FAA chief resigns, opening another spot for a Trump pick

 

Mike Whitaker’s resignation comes at a time of turmoil for the agency, which is facing air traffic controller shortages and aging equipment.

 

The head of the Federal Aviation Administration is resigning in January, leaving the aviation safety agency without a confirmed chief in the middle of a major probe into safety problems at Boeing.

 

FAA Administrator, Mike Whitaker, who has earned bipartisan respect in roughly a year on the job, said he will resign on Trump’s inauguration day in a letter to his workforce calling the job the “honor of a lifetime.”

 

“The United States is the safest and most complex airspace in the world, and that is because of your commitment to the safety of the flying public,” Whitaker said. “This has been the best and most challenging job of my career.”

 

Whitaker took over the five-year position in October 2023 at a troubled moment for the agency as it grappled with a rash of aviation near-collisions and challenges in replenishing its depleted air traffic controller workforce — all before a door panel flew off a Boeing 737 MAX midair rattling the flying public.

 

Though the agency under Whitaker’s leadership appears to have arrested the alarming rate of near-collisions seen since travel began to rocket away from its pandemic-induced slump, it still faces significant ongoing challenges in the form of a fatigued and shorthanded air traffic controller workforce and an aviation system whose growing demand for flights is throttled by already-decrepit equipment that grows more obsolete each year.

That’s on top of the ongoing and significant challenge posed by quality control problems at Boeing, which the FAA has had under a microscope since a piece of a Boeing 737 MAX plane flew off midair in January. No one was hurt, but the incident sparked multiple probes, some of which are ongoing, and congressional scrutiny amid alarming whistleblower claims about shoddy manufacturing at the plane maker.

 

Whitaker’s departure is not exactly surprising — rumors that he was considering his future at the agency have swirled for weeks — but the decision does come early in the tenure of what should be a five-year hitch. 

 

Whitaker didn’t start until Oct. 2023. That lag time was the culmination of not having had a Senate-confirmed leader for 18 months after President Joe Biden’s first pick, Denver airport executive Phil Washington, flamed out after Republicans balked at his relatively thin aviation resume. (Washington spent most of his post-military career in transit.)

Typically, the post is non-partisan, and by law the person who fills it must have experience in the industry in some form. Trump’s first-term pick for the FAA was Steve Dickson, who served for years at Delta Air Lines prior to filling the post. 

 

It remains to be seen whose names might float to the top for Trump’s second term, but he has been filling posts at a rapid clip. One potential pick could be Dan Elwell, who has been informally advising his transition team on aviation matters. Elwell is a pilot and former airline industry executive and served as acting head of the FAA for a stint during Trump’s first term.

 

Whitaker, a former FAA deputy administrator and former industry executive for outfits like air taxi company Supernal and United Airlines, faced little opposition to his confirmation and enjoys a good reputation on Capitol Hill. Lawmakers in the Senate Commerce Committee unanimously advanced his nomination just weeks after his October confirmation hearing.

 

Lawmakers from both parties questioned at the time whether the agency had the ability to adequately tackle safety incidents that continued to pile up: Republicans chastised the Biden administration for these lapses, and Democrats were unhappy that the agency was without a permanent leader for so long.

 

But Whitaker has since been seen as a steady force for the agency — and the answer to Boeing’s ongoing manufacturing lapses. House and Senate lawmakers on both sides of the aisle continue to cite Whitaker as the reason they believe aviation safety has seen a turnaround.

 

On Wednesday, Sen. Tammy Duckworth (D-Ill.), who chairs the Senate’s panel on aviation, offered kudos to Whitaker, who “has been doing an excellent job.”

There’s “very bipartisan support for him,” she told reporters during a call. “I hope that he does stay in place. He’s really working hard to keep the public safe, including important oversight of Boeing, and I’ve heard a lot of bipartisan appreciation for his efforts. So I hope that he does get to stay,” she said.

 

Rep. Rick Larsen (D-Wash.), ranking member of the House Transportation Committee, told POLITICO he had hoped Whitaker would stay longer, calling it “unfortunate news, cause Mike is doing a great job.” 

 

He said whoever Trump selects, they don’t need to “change or fix” the plan the FAA is implementing to oversee Boeing. Larsen has Boeing’s Everett plant in his district.

“The pieces are in place for Boeing to be productive long-term, not just building airplanes but building safe airplanes,” he said.

 

Rep. Sam Graves (R-Mo.), chair of the Transportation Committee, said Whitaker called him to tell him the news. “It was kind of expected,” Graves said.

Asked if there’s anyone he thinks should be considered for the role, Graves demurred, saying the “transition team I’m sure is working through that process, trying to find good candidates,” but added the first priority is to get Trump’s nominee for Transportation secretary, Sean Duffy, confirmed.

 

Sen. Ted Cruz (R-Texas), likely the next chair of the Commerce Committee, said Whitaker “ably led the agency during a challenging period,” and said the committee next Congress will heavily focus on making the airspace safe and efficient.

 

“The next administrator needs to be ready day one to continue the job of restoring the FAA’s safety culture and providing real oversight of the aviation sector,” Sen. Maria Cantwell (D-Wash.), the current Commerce chair, said in a statement. Echoing Cantwell, Sen. Tammy Duckworth (D-Ill.) who heads the Senate subpanel on aviation, added that Whitaker’s oversight of Boeing has been “important” and that the pressure on the aerospace company “must continue.”

 

Sam Ogozalek contributed to this report.

Original Article can be found HERE

 

Despite Court Ruling, NBAA Recommends LLCs Continue to Prep CTA Reports

 

Although a federal court has put a hold on requirements under the Corporate Transparency Act (CTA) for certain companies to report specific owner information – including ownership of business aircraft – by Jan. 1, 2025, experts encourage those impacted by the CTA to continue readying for reporting requirements.

 

The U.S. Court for the Eastern District of Texas has determined that reporting requirements under the Corporate Transparency Act (CTA) may be unconstitutional, issuing a preliminary injunction enjoining enforcement of the rule nationwide. The Dec. 3 preliminary injunction temporarily stays a compliance deadline of Jan. 1, 2025. Effectively, this means entities affected by the CTA need not comply with the Jan. 1 reporting deadline while the injunction is in effect.

 

The CTA authorized the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to request limited liability companies (LLC) and other entities to report “ultimate beneficial-owner information,” including name, date of birth, current address and more. This would apply to entities that own business aircraft in an LLC, a common structure to establish leases under which companies may share aircraft and for a host of other business and tax reasons. Under the CTA, millions of entities formed prior to Jan. 1, 2024, had until Jan. 1, 2025, to file.

 

Jonathan Epstein, partner at Holland & Knight LLP, says that despite the federal court’s action, entities impacted by the CTA are strongly advised to continue preparing for the reporting requirement. 

 

“Don’t stop preparing for this report,” Epstein said. “Be ready to file because we don’t know what’s going to happen in a higher court,” adding that, for some companies, the reporting requirement is quite simple, but others will need time to gather data to make the report. 

FinCEN has indicated that the filing of Beneficial Ownership Information is voluntary until further notice. Reporting companies will not be subject to liability if they fail to file while the preliminary injunction remains in effect, according to FinCEN. 

 

Epstein said it’s unlikely a court action changing the status of the injunction will occur before the Jan. 1 deadline, so for now, reporting entities are not required to file a report. Should a higher court reverse this decision, it is likely the stay would be lifted with a future effective date, allowing impacted entities to report before a new compliance date. NBAA will continue to monitor the situation and provide updates as available. 

 

Original Article can be found HERE

 

VistaJet, XO Parent Vista Global seeking to raise up to $1 billion

Two seasoned financial reporters for debt-market intelligence website 9fin are reporting XO,and VistaJet parent Vista Global is working with Jefferies on a “potential preferred equity raise.”

The report by Will Caiger-Smith and Max Frumes cites unnamed sources. A spokesperson for Vista Global tells Private Jet Card Comparisons, “We do not comment on rumors.”

 

According to 9fin, “The size of the potential deal could be between $600m and $1bn, according to sources. Proceeds would be used, among other things, to help fund amortization payments on the company’s aircraft leases.”

 

The report states, “While it’s been clear for some time that VistaJet needs to raise cash, the founder’s large ownership stake has been a significant factor in discussions around how such a capital raise should be structured.”

Vista’s founder and chairman, Thomas Flohr, is believed to hold over 80% of the company. 

 

The 9fin story said a source called VistaJet “very investible” and added, “it could ‘easily’ find a buyer for a minority equity stake if it wanted; however, such a deal would dilute existing shareholders.”

 

Sources told 9fin, “The company is understood to have explored the possibility of raising term loan debt but would likely struggle to do so because of its cash flow profile,” adding, “The proceeds raised through the new preferred instrument would help address that.” Per 9fin, “Its most recent deal was a $500m bond issued in May 2023, which carries a 9.5% coupon and matures in 2028.”

 

Vista Global Finances 

Privately held Vista’s finances have been publicly scrutinized since a May 2023 story in the Financial Times.

 

The story pointed to its increasing debt, net losses, and deferred revenues to cash ratio. Much of the material in the FT story came from the 512-page bond prospectus.

The financial document was available via non-disclosure agreements and the bond sold out in several hours. Flohr answered the criticisms on CNBC, saying the company was highly profitable on an EBITDA basis, attributing the debt to funding its expansion and saying it had sufficient cash to fund member flights.

 

Earlier this year, Vista sued AirX, a much smaller Malta-based charter operator, for 386 million euros as the source of confidential documents passed to the media and suppliers. 9fin also noted, “Trading levels have improved across the company’s debt complex this year, after a tough time in late 2023 amid legal fights and liquidity concerns; the rebound reflects solid revenue growth in recent quarters, according to sources.”

 

VistaJet News 

In August, we exclusively reported Vista was selling its Citation Ultra light jet and Citation Xfleet. The fleets are based in the U.S. However, the latest FAA data shows that XOJet Aviation has 23 Cessna-made super-midsize jets on its operating certificate.

Through June, Vista’s U.S. operators had moved into third place on our list of largest North American charter/fractional operators.It is behind NetJets and Flexjet per ARGUS data.

 

Popular Jet Cards 

Despite the media attention about its finances, Vista’s two brands remain popular choices with flyers. VistaJet offers the Challenger 300/350 stand-up super-midsize cabins in its Program jet card.

 

Most jet cards don’t guarantee a stand-up super-midsize cabin. Members can also book and cancel domestic flights on 24-hour notice compared to as much as 120 hours for other Challenger super-mid jet cards.

 

The daily minimum is just 72 minutes, including taxi time. Many jet card super-mid programs charge 120 minutes as the daily minimum, making them expensive for short flights. At the top end, its ultra-long-range Bombardier Global private jets offer similar short-notice book and cancel benefits. Jet card members get fixed-hourly occupied hours pricing globally. It’s pretty much the only product of its type.

 

XO doesn’t offer fixed rates but typically offers market-leading prices up and down the U.S. East Coast and for transcontinental flights, making it a prominent value player. It also enables members to sell and buy unused seats. 35.8% of Private Jet Card 

 

Comparisons subscribers are interested in jet-sharing and by-the-seat options.

 

Information provided by Doug Gollan, 

Click here to access original information

 

The IRS Is Targeting Business Aviation: Are You Ready?

 The Internal Revenue Service recently announced a new focus on the business use of aircraft. Here are five steps that organizations can take to reduce their audit risk.

In February 2024, America’s tax collection agency – the Internal Revenue Service – announced that it will conduct dozens of audits focused on the personal use of business aircraft. These audits will target aircraft use by large corporations and partnerships and high-net-worth individuals, and are part of a broader agency effort – funded by the Inflation Reduction Act – to ensure that filers in these categories pay the taxes they owe.

 

“Specifically, these audits will examine the claimed allocation between business and personal use of business aircraft,” said Joanne Barbera, a founding partner of Barbera & Watkins and former chair of the NBAA Tax Committee. “At the same time, they’ll examine the deductions claimed related to that use, entertainment and commuting use and the income imputed to executives for personal use.”

 

For very large organizations, the potential penalties of business aviation audits may seem like pocket change. But there are other risks that these organizations might wish to avoid. For example, bad PR: Who wants to make front page news by being accused of cheating on their taxes?

 

A business aircraft audit can also expose other issues for the IRS to examine. According to Brent Snyder, a managing director at Andersen, “The big risk for companies is that in addition to finding issues with your handling of business travel, these audits can give the IRS reason to look more closely at the rest of your operations.”

While these initial audits are targeting tax evasion and avoidance among the wealthy, you probably shouldn’t think you’re out of the woods if you’re not a large corporation, large partnership or high-net-worth individual. Depending on what these audits turn up, and on IRS hiring of new examiners, scrutiny of personal use of business aircraft may scale up to include a far broader range of organizations.

Access original article: HERE 

 

The Private-Jet World Is Optimistic About 2025, Despite a Post-Covid Slow-Down

The private-jet world seems to be leveling off from its record highs during the Covid years. The fractional and jet-card segments are still above pre-Covid sales levels, while others such as used aircraft sales and on-demand charter have declined from giddy highs in 2021 and 2022.

 

Sentiment for the near-term of business aviation was positive at this year’s Corporate Jet Investor Conference (CJI) in Miami, in an industry known for its cyclical highs and lows. Aircraft company CEOs, jet-card executives, aviation attorneys, aircraft brokers, and private equity reps examined different sectors of the industry during three days of interviews and panel discussions. They agreed, with some exceptions, that the market remains strong, following those unprecedented pandemic highs.We’re happy as clams,” said Don Dwyer, a principal with Guardian Jet, a brokerage firm specializing in consulting and used aircraft sales. “We’re seeing an underlying optimism in people buying and selling aircraft. The market remains strong. This is our biggest year ever.”

 

The re-election of Donald Trump seems to have had an immediate beneficial impact. “Our market indicators have gone up 35 points since the election,” says Rollie Vincent, director of JetNet IQ, which tracks business aviation in industry surveys. “There are a lot of signs right now that things aren’t going to slow down, at least not for the short term—barring a black-swan event.”Business aviation is broken down across different categories, between new and used aircraft sales, fractional ownership (where a company or individual buys an ownership stake in a jet for three to five years), on-demand charter, and jet cards.

 

“It’s nuts. We saw our spring being extended beyond its usual season and then summer was really busy,” says Alan Walsh, senior vice president of client management and operations for Sentient, a jet-card maker. He explains that the company expects to sell $100 million worth of flights by the end of the year, and expects a strong year next year, “barring any unforeseen larger issues.”Sentient’s sister company, Flexjet, has seen its fractional business grow during the Covid years and beyond. The company reported an 11 percent year-to-date sales growth compared to last year, with a waiting list.

 

For the entire fractional segment, including fractional’s largest firm, NetJets, Flexjet, and nearly a dozen smaller companies, the number of flights was up 59 percent in the second quarter of 2024, compared to the same quarter of pre-covid 2019. A mix of whole aircraft owners, now selling their jets and moving into fractional, charter users, and corporate flight departments are driving the increase.“Surprisingly, our fractional customer profile has gotten about 10 years younger,” said Kenn Ricci, the principal of Directional Aviation Capital, during the keynote address. “That’s a good thing because they’ll be with us longer. We’re also selling shares in four times as many mid- and super-mid aircraft than we do light jets. So, the jets are getting bigger. The other big change is our international growth.”

 

The used-aircraft market, which softened after frenzied sales activity in 2021 and 2022, seems to be stabilizing in the second half of this year, according to Vincent. “Values are holding up higher and longer than we expected, and we expect values to increase in the fourth quarter of this year,” he said. Because of U.S. tax, the fourth quarter sees a surge of business jet sales.New business jet deliveries were valued at about $700 million this year, said Vincent, noting there is also a backlog of unbuilt, ordered aircraft valued at about $51 billion. “It’s enough for several years of production,” he said. “That leaves the aircraft manufacturers in good shape.”

 

On-demand charter is the only segment of the market that is softer, according to industry analyst ARGUS, which reported a 5.2 percent drop in total hours during the first half of 2024, compared to the first half of 2023. But the 14.7 percent decline from the 2022 high is even a better indicator in the decline of on-demand charter.

 

The shortage of aircraft repair technicians, and not enough Maintenance, Repair, and Overhaul (MRO) centers, along with a continued supply-chain shortage of parts, is keeping many aircraft grounded for days, or even weeks. Ricci says a third of the Flexjet fleet is undergoing repairs at any given point. Most experts expect it to continue for several years.The conference also had panels focusing on new connectivity technologies for aircraft cabins, the use of AI toward pilot-less aircraft, and the FlyHouse app that promises a seamless, Uber-like experience for people who want to book on-demand charters. Jack Lambert, FlyHouse’s founder, said the app lets potential charterers initiate a “reverse auction” among multiple charter firms and gain the best price. “On the low end, we expect this to be a $3 to $5 billion market in five years,” he said.

 

Article information provided HERE 

 

Spirit Airlines files for bankruptcy

Spirit Airlines recently filed for bankruptcy protection, making it the first major U.S. airline to file for Chapter 11 in 13 years. 

 

Spirit has grappled with years of losses — it last made an annual profit in 2019 — as well as a blocked merger with JetBlue and challenges renegotiating its debt. The Florida-based budget carrier, known as a "pioneer of no-frills air travel," said Monday it had reached an agreement with bondholders. 

 

Spirit also said it plans to continue operating and that customers can keep booking and using their tickets, credits and loyalty points “as normal.”

 

Article and information provided by: Linked in

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NBAA  Issues Statement on Nomination of Sean Duffy as DOT Secretary 

National Business Aviation Association (NBAA) President and CEO Ed Bolen issued a recent statement regarding President-elect Donald Trump’s nomination of former Rep. Sean Duffy (R-07-WI) as Department of Transportation (DOT) secretary.

“Sean Duffy’s experience in Congress demonstrates his ability to work with lawmakers in navigating complex legislative processes, including the advancement of infrastructure and transportation policies,” Bolen said. “Equally important, his representation of a predominantly rural congressional district gives him firsthand insight into the critical role of general aviation in towns with little or no airline service. We congratulate him on his nomination and look forward to his confirmation by the Senate.”

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Duffy served in the House for nearly nine years before leaving Congress in 2019. During his tenure, Duffy supported infrastructure policies including the 2018 FAA reauthorization bill.

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Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The association represents more than 10,000 company and professional members and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition (NBAA-BACE), the world’s largest civil aviation trade show.

 

Learn more about NBAA at nbaa.org. 

 

Washington To See New Aviation Leader in Next Congress 

Several weeks after the November 5 U.S. elections, Washington is still awaiting the final outcome of the results and their effects on Capitol Hill. Regardless for aviation, that outcome will bring change and new leadership on key committees on both sides of the aisle.

 

With the shift in power from Democrat to Republican hands in the Senate, leadership on all the committees and subcommittees are swapping seats. In Senate Commerce, Sen. John Thune (R-South Dakota) is the senior member in line for the committee chairmanship. For Thune, that would mark a return to leadership of the committee that he chaired for four years before moving into the role of Senate Majority Whip in 2019 and then Minority Whip when the Democrats regained control in 2021.

 

Even so, Thune kept his hand in aviation, working behind the scenes on key issues on the FAA reauthorization bill. However, whether he reclaims his seat is still unclear since he also is in the mix of candidates for Senate Majority Leader. He also could look at other “plum” committee assignments.

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Next in line would be Sen. Ted Cruz (R-Texas), who won reelection last week. Cruz currently serves as ranking Republican of the Commerce Committee, working with current Chair Maria Cantwell (D-Washington) to confirm FAA Administrator Michael Whitaker and push through the massive FAA reauthorization bill. Cruz has not revealed whether he would be interested in continuing in a leadership role in the upcoming Congress, but a major surface transportation bill is upcoming.

 

Control of the House was still unclear coming out of the weekend, but changes are afoot there regardless of the outcome. Rep. Sam Graves (R-Missouri) is bumping into a term limit for his chairmanship of the Transportation and Infrastructure Committee, should Republicans—as it is looking increasingly likely—retain control. He has filed for an exemption from that term limit but also appears to have thrown his hat into the ring, potentially, for Transportation Secretary.  

 

Graves released a statement, published by various media outlets, that: “It would be an honor if the President called upon me to serve in the Administration, and it’s something I would duly consider.” Also, House aviation subcommittee chair Garret Graves (R-Louisiana), who took a key part in writing the FAA reauthorization bill, has opted to retire. So the committee may see new leadership in both places.

On the issues front, Congress will have a busy agenda, starting with a tax extenders bill with the tax breaks passed under the Trump administration set to expire in the upcoming year. For aviation, this could open the door to a possible extension of bonus depreciation. 

 

“That would be something that would help stimulate aircraft sales,” NBAA president and CEO Ed Bolen noted. 

 

However, he also pointed out that the aviation community is “working through” issues of potential tariffs. “With the different supply chain issues, we don’t know whether higher tariffs are going to hurt in that regard.” Unclear is whether Congress would, or even would need to, play a role in these.

 

However, also with tax extenders, General Aviation Manufacturers Association v-p of government affairs Paul Feldman said the association will be pushing for an extension of the research and development tax credit. Proposals under the Biden administration, including fuel tax increases and a seven-year depreciation schedule to match that of the airlines, are not expected at this time.  

 

In addition, aviation, joined by the agricultural community, may be looking for more incentives to support sustainable aviation fuel.  Certain Republican lawmakers have shown resistance to such sustainable efforts.

 

However, the issue is gaining traction on Capitol Hill, with bipartisan Sustainable Aviation Caucuses formed in each chamber. “We’ve made a lot of really good progress,” Bolen said. “What we are seeing is that some of the ag states are looking at an opportunity for them to have crops that will be able to play in the model and that would be very worthwhile. So you see a lot of excitement in it and a lot of legislation that is being promoted, with the idea that the ethanol that had been being produced for automobiles moving over and being produced for aviation.”

 

Another issue to watch long term is the possible resurgence of an issue to push for privatization, an issue strongly backed by conservative groups such as the Heritage Foundation. While nothing has been said about that thus far, it is something that aviation organizations are always monitoring.

Also, with the myriad new faces expected to appear as a result of the elections, aviation advocates face a busy season on the educational front.

 

“As the makeup of the 119th Congress continues to take shape, we are monitoring how key leadership and committee positions play out,” Feldman said. “We are also working to learn more about new members that represent our membership and those with aviation backgrounds so that we can foster relationships and engage them on issues of importance.”

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Information provided and sourced By KERRY LYNCH • Editor, AIN monthly magazine

To read the original article please visit Here. 

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Bombardier's quarterly revenue beats on services business boost

Bombardier’s third-quarter revenue beat analysts' estimates, helped by strong demand for business jet parts and repairs. But the manufacturer of Challenger and Global jets reported cash burn, a metric closely watched by investors, of $127 million during the quarter, compared with positive cash flow of $80 million in the same period last year. Shares of Bombardier were down 6.4% in midday trading.

 

CFO Bart Demosky told analysts he expected strong free cash flow performance in the fourth quarter. The order backlogs of business jet makers are growing as they benefit from a wave of interest from wealthy travellers and fleet operators that has continued since the COVID-19 pandemic.

 

“The market is well balanced and is proving to be resilient,” CEO Eric Martel told analysts.But Montreal-based Bombardier, like other plane-makers, continues to wrestle with supply chain snags, particularly on engines, even as Martel said other parts like windshields had improved.

 

Asked whether Bombardier would make a customer advance to struggling supplier Spirit AeroSystems which produces critical parts in Belfast for its jets, Martel told a media call the planemaker was "being supportive.”

 

Spirit Aero, a key supplier to plane makers Boeing and Airbus, issued a liquidity warning earlier in the week, flagging there was "substantial doubt" it would be able to continue as a going concern. Martel said Bombardier was no more concerned about Spirit Aero's financial predicament than it was before the filing, as multiple hits to output, including a weeks'-long strike by Boeing factory workers, battered the supplier's finances. "We could see it coming," Martel said.

 

"We've been thinking about this. We've been planning accordingly. But you know, we're comfortable with what, where the situation is today," Martel said, adding that Spirit's work for Bombardier had been running normally. Martel said Bombardier would be comfortable either doing business with a credible buyer of Spirit's Belfast operations that produces parts for its Challenger and Global jets, or it could consider acquiring them.

 

"These scenarios are still on the table," he said. Revenue from Bombardier's services business rose 28% in the third quarter to $528 million.Bombardier is boosting its aftermarket centres to help it hit a 2025 services revenue target of $2 billion "fairly soon," as it weighs expansion in the key U.S. market, Martel said. The company reported aftermarket revenues of $1.75 billion in 2023.

 

Total revenue for the quarter was $2.07 billion, compared with analysts' average estimate of $1.79 billion, according to data compiled by LSEG.On an adjusted basis, the company earned 74 cents per share, compared with estimates of 73 cents.

 

Bombardier delivered 30 jets during the third quarter, compared with 31 aircraft a year earlier, and maintained its full year forecast for jet deliveries of 150 to 155 aircraft.

 

Information and article provided by Reuters.com. Reporting by Aatreyee Dasgupta in Bengaluru and Allison Lampert in Montreal; Editing by Bernadette Baum and Mark Potter. 

 

Original article can be found here

 

NBAA Welcomes Textron eAviation as Latest Industry OEM to Join AAM Roundtable
The National Business Aviation Association (NBAA) welcomes Textron eAviation Inc., a Textron Inc. (NYSE: TXT) company, as the latest original equipment manufacturer (OEM) to join NBAA’s Advanced Air Mobility (AAM) Roundtable.

Established in 2021, the NBAA AAM Roundtable focuses on maintaining the U.S. position as a global leader in aviation and aerospace, as well as harnessing the full safety, economic, environmental and national security potential of AAM.

Textron eAviation is pursuing Textron’s long-term strategy to offer a family of sustainable aircraft for urban air mobility, general aviation, cargo and special mission roles. The team is leveraging the acquired expertise of Pipistrel and Amazilia Aerospace and the industry-leading product design, certification, manufacturing, and aftermarket solutions across Textron’s businesses to develop AAM vehicles and advance new propulsion technologies, including hydrogen and electric power.

“In just a few years, NBAA’s AAM Roundtable has proven to be a powerful voice in the development and advancement of these exciting and sustainable technologies,” said NBAA President and CEO Ed Bolen. “We are pleased that Textron eAviation has joined in this effort to advance the safety-driven integration of AAM vehicles and supporting infrastructure into our National Airspace System.”

“We are honored to join NBAA’s Advanced Air Mobility Roundtable and applaud their steadfast advocacy in shaping policies that foster innovation and prioritize safety in aviation,” said Kriya Shortt, president and CEO of Textron eAviation. “Our collaboration with NBAA and other industry leaders is crucial as we collectively work to develop transformative and sustainable transportation solutions that meet the evolving demands of global mobility.”

The NBAA AAM Roundtable helped achieve two key legislative victories on Capitol Hill in 2022. The Advanced Air Mobility Coordination and Leadership Act (S.516) established an interagency working group to review and examine factors that will allow the maturation of the AAM ecosystem within the U.S. and develop an AAM national strategy.

The roundtable also supported the passage of the Advanced Aviation Infrastructure Modernization Act (AAIM Act) that established U.S. Department of Transportation (DOT) grants to assist state, local and tribal governments and other entities in planning infrastructure to support AAM operations.

Most recently, the AAM Roundtable worked with the bipartisan congressional AAM Caucus and leading authorizers in Congress to advance pro-AAM policies in legislation to reauthorize funding for the Federal Aviation Administration (FAA). These priorities are reflected in the FAA reauthorization bill, which passed earlier this year.

Founding members of the NBA AAM Roundtable include Archer, BETA Technologies, Hillwood Aviation, Joby Aviation, Lilium, Overair, Supernal and Wisk.

About NBAA
Founded in 1947 and based in Washington, DC, the National Business Aviation Association (NBAA) is the leading organization for companies that rely on general aviation aircraft to help make their businesses more efficient, productive and successful. The association represents more than 10,000 company and professional members and provides more than 100 products and services to the business aviation community, including the NBAA Business Aviation Convention & Exhibition (NBAA-BACE), the world’s largest civil aviation trade show. Learn more about NBAA at nbaa.org.

Members of the media may receive NBAA Press Releases immediately via email. To subscribe to the NBAA Press Release email list, submit the online form.

About Textron eAviation
Headquartered in Wichita, Kansas, Textron eAviation Inc., part of the Textron eAviation segment of Textron Inc., is focused on sustainable flying, backed by Textron’s 100 years of expertise and the restless spirit for innovation that is embodied in its Pipistrel, Cessna, Beechcraft and Bell brands.

The Textron eAviation business segment also includes Pipistrel, a Slovenian based manufacturer of light aircraft, including the world’s first and currently only, type-certified electric aircraft, and Textron eAviation GmbH, a developer of digital flight controls under the Amazilia Aerospace brand. Taking the lead in Textron’s development of sustainably powered flight, Textron eAviation is leveraging the industry-leading product design, certification, manufacturing, and aftermarket solutions from across Textron’s businesses, coupled with the acquired expertise of Pipistrel and Amazilia Aerospace, to pursue research and development initiatives related to sustainable aviation solutions.

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Source information for NBAA Article 

 

US Senator to propose bill to require new FAA safety efforts
U.S. Senate Commerce Committee chair Maria Cantwell said she plans to introduce legislation on Thursday to require the Federal Aviation Administration to use advanced safety measures after a series of problems with Boeing (BA.N) jets.
"We really think the FAA needs to have its own process," Cantwell said of safety management systems, which are sets of policies and procedures to proactively identify and address potential operational hazards. She also said she still plans to call Boeing to testify even after the company named Kelly Ortberg as its new CEO on Wednesday.

 

Cantwell who represents the state of Washington, added the new CEO of Boeing should be based in Seattle, where much of the planemaker's manufacturing is located. "I think the notion that somebody thinks they can run the company from anywhere other than Seattle is a big mistake,"

Cantwell asked the FAA to conduct a thorough review into its oversight of Boeing, which moved its headquarters to Chicago in 2001 after a merger with McDonnell Douglas. In 2023 it moved its headquarters to Arlington, Virginia.

Cantwell also raised serious questions about the government's scrutiny of the plane-maker, according to a letter first reported by Reuters Tuesday.

Reuters first reported Cantwell's planned SMS bill earlier this month. U.S. airlines have been required to have SMS since 2018 and some aerospace companies, such as Boeing, already voluntarily have SMS programs.

 

Source information provided by Reuters.com 

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Volato’s First SmartSky®-Equipped HondaJet Enters Service

ATLANTA--(BUSINESS WIRE)-- Volato Group, Inc. (NYSE American: SOAR) (“Volato”), a leading private aviation company and the largest HondaJet operator in the United States, today announced the first of its HondaJet fleet – and the first HondaJet ever – is now equipped with the award-winning SmartSky LITE™ inflight connectivity system, the only streaming-level connectivity solution for small business aircraft. The installation follows the previously announced agreement to equip the Volato HondaJet fleet with SmartSky LITE™ systems.

 

“Volato is dedicated to exceeding customer expectations on every flight,” said Matt Liotta, CEO of Volato. “The addition of SmartSky’s next-generation inflight connectivity is a direct response to customer feedback and underscores our commitment to delivering a superior in-flight experience. Early feedback indicates our passengers will be thrilled with the seamless connection and blazing-fast speeds.”

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SmartSky’s next-generation Air to Ground (ATG) inflight connectivity network delivers premium performance for every seat on the aircraft that customers describe as “connected freedom” and “as real-time as it could possibly be.” Solutions are available for all sizes of business aircraft with Supplemental Type Certificates available and in progress for more than 16,000 in-service models.

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“We couldn't be happier for Volato and their customers who are now enjoying the benefits of SmartSky when they fly,” said Paul Sameit, Vice President of Fleet and Reseller Accounts for SmartSky.

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About Volato:

Volato (NYSE American: SOAR) is a leader in private aviation, redefining luxury air travel through modern, efficient, and customer-designed solutions. Volato provides a fresh approach to fractional ownership, aircraft management, jet card, deposit and charter programs, all powered by advanced, proprietary mission control technology. Volato's fractional programs uniquely offer flexible hours and a revenue share for owners across the world’s largest fleet of HondaJet, which are optimized for missions of up to four passengers. For more information visit www.flyvolato.com.

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All Volato Part 135 charter flights are operated by its DOT/FAA-authorized air carrier subsidiary (G C Aviation, Inc. d/b/a Volato) or by an approved vendor air carrier.

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About SmartSky:

SmartSky Networks was founded to transform aviation through disruptive communications technologies, services, and tools. The network takes advantage of patented spectrum reuse, advanced beamforming technologies and 60 MHz of spectrum for significantly enhanced connectivity. SmartSky Networks uniquely enables an “office in the sky” experience with unmatched capacity for data transmissions both to and from the aircraft. This real-time, very low latency, bidirectional data link makes SmartSky Networks the best in-flight user experience, and a key enabler for new and enhanced applications and services.

 

For more information, visit SmartSkyNetworks.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240613635978/en/

 

Source: Volato Group, Inc. Released June 13, 2024

 

Republicans drawing battle lines over paying for TCJA extensions

​Republicans are headed for a big internal fight over the price of their tax cuts.

Pointing to the deficit, a growing number, some don’t think Grover Norquist is going to pull the weight he used to back in 2017.  It’s a different world now.  Government debt is one-third bigger than in 2017.  Once shocking, trillion-dollar deficits have become the norm, despite low unemployment predicting the shortfall will total $1.8 trillion this year. Extending all of the tax cuts would cost about $4.6 trillion over the next decade, assuming lawmakers leave a number of controversial payfors included in the law untouched.  

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It is also possible that lawmakers could bring down costs by allowing some parts of the Tax Cuts and Jobs Act (TCJA) to lapse, such as the top 37 percent income tax bracket, which, after years of high inflation, now begins when couples make more than $731,000.

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Some Republicans are already looking to so-called dynamic scoring to do a lot of the heavy lifting for them.

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Republicans always have high hopes about the potential for free money through increased economic growth, and in 2018 the Congressional Budget Office said TCJA would produce enough new revenue to cover about 20 percent of its cost.

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Driven in part by TCJA’s massive 14-percentage point cut in the corporate rate, nothing like that is now in the foreseeable future and, if anything, lawmakers are more likely to raise the rate.

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Any additional federal borrowing will push up interest rates for everyone, which would create a drag on the economy.

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Chair Jason Smith said: “Without a doubt, one of the biggest challenges that will be discussed, debated and decided in 2025 is should taxes be paid for or should they not be paid for?”

 

​Information provided by:Information provided by: POLITICO Pro

 

First deliveries of highly anticipated Gulfstream G700

Qatar Executive has just taken delivery of the first two of nine G700s – A7-CHA and A7-CHB. As the worldwide exclusive commercial operator, Qatar Executive will be the first carrier to offer the aircraft to charter customers.

 

The G700 is fitted with Rolls-Royce Pearl 700 engines, bringing with it greater efficiency and more range than its predecessors. The aircraft’s originally quoted range of 7,500 nm was upgraded to 7,750 nm in September 2023. It is the fastest Gulfstream business jet ever produced with a top speed of Mach 0.935. The aircraft also boasts a balanced field length take-off distance of 5,995 ft (1,827 m) and a landing distance of 3,150 ft (960 m) at sea level. 

 

The G700 joins Qatar Executive’s fleet which includes 15 Gulfstream G650ERs, two Bombardier Global 5000s and an ACJ CRT. Keen to emphasize the growth outlook of Qatar Executive, the new aircraft are intended as an addition not a replacement. In addition to A7-CHA and A7-CHB, two further aircraft are in the final stages of acceptance and expected to arrive in Qatar in the coming weeks. Once all nine deliveries have been completed, Qatar Executive’s Gulfstream fleet will comprise 24 aircraft.

 

The G700 was due to be delivered in 2023, but delays with the FAA certification program saw deliveries pushed out to this year. However, good things come to those who wait. Doha’s main airport Hamad International was six years overdue when it opened in 2014. Now, the third busiest airport in the Middle East, it just took the title for World's Best Airport 2024 at the World Airport Awards.

 

Information provided by: CorporateJetInvestor.com

 

New FAA Reauthorization Law 

President Biden recently signed into law a historic, comprehensive measure to reauthorize the Federal Aviation Administration (FAA) for the next five years. This long-awaited bill is now law after four extensions to the FAA authorization package passed in 2018.

 

Ed Bolen, NBAA President and CEO stated that both sides came together and passed a bill that will provide a long-term roadmap for the agency and will ensure America will continue to lead the world in all critical aspects of the aviation industry. 

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The measure reflects a number of priorities for NBAA and the business aviation community, including: A first-ever general aviation title, a key section of the legislation focused on enhancing safety, streamlining regulations and improving certification processes for general aviation aircraft, supporting certification for advanced air mobility powered-lift aircraft and other technologies, and improvements to the FAA flight privacy program.

 

Numerous process and protocol improvements for the FAA office of aerospace medicine, including pilot mental health, and removal of barriers for those seeking aviation careers while expanding the aviation workforce pipeline and improving training standards.

 

Source Information was provided by: nbaa.org

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Financial Crimes Enforcement Network Final Rule 

The Financial Crimes Enforcement Network also known as (FinCEN) recently issued a final rule regarding access to beneficial ownership information (BOI) that will be reported to FinCEN under Section 6403 of the Corporate Transparency Act (CTA) (RIN 1506-AB59).The preamble to the final rule says it "implement[s] the strict protocols required by the CTA to protect sensitive personally identifiable information (PII) reported to FinCEN and establish the circumstances in which specified recipients have access to BOI, along with data protection protocols and oversight mechanisms applicable to each recipient category.”

 

As of January 1, 2024, most companies created in or registered to do business in the United States must report information about their beneficial owners to FinCEN as part of an anti-money laundering initiative. Information collected by FinCEN from the BOI reports will be kept in a nonpublic database called the Beneficial Ownership Secure System.” The rules call for new entities to register with FinCEN at their onset and existing entities must register during the 2024 calendar year. The key changes involve the scope of financial institution access to BOI; limitations on offshore access to BOI; and streamlining procedures for state, local, and tribal law enforcement to gain access to BOI. The final rule does not affect existing requirements for financial institutions to collect BOI from their customers under FinCEN's 2016 customer due diligence rule. FinCEN will issue two interagency statements to provide clarity for financial institutions on the interplay between the access rule and the customer due diligence rule.

 

Information was provided by: Journal of Accountancy 

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Internal Revenue Service to Crack Down on Corporate Jet Users Who Abuse Tax Code

The Internal Revenue Service (IRS) plans to begin cracking down on corporate jet owners that abused the tax code by claiming millions of dollars in deductions on airplanes that were sometimes being used for personal travel.

 

The scrutiny of corporate jet use will involve new data analytics tools, which the IRS has been developing with the $80 billion in funds it was granted through the Inflation Reduction Act of 2022, to determine when executives or other company officials might be using corporate planes for vacations and private trips. 

 

The agency plans to begin dozens of new audits that will focus on large companies, partnerships and wealthy taxpayers.  These audits are to ensure high-income groups aren’t flying under the radar with their tax responsibilities.  However, distinguishing between business and personal travel is not always simple.  Therefore, the IRS could be forced to engage in lengthy litigation as it tries to audit some of the nation’s highest fliers over their corporate jet use.

 

The agency plans to proceed with an initial wave of up to four dozen audits of corporate jets before looking to expand the effort.

 

Original Source from the New York Times.

 

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