Aircraft sales boom, but association warns proposed new tax structure could impede future general aviation growth
Sales of pistons, turboprops and business jets skyrocketed last year, with industry boasting a record high of $18.8 billion in total billings - an increase of more than 24% over 2005, according to the General Aviation Manufacturers Association (GAMA).
Piston-powered aircraft dominated in 2006 with 2,750 aircraft delivered, an increase of more than 11% over 2005. Turboprops also saw more than 11% growth in numbers, up to 407 aircraft delivered from 365 in 2005.
The business jet sector claimed the largest leap in deliveries of the three, with 885 aircraft shipped compared with 750 in 2005, an increase of 18%. Total worldwide shipments of the three general aviation aircraft types increased almost 13% from 3,580 to 4,042 units - the most deliveries since 1992.
The relative portion of exports in 2006 for the business jet sector rose, confirming a trend that emerged the previous year, said GAMA chairman John Grisik at the organisation's annual industry review on 12 February in Washington.
While the number of business jets built for the US market has hovered around 400-500 aircraft a year, he said, the portion of business jets exported climbed to 252 units last year, 28% of the total shipments and an increase of 46% in exports over the previous year.
Grisik attributed the peak GA performance to a combination of worldwide economic growth improved GA safety, in part due to new technologies like enhanced vision the increase in people using GA aircraft for business purposes, now representing more than 50% of the GA hours flown and growing contributions from the sector to organisations like Corporate Angel Network, a group that makes extra seats on corporate jets available to cancer patients in need of travel.
Perhaps the largest impediment to continued GA growth on the horizon is the new tax structure the Federal Aviation Administration has requested as part of its proposed 2008 budget, said GAMA president and chief executive Pete Bunce at the event.
Under the plan announced earlier this month, the FAA would begin collecting user fees in 2009 from certain commercial operations (as yet undefined) to fund its air traffic operations. Bunce argued that the current system, whereby airlines pay ticket and segment taxes, and both airlines and GA pay a fuel tax, is adequately funding the FAA and its modernisation effort.
The new system, he said, would bring an increased level of overheads that will ultimately generate less revenue for the FAA, while affecting business aviation growth. The FAA says the new structure will transfer some tax burden from the airlines to business aviation.
Source: Flight International
