Bolen Warns Obama About BizAv Policies

Feb 2, 2009
Kerry Lynch



The financial woes of Citigroup spilled into the business aviation industry last week, forcing the industry once again into the position of justifying its value. The financially struggling banking giant decided to turn back a Dassault Falcon 7X after the company came under fire in the general news media for spending nearly $50 million on the jet while accepting federal assistance.

The White House added fuel to the criticism after a reporter Jan. 26 asked whether "President Obama or the Obama Administration has a position on whether or not corporations that are getting tens of billions of dollars in these funds should be refraining from expenses such as these, or corporate executive compensation?"

White House Press Secretary Robert Gibbs responded that "great care" should be used when taxpayers' money is used, particularly for injecting capital into banks so they can lend money. "The President said this during the transition, as it related to the auto companies using private jets; [he] doesn't believe that's the best use of money at this point," Gibbs said. "Instead, that money should be used to lend to consumers, to get the economy moving again, to free up capital and credit, and help small businesses create jobs. He said that as it relates to the auto industry, and he believes that as it relates to banks as well."

National Business Aviation Association President and CEO Ed Bolen responded in a letter to the President that "while we support the need for wise stewardship of taxpayer dollars, we are deeply concerned about a pattern that seems to be emerging in which policymakers are discouraging and disparaging the use of general aviation for business purposes." The general aviation industry also is feeling the pain of recession, he said, and recent steps by policymakers are adding to that pain and job losses. "This has to stop - policymakers need to understand that general aviation is about jobs," Bolen said.

GA provides jobs in small towns and access to small communities that continue to lose air service, he said. He also noted that the industry is one of the remaining sources of good manufacturing jobs and one of the few industries contributing to the nation's positive trade balance. "Our concern is that if Washington takes an excessively dim view of general aviation - one that leads to policy proposals banning all use of business airplanes for any company - it would accelerate the downward spiral of the industry," he said, adding that policy makers should be looking for ways to increase GA jobs and promote economic development.

Bolen also turned to members to help with the public relations campaign on Capitol Hill. "Business aviation has repeatedly been in focus for lawmakers. A troubling pattern seems to be emerging in which some policymakers are discouraging and disparaging the use of general aviation for business purposes - a pattern in evidence as recently as this week," he warned, urging direct involvement.

Other general aviation groups also have coordinated closely with NBAA on the effort, and National Air Transportation Association President James Coyne said the industry has to "do some real good old-fashioned public relations." The industry was so strong over the past five years that public relations had fallen by the wayside, he observed. The irony of the government's views, he noted, is that the U.S. general aviation sector is "the world beater, the world leader. Yet our government is saying to this transportation sector, 'you're bad.'"

G550 photo credit: Gulfstream