Guidance from the IRS infers if you buy a Jet Card now, you can save the 7.5% Federal Excise Tax for flights next year, maybe
Get ready for a possible flood of email offers from private jet companies. The offer is to buy a jet card now for flights in 2021 and beyond. The goal is to save the 7.5% Federal Excise Tax for those post-New Year’s trips.
As part of the CARES Act, the collection of the tax is suspended through Dec. 31, 2020. Unless new legislation is put into place, it will snap back into effect on Jan. 1, 2021. The tax applies to domestic flights and those that begin or end within 225-miles of the Canadian and Mexican borders.
Very Light Jet operator GlobeAir says year-over-year flights in July were up 8.6% with net sales jumping 11.3%
GlobeAir is adding to the good news coming from Europe. Last week NetJets announced it was hiring back furloughed pilots at its subsidiary there. It also said it was reversing plans to ground some of its European fleet there it had designated for retirement.
In addition to over $50 million in jet card deposits, grounded private jet charter operator JetSuite received over $57 million from affiliates since 2016
Flight delays caused by President Trump, stolen silverware, broken coffee makers and ‘race to the bottom’ pricing’ increased the losses
Is a JetSuite 2.0 in the works?
Court documents from the bankruptcy proceedings of Superior Air Charter, LLC, better known as JetSuite, show a company that was burning through cash since at least 2016.
During that time both JetBlue Airways and Qatar Airways made investments into the parent company JetSuiteX, Inc. Additionally, JetSuite used $50 million in unredeemed deposits from jet card customers towards operations, something its contracts permitted. The company, like other key players in the market, did not offer an escrow account.
While airline passenger counts stayed at just 12% of last year’s holiday weekend, the private jet travel rebound continued
From the Wednesday prior to Memorial Day through Tuesday, the number of passengers who passed through TSA checkpoints hovered at just 12% of 2019 levels.
During the same period, fractional and charter operator flights surged to 58% of 2019 levels, continuing an upward trek. The data from Argus affirmed the rebound for private jet operators, which just last month had seen flying drop to just 20% of last year’s level as the Covid-19 stay-at-home orders ground travel to a virtual halt.
Two private jet trade groups are accusing the cable network of misrepresenting Clay Lacy and the importance of business aviation
A letter issued yesterday by the top executives of the National Business Aviation Association and National Air Transport Association said CNBC coverage of the CARES Act distorted the impact of Covid-19 on business aviation.
A post on NBAA’s website was titled, “CNBC Distorts Pandemic’s Impact on Business Aviation, Specifically Charter Company Clay Lacy.”