AVwebBiz Complete Issue: Volume 10, Number 8

February 22, 2012

By The AVweb Editorial Staff
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AVflash! Budget Bill Includes a Tax Setback back to top 
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Bonus Depreciation Stripped From Bill

An extension of 100-percent bonus depreciation was stripped from the bill to extend payroll tax relief. The bill was approved by both houses last week and is now ready for the president's signature. It's a derivative of the same legislation that caused a major political crisis before Christmas as the polarized Congress finally agreed to a short-term extension of the tax cut and put off consideration of the entire bill for two months. In its original form, 100-percent bonus depreciation for business purchases was extended for another year but the bill that was finally approved does not contain that language.

Aviation tax consultant Daniel Cheung told AVweb in earlier interviews that the measure is a proven incentive for moneymaking businesses to invest in equipment like airplanes. He said there were a lot of businesses that did well in 2011 and could have taken advantage of bonus depreciation. "We'll have to hope this is brought up in another bill," Cheung said.

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Carbon Tax Galvanizes European Av Leaders back to top 

Opponents Unite Against EU Carbon Tax

Government representatives from at least 26 countries are meeting in Moscow to discuss their opposition to the European Union's controversial aviation carbon tax. The group, which includes the U.S., China and Russia, says the carbon tax is really a trade barrier disguised as an environmental incentive and many, including the U.S., have passed legislation against participating in the scheme. But the EU says its plan, which sees airlines pay escalating taxes for going over diminishing allotments of emissions over the next eight years, is a necessary part of the global effort to fight climate change. Those opposed say Europe is welcome to carry that torch but airlines flying to and from European destinations shouldn't be subject to the tax. There are now signs the issue could blow up into a trade war.

China, for example, has banned its airlines from taking part and says the tax could cost its carriers $124 million a year initially and up to four times that by 2020. Non-payment of the carbon tax could result in the impounding of aircraft and analysts warn that once it gets to that point the tit-for-tat escalation could spread across the trade spectrum. For its part, the EU says the rest of the world should work with the EU on this issue for the sake of the environment. "Nobody would be happier than the EU if we could get such a global deal," Connie Hedegaard, the EU's Commissioner for Climate Action, told the BBC.

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What Will All Those New Chinese Pilots Fly? back to top 

China And Russia Launch GA Venture

Companies from China and Russia have teamed up to build their own line of general aviation aircraft ranging from four to 12 seats, Xinhua reported this week. China Oriental Sciences Group, China-Russia International Investment Company and KB-SAT, a Russian aircraft design company, signed an agreement last week in Beijing, according to Xinhua. The consortium will invest $1.27 billion to build a manufacturing facility this year in China's Inner Mongolia region. The group expects to start producing airplanes early next year, and produce 400 airplanes a year by 2016. "China's general aviation industry is at its initial stage of development, and the market demand is huge," said Zhuang Zhong, president of China Oriental Sciences Group, which is based in Beijing.

The consortium also plans to build a research facility, a pilot training base, and a flying club at the site in Ordos. China has been moving forward with plans to open up more airspace to GA flights and create more GA infrastructure, including building more airports. The country also has shown a strong interest in acquiring GA companies, buying up Cirrus, Teledyne Continental Motors, and several smaller manufacturers in recent years.

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Jobs, Politics, and the President back to top 

Boeing Hosts A Presidential Visit

Companies like Boeing that create jobs in the U.S. instead of shipping them overseas should be rewarded with tax breaks, President Obama said during a visit to the manufacturer in Everett, Wash., on Friday. Boeing has put "thousands of folks to work all over the country," Obama said. "We want to see more of this. We need to make it as easy as we can for our companies to create more jobs in America. And that starts with our tax code." He said he also wants to make it easier for companies like Boeing to export their products. Obama filmed his weekly address from the plant, with airplanes under construction in the background.

The White House blog also focused on Boeing, noting that the company "employs tens of thousands of Americans in its factories and facilities across the country, and the supply chain for its products reach into every state in the nation, supporting thousands of additional jobs." Boeing is also one of the top exporters in the U.S., selling its commercial planes to 53 countries in the last five years. Nearly 8,000 people are directly employed in building the 787, and many more by the companies that supply its parts. The White House also produced an infographic to illustrate the impact of 787 exports.

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Opinion & Commentary back to top 

AVweb Insider Blog: Of Spitfires and Martial Music

For the AVweb Insider blog, Paul Bertorelli wasted his entire afternoon chasing YouTube links, so you don't have to. Fair warning, though: If you click some of the links in today's blog, don't blame him if you don't come up for air for four hours. Who knew you could watch the entire Battle of Britain on YouTube?

Read more and join the conversation.

AVweb Insider Blog: Collings Comes to Town

For 23 years, the Collings Foundation has been touring with its bombers and fighters, giving vets and their relatives a rare glimpse of the aircraft that won World War II. The tour hit Venice, Florida, where AVweb Insider blogger Paul Bertorelli helped with the details.

Click through for his observations and thoughts.

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The Top Reporter on Our Crack Staff ... Is You! back to top 

Aviation Consumer Engine Cylinder Survey

Cylinders are the big-ticket item during an engine overhaul, and the market has changed substantially during the last five years. Our sister publication, Aviation Consumer, is surveying owner experiences on engine cylinders.

If you'd like to participate, click here to take the survey.

The results will appear in a future issue of Aviation Consumer. For subscription information, click here.

AVweb's Newstips Address ...

Our best stories start with you. If you've heard something 255,000 pilots might want to know about, tell us. Submit news tips via email to newstips@avweb.com. You're a part of our team ... often, the best part.

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AVweb Media: Look, Listen, Laugh and Learn back to top 

Video: P-51C Mustang Flight Demo and Cockpit Tour

Original, Exclusive Videos from AVweb | Reader-Submitted & Viral Videos

There's only one P-51C Mustang in the world with dual controls, although a couple of D-models have the spare stick, too. In this video, AVweb's Paul Bertorelli takes a hop in the back seat of the Collings Foundation's Betty Jane, and pilot Mark Murphy gives us an in-depth cockpit tour.

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Try disabling ad blockers and refreshing this page.
If that doesn't work, click here to download the video directly.

Video: Gippsland Airvan Flight Trial

Original, Exclusive Videos from AVweb | Reader-Submitted & Viral Videos

Australian-based Gippsland has sold its GA8 Airvan all over the world, and now it's got a follow-on model, the GA8TC, with a turbocharged Lycoming TIO-540. AVweb got a crack at trialing the airplane recently, and here's our video report on the model.

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Try disabling ad blockers and refreshing this page.
If that doesn't work, click here to download the video directly.

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Who's Where back to top 

Who's Where? You Tell Us

Get a promotion or a new job? Your colleagues want to know about it, and AVwebBiz can get the word out. Drop us a line about the staff appointment, with a nice recent photo, and we'll do our best to include it in our new section, "Who's Where." The items will be permanently archived on AVweb for future reference, too.

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Names Behind the News back to top 

Meet the AVwebBiz Team

AVwebBiz is a weekly summary of the latest business aviation news, articles, products, features, and events featured on AVweb, the world's premier independent aviation news resource.

The AVwebBiz team is:

Tom Bliss

Editorial Director, Aviation Publications
Paul Bertorelli

Russ Niles

Contributing Editors
Mary Grady
Glenn Pew

Scott Simmons

Kevin Lane-Cummings
Jeff Van West

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