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New Study Shows General Aviation's Value to Economy

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New Study Shows General Aviation's Value to Economy SUMMER 2006 New study shows general aviation’s value to economy recently released report shows what is at stake if user fees are Aimplemented that affect the activity levels of general aviation (GA). The report, sponsored by the General Aviation Manufacturers Association (GAMA) and the National Association of State Aviation Officials (NASAO), shows GA provided a $150 billion contribution to the U.S. economy in 2005. The FAA has floated the concept of implementing a new funding mechanism for its programs that would take effect in FY 2008. Debate has ensued about the sustainability of the Aviation Trust Fund, and the need for user fees that would be an additional source of revenue and would shift some of the burden of funding FAA programs. The study uses FAA estimates of annual flight activity and applied industry-derived per-hour costs for operating various types of aircraft. GA’s economic contribution was calculated by A report released by GAMA and NASAO shows that general aviation provides a putting these costs into regional eco- significant economic impact. nomic models which are widely accepted as valid by economists and available Jack Pelton, who is GAMA’s chairman NASAO President and CEO Henry from the U.S. Department of Commerce. and also the chairman, president, and CEO Ogrodzinski said, “Those who seek to It was estimated that general aviation of Cessna Aircraft Company, stated that, raise the amount of taxes paid by general activity in Iowa represented more than “Because of the diverse nature of general aviation operators must consider the $1.4 billion of the economic contribu- aviation, its significant impact upon the adverse effect tax increases have on tion cited in the study and included a economy is often overlooked or inter- aviation consumers in every state in our $481 per capita total output. The bulk of mixed with other segments of transporta- nation.” GA’s direct and indirect economic tion, masking GA’s own unique contribu- “This study quantifies what is at stake contributions in the study were traced to tion. It is important to note that in 2005, in the upcoming user fee debate for a the operation and maintenance of the GA contributed more than $150 billion to significant number of Americans whose existing U.S. aircraft fleet, including U.S. economic output, and directly or livelihoods are supported by general aircraft operated for purposes such as indirectly employed more than 1,265,000 aviation,” said Pete Bunce, GAMA recreation, instruction and training of people whose collective earnings exceeded president and CEO. pilots; business aviation; and medical $53 billion.” The full report is available at evacuations. A significant portion also www.gama.aero. came from the manufacturing and purchase of new aircraft. Director’s Corner Michelle McEnany, Office of Aviation Director This summer will Our office attended a combined once again prove to be Central/Great Lakes Region State a busy one. Summer Aviation Directors meeting in May. 2006 travel season is Regional Administrator Chris Blum predicted to be the busiest on record with hosted the state aviation directors from an estimated 200 million commercial the 12 states. All states were represented passengers. and only one state aviation director Iowa has had a full summer of aviation couldn’t attend. It was an extremely events, with more than 50 fly-ins and four productive day-and-a-half. Kate Lang, major air shows. Be sure to check out the FAA Associate Administrator, joined the summer calendar at the back of the group and led an extremely interesting bulletin or visit iawings.com to see the session on FAA reauthorization, posing most updated calendar. challenging questions and looking for Good news on both the state and feedback. Also joining the state aviation federal legislative fronts. On the state directors and key staff were Henry level, the state legislature wrapped up on Ogrodzinski of National Association of May 3, 2006, after passing several State Aviation Officials, Lisa Piccione important pieces of aviation-related and John Balsiger from the National legislation. Most significantly, the state Business Aircraft Association, and Andy Aviation Trust Fund has been re-estab- Cebula from the Aircraft Owners and lished! The bill phases in the trust fund Pilots Association. with 50 percent of aviation fuel taxes and On the federal front, the House passed George Hendon, FAA’s Central registrations fees allocated to it in the transportation appropriations bill in Region Airports Division, handed out the FY 2008 and 100 percent by FY 2009. June, increasing the FY2007 Airport 2006 FAA Central Region Airports The state legislature also passed Improvement Program to the authorized Conference (Oct. 3-4) registration form legislation that clarified the property tax amount of $3.7 billion and not the $2.75 that was hot off the press. For more exemption given to entities providing billion as recommended in the President’s information, see the link to the FAA aeronautical services on city-owned budget. The Senate plans to address the Central Region Airports Conference on airport property. The eminent domain bill sometime in July or August. the iawings.com Web site. legislation that was passed restricting a Other good news: Senator Conrad One last note: the aircraft registration city’s ability to condemn land exempted Burns (R- Montana) introduced S.2666, process will be transferring into our office airports by defining them as important the Tax Simplification Act, in response to from the DOT’s Office of Vehicle Services public facilities. And, the pending a provision in the highway bill passed in Des Moines effective Sept. 1. Please be legislation to increase the aircraft use tax last year. That provision required sure your aircraft is registered to the state. by an additional one percent and place it aviation fuel to be taxed at the same level This is even more important to the in an education fund did not receive as motor vehicle fuel, with those revenues aviation community in Iowa now that all legislative action this year. So, all in all, being deposited into the Highway Trust the fees collected will be deposited into this past year marked one of the most Fund. Aviation fuel vendors were then an Aviation Trust Fund and reinvested successful aviation legislative years that I required to complete forms to send to the back into the system to keep it safe and can remember. IRS to receive reimbursement of the tax viable! differential (the additional highway tax Have a fun and safe summer. Our imposed) and transfer the aviation tax to office will once again have an aviation the Aviation Trust Fund. exhibit at the Iowa State Fair (Aug. 10- This has proven to be a confusing, 20). If you make it to the fair, please be cumbersome, bureaucratic process that sure to stop by! puts the Aviation Trust Fund in real jeopardy. Many vendors may choose to pass the tax differential on to their customers and not fill out the paperwork to receive reimbursement and transfer the funds over to the Aviation Trust Fund. The Burns bill would put a moratorium on this process until Sept. 30, 2007, to allow further evaluation of the fuel fraud issue. 2 SUMMER 2006 IOWA AVIATION BULLETIN Council Bluffs Airport he Council Bluffs Airport serves the general aviation needs of the TPottawattamie County and Omaha- Council Bluffs area in southwest Iowa. The airport is a general aviation reliever airport to Eppley Airfield in Omaha and is owned and operated by the Council Bluffs Airport Authority. With an estimated 45,000 annual Everything has been designed to accom- Airport manager Dan Smith on the ramp at the aircraft operations, the airport is utilized modate a new beltway that will run along Council Bluffs Airport. Smith is the current by single engine, twin engine, turboprop, the east side of Council Bluffs, connecting president of the Iowa Public Airports Association. and business jet aircraft. More than 90 U.S. Highway 6 and Interstate 29.” aircraft are based at the airport. After acquiring 286 acres of land in year. A future precision instrument Dan Smith is the manager of the 2003 for expansion, the Council Bluffs approach is also planned for Runway 36. Council Bluffs Airport. According to Airport is in the completion stage of the Aeronautical services at the airport are Smith, “Recent construction of a new construction of a new primary runway provided by Advanced Air Inc. Services runway at the airport is designed to meet facility (Runway 18/36). Construction of include charter, aircraft rental, fuel, aircraft future demand and complement land use the 5,500-foot runway began in July 2004 maintenance, pilot instruction, and the for the airport and the surrounding area. and is programmed for completion this operation of a propeller shop. The Commemorative Air Force (CAF) occupies a hangar at the airport, and is home to the P-51 Mustang “Gunfighter” Aviation fuel seminar and a CAF museum. In 2004, Iowa Western Community educates airports/FBOs College completed a 40,000-square-foot irport and Fixed Base Operator Attendees learned about refining, facility and now offers programs in (FBO) representatives from aviation fuel specifications, the aviation aviation management, flight and aircraft Aaround Iowa attended an aviation fuel distribution system, and industry maintenance. fuel and fire safety seminar in April at the standards. Also covered were fuel farm Most recently, LifeNet has relocated Ankeny Regional Airport. The seminar and refueler operations including filtra- their flight operations to the airport to was presented by Phillips Aviation, tion, quality control testing, inspections, provide helicopter air ambulance opera- sponsored by Newton Home Oil, and maintenance, and record keeping. tions for the Omaha-Council Bluffs metro hosted by Exec 1 Aviation.
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