Washington, DC, Oct. 7, 2013 – The National Business Aviation Association (NBAA) released a letter the Association has sent to congressional leaders and President Obama outlining the grave repercussions of the government shutdown on all aspects of the general aviation (GA) industry, including the purchase and use of small GA aircraft for business transport.
As just one example of the shutdown's impact on the industry, Bolen's letter specifically outlines how it has resulted in a halt in the purchase, sale and production of all new general aviation airplane parts or aircraft, given that none of those things can occur without the written approval of the federal government, which operates out of the Federal Aviation Administration's (FAA's) Aircraft Registry in Oklahoma City, OK.
The shutdown has led to the closure of the registry, even though, according to FAA data, more than 10,000 aircraft registrations expire each month, and these registrations cannot be renewed while the registry is closed. As a result, the government shutdown is effectively grounding the general aviation industry, severely jeopardizing countless jobs, and America's economy and infrastructure. In addition, many entrepreneurs and companies of all sizes rely on the airplanes for business flights, as do communities, for critical services including medical transport, mail delivery and fire fighting.
For more information on the shutdown’s impact on the industry, please visit: www.nbaa.org/shutdown.
The version of the letter that was sent to President Obama is included below.
Dear Mr. President:
Imagine if no citizen of the United States could buy or sell a car, purchase or re-finance a home, or if the sale of any other critical goods came to a complete and grinding halt. The impact would be devastating. Well, as of this point in time, general aviation, a crucial part of our economy and manufacturing sector, is basically closed for business.
There has been a great deal of focus on the impact of the shutdown on federal government workers and functions and that is appropriate – after all, many federal employees and services, affecting many citizens across the country, are now realizing the full implications of the shutdown on their daily lives. But we want to reiterate that it has also resulted in the shutdown of a significant industry, with grave consequences to workers, the economy and our national infrastructure, which our communities depend on for critical services.
General aviation planes and parts can't be produced, financed, bought, or sold without the written approval of the federal government which has to register each and every aircraft. In addition, according to the FAA, 10,000 aircraft registrations expire each month. By closing the FAA Registry in Oklahoma City, the government shutdown is effectively grounding much of the U.S. general aviation industry and the potential operations of thousands of aircraft that are crucial to the functioning of businesses and our economy as a whole.
The shutdown of this Registry is already having a severely detrimental effect on people and businesses of all sizes, throughout our country. The General Aviation Manufacturers Association (GAMA) estimates the value of the near-term deliveries, which are halted, to be $1.38 billion. Additionally, the fourth quarter is the peak time for aircraft deliveries and typically accounts for 35 percent of annual aircraft deliveries for the general aviation manufacturing industry. If this backlog lasts more than a few days, it could potentially devastate the industry's fourth-quarter deliveries.
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