAA President and CEO Ed Bolen told members of the Wichita Chamber of Commerce on April 18 that despite the progress made by the No Plane No Gain advocacy campaign in recent years, work must continue to highlight the value of business aviation. Bolen was the invited speaker for a luncheon with members of the Wichita group, who were in Washington, DC to meet with their members of Congress. In a candid discussion, Bolen acknowledged the devastating impact the economic downturn has had on business aviation, including a moment that delivered a devastating blow to an industry already grappling with a sharp economic downturn. Learn more about Bolen's speech.

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Kansas Senator Stands Strong for Business Aviation
Speaking at a recent Wichita Aero Club luncheon, Senator Pat Roberts (R-KS) said business aircraft owners and manufacturers deserve to be recognized for their value to the nation’s economy. Echoing facts often cited by the No Plane No Gain campaign sponsored by NBAA and the General Aviation Manufacturers Association, Roberts noted that general aviation employs about 1.2 million people and serves businesses and small communities with no access to commercial airline service. “In fact, 90 percent of our country’s airports aren’t accessible by commercial aircraft,” he said. Read more about Roberts’ support of business aviation.

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Aircraft Finance Professionals to Hear No Plane No Gain Message
NBAA Senior Vice President, Government Affairs Lisa Piccione will make a presentation on the No Plane No Gain industry advocacy campaign at the 41st Annual National Aircraft Finance Association Conference, which meets this week in Savannah, GA. The NAFA program will offer experts discussing key issues affecting the industry, and this year's sessions are organized around the themes of politics, policies and the economy. No Plane No Gain is designed to educate policymakers and opinion leaders on the importance of business aviation to communities, companies and citizens nationwide. Learn more about No Plane No Gain.

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FEATURED STORY

Podcast: Online Tax Study Group Gets Underway Today
To help Members connect with experts and their peers on one of the most complicated issues in aviation, NBAA is offering a new eight-week virtual study group beginning today titled “Business Aviation Taxes.” Group participants will interact with presenters and each other solely online through weekly webinars and other means about a range of topics to include depreciation and like-kind exchanges, state aviation taxes, personal use, federal excise taxes and more. This week's orientation webinar will provide an introduction to online study groups in preparation for the first content-focused session during the week of April 30, and individuals are invited to register throughout this week. Learn more about one of NBAA's newest educational offerings, the virtual study group, in this week's NBAA Flight Plan podcast.

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INTERNATIONAL NEWS

Italian Luxury Tax May Be Modified in Response to Industry Concerns
As NBAA previously reported, the Italian government has implemented a tax on all private aircraft that spend more than 48 hours on the ground in Italy. For many business aircraft, that could mean a yearly tax of over 300,000 euros. This week, the Italian Chamber of Deputies passed new legislation that would significantly modify the tax. At the urging of NBAA and other stakeholders, the new plan would allow non-Italian registered aircraft to spend up to 45 consecutive days in Italy before being subject to the tax. The legislation is now headed to the Italian Senate for consideration. NBAA strongly supports this positive change and encourages legislators in Italy to act quickly. Learn more about the proposed Italian luxury tax on aircraft.

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African Business Aviation Association Forming
Jack Olcott, past president of NBAA, is helping form the African Business Aviation Association (AFBAA). The group held its first meeting in December 2011 and about 10 operators and manufacturers have been involved in establishing its mission statement, bylaws and policies. “Having an 'umbrella' organization allows the African business aviation community to speak with one voice,” said Olcott. "This will be a very positive development for Africa, and for the global business aviation community." Read more about the new association in Africa.

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REGIONAL NEWS

Tax Proposal Fails in Maryland Thanks to Stakeholder Efforts
Thanks to the efforts of NBAA and other stakeholders, Maryland legislators ended their session without taking action on a controversial tax proposal. As NBAA previously reported, House Bill 1345 would have added a 1 to 2 percent tax on motor vehicles, boats and airplanes. In testimony provided to the Maryland House Ways and Means Committee, NBAA expressed opposition to the tax, explaining it would drive general aviation activity away from Maryland to states with more favorable tax policies. NBAA will continue monitoring this proposal, as a special legislative session in Maryland is still possible. Learn more about the proposed Maryland tax.

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Urgent Runway Closure Planned at Fort Lauderdale International
Engineers have determined that urgent repair is required on the surface of Runway 9L/27R at Fort Lauderdale/Hollywood International Airport (FLL). As a result, the runway will be closed for 48 hours beginning on Tuesday, May 1 at 12:01 a.m. ET. The runway is scheduled to be reopened on Thursday, May 3 at 12:01 a.m. ET. However, Runway 9R/27L will also be closed at the time due to planned construction. This leaves Runway 13/31, with a length of 6,930 feet, as the only available runway during the closure. For more information, contact NBAA’s GA Desk at gadesk@nbaa.org.



Following this month’s successful event in Van Nuys, CA, NBAA will hold its next Business Aviation Regional Forum at Teterboro Airport on June 7. The last time NBAA held a Regional Forum at this New Jersey airport, in 2010, the event drew a record number of Attendees, nearly 1,900. This year’s Teterboro event will feature a full educational program, dozens of exhibits, aircraft on static display, participation by FAA officials and more. Sign up now to .

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REGIONAL EVENTS

April 24, 2012
Carolina Aviation Professionals Assn. Meeting
Concord, NC
RSVP Now

April 26, 2012
Chicago Business Aviation Assn. Safety Standdown
Oakbrook Terrace, IL
Learn More

April 26, 2012
Houston Regional Aviation Professionals Meeting
Houston, TX
RSVP Now

April 27, 2012
Greater St. Louis Business Aviation Assn. Meeting
Maryland Heights, MO
RSVP Now

May 1, 2012
Westchester Aviation Assn. Runway Safety Forum
White Plains, NY
RSVP Now

May 3, 2012
Idaho Business Aviation Assn. Networking Event
Boise, ID
Learn More

VIEW ALL REGIONAL EVENTS


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NBAA NEWS

Get Ready for ‘May Is Membership Month’
Next month is "Membership Month" at NBAA, and during those 31 days, the Association will offer special discounts and prizes for joining NBAA and getting more engaged. Most important to any organization considering joining NBAA is the Member Referral Program, where new Members save 20 percent on their first-year dues if referred by an existing Member. There are also chances to win prizes, like an Apple iPad, free passes to the NBAA Annual Meeting & Convention and American Express gift cards. Members can be entered to win prizes by referring other organizations, sharing their favorite NBAA event and entering an online contest testing their knowledge of industry history. Watch for more information to come next month, or direct questions to NBAA at membership@nbaa.org.


Learn How to Handle Overseas Aircraft-on-Ground Events at Conference
Maintenance issues that occur overseas can present unique problems. An education session offered at NBAA’s upcoming Maintenance Management Conference will examine how to effectively and efficiently handle maintenance events while out of the country. Presented by Dave Abbondanza of Single Point Assist, the session is part of a full education program offered at this year’s conference, held May 1 to 3 in Nashville, TN. Learn more and register for the Maintenance Management Conference.

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Early-Bird Discounts Available for Flight Attendants Conference
NBAA’s Flight Attendants/Flight Technicians Conference, now in its 17th year, is designed to enable business aviation flight attendants and flight technicians to provide the highest standards of cabin safety, security and service to their passengers and crew. NBAA Members receive discounted rates on registration, and additional discounts are available for all registrants before June 1. Learn more about the Flight Attendants/Flight Technicians Conference.

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PROFESSIONAL DEVELOPMENT

Applications Now Online for NBAA Barden Scholarship
Through the UAA Janice K. Barden Aviation Scholarship, NBAA annually awards $1,000 to each of five undergraduates studying aviation-related curricula at NBAA and University Aviation Association (UAA) member institutions. The scholarship is named for Jan Barden, a leader in aviation personnel recruiting who has served as chair of the Local Committee many times for the NBAA Annual Meeting & Convention. Scholarship applications are now available online, and are due to NBAA by November 1. Download the Barden Scholarship application now.

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NBAA PDP Course Helps Demonstrate the Value of Business Aviation
The NBAA Professional Development Program (PDP) course "Enhancing Productivity Through Business Aviation," will cover a variety of methods to demonstrate your flight department's value to company personnel through presentations, proposals, internal marketing and more. Offered on May 4 in Nashville in conjunction with NBAA's Maintenance Management Conference, this course will explore travel analysis methods, options for supplement lift, developing business plans and more. Learn more about this PDP course and register.

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NBAA FLIGHT PLAN PODCAST

Online Tax Study Group Offers Interactive Discussion

As many NBAA Members know, taxes are “one of the most complicated issues in aviation,” says NBAA Director, Operations & Educational Development Jo Damato. To help Members master complex tax issues, NBAA invites them to participate in an eight-week virtual study group beginning today. "The exciting part of this series is that when participants move into the study group and online classroom, they can communicate with both the presenters and each other to delve even more deeply into each topic,” Damato explains in this week’s NBAA Fight Plan podcast.

Listen and subscribe now.



NBAA EVENTS

April 24, 2012
Webinar: Introduction to Virtual Study Groups
1:00 p.m. ET

April 25, 2012
Webinar: 2012 ICAO Flight Plan Changes
1:00 p.m. ET

May 1, 2012
Webinar: Introduction to Business Aviation Taxes
1:00 p.m. ET

May 1–3, 2012
27th Annual Maintenance Management Conference
Nashville, TN

May 4, 2012
PDP Course: Enhancing Productivity Through Business Aviation
Nashville, TN

May 4, 2012
Business Aviation Taxes Seminar
Denver, CO


Webinar: Depreciation and Like Kind Exchanges
1:00 p.m. ET

May 14–16, 2012
12th Annual European Business Aviation Convention & Exhibition (EBACE2012)
Geneva, Switzerland

May 15, 2012
Webinar: State Aviation Taxes
1:00 p.m. ET







 

NBAA BENEFIT SPOTLIGHT

With Costs on the Rise, NBAA Shipping Program Helps Members Save

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Enroll and start saving today.


ABOUT NBAA UPDATE

NBAA Update is the National Business Aviation Association's weekly e-newsletter providing a synopsis of the latest operational, regulatory and legislative news for the business aviation community, as well as information about NBAA activities, Member benefits and upcoming industry events. Share feedback at update@nbaa.org.

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