NBAA Urges IRS Not to Tax Aircraft Management Fees
As previously reported, the IRS Chief Counsel’s office issued new guidance this year concluding that monthly management fees and reimbursements paid to aircraft management companies were subject to federal excise tax (FET). In response, NBAA President and CEO Ed Bolen and members of NBAA’s Tax Committee met with IRS Chief Counsel William J. Wilkins on April 19, underscoring that, in a contract with a management company, the legal concept of “possession, command and control” remains with the Part 91 owner. “The owner has the ultimate say over when and where the aircraft flies, which is absolutely relevant because that’s what the aircraft is for: travel,” said Tax Committee member John Hoover. Read more about NBAA’s work with the IRS to oppose applying FET to management company fees.
Bipartisan House Lawmakers Call for Repeal of ‘Fuel Fraud’ Law
In an April 25 letter to the chairman of the House Ways & Means Committee, a bipartisan group of House lawmakers called for the repeal of the so-called ‘fuel fraud’ provision, which went into effect in 2005. The law was ostensibly passed to combat the possibility that commercial truck operators could purchase Jet-A to avoid paying higher taxes on diesel. The lawmakers who signed the letter maintain the law is a "solution in search of a problem," which increases costs for jet operators and prevents a significant amount of fuel tax revenue from being used to support aviation programs. Read more about the ‘fuel fraud’ law.
Pompeo Questions Administration on Business Aviation Attacks
In an April 19 congressional hearing, Rep. Mike Pompeo (R-4-KS) asked a top Obama Administration official to explain the president’s repeated denigration of business aviation, given the industry’s contribution to the economic vitality the president has said he wants to promote. In the House Energy & Commerce Committee hearing, Pompeo asked Commerce Department Secretary John Bryson “how talking down that industry has anything to do with job creation in America? It hurts the industry when he [the president] makes it politically incorrect to fly on a business tool.” Read more and watch a video of Pompeo.
EBACE2012 Returns to Geneva in Two Weeks
Jointly hosted by NBAA and the European Business Aviation Association, the 12th Annual European Business Aviation Convention & Exhibition (EBACE2012) returns to Geneva in two weeks. More than 470 Exhibitors have signed on for the three-day event, taking place from Monday, May 14 to Wednesday, May 16 – a departure from the usual Tuesday-through-Thursday schedule. EBACE2012 is an exceptional venue to reach the European business aviation marketplace. Exhibits and education sessions will be located at Geneva's Palexpo, and over 60 aircraft will be on display at Geneva International Airport. Learn more about EBACE2012.
New EBACE App Provides New Ways to Connect With Exhibitors
For the first time, EBACE Attendees can use their smartphones to navigate the exhibit floor, plan out their schedule throughout the show, connect with fellow attendees, share event pictures and more. It's now possible with the official EBACE2012 mobile app for iPhone, Android and BlackBerry smartphones, EBACE Exhibitors are encouraged to upload their materials to the app in advance of the show so that Attendees have access to the latest company details. Learn more about the new EBACE2012 app.
Podcast: UK Planning Significant Airspace Changes for Olympics
As London gets ready to host the 2012 Olympic Games, the UK’s air traffic control service, NATS, is planning changes to the surrounding airspace to accommodate the expected increase in traffic. The airspace over London will be designated the Prohibited Zone, and only IFR flights to or from airports inside the zone (including Heathrow, London City and RAF Northolt) will be allowed. The surrounding airspace, which is usually uncontrolled, will be designated the Restricted Zone and be controlled by the Royal Air Force. Furthermore, operations at the 40 airports closest to London will require arrival and departure slots. Read more about the UK airspace changes and listen to details from a NATS representative in this week’s NBAA Flight Plan podcast.
Italian Parliament Provides Tax Relief for Visiting Aircraft
Last week, the Italian Parliament passed legislation that allows non-Italian registered private aircraft to spend up to 45 consecutive days in Italy before being subject to a costly "luxury" tax. Before this change, business aircraft that spent more than 48 consecutive hours in Italian territory were subject to the tax, which could amount to over 300,000 euros depending on the aircraft weight. The legislation must now be officially published and signed by Italy's president, both of which are expected to occur this week. Once the legislation is effective, it will be made retroactive back to December, when the original tax legislation was implemented. Learn more about the legislation.
India, a Promising Asian Market for Business Aviation
An emerging economy with a government just starting to address the needs of the business aviation, India is one of the most promising new markets for the industry. Business aviation in India is experiencing rapid growth, according to Bombardier, which predicts delivery of 1,330 business jets to India over the next 20 years. However, India still has a limited general aviation infrastructure, and a limited regulatory framework to support the industry. Read more about opportunities and challenges in India.
Jeppesen Charts to Feature CABAA Visual Departure at PWK
The Chicago Area Business Aviation Association (CABAA) received approval to have the CABAA Visual Departure at Chicago Executive Airport (PWK) published in Jeppesen charts. The procedure, which was developed in 2011 to minimize takeoff delays with the opening of Runway 27R at Chicago O’Hare (ORD), has until now been published only in the Airport/Facility Directory. The new Jeppesen chart will be issued on May 12 under Revision 11 and will provide pilots with far more convenient access and information. The CABAA Visual Departure is to be used in conjunction with an IFR clearance when departing Runway 16 at PWK. Pilots are responsible for aircraft separation and avoidance of the Class B airspace until IFR control is provided by TRACON. Review how to use the PWK departure procedure.
Greater Washington Safety Event to Feature Space Shuttle Veteran
Mike Mullane, a former NASA Space Shuttle astronaut, will be the keynote speaker at a one-day aviation safety event hosted by the Greater Washington Business Aviation Association (GWBAA). The 6th Annual Safety Standdown, which takes place on May 16 at the National Transportation Safety Board’s Training Center in Ashburn, VA, will provide the latest information on business aviation safety. Learn more about the DC-area safety event.
Northern California Group Awarding First Scholarship on May 8
When the Northern California Business Aviation Association (NCBAA) was established less than two years ago, one of the first things members did was set up a scholarship fund for college and vocational students pursuing careers in aviation. At its May 8 meeting, the group will present its first scholarship award and host an eBay auction benefitting the scholarship fund. Learn more about the NCBAA scholarship program.
Arizona Group Teams With Angel MedFlight to Offer Scholarship
For the third consecutive year, the Arizona Business Aviation Association (AZBAA), in conjunction with Angel MedFlight, is offering a $3,000 scholarship to students pursuing a degree in business aviation. It’s one of many scholarships AZBAA offers to students interested in aviation careers and aviation professionals pursuing continuing education. Read more about AZBAA’s scholarship program.
May 1, 2012
Westchester Aviation Assn. Runway Safety Forum
White Plains, NY
May 3, 2012
Idaho Business Aviation Assn. Networking Event
May 4, 2012
Georgia Business Aviation Assn. Meeting and Networking Event
Stone Mountain, GA
May 8, 2012
Northern California Business Aviation Assn. Scholarship Benefit
Mountain View, CA
May 11, 2012
Tampa Business Aviation Association Charity Event
May 11, 2012
South Florida Business Aviation Assn. CPR Certification Class
Fort Lauderdale, FL
At NBAA, May Is Membership Month
Starting tomorrow and for the next 31 days, NBAA will be offering special discounts and prizes for joining the Association as part of its "May Is Membership Month" promotion. With the Member Referral Program, new Members save 20 percent on their first-year dues if referred by an existing Member. For current Members who refer a new organization or get more engaged, there are also chances to win prizes, like an Apple iPad, free passes to NBAA’s Annual Meeting & Convention and American Express gift cards. Learn more about NBAA's Membership promotion.
International Issue of Business Aviation Insider Now Online
Business aviation is increasingly global and to support Members’ cross-border operations, NBAA has published the International Issue of Business Aviation Insider. Sponsored by Baldwin Aviation and OPMAS, this issue features articles on considerations when flying abroad, what to know before flying to India and practical tips for international flying offered by NBAA Member HP. Also included is a first-ever special section devoted to challenges and opportunities for business aviation in Europe. Printed copies of the issue are mailing to Member subscribers now. View the issue online or subscribe today.
New Best Practices Guide for Companies Using Independent Contractors
Most flight departments and charter operators rely on independent contractors in some capacity, but if an employer classifies a worker incorrectly, they can be exposed to significant tax, liability and legal risks. To help Members avoid these risks, NBAA has released a comprehensive guide to classifying a worker as an employee or independent contractor. Learn more about NBAA's Best Practices for Utilizing Independent Contractors.
NBAA FLIGHT PLAN PODCAST
UK Airspace and Procedure Changes Surround Olympic Games
The UK’s air traffic control service, NATS, is preparing for the influx of traffic this summer for the 2012 Olympic Games by planning significant changes to the airspace surrounding London. In addition to airspace restrictions and procedure changes, arrival and departure slots will be required at the 40 airports closest to London. “Book early to avoid disappointment. People who want to get closest to the center of London must book early,” warned Stephen Patterson, the coordinator for all activities related to the 2012 Olympics at UK NATS, in this week’s NBAA Flight Plan podcast.
Listen and subscribe now.
May 1, 2012
Webinar: Introduction to Business Aviation Taxes
1:00 p.m. ET
May 1–3, 2012
27th Annual Maintenance Management Conference
May 4, 2012
PDP Course: Enhancing Productivity Through Business Aviation
May 4, 2012
Business Aviation Taxes Seminar
May 8, 2012
Webinar: Depreciation and Like Kind Exchanges
1:00 p.m. ET
May 14–16, 2012
12th Annual European Business Aviation Convention & Exhibition (EBACE2012)
May 15, 2012
Webinar: State Aviation Taxes
1:00 p.m. ET
May 22, 2012
Webinar: Personal Use – Impact on the Employee
1:00 p.m. ET
May 29, 2012
Webinar: Personal Use – Impact on the Company
1:00 p.m. ET
NBAA BENEFIT SPOTLIGHT
Take Advantage of NBAA's IBAC Membership
Through the Association’s membership in the International Business Aviation Council (IBAC), NBAA Members gain representation in the international business aviation community, publication discounts and other benefits, such as the IBAC Aircrew Identification Card. The popular Aircrew ID Card is valued by operators because it helps airport officials identify business aircraft aircrews and expedite clearance and security procedures during international travel.
Learn more about IBAC.