Magellan Jets COVID-19 Updates And Procedures

Magellan Jets COVID-19 Updates And Procedures

save money on your next flight with the CARES Act FET suspensions Magellan Jets cares act private jet benefits

CARES Act, Private Jets and Zero Tax (Through 2020 & Beyond)

In response to the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. While the $2 trillion relief package addressing the COVID-19 threat is an expansive piece legislation to help the U.S., it has several provisions that specifically pertain to private jet travel. Here’s what you need to know about the CARES Act and what it means for private aviation.

CARES Act: What It Means For Private Jets

Federal Excise Tax Suspension for Private Jets

The newly signed CARES Act provides relief to businesses and private jet travelers for the remainder of 2020. In particular, the legislation suspends the 7.5% federal excise tax (FET) on air transportation.

Effective March 27, 2020, the new measure will be in place through Dec. 31, 2020. That means, as business gets back to normal, you’ll enjoy these cost deductions on your private flights throughout the rest of the year. Additionally, travelers will receive these savings on all charter flights that are booked in 2020. Meanwhile, guests who purchase jet card hours this year will also save on the 7.5% FET during this tax holiday. 

With companies across the country eager to get back to business again, the CARES Act provides an added benefit to organizations that utilize the safety of private aviation. For a limited time, companies and individuals that purchase jet time before the end of the year can fly at any time in 2020, 2021 and beyond, with the entire purchase also exempt from the normal 7.5% federal excise tax.

Beyond the FET suspension, domestic and international segment fees will be suspended, as well as the 6.25% tax on the transportation of property. The tax holiday will provide savings on fuel too, with the suspension of the 4.3 cents per gallon excise tax on kerosene for commercial aviation use. 

Magellan Jets extends additional benefits to guests during this tax holiday with longer contract terms on all hours purchased before the end of year. Explore a risk-free way to invest in your future travel and get your organization back to business, efficiently and safely.

WHAT IS THE CARES ACT? ADDITIONAL DETAILS

Aside from the FET suspensions, the CARES Act has several other key provisions. Overall, these will impact businesses, as well as the aviation industry at large.

The package includes $10 billion for U.S. airports that are eligible for relief from the U.S. Treasury’s General Fund. According to NBAA, these funds will be made “available as quickly as possible and the FAA plans to begin distributing them in April.” Around $100 million in these funds are reserved specifically for general aviation airports.

•Interested In Learning About Our Private Jet Services? Call Now

As part of the $500 billion Economic Stabilization Fund, the Treasury Department will offer loans and other investments. As a result, businesses facing serious losses because of COVID-19 are eligible. But for the commercial airline industry, this means grant programs for air cargo and passenger air carriers that will cover employee salaries.

The CARES Act addresses many things outside of aviation as well. According to NPR, this includes $560 billion for individuals, $337 billion for small businesses, around $340 billion for state and local governments, plus over $150 billion for public health.

 How To Save On Your Next Trip with Magellan Jets

As more businesses and people turn to private jets as safer alternatives to commercial travel amid the coronavirus pandemic, Magellan Jets is here for you. Specifically, we’ve enhanced our health protocols and have an internal, expert task force to keep you safe during these times of uncertainty. Take advantage of CARES Act savings this year by booking your next private jet flight with Magellan Jets.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

Jet Card

The only Build-a-Card in the industry –
ultimate flexibility and consistency.

MEMBERSHIPS

Guaranteed fixed rates and availability, while paying as you go.

CHARTER FLIGHTS

Access the safest and highest quality aircraft on a trip-by-trip basis.

jet card ownership fleet

7.5% TAX HOLIDAY FOR FLIGHTS
IN 2021 AND BEYOND

For a limited time only, receive 7.5% Federal Excise Tax exemption when you invest in private aviation between now and Dec 31, 2020, per the 2020 US CARES Act.

LEARN MORE