1978 aviation forecast with respect to fuel supply, environment, financing/leasing, taxation, insurance, and proposed rules are presented. Forecasts indicate adequate fuel availability for five years, although some spot shortages will continue. Availability of fuels, it is noted, would be enhanced if federal pricing and allocation controls on them were removed. International conflict and labor strikes can also affect aviation fuel supplies. Noise reduction efforts are identified as the single most important environment issue facing the jet aircraft industry. The lack of any national standard relating to noise abatement have only compounded the problem. Approximately 80% of all operators are now making outright acquisitions of equipment as opposed to leasing. The reason is that the company jet is still worth about 80% of the original price in residual value after seven or eight years. President Carter's proposed tax program which would make the 10% investment tax credit permanent would permit companies to offset up to 90% of their tax liabilities in any one year through investment tax credits. A 10% ITC would encourage investment, as well as assist businesses in making long-range capitol investment decisions. Insurance underwriting have, the for the most part, increased because of the over capacity of markets. The cost of liability insurance continues to be a bargain compared to the cost of hull coverage. General operations have accounted for the bulk of the voices of proposed rulemaking coming from FAA and other agencies. Regulatory proposals, relating to noise, operations, aircraft, and commuters/air taxis are included as well as probable rules in the future.

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  • Corporate Authors:

    Ziff Davis Publishing Company

    1 Park Avenue
    New York, NY  United States  10016
  • Publication Date: 1978-4

Media Info

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Filing Info

  • Accession Number: 00174011
  • Record Type: Publication
  • Source Agency: Ziff Davis Publishing Company
  • Files: TRIS
  • Created Date: May 18 1978 12:00AM