This website uses cookies
More information
Air bp
Air bp
The monthly news publication for aviation professionals.

Why visit ACE ’24?

Related background information from the Handbook...
The monthly news publication for aviation professionals.

Request your printed copy

NATA and NBAA seek CARES Act advice
The associations support a recent order by the DoT to better define air service requirements for companies receiving assistance, but they have important questions for the Treasury Department to consider.

The National Air Transportation Association (NATA) and National Business Aviation Association (NBAA) have sent a letter to Treasury Secretary Steven Mnuchin, seeking additional guidance on the loan and grant provisions for air carriers, including certain general aviation operators, enacted as part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

The letter requests that the Treasury Department consider the unique scale and business operations of general aviation air carriers and fixed base operators (FBOs) when developing guidance on the loan and grant programmes. Under the CARES Act, general aviation businesses and FBOs that are contractors to the scheduled airlines are eligible to apply for payroll support grants and loans.

However, the initial guidance issued by the Treasury Department presents challenges for general aviation businesses, as certain requirements were structured for the scheduled airlines. In their letter, NATA and NBAA have requested that the secretary provide additional guidance and flexibility for the general aviation community while protecting taxpayer dollars.

The letter emphasises the critical role of general aviation in connecting communities at thousands of airports not served by the scheduled airlines. The industry serves 5,000 airports across the nation, transporting time-sensitive equipment and medical personnel, air ambulance flights and dozens of other critical missions as the country responds to the challenges presented by the COVID-19 pandemic.

“NATA and our industry partners are grateful to Congress, the Treasury Department and the agencies for working swiftly and cooperatively with us to address the needs of our members, who not only provide important services every day, but are uniquely positioned to assist in these times of great need. We are pleased they heard our request to include Part 135 and other general aviation businesses in the CARES Act,” states NATA president and CEO Timothy Obitts.

“NBAA worked hard to advocate for general aviation air carriers during the development of the CARES Act, and we are pleased that our industry has the potential to access these loan and grant programmes. We encourage the Treasury Department to carefully consider the unique challenges our members face in applying for these programmes as further guidance is developed,” adds NBAA president and CEO Ed Bolen.

The associations also expressed support for a recent order by the Department of Transportation to better define air service requirements for companies receiving assistance under the CARES Act. They also asked the Treasury Department to consider that most NATA and NBAA members are not publicly traded companies, have limited liquidity and are not required to report operating metrics as described in the initial guidance.

Other News
 
GAMA and NBAA respond to FAA SMS final rule
April 26, 2024
The rule requires all Part 135 operators, certain Part 21 certificate holders and §91.147 air tour operators to implement an SMS, expanding existing FAR Part 5 SMS requirements and adding some new mandates to Part 5.
Brendel moves up in NATA member services
April 16, 2024
Organisations warn of budget harm to an essential American industry
March 18, 2024
President Biden has unveiled an FY25 budget plan that includes a five-fold fuel tax increase on business aviation as well as changed depreciation schedule for a purchased business aircraft from five to seven years.
NATA strengthens aviation security advocacy and expertise
March 12, 2024
The FAA reauthorisation bill passes from Senate to Congress
February 13, 2024
The NBAA lauds the Senate committee passage of the FAA reauthorisation bill, and urges Congress to act with urgency to move forward on the priorities and programmes identified in the legislation.
NBAA reaffirms call for long-term FAA reauthorisation bill
January 2, 2024