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Corporate jet owners applaud scrapping $100-a-flight fee

Owners of corporate aircraft are breathing a little easier this week after the Senate dropped a proposal to add a $100-per-flight fee on business planes that had been part of President Barack Obama’s American Jobs Act tax plan targeting the wealthy.

The proposal generated buzz at last week’s National Business Aircraft Association conference in Las Vegas, where aviation industry leaders said the fee in Obama’s bill would have destroyed the economics of operating some models of corporate jets with low costs.

“It’s clear that the bully pulpit is being used to bully an industry,” said Dan Hubbard, a spokesman for the organization, during the association’s gathering. “Do we think we’ve been singled out and selected for punitive treatment? Yes.”

But after the Senate stripped the provision by the end of the three-day conference Wednesday — and Senate Republicans followed by blocking the entire bill and submitting their own legislation for consideration — industry officials and aircraft owners said rejection of the additional fee couldn’t have come at a better time for the industry.

Although the economy and roller-coaster ride of fluctuating fuel prices have buffeted aviation companies and limited growth, some segments have seen improvement over last year. What’s more, supporters of business aircraft said the industry would continue to pay its fair share of taxes through federal excise taxes on either fuel or the transportation of persons or property. For commercial transportation, passengers and jet owners pay a 7.5 percent tax, a domestic segment fee of $3.70 or $16.30 on international departures and arrivals and $8.20 on flights to and from Hawaii or Alaska. The latter two are up 20 cents and 10 cents, respectively, from 2010.

For noncommercial transportation, the fuel tax varies on aviation gasoline and jet fuel.

“The Senate appears to have been consistent in its position on user fees,” Hubbard said after the conference concluded. “We learned about it when it was proposed, heard about it in hearings and it was debated on the House and Senate floors and dismissed as a bad policy idea.

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