April 1, 2020
Business aviation is an essential industry and – like many American industries – is in need of support in the form of excise tax relief and liquidity assistance, NBAA President and CEO Ed Bolen told the Wall Street Journal in a March 31 letter to the editor. This need led industry groups to join together to seek aid from Congress.
In his letter, Bolen emphasized the overall economic impact of business aviation, which helps support one million jobs and nearly $250 billion in economic activity; he went on to outline the current impact of the U.S. economy’s virtual shutdown on the industry.
“As the U.S. economy moves rapidly from slowdown to shutdown, the critical business aviation industry, like countless others, is in need of support,” Bolen explained.
The business aviation community is undoubtedly facing sudden, acute challenges, including significant employee furloughs and layoffs, as well as significantly decreased business activity for maintenance providers and other aviation-related service providers.
Not only do aviation-related companies suffer when business aviation activity is down as much as 70% over the same period last year as it is now, but hotels, restaurants and other businesses near airports feel the effects as well.
“Like many industries, it [business aviation] consists largely of small and midsize businesses, and is tied closely to U.S. economic conditions,” said Bolen. “When those conditions are as serious as they are now, severe distress is the inevitable result.”
Bolen’s letter responded to “Lobbyists Pile On to Get Wins for Clients Into Coronavirus Stimulus Package,” published on March 23, which unfairly and negatively portrayed the joint efforts of several general aviation associations to seek assistance in the forms of excise tax relief and liquidity assistance.
International Business Aviation Council Ltd.