Aviation Groups Respond

Last night as I went through my email it was clear from the number of press releases in my inbox that President Obama had created a stir among the general and business aviation segments of our industry. In a press conference yesterday the President made comments related to a tax incentive known as accelerated depreciation which allows a company to take larger tax deductions early in aircraft ownership, which makes it more cost effective for companies to purchase new aircraft. It’s reported the president mentioned owners of corporate jets numerous times as an example of a group that should be paying more in taxes by changing the accelerated depreciation criteria. The accelerated depreciation program has been touted by the industry as one way of spurring much needed growth in aviation. These comments come at a time when we are experiencing some signs of rebounding activity levels in general and business aviation. More aircraft sales means industry growth which also means more aircraft maintenance jobs. Pete Bunce, GAMA president and CEO says, “The Administration has a laudable goal of doubling U.S. exports in five years. How then can President Obama attack a manufacturing sector that exported over 60 percent of the value of its products in 2010? General aviation manufacturers can help the president meet his export goals, but not if this damaging rhetoric continues.†Touché Mr. Bunce! Thanks go to all the groups that have responded to the President’s attack on the general and business aviation segments of our industry. To read responses from groups such as NBAA, GAMA, NATA, and AEA, see today’s June 30th news on the AMT website.