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| AVflash! Sales Tax and Flight Schools | back to top |  |
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New York Flight Schools Face Tax Fight
A New York state flight school owner says he'll be forced to close at the end of June because of a new sales tax ruling that has already cost schools and individual aircraft owners thousands of dollars. Bob Miller, who owns Bob Miller Flight Training in Buffalo, said in an interview with AVweb he predicts flight schools all over the state will be forced to close. He also said aircraft owners involved in leaseback arrangements with schools will be hit with taxes and penalties that will force them to cancel their deals with the schools because of a new interpretation of the sales tax code on flight school aircraft. Miller said that until this week, aircraft purchased for use for flight training were exempt from the 8.75 percent sales tax as were the lease payments schools paid aircraft owners for using the planes. But the state has changed its mind on the exemption. "This wasn't a change in the law, this is just some bureaucrat's new interpretation," he said. They've also made the ruling retroactive, Miller said.
Miller said one of his leaseback clients was hit with a $27,000 levy on a Cessna 172 he bought new in 2011. He was also told to collect more than $4,000 in tax from Miller on the lease payments he received over the last two years. "He pulled out of the leaseback agreement and sold the airplane to pay the taxes," Miller said. He said he's been told by state officials that auditors will be visiting every flight training facility in the state to enforce the new interpretation. The tax offices were closed late Tuesday and AVweb will be contacting state officials Wednesday for an explanation. Miller said he expects a class action suit to be launched by the New York flight training industry. |
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Podcast: Toxic Tax in New York?File Size 8.0 MB / Running Time 8:45
A Buffalo flight school owner says the state is trying to balance its budget on the backs of flight school owners and those who lease their aircraft to flight schools. AVweb's Russ Niles spoke with Bob Miller about New York state's retroactive re-interpretation of the sales tax code.
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| FAA Crowdsourcing Future Fuel Ideas | back to top | |
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FAA Seeks New GA Fuel Proposals
The FAA on Monday asked the world's fuel producers to submit proposals for new fuels that could replace 100LL in the general aviation fleet by 2018, a move that GA advocacy groups greeted with enthusiasm. The FAA said it will assess each of the candidate fuels, taking into account production and distribution infrastructure, impact on the environment, toxicology, and economic considerations. "General aviation is vital to the U.S. economy," said Transportation Secretary Ray LaHood. "We need to work with industry to develop an unleaded fuel that advances aviation safety and improves the environment." The General Aviation Avgas Coalition described the move as a "significant step" in the search for an unleaded aviation gasoline that will perform adequately in all types of general aviation aircraft.
The FAA is asking fuel producers to submit data by July 1, 2014, for evaluation. By Sept. 1, 2014, the FAA will select up to 10 suppliers to participate in laboratory testing. One or two fuels will then be chosen for engine and aircraft testing. That testing will generate standardized qualification and certification data for candidate fuels, along with performance data. Over the next five years, the FAA will ask fuel producers to submit 100 gallons of fuel for phase one testing and 10,000 gallons of fuel for phase two testing. "The FAA knows the general aviation community and the Environmental Protection Agency are focused on this issue," said FAA Administrator Michael Huerta. "We look forward to collaborating with fuel producers to make an unleaded avgas available for the general aviation fleet." The FAA noted that it has tested 279 fuel formulations already, and a "drop-in" solution to replace 100LL "may not be technically feasible." The FAA said it will work with the GA industry to develop and deploy a new avgas "with the least impact on the existing piston-engine aircraft fleet."
On behalf of the GA Avgas Coalition, NBAA Chief Operating Officer Steve Brown said, "The general aviation community supports a deliberative, science-based exploration of aviation-fuel alternatives to 100 low-lead gasoline that focuses on preserving the safety, cost-effectiveness and feasibility of use for substitute fuel, among other considerations. We welcome the FAA's announcement, because we believe it is an appropriate next step in the conduct of an informed exploration for an aviation-fuel alternative to the avgas currently in use today." Other groups working in the coalition are AOPA, EAA, GAMA, NATA, and the American Petroleum Institute. The FAA's request for proposals is posted online. More information on the FAA's avgas-replacement initiative is posted here. The Avgas Coalition response is posted at the websites of each of the member GA groups. There are about 167,000 aircraft in the U.S. and a total of 230,000 worldwide that rely on 100LL for safe operation, according to the FAA. AVweb reviewed several alternative fuels in the works early this year; click here for that story. |
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| In the Kingdom of the Blind, EFVS Is King? | back to top | |
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FAA Proposes To OK EFVS For Zero Visibility
A new rule proposed by the FAA this week would permit aircraft to land at airports with zero visibility using an Enhanced Flight Vision System. The proposal also would allow commercial operators to dispatch aircraft when the destination airport is forecast to be below minimums, and would establish training and proficiency criteria for pilots. An EFVS uses real-time imagery derived from imaging sensors such as forward-looking infrared, millimeter wave radiometry, millimeter wave radar, or low-level-light intensification, the FAA said. Synthetic vision systems, which create a computer-generated image of the external scene derived from a database of terrain and obstacles, are not included in the new rule.
The proposal would meet the NextGen goals of increasing access, efficiency and throughput at many airports when low visibility is the limiting factor, said the FAA. It also would enable EFVS operations in reduced visibilities on a greater number of approach procedure types while maintaining an equivalent level of safety. The FAA said it has nine years of data on EFVS operations that show that, when visibility is marginal, such as during rapidly changing weather conditions, or when the reported visibility hovers at or near the minimum, EFVS provides a "significant operational advantage." The FAA previously granted exemptions to both FedEx and NetJets to operate below minimums using EFVS. The systems are most widely used in general aviation turbojet aircraft, the FAA said. |
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| Big, New, and a Big Deal | back to top | |
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A350 First Flight Friday
It's been a few years since there was a first flight of a clean sheet airliner design but it seems likely there will be two by the end of the month. Airbus announced the first flight of its A350 will be June 14 at 10 a.m. in Toulouse, France. Assuming that goes well, the A350 will become the main attraction at the Paris Air Show, which starts June 17. The company rolled out the prototype of the XWB (extra wide body) aircraft a month ago with a full paint job and the aircraft has been undergoing ground tests. The A350 is a direct challenge to the Boeing 787 Dreamliner and the highly successful Boeing 777, a new model of which will be on display at Paris. Meanwhile, in Canada, Bombardier is planning to fly its new CSeries single-aisle airliner by the end of the month.
Bombardier officials said earlier this month they would not make it to Paris with the CSeries but have said it will fly in Montreal before the end of the month. The CSeries is being touted as an efficient alternative to the Boeing 737 and A320, not to mention smallish airliners being developed in Japan, China and Russia. The CSeries will use geared turbofan engines from Pratt and Whitney that are projected to cut fuel costs by up to 20 percent and be noticeably quieter than other jet engines. Bombardier has potential orders for up to 400 aircraft and about 145 are firm. |
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| Coming Soon to an Airspace Near You | back to top | |
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Embraer Releases Legacy 500 Short Film
Embraer has released a splashy new promotional video featuring its business jet spokesman, actor Jackie Chan. The video, described by Embraer as a "cinematic short film," has the production values of a Hollywood trailer and packs a plot, special effects and generous views of the cabin into a six-minute package aimed at getting across the leading-edge technology of the Legacy 500 business jet.
The miniature movie was released at the European Business Aviation Convention and Exhibition (EBACE) in Geneva in May and was viewed "with great excitement," according to an Embraer spokesperson. EBACE was the first public appearance of the Legacy 500 prototype. The aircraft is fly-by-wire, and has flight envelope protection and a host of other technological advances. The video has attracted almost 18,000 views on YouTube. |
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| Opinion & Commentary | back to top | |
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AVweb Insider Blog: FAA to EAA -- Pay Up
Right on cue, the choir sang this week: "No," we said, "the FAA shouldn't expect EAA to pay for controllers at AirVenture." While the FAA's decision smacks of politics and poor stewardship, it also shows that, long-term, we'll need to make some hard choices on excess services. We haven't made any yet.
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| We Ask, You Answer | back to top | |
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Survey: 'Aviation Consumer' Wants to Hear About Your Piper Warrior
Our sister publication, Aviation Consumer, is doing a Used Aircraft Guide on the Piper Warrior and is looking for input from Warrior owners and pilots. They want to know what it's like to fly and/or own a Warrior. How does it handle? How much does it cost to operate, maintain, and insure? What suggestions would you give to a person considering buying one? If you'd like your airplane to appear in the magazine, send along any photographs you'd care to share -- as high-res as possible. Comments on mods, support organizations, and anything you feel is pertinent to the Warrior are welcomed.
Send your email to consumereditor@hotmail.com by June 15.
The results will appear in a future issue of Aviation Consumer. For subscription information, click here. |
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| AVweb Video: Look, Listen, Laugh and Learn | back to top | |
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Video: Cirrus SR22T G5 Flight ReviewOriginal, Exclusive Videos from AVweb | Reader-Submitted & Viral Videos The 2013 Generation 5 Cirrus SR22T turbo offers more than a new 3,600-lb. gross weight increase and extra seating. Aviation Consumer's Larry Anglisano flew the new model halfway across the country to sample the compilation of recent improvements that could make the G5 SR22 the best Cirrus yet.
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| Who's Where | back to top | |
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Who's Where? You Tell UsGet 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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| The Top Reporter on Our Crack Staff ... Is You! | back to top | |
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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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| Names Behind the News | back to top | |
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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:
Have a product or service to advertise on AVweb? Your advertising can reach over 225,000 loyal AVwebFlash, AVwebBiz, and AVweb home page readers every week. Over 80% of our readers are active pilots and aircraft owners. That's why our advertisers grow with us, year after year. For ad rates and scheduling, click here or contact Tom Bliss, via e-mail or via telephone [(480) 525-7481].
Click here to send a letter to the editor. (Please let us know if your letter is not intended for publication.)
Comments or questions about the news should be sent here.
If you're having trouble reading this newsletter in its HTML-rich format (or if you'd prefer a lighter, simpler format for your phone or handheld device), there's also a text-only version of AVwebFlash. For complete instructions on making the switch, click here.
Aviate. Navigate. Communicate. |
