The General Aviation Manufacturers Association, meanwhile, agreed. “We are extremely disappointed that Senator Gillibrand is proposing legislation that will hurt hard-working, middle-class workers in the general aviation industry, and detract from the difficult but necessary task of resolving the impact of the sequester on the aviation system,” says Mary Lynn J. Rynkiewicz, director of communications.
Business aviation advocates and certain lawmakers have argued that a change in depreciation schedules would serve as a disincentive to purchasing new aircraft, which in turn could cost jobs. They also point to political rhetoric against the use of business aircraft as a contributor to the industry’s economic woes.
Scott Donnelly, chairman and CEO of Cessna parent Textron, cited the political environment on an analyst call last week when announcing that Cessna was slowing light jet production and laying off workers. Potential customers “read all the political nonsense, this corporate jet loophole, which, by the way, they mean depreciation ... I’m not sure why that’s a loophole, since it’s actually in the tax code and always has been,” he said.