U.S. House Committee on Transportation and
Infrastructure
U.S. Rep. Don Young,
Chairman
Contact: Steve Hansen (Communications Director) (202) 225-7749
Justin Harclerode (Communications Assistant) (202)
226-8767
To: National Desk/Transportation Reporter
December 13, 2001
Aviation Subcommittee Approves Legislation To Assist General
Aviation Community
Washington, D.C. - The U.S.
House Aviation Subcommittee today unanimously approved H.R. 3347 - the General
Aviation Industry Reparations Act of 2001 - a bill to help the nation’s general
aviation community recover from the tremendous economic impact of the September
11th terrorist attacks.
“H.R. 3347 Attempts To Repair Some Of The Damage Done To The
General Aviation Industry – A Forgotten Victim Of September 11th,” – Chairman
Mica
“General
aviation has been a forgotten victim of September 11th,” said U.S. Rep. John
L. Mica (R-FL), Chairman of the Subcommittee. “Out of fear, out of
haste, out of caution, the federal government closed down major portions of our
National Airspace System to general aviation flights.
“This has had a devastating effect
on hundreds of small businesses across the nation. Unlike the airlines
that were grounded for a few days, general aviation flights around the major
metropolitan areas were prohibited for weeks. In fact, countless general
aviation businesses around Boston, New York, and Washington, DC are still
prohibited from conducting business. I appreciate the need for heightened
security; however, no one has provided a clear justification for these on-going
restrictions.
“General aviation is one of
America’s major employers, and has lost hundreds of millions of dollars since
September 11th. Fixed-base operators, flight schools, manufacturers,
aerial surveyors, and small charter airlines all have been dramatically
affected.
“Unlike the major commercial
airlines, most of these are small, locally-owned enterprises. Sadly,
hundreds of these ‘mom and pop’ shops have already closed their doors, and
hundreds more may soon follow.
“While the losses incurred are due
to the disaster of September 11th, most of these businesses do not qualify for
relief under any established federal law or program.
“H.R. 3347 attempts to repair some
of the damage done to the general aviation industry as a direct result of a
federal action.”
“Bill Provides The Needed Economic Stimulus To Allow These
Companies To Keep Their Doors Open” – Rep.
Shuster
U.S. Rep. Bill Shuster (R-PA), a member of the Subcommittee, maintained
that the legislation provides needed relief to thousands of small business
owners. “The losses incurred by charter airlines and related industries
resulting from the attacks and the ground stop have been crippling to hundreds
of small-business owners and hundreds of workers. Now that we have provided
relief to the national carriers, we must turn our attention to general aviation
businesses that face staggering losses. Many of these companies face closure
because of lost revenues. This bill provides the needed economic stimulus
to allow these companies to keep their doors open,” said Rep. Shuster.
H.R. 3347 – General Aviation Industry Reparations Act Of
2001
- The purpose of H.R. 3347 is to provide compensation and assistance to
general aviation entities for direct losses as a result of Federal
prohibitions on operations in the National Airspace System.
- Modeled after the Air Transportation Safety and System Stabilization Act.
- Authorizes $5 billion in loan guarantees for general aviation entities.
- Compensates general aviation entities for direct losses incurred as a
result of the grounding on September 11th and for incremental losses from
September 11th until the end of the year as a direct result of the terrorist
attack. It gives priority consideration to entities based on the length
of time they have been unable to operate. Limits total compensation to
$2.5 billion.
- Designates the amounts above as new budget authority resulting from an
emergency to the extent requested by the President.
- The Stabilization Board created to manage the airline loan guarantees
shall also manage the loan guarantees under this bill.
- General aviation entities must document their losses. This
documentation will be subject to audit.
- Makes general aviation entities eligible for war risk insurance.
- Defines general aviation entities as non-airline, non-military persons
that operate aircraft or provide services to them, or rely on access to the
airspace under Part 91 of FAA rules. It includes fixed based operators,
flight schools, manufacturers of general aviation products, and small air
charters.
One amendment to the bill was
offered and unanimously approved by the Subcommittee. It makes several
important changes, including the following:
- Instructs the President to establish deadlines for grant and loan
guarantee applications;
- Requires each applicant for a loan guarantee to submit a plan that
demonstrates the ability to continue operating during and after the period the
loan guarantee is in effect. It also requires the applicant to furnish a
reasonable assurance that it will repay all loans;
- Allows the Federal government to accept warrants, stock options, or other
appropriate equity instruments as a means of protecting the financial
interests of the Federal government;
- Limits executive compensation for any GA entity that participates in this
bill; and
- Expands the definition of ‘general aviation entity’ to include general
aviation airports.
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