Business Aviation
Washington Repeals Private Aircraft Luxury Tax, Updates Aviation Fees
Washington State repealed a 10% luxury tax on private aircraft and introduced new fuel and registration fee increases to fund aviation and environmental initiatives.
This article is based on an official press release from the National Business Aviation Association (NBAA) and supplementary industry research.
On March 31, 2026, Washington Governor Bob Ferguson signed House Bill 2711 (HB 2711) into law, effectively repealing a controversial 10% “luxury tax” on private aircraft. The repeal arrived just one day before the tax was scheduled to take effect on April 1, 2026. According to an official press release from the National Business Aviation Association (NBAA), the organization welcomed the repeal, which was the culmination of a grassroots campaign by a coalition of local aviation stakeholders.
The original tax had sparked significant concern within the general aviation community, prompting warnings that it would drive business out of the state. In place of the luxury tax, HB 2711 introduces a compromise funding mechanism that includes moderate increases to aviation fuel taxes, aircraft registration, and excise fees to continue funding the state’s environmental and aeronautics initiatives.
The Original Tax and Industry Backlash
The original tax was enacted during the 2025 legislative session under Engrossed Substitute Senate Bill 5801 (ESSB 5801). It imposed a 10% sales and use tax on non-commercial (private and general aviation) aircraft valued at over $500,000. The tax applied strictly to the portion of the aircraft’s value that exceeded the $500,000 threshold. Furthermore, it applied not only to new purchases but also to existing aircraft brought into, hangared, or leased in Washington state by residents. The revenue generated from this tax was earmarked for the state’s Sustainable Aviation Fuel (SAF) account.
Capital Flight and Economic Concerns
The aviation industry, led by the NBAA, the Aircraft Owners and Pilots Association (AOPA), and local lawmakers, launched a campaign to repeal the tax, warning of severe unintended economic consequences. Industry research indicates that before the tax even took effect, businesses began relocating assets to avoid the financial burden.
Notably, Schweitzer Engineering Laboratories (SEL), a major employer based in Pullman, Washington, relocated its fleet of five corporate aircraft to Lewiston, Idaho. General aviation is a significant economic driver in Washington; according to a 2020 Washington Aviation Economic Impact Study cited in industry reports, the aviation sector supports over 407,000 jobs, a payroll exceeding $26.8 billion, and generates more than $107 billion in annual business revenue.
The HB 2711 Compromise: A New Funding Structure
To replace the lost revenue intended for the Sustainable Aviation Fuel account, lawmakers and aviation stakeholders negotiated a new funding structure under HB 2711. State Representative Tom Dent (R-Moses Lake) initially introduced legislation to repeal the tax, and its core provisions were successfully rolled into the broader transportation bill.
Fuel Taxes, Fees, and Drone Assessments
According to legislative summaries, the new law implements several broad-based changes to aviation fees and taxes:
- Fuel Tax Increase: The state’s aircraft fuel tax will increase by 7 cents per gallon (from 18 cents to 25 cents), effective November 1, 2026.
- Registration & Excise Fees: Beginning January 1, 2027, the base registration fee for aircraft will double from $15 to $30. The aircraft excise tax range will also increase from the current $20–$4,000 range to a new range of $120–$8,000. Both assessments will automatically increase by 2% annually starting in 2028.
- Commercial Drones: For the first time, commercial drones will be subject to an annual excise tax of $120, starting in 2027.
To ensure environmental initiatives remain supported, 28% of the aviation fuel tax revenue and a similar portion of registration fees will be directed to a new SAF airport infrastructure account. The remainder will go to the state’s general aeronautics account.
Stakeholder Reactions
The repeal was met with relief from industry leaders and local businesses who had actively lobbied against the original tax.
“The success in halting the original aircraft tax is a win for job creation, local investment and economic opportunity. The measure signed today represents the views of a wide range of stakeholders and, importantly, ensures our seat at the table as an active, contributing neighbor in the state of Washington.”
, Phil Derner, NBAA Regional Director
“The original tax would have punished the ownership and use of a valuable asset. Many aircraft owners, operators, airports and businesses met with legislators to explain the impact, and we are relieved that legislators fully considered the impact of the tax and repealed it.”
, Dr. Ed Schweitzer, Founder of Schweitzer Engineering Laboratories (SEL)
“Purchases are being delayed, redirected or moved out of state. Once that business leaves Washington, it’s extremely difficult to bring it back… Washington’s aviation industry is a cornerstone of the state’s economy, and I am working hard to ensure that it stays that way.”
, Rep. Tom Dent (R-Moses Lake)
AirPro News analysis
We view this legislative pivot as a textbook example of the economic border wars that frequently occur when hyper-localized luxury taxes are applied to highly mobile industries. Aviation assets are inherently easy to relocate, as demonstrated by the immediate capital flight of corporate aircraft to neighboring Idaho before the tax even took effect.
The resulting compromise in HB 2711 represents a pragmatic “pay-to-play” restructuring. Rather than evading state taxes entirely, the aviation industry agreed to broad-based fee and fuel tax increases to ensure Washington’s environmental and aeronautics goals remain funded. This unified front of local businesses, national associations, and bipartisan lawmakers successfully reversed a major tax policy by offering a sustainable, industry-supported alternative that protects the state’s broader economic interests.
Frequently Asked Questions (FAQ)
When does the new aviation fuel tax increase take effect?
The 7-cent per gallon increase (raising the tax from 18 cents to 25 cents) takes effect on November 1, 2026.
Are commercial drones affected by the new legislation?
Yes. Starting in 2027, commercial drones will be subject to an annual excise tax of $120.
What happens to the Sustainable Aviation Fuel (SAF) funding?
Under the compromise, 28% of the aviation fuel tax revenue and a similar portion of registration fees will be directed to a new SAF airport infrastructure account to support clean aviation fuels.
Business Aviation
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.
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.
Business Aviation
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.
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.
Business Aviation
Atelier Aviation to Reassume Full Ownership of Fly Alliance
Atelier Aviation plans to reassume full ownership of Fly Alliance, Inc., keep eight of its 13 aircraft and rename the operator Atelier.
Atelier Aviation, LLC, a Cove Capital Investments company, said it is preparing to reassume full ownership of Fly Alliance, Inc., the Part 135 certificate holder currently operating 13 aircraft. Eight of those aircraft will stay in service and five are being offered for sale, and, following regulatory approval, the operator will change its name to Atelier.
The announcement, distributed through Business Wire on November 9, 2026, with an Orlando, Florida, dateline, places the charter operator inside a Cove Capital group that also includes the parts company Altitude Parts, the Part 135 operator Sky Travel Solutions and Atelier Maintenance. According to the release, the combined group will employ more than 100 people and generate approximately $150 million in annual revenue.
Which aircraft stay and which go
The release lists the eight aircraft that will remain in active service: one Hawker 900XP, two Cessna Citation XLS+, four Gulfstream G-IVSPs and one Gulfstream G-V. The remaining five, two Citation Excels, two Citation Latitudes and one G-IVSP, are being offered for sale.
“With this transition, more than 40 pilots, 15 technicians and 15 support professionals have joined our organization,” the release states. Going forward, it says, the group will focus on aircraft sales, aircraft management, charter operations, parts and maintenance. The release says the group will provide the financial backing to keep the fleet in top condition and emphasizes reliability and long-term partnerships.
The release does not disclose financial terms or a timeline for the regulatory approval. It lists Kevin Wargo, Chief Executive Officer, as its media contact. Atelier Aviation’s website gives an address in Kissimmee, Florida, and lists three services: aircraft management, private charter and maintenance.
How the Cove Capital group came together
Cove Capital Investments, LLC was founded in September 2025 by Kevin Wargo and Samantha Nunez, according to an Altitude Parts release dated August 26, 2026. In that announcement, Altitude Parts said it had acquired Fly Alliance’s aircraft parts inventory and warehouse operations. Operating from its Orlando, Florida, facility, the company said it then held more than $150 million in assets, including inventory from 156 disassembly aircraft and more than 42,000 individual aircraft parts.
The same release said Manny Perez had been promoted to President and Partner of Altitude Parts, leading sales, operations, warehouse and logistics teams that support more than $60 million in annual sales. Wargo, then described as co-founder of Cove Capital Investments, called the parts deal “an important step in our vision for Altitude Parts.” The November release describes Altitude Parts as “an $80 million aircraft parts company.”
Cove Capital is also selling aircraft. On October 6, 2026, Sky Travel and its parent, Cove Capital, said they planned to bring nearly 20 business aircraft to market in the fourth quarter, a plan covered in Sky Travel’s Q4 listing of business jets. The expected inventory included the Cessna Citation Excel, Hawker 400XP, Learjet 75, Gulfstream G200, Gulfstream GIV-SP, Gulfstream GV and Bombardier Global Express. The November release says Cove Capital currently has over 20 aircraft listed for sale, ranging from light jets to large-cabin, long-range business aircraft, and describes Sky Travel Solutions as a Part 135 operator with 11 Hawker 400XP aircraft.
Fly Alliance’s leadership change in July
Fly Alliance, founded in 2019 and headquartered in Providence, Rhode Island, and Orlando, Florida, describes itself as a full-service private aviation company. A Fly Alliance release from January 19, 2026, identified Wargo as its CEO. In June 2026, Fly Alliance announced the expansion of its Fly Alliance Maintenance Partners franchise, an initiative that the release said combined the aviation leadership experience of Wargo, then described as co-founder, with the franchising expertise of entrepreneur Eddie Trujillo.
On July 7, 2026, Fly Alliance announced that Christopher Tasca had become Chief Executive Officer effective July 1, 2026, and that Wargo had moved to the company’s Advisory Board. That release also reported the completion of a significant institutional investment and a strategic banking partnership. Tasca said in the release that Wargo’s “vision and leadership was instrumental in building the strong foundation Fly Alliance enjoys today.”
The July release listed Fly Alliance’s core business units as private charter, aircraft management, maintenance, aircraft sales, aircraft parts and ownership solutions. The November announcement concerns Fly Alliance, Inc., the Part 135 certificate holder, and does not address the other business units named in July.
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