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Washington State Business Aviation Coalition Addresses Aircraft Tax Bill

NBAA and PNBAA advocate amendments to Washington State Senate Bill 5801 imposing a 10% tax on certain aircraft to protect aviation businesses.

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Photo: NBAA

This article is based on an official press release from the National Business Aviation Association (NBAA) and legislative data regarding Washington State Senate Bill 5801.

Business Aviation Coalition Mobilizes to Amend Washington State Aircraft Tax

The National Business Aviation Association (NBAA) has joined forces with the Pacific Northwest Business Aviation Association (PNBAA) to address significant concerns regarding Washington State Senate Bill 5801. The legislation, which was signed into law in May 2025, introduces a new 10% excise tax on specific aircraft transactions. While the tax is described by proponents as a levy on “luxury” items, industry leaders argue it poses a severe threat to essential business aviation businesses, flight training operations, and the state’s broader economic landscape.

According to the NBAA, the coalition was formed to unify the industry’s voice and advocate for legislative adjustments before the tax takes effect. Although the bill was signed by Governor Bob Ferguson earlier this year, implementation has been delayed until April 1, 2026. This window provides a critical opportunity for stakeholders to work with lawmakers on a “fix” bill during the upcoming 2026 legislative session.

The Controversy Surrounding Senate Bill 5801

Senate Bill 5801 was sponsored by State Senator Marko Liias as part of a broader transportation revenue package. The law imposes a 10% tax on the sale, lease, or transfer of “noncommercial aircraft,” specifically applying to the portion of the value exceeding $500,000. The revenue generated is earmarked for a Sustainable Aviation Fuel (SAF) Account, intended to fund infrastructure and research for greener aviation technologies.

However, the aviation industry has raised alarms regarding the bill’s language. Legal experts and coalition members note that the definition of “noncommercial” is ambiguous. This lack of clarity could unintentionally capture a wide range of aircraft that are not used for leisure, including those utilized for flight instruction, emergency medical transport, and wildland firefighting support.

The coalition argues the tax is based on a misunderstanding of the industry, mislabels essential business tools as “luxury” items, and threatens to drive aviation businesses out of the state.

The NBAA and PNBAA contend that labeling these assets as “luxury” items ignores their function as productivity tools. Consequently, the tax could disproportionately harm small-to-medium enterprises and maintenance shops that operate on thin margins, potentially forcing them to relocate to tax-friendly neighboring states such as Oregon and Idaho.

Industry Mobilization and Economic Stakes

To address these challenges, the coalition convened a major stakeholder meeting on November 21, 2025, at Paine Field (PAE) in Everett, Washington. Hosted by the PNBAA at the Fortive hangar, the event drew approximately 100 industry representatives. Key attendees included NBAA Western Regional Director Phil Derner, State Representative Tom Dent (Leader of the State Aviation Caucus), and representatives for Senator Liias.

The meeting focused on establishing a collaborative dialogue with lawmakers to correct misconceptions about business aviation. To underscore the sector’s importance, the coalition cited data from a 2020 economic impact study by the WSDOT Aviation Division. The figures highlight the massive footprint of aviation in Washington:

  • Employment: The sector supports approximately 407,000 jobs.
  • Economic Activity: It generates roughly $107 billion in total economic impact.
  • Labor Income: The industry contributes over $26 billion in wages.
  • Infrastructure: The state relies on 134 public-use airports as economic hubs.

AirPro News Analysis

The situation in Washington State reflects a growing tension between environmental policy goals and economic retention in the aviation sector. While the creation of a Sustainable Aviation Fuel (SAF) Account demonstrates a forward-looking commitment to decarbonization, a goal shared by the industry’s “Net-Zero by 2050” commitment, the funding mechanism appears to have been crafted without sufficient technical input. The delay in implementation until April 2026 suggests that lawmakers recognize the potential for “unintended consequences,” particularly regarding the ambiguous classification of commercial versus noncommercial operations. The success of the upcoming “fix” bill will likely depend on whether the industry can effectively demonstrate that penalizing business aviation assets undermines the very infrastructure needed to deploy sustainable technologies.

Future Outlook: The 2026 Legislative Session

The immediate focus for the NBAA-led coalition is the 2026 legislative session, which begins in January. Lawmakers have acknowledged the issues within the current text of SB 5801, and a corrective bill is expected to be introduced. The objective is to clarify definitions and potentially modify the tax structure to exempt essential services and flight training operations.

Between now and the April 1, 2026 effective date, the coalition plans to continue lobbying efforts to ensure that the final version of the law protects the state’s aviation ecosystem while still supporting reasonable sustainability objectives.


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Business Aviation

Los Angeles Approves Two Sky Harbour Hangar Campus Leases at VNY

The Los Angeles City Council approved two Sky Harbour ground leases at Van Nuys Airport covering over 25 acres and about 300,000 square feet.

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Los Angeles Approves Two Sky Harbour Hangar Campus Leases at VNY
Photo: Sky Harbour

The Los Angeles City Council has approved two ground leases for Sky Harbour Group Corporation to build Home Base Operator (HBO) hangar campuses at Van Nuys Airport (VNY). The company says the two sites total more than 25 acres and expects to build about 300,000 rentable square feet of hangar, office, lounge and storage space there.

Sky Harbour announced the approval in a press release dated November 9, 2026, and said it expects the leases to be formally signed in the coming weeks. For scale, in its third quarter results a day later, Sky Harbour said it was operating 1.04 million square feet of hangar and associated office and support space across its network.

What the Van Nuys leases cover

Sky Harbour, based in West Harrison, New York, is building a nationwide network of HBO campuses for business aircraft. Its Home-Basing offering is meant to give private and corporate aircraft owners top physical infrastructure and dedicated service for based aircraft, with the aim of the shortest possible time to wheels-up.

Tal Keinan, Sky Harbour’s CEO, linked the Van Nuys move to demand from local operators:

“Van Nuys operators have actively been seeking the Sky Harbour Home Base Operator model, and we are excited to deliver it.”

Keinan thanked the Los Angeles City Council, the Board of Airport Commissioners and the Van Nuys and Los Angeles World Airports teams, and said “Sky Harbour plans to bring new and lasting value to the airport,” as well as to Los Angeles business aviation and the San Fernando Valley community. The company said it expects the developments to bring substantial private investment to VNY and to create or sustain hundreds of local construction and operations jobs. It did not disclose the investment amount or a construction schedule for the two sites.

Van Nuys and the Los Angeles market

Sky Harbour’s release calls VNY the main business aviation gateway to Los Angeles. Los Angeles World Airports (LAWA), which owns VNY and Los Angeles International Airport (LAX), describes Van Nuys as one of the world’s busiest general aviation airports, averaging over 217,000 takeoffs and landings a year. The 730-acre airport has two parallel runways of 8,000 feet and 4,000 feet, an FAA tower and more than 100 businesses on the field.

According to LAWA, four major fixed-base operators (FBOs) are based at Van Nuys: Castle & Cooke Aviation, Clay Lacy Aviation, Jet Aviation and Signature Aviation. They offer aircraft storage and parking, fuel, sales, flight instruction, charter and maintenance, and some sublease land and buildings to other tenants. LAWA’s airport system is overseen by a Board of Airport Commissioners appointed by the Mayor of Los Angeles.

Van Nuys follows a Sky Harbour lease elsewhere in Southern California. In November 2025, the City of Long Beach said its City Council had voted 8 to 0 to approve a 50-year lease with Sky Harbour for a $60 million private jet campus on approximately 17 acres at Long Beach Airport (LGB), with hangars for corporate jet tenants, a terminal and office complex and an open-air restaurant.

Where Sky Harbour’s network stands

In its third quarter release on November 10, 2026, Sky Harbour reported consolidated revenue up about 45% from the third quarter of 2025. It raised its year-end 2026 revenue guidance to a range of $44 million to $48 million, from $42 million to $46 million, and lowered its adjusted EBITDA guidance to $0 to $4 million from $4 million to $6 million, citing costs tied to opening its Bradley International Airport (BDL) campus in early December and the delay of Dallas Addison Airport (ADS) Phase 2 into the first quarter of 2027.

The company said BDL, in Hartford, Connecticut, is expected to be completed by December 4, 2026. Campuses at Salt Lake City International Airport (SLC), Hudson Valley Regional Airport (POU) and Orlando Executive Airport (ORL) are under construction, and work at Washington Dulles International Airport (IAD), Trenton-Mercer Airport (TTN) and Chicago Executive Airport (PWK) is scheduled to begin in late 2026. In California, Sky Harbour reported Phase 1 at San Jose Mineta International Airport (SJC) at 132% economic occupancy, with the yet-to-be-built Phase 2 100% pre-leased.

Keinan said in the results release that “Sky Harbour’s growing footprint at tier 1 airports represents the early results of a multi-year effort.” The next step at Van Nuys is the formal execution of the two leases, which the company expects within weeks.

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Airbus Corporate Helicopters Debuts ACH Line Interior on the ACH130

ACH has introduced its ACH Line cabin on the ACH130, a layout first shown on the ACH140 concept, with Air Delta as launch customer.

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Airbus Corporate Helicopters Debuts ACH Line Interior on the ACH130
Photo: Airbus Corporate Helicopters

Airbus Corporate Helicopters (ACH) has introduced its new ACH Line cabin design on the ACH130 fleet, the official operational debut of a layout first shown as a cabin concept for the ACH140 at Verticon. ACH unveiled the interior at an event in Sappada, in the Italian Alps, where the launch customer’s representative viewed it during demonstration flights over the Dolomites.

In a press release dated November 12, 2026, from Trento, Italy, ACH said the design combines improved cabin ergonomics, operational flexibility and better travel features for corporate and private operators worldwide. The company says the layout sets a new standard for style and function across the ACH range.

Who built the ACH130 Line cabin

Airbus Helicopters in Italy led the engineering and certification work for the new interior. It partnered with two interior specialists, F/LIST and Maison Borghino, on the precision and cabin outfitting of the aircraft.

Nicolas Boltoukhine, Head of ACH, said the new ACH Line look and feel will, “for the first time, offer a visual consistency across our entire range.” He explained that this gives all ACH Line aircraft the ACH brand’s look and a standard level of quality and comfort across all ACH types.

The launch customer was represented at the Sappada event by Maicol La Regina, CEO of Air Delta. ACH did not disclose how many ACH130 aircraft Air Delta has ordered or when deliveries with the new interior begin.

From the ACH140 concept to the ACH130 fleet

The ACH Line design language first appeared on the ACH140, which F/LIST describes as the newest aircraft in the ACH line, unveiled at Verticon 2026 for private and business aviation customers. AirPro News covered the ACH140 launch at Verticon 2026 at the time.

F/LIST, a family business headquartered in Thomasberg, Austria, with around 1,250 employees worldwide, builds interiors for business and private jets, yachts and luxury residences. In a press release dated March 9, 2026, it said it designed and manufactured a custom-made cabinet for the ACH140 cabin, with a silk-matt black lacquer body, matt carbon drawer fronts, two cup holders, two storage compartments with leather-covered flaps and holders for an iPhone and an iPad.

According to F/LIST, the ACH Line interior concept was developed in close collaboration with Airbus and supports the new design language with elongated lines and ergonomic elements. F/LIST said customers can choose from a range of materials for color, material and finish, and that series production parts are expected to use a monocoque construction method with autoclave technology.

The ACH130 release does not say whether the ACH130 cabin uses the same cabinet or materials as the ACH140 cabin concept shown at Verticon.

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THC Firms Up Bombardier Order for 12 Jets With 48 Options

The Helicopter Company signed firm agreements for 12 Bombardier jets worth about US$568 million at list prices, with options for 48 more.

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THC Firms Up Bombardier Order for 12 Jets With 48 Options
Photo: Bombardier

The Helicopter Company (THC) has converted its July 2026 letter of intent with Bombardier into binding fleet purchase agreements for up to 60 business jets, including a firm order for 12 aircraft valued at about US$568 million at 2026 list prices. Bombardier and THC announced the agreements in Montreal on November 13, 2026.

The firm order covers five Challenger 3500, five Global 5500 and two Global 8000 aircraft, with options for 48 more. In its press release, Bombardier said the exercise of those options “would be at the discretion of the client.” The companies describe the agreement as the largest transaction of its kind in Saudi Arabia, and it marks THC’s entry into business aviation.

From a Farnborough letter of intent to a firm order

THC and Bombardier first signed a Letter of Intent (LOI) at the Farnborough International Airshow in the United Kingdom, which AirPro News reported as THC’s Bombardier letter of intent. According to the Public Investment Fund (PIF), which owns THC, the LOI pointed to a firm order for 12 aircraft, five Challenger 3500s, five Global 5500s and two Global 8000s, with purchase options for 48 more jets of the same models.

The November agreements keep that mix unchanged. The new release puts a value on the firm portion, about US$568 million at 2026 list prices, and states that the 48 options are at THC’s discretion. The release does not give a delivery schedule for the 12 firm aircraft.

PIF said the July signing was attended by Captain Arnaud Martinez, CEO of THC, Muhammad Ovais Yousuf, Head of Aviation & Security for PIF’s MENA Investments Division, and Bombardier leaders including CEO Éric Martel and Chairman Pierre Beaudoin.

THC’s move from helicopters to business jets

THC was established as part of PIF’s strategy to open new sectors in Saudi Arabia in support of Vision 2030, according to the company profile in the release. PIF describes THC as a PIF company founded in 2018. THC has operated since mid-2019, describes itself as the Kingdom’s leading commercial helicopter operator, and has more than 60 aircraft serving emergency medical services (EMS), aerial work, private charters and tourism.

When THC announced its business aviation launch at Farnborough, PIF said the company would move into chartering and managing business jets. PIF said the business jet segment targets Saudi and regional demand, with the aim of becoming the region’s leading business aviation operator and the preferred national carrier for private charters. The new release says the Bombardier order extends THC’s services to meet growing demand for premium business travel within Saudi Arabia and across the region.

THC sits within PIF’s Tourism, Travel & Entertainment ecosystem. PIF also launched the national airline Riyadh Air and owns the aircraft leasing company Avilease.

“This transaction marks THC’s entry into business aviation,” Martinez said in the release. He described it as the next step in building an integrated aviation operator for the Kingdom, and said demand for business aviation services in Saudi Arabia and the wider region continues to grow. He added that THC looks forward to bringing the aircraft into service as it continues to support the development of the Kingdom’s aviation sector under Vision 2030.

Martel called THC’s decision to move forward with the fleet purchase agreements “a meaningful vote of confidence in what our teams deliver every day.” He said Bombardier looks forward to supporting THC as it prepares to launch its business aircraft fleet.

The three Bombardier types in the order

In its account of the LOI, PIF said the planned fleet would span super-midsize, long-range and ultra-long-range jets. The Challenger 3500 carries up to nine passengers and has a range of 3,400 nautical miles (6,297 km). Bombardier says the type suits missions within the Gulf Cooperation Council region and has the lowest direct operating costs in its class.

The Global 5500 seats up to 16 passengers across three living zones and has a range of 5,900 nautical miles (10,927 km), which Bombardier describes as the longest in its category. The Global 8000, Bombardier’s flagship ultra-long-range jet, has a range of 8,000 nautical miles (14,816 km) and four cabin zones. Bombardier says it can fly nonstop between city pairs such as Riyadh and Los Angeles, and that its leading-edge slats allow it to land at up to 30% more airports than its closest rival.

Bombardier’s investment commitment in Saudi Arabia

As part of the partnership, Bombardier said it has committed to a long-term strategic investment that includes a local footprint in Saudi Arabia. The release does not say what form that footprint will take or when it will be in place. At the July signing, Martel said Bombardier planned local investments dedicated to supporting THC’s operations, according to PIF.

Bombardier says its customers operate a fleet of approximately 5,300 aircraft, supported by 10 service facilities across six countries. Its jets are manufactured in aerostructure, assembly and completion facilities in Canada, the United States and Mexico.

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