Business Aviation
IRS Expands 100 Percent Bonus Depreciation for Business Aircraft
IRS Notice 2026-11 clarifies 100% bonus depreciation eligibility for business aircraft delivered after January 19, 2025, benefiting accrual-basis taxpayers.
On January 14, 2026, the Internal Revenue Service (IRS) issued Notice 2026-11, providing critical interim guidance regarding the “One Big Beautiful Bill Act” (OBBBA). This legislation, signed into law in July 2025, permanently reinstated 100% bonus depreciation for qualified property, including business aircraft, acquired and placed in service after January 19, 2025.
According to an industry update published by the National Business Aviation Association (NBAA), the new guidance offers a significant technical clarification that could save aircraft buyers millions in tax liability. Specifically, the guidance addresses the treatment of “binding written contracts,” potentially allowing taxpayers who ordered aircraft under previous, less favorable tax rules to qualify for the full 100% deduction upon delivery.
Under the Tax Cuts and Jobs Act (TCJA) of 2017, bonus depreciation was scheduled to phase down. For the 2025 tax year, the deduction was set to drop to 40% generally, or 60% for certain aircraft with longer production periods. Many buyers signed binding purchase contracts in 2024 or early 2025 expecting these lower rates.
Typically, tax rules consider property “acquired” on the date a binding written contract is signed. This created a potential trap: buyers who signed contracts before the new law took effect (on or before January 19, 2025) but took delivery afterward might have been locked into the lower phase-down rates.
The NBAA reports that Notice 2026-11 provides a vital workaround. The guidance clarifies that for accrual-basis taxpayers, a category that includes most corporations and large flight departments, the acquisition can effectively be treated as occurring upon delivery or title transfer.
Consequently, a buyer with a contract from 2024 who took delivery on January 25, 2025, may now claim 100% depreciation rather than the previously expected 40% or 60%. However, the NBAA notes that cash-basis taxpayers face a more difficult hurdle, as they recognize expenses when cash is paid, potentially leaving them subject to older rates if significant payments were made prior to the cutoff.
“Business aircraft owners require a detailed factual analysis in order to present accurate tax returns. There are advanced technical positions that support eligibility for 100% bonus depreciation…”
, David Shannon, Partner at Lewis Brisbois (via NBAA)
While the return of 100% bonus depreciation is generally welcomed, the IRS guidance also outlines a “Transition Election” allowing taxpayers to opt for the lower rates. According to the research data, taxpayers can choose to apply the 40% rate (or 60% for longer-production aircraft) for the first tax year ending after January 19, 2025.
Tax experts suggest this counterintuitive move may be vital for specific tax planning strategies:
We believe this guidance will have an immediate stabilizing effect on the pre-owned and new aircraft markets in Q1 2026. Throughout late 2025, uncertainty regarding the “binding contract” rule likely caused hesitation among buyers who were unsure if their transactions would qualify for the reinstated OBBBA benefits.
With the IRS confirming that delivery dates can supersede contract dates for accrual-basis taxpayers, we expect a flurry of retroactive tax planning for 2025 returns. Furthermore, the permanent nature of the 100% deduction removes the “use it or lose it” pressure that defined the previous phase-out era, likely leading to more consistent, sustainable demand rather than artificial year-end spikes.
What is the effective date for the new 100% bonus depreciation? Does this apply to contracts signed in 2024? Can I still choose the 60% rate?
IRS Guidance Expands 100% Bonus Depreciation Eligibility for Aircraft Owners
The “Binding Contract” Trap and the New Solution
Relief for Accrual-Basis Taxpayers
Strategic Elections: When to Take Less
AirPro News Analysis
Frequently Asked Questions
The 100% rate applies to qualified property acquired and placed in service after January 19, 2025.
Potentially. According to the new guidance, accrual-basis taxpayers who took delivery after January 19, 2025, may qualify for the 100% rate even if the contract was signed earlier. Consultation with a tax professional is required.
Yes. The guidance allows for a “Transition Election” to use the lower phase-down rates (40% or 60%) if that benefits your specific tax situation, such as preserving Net Operating Losses.
Sources
Photo Credit: NBAA
Business Aviation
Summit Helicopters Acquires Blackcomb Helicopters Aviation Assets
Summit Helicopters acquires Blackcomb Helicopters’ fleet and sightseeing operations in BC, continuing services under the Blackcomb brand.
This article is based on an official announcement from Blackcomb Helicopters and additional industry reporting.
In a significant shift for the Sea-to-Sky aviation landscape, Summit Helicopters has officially acquired the aviation assets and sightseeing business of Blackcomb Helicopters. The deal, announced on January 22, 2026, transfers the operation of the region’s iconic sightseeing tours and utility contracts to Summit, a subsidiary of the Ledcor Group of Companies.
According to the official announcement from Blackcomb Helicopters, the transaction ensures that the “same friendly team” will remain in place to deliver services. While Summit Helicopters takes over ownership of the fleet and bases, the popular sightseeing tours will continue to operate under the established Blackcomb brand, preserving a name that has served the corridor since 1989.
The acquisition involves the transfer of Blackcomb Helicopters’ remaining fleet of seven aircraft, along with its operational bases in Whistler and Squamish, British Columbia. Summit Helicopters will now oversee a diverse range of mission profiles previously managed by Blackcomb, including:
In a statement regarding the transition, Blackcomb Helicopters emphasized the continuity of service:
“Summit will now operate our fleet of seven helicopters continuing Blackcomb’s work at our Squamish and Whistler bases in utility, film, firefighting, and emergency response – and will proudly continue to offer our popular sightseeing tours under the Blackcomb brand.”
— Blackcomb Helicopters Official Announcement
Peter Rice, Vice President of Summit Helicopters, welcomed the expansion, noting in industry reports that the move adds valuable talent and fleet assets to Summit’s operations, which already span Northern and Interior British Columbia, the Northwest Territories, and international markets.
This transaction marks the conclusion of a strategic restructuring for Blackcomb Helicopters under its previous owner, the McLean Group. Industry reporting indicates that this is the second phase of a two-part divestiture strategy executed over the winter of 2025–2026.
Prior to this asset sale, the McLean Group sold Blackcomb’s “Tourism Division”, specifically the Coast Range Heli-Skiing and Tyax Adventures brands, to Whitecap Alpine Adventures in December 2025. This effectively separated the adventure tourism marketing entities from the aviation operations. With the current deal, Summit Helicopters acquires the “hard assets”, the machines, hangars, and air operator certificates, necessary to fly the missions. Consequently, Summit is expected to act as the aviation provider for the tourism brands now owned by Whitecap, while simultaneously running its own utility operations.
Jason McLean, CEO of the McLean Group, reflected on the family’s tenure owning the operator since 2006. In a statement reported by industry sources, McLean expressed confidence in the new operators:
“After decades of specialized helicopter service which started in the Sea to Sky corridor and expanded throughout Canada, it is time for our family to make a change and pass Blackcomb Helicopters onto new operators. With shared values and commitment to always putting safety and premier customer experience first, we know our customers, our team and the communities we serve are in exceptionally good hands.”
— Jason McLean, CEO, The McLean Group
This acquisition reflects a broader trend of consolidation within the Canadian aviation sector. By absorbing Blackcomb’s Sea-to-Sky operations, Summit Helicopters (backed by the industrial giant Ledcor) secures a lucrative foothold in the Vancouver-Whistler corridor, complementing its existing strongholds in Yellowknife, Terrace, and Kamloops.
For the local market, the retention of the Blackcomb brand for sightseeing is a strategic move to maintain consumer trust. However, the operational shift to a larger corporate parent suggests a move toward greater economies of scale, likely necessary to buffer against the volatility of seasonal tourism and wildfire contract cycles.
Sources: Blackcomb Helicopters Official Announcement, Summit Helicopters / Ledcor Group Press Materials
Summit Helicopters Acquires Blackcomb Helicopters’ Aviation Assets and Sightseeing Operations
Operational Continuity and Asset Transfer
Context: The Final Step in Restructuring
Separating Adventure from Aviation
Executive Commentary
AirPro News Analysis
Sources
Photo Credit: Blackcomb Helicopters
Business Aviation
Bombardier Global 8000 Gains EASA Certification for Ultra-Long-Range Jet
Bombardier’s Global 8000 business jet receives EASA certification, completing approvals for operation in key markets with top speed Mach 0.95 and 8,000 nm range.
This article is based on an official press release from Bombardier.
Bombardier has officially announced that its flagship aircraft, the Global 8000, received type certification from the European Union Aviation Safety Agency (EASA) on January 23, 2026. This approval marks the final major regulatory milestone for the ultra-long-range jet, clearing it for operation across all key western markets following earlier approvals in North America.
Marketed by the manufacturer as the “world’s fastest business jet,” the Global 8000 is designed to connect extensive city pairs such as London to Perth or Singapore to Los Angeles non-stop. According to the company’s announcement, this certification cements the aircraft’s entry into service, which officially began in December 2025.
The EASA certification completes a rapid sequence of regulatory approvals for the Canadian manufacturer. Data provided by Bombardier and aviation authorities confirms the following certification timeline:
Stephen McCullough, Executive Vice President of Engineering at Bombardier, highlighted the significance of the European approval in a statement regarding the program’s development.
“Attaining EASA certification illustrates the hard work and dedication of Bombardier’s highly skilled employees and suppliers… This accomplishment further strengthens the momentum behind this groundbreaking business jet.”
, Stephen McCullough, Executive VP of Engineering, Bombardier
The Global 8000 is positioned at the pinnacle of the business aviation market, primarily defined by its speed and range capabilities. The aircraft boasts a top speed of Mach 0.95 (approximately 729 mph) and a maximum range of 8,000 nautical miles.
Bombardier notes that the aircraft’s performance credentials were validated during flight testing in May 2021. During these tests, a Global 8000 test vehicle (FTV-5) broke the sound barrier, achieving a speed of Mach 1.015 in a shallow dive while utilizing Sustainable Aviation Fuel (SAF). This achievement allows the manufacturer to claim the title of the fastest civil aircraft since the Concorde.
Beyond raw performance, the press release emphasizes the aircraft’s focus on passenger wellness during ultra-long-haul flights. Key features cited by the manufacturer include: With the Global 8000 now fully certified in North America and Europe, the battle for dominance in the ultra-long-range segment intensifies. The Global 8000’s primary competitor is the Gulfstream G800. While both aircraft offer an identical range of 8,000 nautical miles, Bombardier has aggressively positioned the Global 8000 around the metric of speed.
The Global 8000’s top speed of Mach 0.95 edges out the Gulfstream G800’s Mach 0.925. While the practical time savings on a typical 12-hour flight may be marginal (estimated at 20 to 30 minutes), the marketing value of the “World’s Fastest” title is substantial in the elite tier of private-jets. Furthermore, Bombardier’s focus on cabin altitude, offering a slightly lower pressure altitude than competitors, suggests a strategy focused on “wellness and productivity” to appeal to executives flying 14-hour missions.
Bombardier Global 8000 Secures EASA Certification, Completing Regulatory Trifecta
Regulatory Timeline and Entry into Service
Performance Specifications
Cabin Technology and Passenger Experience
AirPro News Analysis
The Race for the Ultra-Long-Range Market
Frequently Asked Questions
Sources
Photo Credit: Bombardier
Business Aviation
Honeywell and Flexjet Settle Dispute and Extend Engine Contract to 2035
Honeywell and Flexjet resolve litigation over engine maintenance delays and renew their HTF7000-series engine contract through 2035 with a $470M cash settlement.
This article is based on an official press release from Honeywell and Flexjet.
On January 21, 2026, Honeywell and Flexjet announced a comprehensive settlement to resolve all pending litigation regarding engine maintenance delays. The agreement not only ends a high-stakes legal battle that began in 2023 but also secures a long-term Partnerships between the two aviation giants. As part of the deal, the companies have renewed their Master Maintenance Agreement (MSA) for Honeywell HTF7000-series engines through 2035.
According to the joint press release, the settlement resolves all claims between the parties, including related litigation involving third-party maintenance providers StandardAero and Duncan Aviation. The deal allows Flexjet to secure guaranteed support for its fleet while enabling Honeywell to clear significant legal liabilities ahead of its planned corporate restructuring.
The settlement involves substantial financial considerations and service commitments. While the official press release emphasizes the renewed partnership, regulatory filings and company statements provide a clearer picture of the financial magnitude of the agreement.
Flexjet has characterized the total value of the settlement as exceeding $1 billion. This figure includes both “cash considerations and service credits,” which will likely be applied to future engine maintenance events. In contrast, Honeywell’s disclosures offer specific details regarding the immediate financial impact.
According to Honeywell’s SEC Form 8-K filings referenced in market reports, the settlement involves a one-time cash payment of approximately $470 million. Additionally, Honeywell expects to record a charge in the fourth quarter of 2025 that will reduce sales by approximately $310 million and operating income by roughly $370 million.
“We are pleased to have reached a resolution that supports our long-term growth and ensures the highest level of service for our customers.”
, Joint Statement from Honeywell and Flexjet
The renewed Master Maintenance Agreement covers the HTF7000-series engines, which power a significant portion of Flexjet’s mid- and super-midsize fleet. This extension guarantees maintenance support through 2035, providing Flexjet with operational certainty for the next decade. The conflict between the two companies originated from a 2019 maintenance agreement. In May 2023, Flexjet filed a lawsuit alleging that Honeywell had failed to meet contractual turnaround times for engine repairs and did not provide sufficient rental engines during maintenance events.
Flexjet’s legal filings claimed that these service failures led to significant aircraft groundings. At the peak of the supply chain crisis, reports indicated that up to 40 aircraft were parked due to a lack of available engines. Flexjet argued that Honeywell had prioritized new engine deliveries to original equipment manufacturers (OEMs) over supporting existing customers, a claim Honeywell contested.
The dispute escalated in 2025 when a New York court upheld the enforceability of a liquidated damages clause. This ruling exposed Honeywell to potentially massive liability, which analysts believe accelerated the push for a settlement before a jury trial scheduled for 2026 could commence.
The settlement serves distinct strategic goals for both organizations. For Flexjet, the deal secures the stability of its core fleet, which includes Bombardier Challenger 300/350 and Embraer Praetor 500/600 aircraft. The inclusion of service credits effectively subsidizes future maintenance costs, offsetting the financial impact of previous disruptions.
For Honeywell, the agreement removes a major legal distraction. The company is currently preparing for a spin-off of its Advanced Materials business. By resolving this litigation, Honeywell presents a “cleaner” investment profile to shareholders and avoids the unpredictability of a prolonged court battle.
We observe that this settlement is emblematic of the broader post-pandemic aerospace supply chain crisis. The dispute between Honeywell and Flexjet was not an isolated incident but a high-profile symptom of industry-wide shortages in skilled labor and critical parts, such as castings and forgings.
The structure of the settlement, heavy on “service credits”, is a common mechanism in aviation disputes. It allows the vendor to retain the customer’s business long-term while inflating the “headline value” of the compensation package without requiring an equivalent immediate cash outflow. For the industry at large, this agreement may set a precedent for how operators negotiate compensation for service failures, signaling that major OEMs are willing to pay a premium to avoid reputational damage and legal uncertainty during restructuring phases.
What engines are covered by the renewed contract? How much is the settlement worth? Does this end all litigation between the parties?
Honeywell and Flexjet Settle Billion-Dollar Dispute, Extend Engine Contract to 2035
Key Deal Terms and Financial Impact
Valuation and Cash Payments
Contract Extension
Background of the Dispute
Operational Disruptions
Strategic Implications
AirPro News Analysis
Frequently Asked Questions
The agreement covers Honeywell HTF7000-series engines, which power Flexjet’s Bombardier Challenger 300/350 and Embraer Praetor 500/600 fleets.
Flexjet values the total package at over $1 billion, including cash and service credits. Honeywell’s regulatory filings indicate a cash payment of approximately $470 million.
Yes. The settlement resolves all pending claims between Honeywell and Flexjet, as well as related litigation involving third-party maintenance providers StandardAero and Duncan Aviation.
Sources
Photo Credit: Flexjet
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