CARES Act 2: New COVID relief should be open to private aviation

CARES Act 2 private aviation

Private jet operators should be able to tap into the estimated in $15 billion in air carrier support

The newest legislation to provide ongoing COVID-19 relief is estimated to have $15 billion for the airlines. According to a spokesperson for the National Business Aviation Association, that should incorporate Part 135 private jet operators and other companies related to business aviation.

(Updated Dec. 22 @ 7:22 am – A full copy of the HR 133 –  Consolidated Appropriations Act, 2021, can be downloaded at the end of this story.)

FlyExclusive spotlights how the Paycheck Protection Program saved jobs

FlyExclusive

A Triangle Business Journal profile of FlyExclusive shows the jet card and charter operator used the CARES Act’s PPP to set the table for its recovery

According to a report in the Triangle Business Journal, close to 300 jobs at Kinston, North Carolina-based FlyExclusive and related companies were saved by the CARES Act’s Paycheck Protection Program. That totals include 75 newly hired positions.

A look back at who received CARES Act Payroll Support Payments

CARES Act private aviation recipients

The Payroll Support Program under Division A, Title IV, Subtitle B of the CARES Act provided payroll support to passenger air carriers, cargo air carriers, and certain contractors for the continuation of payment of employee wages, salaries, and benefits. Here’s who got how much

It’s uncertain when there will be more government for the airline industry, and if so, will it extend to the private aviation side?

While the CARES Act payments have been widely credited for helping business jet operators get back on their feet quickly, they also have detractors, including NetJets, the largest private jets operator.

Dumont Aviation gains $3 million in CARES Act funds

Dumont Aviation

Top 25 private jet charter operator Dumont Aviation is the latest jet card provider to get payroll support

Updated: Our Private Jet Operator CARES Act Relief Scorecard shows how much the 25 largest U.S. fractional and charter operators received in payroll support

Delaware-based Dumont Aviation has received just under $3 million in payroll support as part of the CARES Act. The operator of owned and managed private jets ranks 24th for flight hours in the U.S. among Part 135 and 91k operators, according to Argus data (table below).

XOJET Aviation rings up $13 million in CARES Act funds

XOJET XO

The private jet charter operator is part of Vista Global Holdings, which includes VistaJet and brokerage arm XO

Our Private Jet Operator CARES Act Relief Scorecard shows how much the 25 largest U.S. operators received in payroll support

Ft. Lauderdale-based XOJET Aviation is the latest of the major private jet charter and fractional share players to have signed an agreement to receive funds as part of the CARES Act. It entered into an agreement with the Treasury Department last month providing $13.1 million.

What happens to the Federal Excise Tax you prepaid for your Jet Card before the CARES Act?

Jet Card

The COVID-19 Coronavirus assistance legislation eliminates the 7.5% FET between March 28, 2020, and year’s end

What are the best strategies for Jet Card flying during the FET holiday

Updated April 6, 2020 @7:16pm

One point of the 880-page CARES Act is a waiver of the 7.5% Federal Excise Tax (FET). The holiday lasts between March 28 and December 31, 2020. It’s normally levied for domestic Part 135 flights, which includes domestic jet card trips. It was also applied to U.S. flights that start or end within 200 miles of the southern and northern borders.

You might naturally assume that you won’t pay FET for flights during the rest of the year. You would be wrong. It depends on your program. So, how does this impact you?

How the Covid-19 Coronavirus CARES Act impacts private jet charters and jet cards

private jet charter Covid-19 Coronavirus

The Covid-19 Coronavirus rescue package rescinds 7.5% Federal Excise Tax (FET) for on-demand charters and jet cards

On-demand and jet card charter customers won’t have to pay FET for flights through the end of 2020

Jet card and on-demand charter customers should review invoices to ensure they aren’t being charged the FET

Business aviation in the U.S. is getting some relief as part of the CARES (Coronavirus Aid, Relief, and Economic Security) Act, passed last week by both houses of Congress and signed by President Donald J. Trump.

For consumers, the most noticeable impact is that Part 135 operators (and you) don’t have to pay the 7.5% Federal Excise Tax. The levy applies for domestic flights or flights to and from the U.S. beginning or ending within 225 miles of the border with several exceptions.

%d bloggers like this: