Busi­ness jet mak­ers will be bol­stered by lower U.S. tax rates, says as­so­ci­a­tion

The Hamilton Spectator - - BUSINESS - ROSS MAROWITS

MON­TREAL — The United States gov­ern­ment’s plan to cut cor­po­rate taxes will bol­ster the busi­ness jet in­dus­try which last year had its weak­est per­for­mance since 2004, says an as­so­ci­a­tion rep­re­sent­ing the sec­tor.

“It will be a good shot in the arm for the in­dus­try,” said Pete Bunce, chief ex­ec­u­tive of­fi­cer of the Gen­eral Avi­a­tion Man­u­fac­tur­ers As­so­ci­a­tion.

With 62 per cent of busi­ness jet sales com­ing from North Amer­ica last year, he said Pres­i­dent Don­ald Trump’s plan to re­duce cor­po­rate taxes to as low as 15 per cent could spur spend­ing on air­craft.

Bunce de­clined, how­ever, to say if such moves could off­set the pos­si­ble in­tro­duc­tion of a bor­der ad­just­ment tax that would raise the cost of items im­ported into the States. He said leg­isla­tive process means that such a pro­posal could end up be­ing very dif­fer­ent from what is be­ing dis­cussed.

Bom­bardier bucked the in­dus­try trend by in­creas­ing busi­ness jet de­liv­er­ies last year, ac­cord­ing to the group’s an­nual sur­vey.

The Mon­treal-based com­pany shipped 163 air­craft, val­ued at $5.87 bil­lion US com­pared with 135 air­craft val­ued at $5.06 bil­lion US in 2015.

Ri­val Gulfstream fell be­hind Bom­bardier as de­liv­er­ies dropped 25 per cent to 115 air­craft, from 154 a year ear­lier. The U.S. com­pany’s billings fell 24 per cent to $6.2 bil­lion US.

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