Government Shutdown Causes Halt to Aircraft Sales

By Mike Mikolay

October 2, 2013

With the current U.S. government shutdown, I wanted to know how this would affect the business aviation industry, and in particular, aircraft sales.

So I went looking for tidbits about the Federal Aviation Administration (FAA). And, I was met with news that most of the functions within the FAA wouldn’t be closed given that they were deemed "essential." 

In addition, history has shown that those of us in the business aviation industry haven’t even a hint of turbulence from prior shutdowns.

Just to be sure, I visited the National Business Aviation Association’s website and was met with the following article: Government Shutdown Expected to Have Limited Immediate Impact on Essential Aviation Safety Services.

Feeling confident that everything was status quo, I didn’t think much more of it. That is, until mid-morning on Tuesday, October 1st, the first day of the government shutdown.

As you know, Guardian Jet is in the business of aircraft sales. So we rely heavily on the functions associated with the FAA’s Civil Aircraft Registry. (This is the department that handles registrations and titles for all of our domestic aircraft from private planes to airliners).

Therefore, I was shocked to learn early yesterday morning that this time around, the Government decided that this division within the FAA was not "essential."

Therefore, our ability to buy and sell aircraft have come to a screeching halt.

More specifically, the current shutdown means parties will not be able to conduct title searches, obtain FAA records, file documents with the FAA, or obtain International Registry codes (i.e., file 135 forms) for closings involving U.S. registered aircraft and related engines.

Again, this affects every aircraft owner no matter how big or small.

Obviously this directly affects our ability to do business. But please keep in mind that by shuttering the FAA Registry, there will be no new aircraft deliveries. (Not only for the business aviation OEM’s but for Boeing and the others as well). There will be no changes in registration, no pre-owned sales, etc.

The purpose of this post this morning is to alert our industry that we’ve come to a screeching halt for aircraft sales. Thus far, I haven’t read a single main stream or industry article that is making our industry aware of this issue.

Case in point, here is AIN’s headline in their weekly AIN Alerts from yesterday: Government Shutdown Has No Immediate Effect on Aviation

Those that were trying to close an aircraft sale yesterday or today are coming to the realization that this is a real threat to our industry. So I’m asking that you please consider helping spread the word given that this government shutdown could once again cause another setback in what is already a very fragile and slow recovery.

Contact Guardian Jet

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Jill Henning
+1 203-453-0800

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