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Government Shutdown Crisis Over, For Now

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Key Takeaways:

  • The recent partial federal government shutdown, which failed to overturn parts of President Obama's healthcare law, severely impacted the aviation industry, particularly through the closure of the FAA Aircraft Registry.
  • The shutdown of the FAA Aircraft Registry prevented sales transactions for new and used airplanes and caused significant disruption to aviation services.
  • Aviation leaders expressed relief at the reopening but warned that the temporary nature of the agreement means similar shutdowns could reoccur soon due to ongoing fiscal debates, necessitating industry vigilance.
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The partial federal government shutdown ended far short of its goal of overturning parts of President Obama’s healthcare law. Through it, aviation suffered the brunt of Washington’s self-inflicted crisis after the FAA Aircraft Registry in Oklahoma City closed on October 1. That office can now reopen, but it will take some time before services at the FAA and other agencies are fully restored to their pre-shutdown effectiveness. And who knows when the next crisis will flare up.

While news of the agreement to reopen the government and avert a default on government debt was welcomed by aviation leaders, some warned that the situation that just played out could be repeated soon. “The agreement to end the shutdown runs until the end of 2013, and it is part of a larger, ongoing fiscal-policy debate in Washington,” said National Business Aviation Association president Ed Bolen. “That means we may be looking at the same circumstances that led to this shutdown in the not-too-distant future. As always, we will need to remain vigilant, and our industry will need to be ready to mobilize, just as the business aviation community did when the devastating impacts of this shutdown became clear.”

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