Private-jet companies could get billions in aid from coronavirus bailout

Private-jet companies could receive billions of dollars in loans, aid and tax relief from the federal government as part of the coronavirus aid package. As part of the $2t stimulus bill, private-jet charter companies and jet-card companies will several types of help from the federal government. First, private-jet companies will no longer have to pay a 7.5% tax to customers. The tax, known as Federal Excise Tax, is charged to customers of private-jet charters and jet-card users. The tax won’t be charged for the rest of the year. Jet companies also won’t have to pay any fuel taxes. Private-jet companies will also be eligible to receive funding from the $25b in loans and loan guarantees available to the aviation industry. In addition, they are included in the $25b in grant payments for the continuation of wage payments to workers. Private-jet airports and smaller airports will also receive more than $100m in federal funding under the bill. The aid follows a lobbying effort by private-jet companies and general aviation firms to receive a portion of the federal aid money, arguing that private aviation generates 1.2m jobs and $77b in income. “On balance, the bill is helpful to general aviation,” said Ed Bolen, president and CEO of the National Business Aviation Association, which represents private-jet companies and owners as well as general aviation companies. “The industry clearly made its voice heard in insuring that the important provisions for general aviation, commercial operators and other small businesses were considered as this legislation was assembled.”<br/>