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March 30, 2020 — Volume 19, Issue 13 |
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| This Week's Top Stories |
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NATA Continues Fight for Relief for All Aviation Businesses
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Last week, the CARES Act was passed and signed into law. While the ACT provides some assistance for small businesses in the form of loans and payroll relief, and provides relief for the airlines and airports with commercial airline service (with only $100 million to general aviation airports), it falls short in helping the immediate crisis facing thousands of aviation businesses that provide critical services to our infrastructure.
NATA worked hard and was successful in getting Part 135 certificated charter operators and Part 145 MRO businesses included in the package provided to the airlines. Additionally, FBOs that provide ground handling services to commercial airlines are eligible for some relief. NATA was also successful in obtaining relief from the “ticket tax” and “fuel tax” for Part 135 operators. However, the bulk of relief provided by the Act aimed at aviation was written with commercial airlines in mind and, thus, imposes a number of conditions on the recipients of federal assistance that aviation businesses might find untenable.
“We are disappointed that the immediate relief needed for aviation businesses was largely left out of the Act,” stated NATA President and CEO Timothy Obitts. “While these businesses may be eligible for the other small business support provided in the Act, the authors failed to recognize that aviation businesses in the United States support 1.2 million jobs and $247 billion in annual economic activity. NATA will continue our fight for additional resources for general aviation businesses. We are already in discussions with Members of Congress about what relief is immediately needed for these businesses to continue to support our Nation’s important aviation infrastructure.” Read more. Additional information can be found on the Small Business Owner's Guide to the CARES Act, from the Smith-Free Group, a DC-based consulting firm.
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FAA Grants NATA Requested 135 Exemptions, Providing Relief from Crew Training and Checking Requirements, and Halting the Enforcement of Expiring Medical Certificates
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The FAA issued exemptions in response to NATA’s requests for relief from certain crew training and checking requirements for Part 135 operators. The two exemptions (Exemption No. 18509 and Exemption No. 18510) granted to NATA are available to all Part 119 certificated carriers operating under Part 135. Two additional exemptions (Exemption No. 18511 and Exemption No. 18512) granted to A4A provide similar relief for those conducting training under Part 121.
NATA welcomed an additional FAA provision, allowing Part 135 to continue to operate in these uncertain times. Today, the FAA announced that pilot flight crewmembers and flight engineers with expiring airmen medical certificates will be allowed to continue to fly.
FAA granted this temporary halt on enforcement due to “extraordinary circumstances related to the Novel Coronavirus Disease (COVID-19) pandemic” and solely to pilot flight crewmembers or flight engineers with certificates expiring within the prescribed timeframe of March 31 through June 30, 2020. The language can be found here and will be published on the Federal Register on Wednesday, April 1.
“NATA is grateful the FAA is continuing to listen to our requests to
support the 135 industry during this critical time. We look forward to
continuing to engage with FAA leadership to communicate the needs of this vital
aviation sector,” stated NATA Senior Vice President Ryan Waguespack. Read more.
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NATA to Hold “Operating in Today's Part 135 Regulatory Environment” Webinar on April 1 at Noon Eastern
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On Wednesday, NATA will hold a discussion for Part 135 carriers on operating in the new regulatory environment. This webinar will be hosted by NATA’s Air Charter Committee and led by NATA Vice President of Regulatory Affairs John McGraw and NATA Senior Advisor Jacqueline Rosser. Click here to register for this webinar.
Last week, NATA held an informative webinar on the impact of COVID-19 on employment law. You can access a recording of that session here.
NATA has formed a webpage for updated resources about the coronavirus (COVID-19). We have been monitoring the ongoing government provisions for aircraft operations affected by the COVID-19 outbreak. The situation is extremely dynamic, and operators are urged to review information from all sources to ensure awareness of the latest restrictions and provisions. New guidance that is available includes “Information for Airport Sponsors Considering COVID-19 Restrictions or Accommodations” (available here), “U.S. Chamber of Commerce Small Business Emergency Loan Guide” (available here), “NATA COVID-19: Guidance for FBOs and Ground Handlers” (available here), and “FAA Considerations for State, Local, and Territorial COVID-19 Restrictions that Impact Air Transportation” (available here).
Last week, NATA’s Safety Committee released updated guidance to FBOs and other business aviation ground handlers on how to operate through the COVID-19 pandemic health crisis.
NATA is continuing to develop and provide access to valuable industry resources and information on our webpage: www.nata.aero/advocacy/coronavirus
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Updated Information on Loans Available to Small Businesses
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NATA has received many questions
regarding how the SBA loans under the CARES Act work.
The following is a basic breakdown of the SBA protection program:
- Eligibility: An entity (i.e., a LLC, C Corp., S Corp., etc.) that employs 500 or less employees is eligible.
- Amount of Loan: 2.5 x (average monthly payroll for previous 12 months) = Loan Amount
- Nonrecourse (no personal guarantees)
- Loan Forgiveness: Equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to February 15, 2020, payment of rent on any lease in force prior to February 15, 2020, and payment on any utility for which service began before February 15, 2020. The amount forgiven will be reduced proportionally by any reduction in employees retained compared to the prior year and reduced by the reduction in pay of any employee beyond 25 percent of their prior year compensation.
- Interest and Costs: Can’t exceed 4% and no costs for the loan (the bank gets paid a formula for servicing the loan from the SBA).
- Lender: You can get your loan through your local bank.
It is recommended for businesses to start talking now with your local banker to start the process to benefit from the paycheck protection program.
In addition, the Act provides for other types of SBA loans, the following documents are instructive and provide greater detail:
Keeping American Workers Paid and Employed Act
Title 1 – Keeping American Workers Paid and Employed Act Section-by-Section
Monument Advocacy Guide to the Major Components of the CARES Act
Small Business Owner's Guide to the CARES Act
Additional guidance can be found at www.nata.aero/advocacy/coronavirus.
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| From the FAA: |
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FAA Releases Guidance for Airports Considering COVID-19 Restrictions or Accommodations
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On Saturday, the FAA issued voluntary guidance for airport sponsors considering COVID-19 restrictions or accommodations. The agency specifically outlines eleven issues: Closing airports; prohibiting certain flights (e.g., certain locations, types of aircraft, types of operations); requiring flights to land at certain airports for screening; closing of sections of the airfield to allow for aircraft parking; closing restaurants or other retail activities in the terminal; closing gates or sections of terminals; allowing terminals to be used for sheltering of people; screening or quarantining passengers boarding or exiting planes; deferral of rental payments or other fees; sponsors’ request for reducing hours of operation; and sheltering-in-place impacts on airport personnel. The FAA intends to keep federally obligated airports safe and open to the public and aircraft; however, the agency expects airports to be fully aware and responsible for “…the implications of their proposed actions in response to COVID-19.” At this time, the FAA expects all airports to remain open and to operate in a safe manner.
Aware of the fact that states and localities have taken the effort to implement their own travel restrictions and/or quarantine measures, the agency also issued another guidance document titled “Considerations for State, Local, and Territorial COVID-19 Restrictions That Impact Air Transportation.” The six considerations outlined in the document are lessons learned thus far from state, local, and territorial actions, including guidance from the federal government in terms of “recommending unrestricted movement and access for critical infrastructure workers.” One of the considerations outlined in the document states, “Proposed measures cannot close a Federally-obligated airport absent prior FAA authorization, and must consider all essential aeronautical services. These may include:
- Scheduled or unscheduled passenger or cargo operations, to include charter and corporate aviation activities, as well as private charitable efforts through volunteer pilot organizations;
- Law enforcement needs, including local, state, and Federal public safety missions;
- Department of Defense operations;
- Medical services flights;
- Aircraft maintenance/repair;
- Flight support (i.e., fuel, other servicing, parking);
- Operational flight functions performed by flight crews, mechanics, and ramp personnel; and
- Air traffic control functions and personnel.”
For the latest airport information on COVID-19, please visit the FAA’s Airport Programs & Guidance webpage.
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FAA Issues SAFO 20005, Temporary Parking of Overflow Aircraft
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Today, the FAA released SAFO 20005 Temporary Parking of Overflow Aircraft, that provides information and recommendations to air carriers, aircraft operators and pilots on the impacts of parking overflow aircraft in excess of airport capacity. Due to the COVID-19 crisis grounding many aircraft, airport operators are having to find sites to support temporary overflow aircraft. The safety alert provides several considerations one must consider when operating into airports experiencing overflow parking. The document also urges airport operators to work “collectively as a committee with airline representatives, fixed base operators, airport traffic control tower (ATCT) representatives, local FAA technical operations personnel, airport tenants, and Aircraft Rescue Firefighting (ARFF)/law enforcement representatives.” The agency outlines several measures airport operators should consider while developing an aircraft parking plan.
Any questions or comments regarding this SAFO should be directed to the Air Transportation Division at 202-267-8166.
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Association Highlights:
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NATA Assists Members with Relief Outreach
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Several of NATA’s members have requested that the Association write a letter to their airport sponsor to ask for relief in the form of rent deferral or abatement of lease obligations. In response, NATA has drafted a letter that can be personalized for business. If you are interested in NATA writing a letter for you, email Jillian Williams at jwilliams@nata.aero and be sure to include your airport sponsor’s contact information for submission by email and mail. We also ask that if you adjust the letter, please return it to us with tracked changes. NATA will review, sign, and submit to your airport sponsor and will notify you when this has taken place. Decisive action must be taken to preserve companies conducting essential airport operations in support of the national air transportation system, as well as the regional economy. We believe that if airports take such decisive action, it will preserve the valuable services and jobs that aviation businesses provide and support in our communities.
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Aviation Medical Bulletin Regarding Coronavirus (COVID-19)
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The Aviation Medical Bulletin has been published since 1969, by Harvey Watt & Co., the Program Administrator for NATA’s Air Charter Services. This well-known monthly health newsletter is filled with up-to-date, helpful health and medical information drawn from many of the world's most respected medical authorities and literature.
During this pandemic, the Aviation Medical Bulletin has produced periodic Special Editions as often as multiple times a week updating readers on time-sensitive medical updates and warnings from the Centers for Disease and Control (CDC) and World Health Organization (WHO) regarding COVID-19. Updates include the current status of the virus, updated infection statistics, new information regarding the spread of this infection, new knowledge on how it is transmitted, and what you can do to protect yourself, fellow crewmembers, and family.
The most recent edition can be read, in full, here.
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WEBINAR RECORDING: The Impacts of COVID-19 on Employment Law Now Available
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The recording of “The Impacts of COVID-19 on Employment Law” is now available. This webinar discussed how to navigate through the hurdles of this new environment, from supporting your business and employees to understanding the legislation that is being proposed and enacted in response to COVID-19. Hosted by NATA SVP Ryan Waguespack, with guest speakers Alison L. Squiccimarro, of the Law Offices of Paul A. Lange, LLC, and Michelle Morgan, of Shackelford, Bowen, McKinley & Norton, LLP.
Answers to questions asked during the webinar have been emailed to all webinar attendees. For any additional questions, please email Ryan Waguespack at ryanw@nata.aero. View the recording here.
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Several Important NATA Programs Are Available Online, Any Time, Anywhere
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| Events: |
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April NATA Events and June Conference Postponed
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In light of the current situation regarding COVID-19, NATA has decided to postpone the Certified QC Inspector Workshop scheduled for April 7th and 8th, in Chesterfield, MO, and the FBO Success Seminar scheduled for April 15th and 16th in New Orleans, LA.
NATA has also decided to postpone the Air Charter Summit and Aviation Business Conference scheduled for June 16-18 at the Renaissance Arlington in the DC Metropolitan area.
The health, safety, and well-being of all our event attendees, staff, and speakers are of the utmost importance. We will continue to monitor the situation and share new dates once they’ve been identified. Thank you for your interest and understanding. Please contact NATA at events@nata.aero with questions or comments.
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| Membership Spotlight: |
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Bombardier Announces Temporary Suspension of Work at its Canadian Operations; Suspends 2020 Financial Guidance
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Bombardier has announced that, in support of the recent mandates from the Governments of Quebec and Ontario to help slow the spread of the COVID-19 pandemic, it will suspend all non-essential work at most of its Canadian based operations starting March 24, 2020 at 11:59 pm until April 26, 2020. This suspension includes Bombardier’s aircraft and rail production activities in the provinces of Quebec and Ontario. “Since the coronavirus outbreak, the company has been focused on keeping our employees safe, serving our customers to the best of our ability during these difficult times, and taking the necessary actions to protect our business for the long term,” said Pierre Beaudoin, Chairman of the Board of Directors, Bombardier Inc. “In addition to the actions announced today, Bombardier has cut all discretionary spending, is continuing the work on closing the previously announced transactions, and is pursuing additional measures to enhance liquidity.” Read more.
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