Private jet companies could get billions in aid from coronavirus bailout
A Bombardier Inc. Learjet 40 XR aircraft, right, is parked at Million Air in White Plains, New York, USA
Paul Taggart | Bloomberg | Getty Images
Private jet companies could receive billions of dollars in loans, aid and tax breaks from the federal government under the $ 2 trillion coronavirus aid program.
Under the bill, private jet charter companies and jet card companies will receive several types of assistance from the federal government. First, private jet companies will no longer have to pay 7.5% tax. The tax, known as the federal excise tax, is charged to customers of private jet charters and jet card users. The tax will not be charged the rest of the year. Airlines will also not have to pay fuel taxes.
In addition, private jet companies will be able to benefit from financing on the $ 25 billion in loans and loan guarantees available to the aviation industry. They are also included in the $ 25 billion in subsidies for maintaining wage payments to workers.
Private jet airports and small airports will also receive more than $ 100 million in federal funding under the bill.
The aid follows an effort to lobby private jet and general aviation companies to receive part of the federal aid, arguing that private aviation generates 1.2 million jobs and 77 billion dollars. income dollars.
“Overall, the bill is useful for general aviation,” said Ed Bolen, president and CEO of the National Business Aviation Association, which represents companies and owners of private jets as well as companies. general aviation. “The industry has made its voice heard clearly in ensuring that provisions important to general aviation, commercial operators and other small businesses are taken into account when developing this legislation.”
Yet the use of taxpayer funding to help an industry that caters to the wealthy has also drawn criticism. Before the bill’s announcement, Dean Baker, senior economist at the Center for Economic Policy, told CNBC: “It’s hard to imagine anything worse. It’s absurd.”