NATA: US Government aviation relief package

Congress is putting the finishing touches on a comprehensive coronavirus relief package that is expected to move today. Currently, the bill is in a number of fragments that will ultimately be married together when it moves to the Senate floor for a vote.

With regards to relief specifically for aviation businesses the Bill does the following:

1.     Part 135 operators are eligible for the following:

a.     For those providing passenger operations:

a.     $25bill. in loans and loan guarantees (Sec. 4003)

b.     $25bill. for wages, salaries and benefits for employees (Sec. 4112)

b.     For those providing air cargo:

a.     $4bill. in loans and loan guarantees (Sec. 4003)

b.     $4bill. for wages, salaries and benefits for employees (Sec. 4112)

c.     Excise Tax Exemption:

a.     Part 135 exempt from paying 7.5% ticket tax (Sec. 4007) through Dec. 31, 2020

d.     Fuel Tax Exemption:

a.     Part 135 exempt from paying Jet fuel tax (Sec. 4007) through Dec. 31, 2020

2.     Part 145 maintenance facilities are eligible for the following:

                   a.     $25bill. in loans and loan guarantees (Sec. 4003)

3.     FBOs that provide ground handling at Part 139 certificated airports to commercial airlines are eligible for the following:

                   a.     $3bill. for wages, salaries and benefits for employees (Sec. 4112)

4.     Caterers that are providing services to commercial airlines are eligible for the following:

                    a.     $3bill. for wages, salaries and benefits for employees (Sec. 4112)

A company that receives a relief under the Bill would have to “maintain its employment levels as of March 24, 2020, to the extent practicable” until the end of September and would be prohibited from cutting its employment levels by more than 10 percent from what they were on that date. Additionally, companies that receive grants or loans would also face limits on executives’ compensation and stock buybacks. In addition, the legislation would allow DOT to order any carrier accepting federal assistance to maintain certain air routes. That authority would lapse March 1, 2022 .

The bill also provides $10 billion for airport sponsors, the vast majority being reserved for commercial service airports. $100 million is set aside for general aviation airports to be distributed based on proportional needs as determined by NPIAS at 100% federal share (no local match) and used for any purpose lawfully allowed by the Airport Improvement Program.

NATA continues to be contact with congressional leaders, who will now begin work on the next relief package entitled COVID 4, rumored for release sometime after Easter. Thank you for continuing to provide feedback on how your business is being impacted by this crisis. This information is vital to our advocacy efforts and we will keep you apprised of all developments. To that end, NATA is now posting a legislative briefing that will be available twice a day on our website .

Your ongoing support of and engagement in our efforts is tremendous, and we can’t thank you enough. If you have any questions, comments, or feedback, please contact NATA at covid@nata.aero .

Together, we are stronger.

Best,

 

Timothy Obitts
NATA President and CEO