Welcome back to J&K Connectors! This month we’re looking at the aviation business across several sectors, but we’re heavy on drones and unmanned aircraft, too. Read on!
Amazon Hints at Air Freight Business
In its ever-advancing march toward having a hand in seemingly every market sector imaginable, Amazon has reportedly been investigating acquiring or creating its own air freighter business. According to a report in The Seattle Times, the company hopes to first lease around 20 Boeing cargo jets in order to subvert shortcomings and bottlenecks created by UPS and FedEx.
The move makes sense for the e-commerce giant, but it may have consequences for the rest of the air cargo business – let alone their planned unmanned drone delivery project.
FAA Doubles Down on Drone Use
Beginning December 21st, drones weighing more than 250 grams became subject to new regulations set forth by the Federal Aviation Administration. The agency released a fact sheet for state and local governments on the updated policy regarding unmanned aircraft systems, advising them of the FAA’s authority in regulating drones.
Drones over 250 grams will now be required to register with the FAA.
Congress Funds FAA, Creates Tax Credits for Aviation Research
Before adjourning for its winter recess, the United States Congress approved a $16.3 billion budget for the Federal Aviation Administration, which includes tax breaks for aviation development, research, and investments.
Among one of the most applauded tax breaks includes the bonus depreciation measure that allows companies to write off as much as 50% of the value of aviation equipment and more.
The deal extends the bonus depreciation credit for another five years, but doesn’t guarantee the measure will be made permanent, as requested by many in the general aviation industry.
That’s all for this month! From the entire team at J&K Connectors, we’d like to wish you and your family happy holidays as we look forward to 2016.
Image source, labelled for reuse