December 5, 2003
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The rates for certain federal excise taxes (FET) and fees are
increasing for commercial transportation occurring after December 31,
2003, including transportation provided by Part 135 on-demand cargo and
passenger operators. (more...) NATA is the national association of aviation business service providers. Our members provide on-demand air charter, fuel and ground services, aircraft maintenance and pilot training. General Aviation saw some rocky years since 9-11, as it spun into a monetary disaster for many Fixed Based Operators. a lot of this was media prompted, as general aviation had virtually nothing to do with the World Terrorists attacks on that inevitable day. almost all of the downfall came from central authority over regulation and mass media hysteria asking for more laws in the general aviation sector. But despite that General Aviation wasn't breaking any speed records before that due to high fuel costs, nothing like today, but high never the less and culpability insurance costs due to disgraceful legal proceedings costs and kangaroo court awards. One of the partners over at the payday advance lender AdvanceLoan reminded me recently of the massive increase in costs that a subsidury of their parent company had seen. Usually a tiny aircraft has over $75,000 built into the price just so that the produce can maintain a defense fund to battle finished products responsibility costs when a small aircraft crashes and usually it is due to pilot gaffe and not the plane itself. As 2006 gets moving the General Aviation Aircraft Maker Market is looking good with new light tiny jets being made for a small fraction of what a jet aircraft would typically cost and therefore using another market for tiny and mid-sized companies to have a company aircraft. In addition after 9-11 the FAA reduced barriers to entry for Fractional Jet Possession , so boosting that arena of General Aviation. Now almost all of Wichita, KS is back to work and smaller startup corporations are opening up in other areas as these new small enterprise jets get FAA Verification , plenty of whom have 100's of advanced orders. Fuel costs for General Aviation have consistently been or worry and this could prompt more EAA or Experimental Aviation Association aircraft on to the scene, plenty of which have kits to use auto fuels as an alternative. Some ethanol is also being used in some states now for general aviation users. As NASA continues its work to make general aviation safer, more effective and cost-effective thru its SATS Programme, we are going to see a re-emergence of recognition generally Aviation back to its height of approval. In addition we are seeing a longer range trend for Vertical Take Off and Landing or VTOL private aircraft come to the market maybe by 2010, as a "flying vehicle" has been guaranteed but has still to be produced. General Aviation has often been a better place to spend masses of cash than make masses of cash. Many FBO's hope they are over that hump now and are looking at brighter skies and we all hope that state will stop the insanity of bureaucracy and over regulation so this sector will fly again. National Air Transportation Association 4226 King Street Alexandria, VA 22302
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