Owners of corporate aircraft are breathing a little easier this week after the Senate dropped a proposal to add a $100-per-flight fee on business planes that had been part of President Barack Obama’s American Jobs Act tax plan targeting the wealthy.
The proposal generated buzz at last week’s National Business Aircraft Association conference in Las Vegas, where aviation industry leaders said the fee in Obama’s bill would have destroyed the economics of operating some models of corporate jets with low costs.
“It’s clear that the bully pulpit is being used to bully an industry,” said Dan Hubbard, a spokesman for the organization, during the association’s gathering. “Do we think we’ve been singled out and selected for punitive treatment? Yes.”
But after the Senate stripped the provision by the end of the three-day conference Wednesday — and Senate Republicans followed by blocking the entire bill and submitting their own legislation for consideration — industry officials and aircraft owners said rejection of the additional fee couldn’t have come at a better time for the industry.
Source: Military & Aerospace Electronics