BG 1 Jack_FinanceSept 19/03/2013 12:31 Page 1
BUSINESS AVIATION AND THE BOARDROOM
Sequestration, Governance and Corporate Jets. Possibly the world’s most recognized expert on the value of Business Aviation, Jack Olcott is a former Editor and Publisher of Business & Commercial Aviation magazine and Vice President within McGraw-Hill’s Aviation Week Group. He was President of the National Business Aviation Association from 1992 through 2003, and today Jack’s network and personal knowledge of Business Aviation uniquely qualifies him to oversee Business Aviation and the Boardroom. More information from www.generalaerocompany.com
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Sequestration was yet another sign that dysfunction and a lack of insightful governance prevail in our nation’s capitol. In the midst of such an atmosphere of uncertainty, the value of Business Aviation rings true, observes Jack Olcott.
WORLD AIRCRAFT SALES MAGAZINE – April 2013
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resident Obama’s favorite whipping boy is the ‘corporate jet’. He uses that term whenever he reflects on income unbalance or the need to revise our nation’s tax code. For example, often he alludes to the advantage that private owners of business aircraft have because they can fully depreciate such capital equipment in five years as opposed to seven years for aircraft owned by Airlines, charter companies or other providers of air transportation for hire. Advocates of Business Aviation are incensed, and rightly so. When examining means for reducing our nation’s Gross National Debt of over $15,000,000,000,000, even the most objective observers see more significant measures to consider. If depreciation were extended to seven years for all owners of business aircraft, the additional tax revenue ranges from about $300 million annually to considerably less than that figure. To put in perspective the relationship between our Gross National Debt and changing depreciation schedules for business aircraft, the time required to wipe out the nation’s debt at $300 million per year is more than 50,000 years. Senate Minority Leader Mitch McConnell observed that if enacted, “[Lengthening the depreciation schedule] would take 10 years to raise enough money to replace one week’s worth of the sequester.” Clearly the federal government would like another $300 million annually to spend somewhere, but hitting on Business Aviation is very counterproductive. Business aircraft are tools that enable companies to generate more revenues and employ more workers, thereby contributing to the federal treasury. Furthermore, casting doubt on
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