Coronavirus Federal Relief for Aviation

Last week the American Federal Government passed the CARES (Coronavirus Aid, Relief, and Economic Security) Act, which included tax relief measures for US business aviation customers and the industry. This includes the removal of FET (Federal Excise Tax) from private jet flight prices until the end of the year.

To talk to our team about an urgent flight request during the COVID-19 outbreak, contact us online or call us at (866) 726-1222.

The levy means that domestic on-demand charter within the US and international flights in or out of the country to destinations within 225 miles of the border will temporarily be exempt from the 7.5% tax, which is usually added to the private jet charter price.

The bill also provides $32 billion in grants to the commercial airline and air cargo industries to preserve employment. Participating firms are “precluded from engaging in stock buy-backs or issuing dividends and must maintain payrolls.”

Business Flight Example Flown Last Month

The CARES Act also provides $29 billion – $25 billion for commercial airlines, $4 billion for cargo lines – available for loans and loan guarantees to these same firms. The last time Congress provided taxpayer assistance to the airline industry was in the wake of 9/11.

Despite the short term increase in inquiries we’ve been seeing over the past few weeks for repatriation and other urgent flights, the next few months are set to be very challenging for our industry as consumers travel less.

In addition to domestic flights within the US, the 225 mile zone will include flights between and USA and either Canada or Mexico.

If your PrivateFly flight falls into a category that is exempt from FET, your pricing will now reflect the exemption.