Kansas Governor Sam Brownback joined Mayor Carl Brewer and other local leaders in Wichita on Wednesday. They discussed recent comments by President Obama about tax incentives for private jet owners.
"Those incentives have been a key part of selling airplanes and we need to sell airplanes," said Governor Brownback.
Right now, corporations gradually deduct the cost of jets over five years. The White House supports extending that to seven years, the same time scale airlines use. That means smaller tax breaks up front and up to $3 billion dollars going back into the Treasury.
Brownback and others are also upset over comments made by Obama regarding business jets. He's referred to them as luxury items and criticized certain companies for using them.
"If we don't support the industry here, if we don't do everything here that's needed to support it, I assure you other countries will and those other countries will take the jobs we do today," said IAM President Steve Rooney.Industry experts said the tax increase probably wouldn't be the deciding factor in whether a corporation buys an airplane. But it could affect when they buy it and how much they are willing to spend.
"This has a big impact on us, when the president says these things. That's why I'm saying, 'go pick on someone else because we're having enough difficulties this industry," added Governor Brownback.Hawker Beechcraft went from 9,000 workers in 2008 to about 6,000 today, while Cessna cut its workforce in half, to about 8,000. In all, private plane manufacturers have laid off about 20,000 workers since 2008, according to the General Aviation Manufacturers Association.
Industry analyst Brian Foley said business aviation is starting to show signs of recovery, but added, "It's still a little wobbly-kneed right now."
Sales are down by more than half since 2008, though there has been a small rebound so far this year. In 2008, U.S. manufacturers shipped 3,079 general aviation planes, Pribyl said. They shipped 1,334 planes last year.
*The Associated Press contributed to this report.
