NATA News

Also this week, H.R. 658, the Federal Aviation Administration Reauthorization and Reform Act of 2011, is expected to be a focus of the U.S. House of Representatives, specifically the House Committee on Ways and Means, which has jurisdiction over the tax title of H.R 658. The current extension expires on March 31, 2011, which leaves only three weeks remaining before the extension deadline and the next House recess March 21-25. 

Recently, Connecticut Governor Dan Malloy released his budget proposal, which included a provision impacting aviation in the state. The proposal seeks to repeal the current tax exemption for aircraft parts and maintenance on aircraft under 6,000 pounds and assesses personal property tax on aircraft. House Bill 6387, if passed, would tax aircraft at 70% of their value factored by a "mill" rate of 20 (one mill is one-tenth of a cent ($0.001)). For example, a corporate jet valued at $20 million would be assessed an annual tax of $280,000. In addition, there appears to be no weight limit associated with this proposal; therefore, all aircraft in the state would be impacted.

NATA has issued an action call to its members in the state of Connecticut. If you or your business will be impacted by this budget proposal, please review NATA’s action call and contact your state legislators immediately.

Time is limited on defeating this provision as the Connecticut House of Representatives Committee on Finance is expected to convene within the next few days to begin work on this and other bills. 

Last week, Senate Bill 619 (SB 619) was introduced in the California Legislature by Senator Jean Fuller (18th District). Language in SB 619 would exempt flight schools and flight instructors who do not charge upfront fees from the rules issued by the California Bureau of Private Postsecondary Education (BPPE). These rules would have brought flight training under the regulatory scheme promulgated with the 2009 passage of Assembly Bill 48 (AB 48) and was designed to regulate private colleges and career training centers.

The language in SB 619 is preliminary and will be amended to ensure that all flight training facilities are afforded the opportunity to continue to operate. NATA is working to ensure that issues such as allowing students to purchase “block time” and developing a structure to allow flight training facilities that offer more regimented training the ability to collect some amount of fees upfront while providing students adequate protection of their financial investment in training are addressed.

In 2010, NATA along with the Aircraft Owners and Pilots Association (AOPA) worked to achieve a delay in compliance, for flight training, with the BPPE’s rules to provide time to allow the legislature to investigate a long-term solution during the 2011 session. NATA and AOPA continue to work together to see that the final solution passed by the legislature offers protection to students while ensuring that California’s flight training industry remains strong and vibrant.

Click here to view SB 619.

In response to a request for comments from the National Transportation Safety Board (NTSB) regarding how appeals of emergency enforcement actions against FAA certificate holders are handled, NATA submitted comments suggesting several changes to existing rules.

Under current rules, the NTSB administrative law judges (ALJ) must assume when reviewing an appeal of the emergency nature of a certificate action that violations alleged by the FAA are true. These ALJ are permitted to determine whether the FAA acted appropriately in issuing an emergency certificate action, such as a suspension, as opposed to non-emergency action. NATA and many certificate holders believe that the requirement to accept all FAA allegations as true places the accused certificate holder at an extreme disadvantage in making an appeal. The classification of a certificate action as an emergency allows the FAA to force the accused certificate holder to cease operations until the matter is fully resolved.

In December 2010, the NTSB issued an Advanced Notice of Proposed Rulemaking (ANPRM) asking for additional comment on this issue from industry. NATA submitted comments welcoming the NTSB’s review of how emergency enforcement matters are handled and offered specific changes to the regulations that will, if implemented, allow for meaningful review of the FAA’s allegations while continuing to provide appropriate protections for the public with regard to the safety of aviation operations.

NATA’s comments are available here.

The full ANPRM is available here.

NATA's regulatory report on the ANPRM is available here.

NATA has been alerted to the fact that FAA budgetary constraints, due largely to the fact that Congress has not yet passed reauthorization legislation, has led the agency to suspend action on most new applications for certification. The FAA announced the action to its field offices approximately two weeks ago. This may impact anyone pursuing authority or certification under Parts 91K, 121, 125, 135, 141, 142, and 145.

The FAA field offices should still accept applications and place them in a queue for action, but applicants should not expect further action to be taken at this time, unless that particular FSDO believes it has sufficient manpower and resources to complete the certification. 

NATA will update the membership as soon as this temporary situation is resolved, but asks members to report any problems to Jacqueline Rosser at jrosser@nata.aero.

The DASSP is now managed by the TSA’s Transportation Sector Network Management General Aviation Division. Management and staff within the division have stated it is their goal to increase the number of DASSP operators and the number of flights into DCA.

Any operator wishing to participate in the DASSP may obtain additional information and materials to initiate the approval process on the TSA’s Web site.

DASSP operations to DCA are required to pass through one of over 40 approved portal airports for security screening.  A list of those approved portal airports is available here.

Each seminar featured talented speakers who came to share their unique expertise and industry experience. Dr. Todd Dewett offered some great stories and advice on leadership that will guide your supervisor’s/manager’s thinking and people skills. And, Dr. Mario Martinez gave some good input on coaching and management styles that should help him or her understand how his or her style affects others at your operation. Walter Chartrand supplied attendees with sage advice on customer service tips as well as cultivating a great, safety-minded team. Reed Fuller and Mike France provided technical reviews on fueling, quality control, refueler maintenance and fire safety.

NATA Director of Safety and Training Amy Koranda said, "Given the large number of positive evaluations and enthusiastic attendee remarks, investing in safety training at Spring Training Week was an excellent choice. We thank our member companies for sending their line personnel to Spring Training Week; it was a WIN-WIN for everyone."

NATA also sends out its congratulations to the following winners of the Spring Training Week Sports Trivia Challenge:

Mark Scheifele (Gift Card)
John Douglas (E-Learn Webinar Registration)
Jeremy Van Dyke (Gift Card)
Greg Scott (E-Learn Webinar Registration)

NATA’s annual Day on the Hill event provides an invaluable opportunity for NATA members to participate in and have an effect on the legislative process in our country. Individual meetings with your representatives in the U.S. House of Representatives and the U.S. Senate provide a great avenue to discuss the most important issues facing the general aviation industry today, especially those impacting your business, both nationally and locally. Meetings with your Members of Congress and their staff provide a valuable opportunity to establish and maintain a productive relationship with your elected officials in Washington as well as gather their support on local issues affecting your community.

The 2011 NATA Day on the Hill and Spring Committee meetings will take place on May 4-5 at the Hyatt Regency Capitol Hill in Washington, D.C. The two-day meeting will also include the NATA Industry Excellence Awards Dinner, Election of Officers and Annual Meeting of Members the evening of May 4. NATA is pleased to announce that Senator Mike Johanns (R-NE), co-chair of the Senate General Aviation Caucus, will keynote the Industry Excellence Awards Dinner.

To learn more about the 2011 NATA Day on the Hill, including how to register, please click here.

FET Overview for Air Charter Operators Webinar – Wednesday, March 9, at noon EST.

This E-Learn Webinar is designed for employees responsible for managing federal excise tax (FET) assessment, collection or remission for air charter operations.

Some of the questions to be answered during this one-hour webinar:

• Have you ever been confused about why some flights to Canada are taxed as domestic and others are international?
• Are you unsure of whether to apply FET to landing fees or overnight expenses for the crew?
• Do you know if hospitals, universities and other non-profits are exempt from FET?
• Are you sure you are claiming the proper fuel credit?
• Do you know why sometimes you should receive a 20-cent-per-gallon credit and other times it is 17.5 cents?

If you’re looking for the answers to these questions and more, you need to attend NATA’s newest Webinar “FET Overview for Air Charter Operators” on Wednesday, March 9, from noon to 1:00 p.m.EST.

Among the Topics to be Covered:

• Commercial and Noncommercial FET rates
• Items subject to and exempt from FET
• Operations exempt from FET
• Fuel credits
• IRS Forms and Publications

Speaker
Jacqueline Rosser, director of regulatory affairs, NATA

Registration
Click here to register now. Registration for this webinar is $49.95 per location and includes a copy of presentation materials and link to a recording of the webinar.

NATA has published its annual call for nominations to acknowledge the individuals, offices, and organizations demonstrating excellence in their field and the highest level of customer service to the general aviation community.

Each year, NATA presents seven awards to the exceptional individuals and companies that have helped to improve the general aviation community. The recipients of five of these awards are chosen based upon NATA member-submitted nominations.

These awards cover five categories:

The Airport Executive Partnership Award recognizes an airport manager for outstanding efforts to nurture the relationships between aviation businesses and airport operators.

The Aviation Journalism Award identifies a journalist, writer, or publication that excels in consumer education or editorial support that is beneficial to the general aviation industry.

The Excellence In Pilot Training Award recognizes an individual or organization that has made outstanding contributions in safety, professionalism, leadership, and excellence in the field of pilot training.

The FAA Customer Service Excellence Award recognizes an FAA facility or facility staff member who represents the highest degree of customer service and elevates the quality of interaction between the FAA and aircraft maintenance and repair facilities, Part 135 certificate holders, airport service organizations, and flight schools.

The ATP/NATA General Aviation Service Technician Award acknowledges the exceptional performance of a licensed airframe and power plant mechanic or radio repairman who has practiced his or her craft for a period of 20 or more years.

Last year’s winners were:

• Airport Executive Partnership Award – Eric Frankl, executive director, Blue Grass Airport
• Aviation Journalism Award – AINalerts
• Excellence In Pilot Training Award – Arlynn McMahon, director of training and marketing, Aero-Tech Aviation
• FAA Customer Service Excellence Award – South Florida Flight Standards District Office
• ATP/NATA General Aviation Service Technician Award – Pat James, field service engineer, Cessna Aircraft Company

All nominations for these five awards must be received by NATA no later than March 18, 2011. The nomination form is available by clicking here. Members may also obtain a nomination form by calling the NATA headquarters at 800-808-6282 or by e-mailing Celeste Clark.

The awards will be presented during the 2011 NATA Day on the Hill and Spring Committee Meetings to be held in the Washington, DC area.