NACA Air Currents
Apr. 5, 2012

IRS memo triggers federal excise tax fears
Aviation International News
The release of an Internal Revenue Service memo on March 9 outlining guidance on how to apply the federal excise tax to fees paid to aircraft management companies adds to business aviation's burden at a time when the industry continues to suffer from weak demand, high fuel prices and public criticism of this form of travel. This memo isn't the first time the IRS has attempted to apply the 7.5 percent FET to noncommercial Part 91 flight operations. And it comes on the heels of the government's attempt to apply FET to fractional operations and a counterclaim to a lawsuit filed by NetJets, justifying the government's assertion that the company failed to pay years' worth of FET on noncommercial flights. To top that off, a California bill has been proposed that would tax the sale of services at 4 percent, which industry experts fear could include aircraft management and charter services.More

TSA adds more airports, airlines to 'Pre-Check' program
Government Security News
Frequent flyer passengers at seven more airports now can use TSA's "Pre-Check" security screening system, and passengers on newly added airlines at four other airports can, too. The agency released details of the expansions and additions on March 30.More

Airlines' treatment of passengers slowly improves
The Associated Press via The Atlanta Journal-Constitution
Air travelers who have endured lost bags, delayed flights, lousy service and getting bumped from full planes might want to scream at the entire airline industry. But flying actually is getting better when measured by these benchmarks, say private researchers who have analyzed federal data on airline performance.More

How many airport security screeners is too many?
The Washington Post
How many airport security screeners is too many? Maybe the number of Transportation Security Administration officers the government now employs, suggested Rep. Mike Rogers, R-Ala., at a House hearing he chaired. "The growth of TSA's bureaucracy has outpaced the number of travelers the agency was designed to protect," Rogers said as he opened the Homeland Security subcommittee session on transportation security. "The goal of this hearing is to more fully understand why this is the case, and hear what steps TSA plans to take to address this problem."More

Frontier Airlines says goodbye to the cookie
Milwaukee Wisconsin Journal Sentinel
That warm chocolate chip cookie that airline passengers relished — and that helped Milwaukee's Midwest Airlines claim "the best care in the air" — will fade into history at the end of the month, like the airline itself that's been swallowed up by competitors. In a memo to company employees, Frontier Airlines officials announced that they're removing the complimentary warm cookies from in-flight service.More

Report: AirTran did the best job for passengers
The Associated Press via Bloomberg Businessweek
For the second year in a row, low-cost carrier AirTran Airways did the best job getting passengers to their destinations with the least hassle, private researchers who have analyzed federal data on airline performance said. Hawaiian Airlines and JetBlue Airways also repeated their performance from last year, ranking second and third, respectively. Regional carrier American Eagle was last among the nation's 15 largest airlines included in the annual report.More

Pinnacle Airlines files for bankruptcy in US
Reuters
Pinnacle Airlines Corp, parent of Pinnacle Airlines and Colgan Air, filed for bankruptcy protection recently, the latest victim of high fuel prices and dampened travel demand. Memphis, Tenn. based Pinnacle operates as various regional airlines — most notably Delta Connection — for bigger-name partners including Delta Air Lines, United Airlines and US Airways.More

The European Business Aviation Association presses for more action against illegal charters
Aviation International News
The European Business Aviation Association wants aircraft operators, airports, FBOs and brokers to be more active in reporting illegal charter activity. The group believes that illegal charters now account for at least 6 to 8 percent of all business aviation traffic in Europe, representing some 45,000 movements per year.More

Study: More Americans staying in US this summer
Los Angeles Times
With airfares to Europe on the rise, it looks like Americans are planning to rediscover the U.S. this summer. As a result, perhaps more Americans will use the opportunity to visit some of the country's landmarks — such as the Alamo and the Grand Canyon — that sometimes get overlooked.More