Government Shutdown Jeopardizes Aircraft Sales

Stephen Pope

Tuesday, October 08, 2013 at 09:08 PM ET

Verified

Key Takeaways:

The government shutdown has closed the FAA's aircraft registration office, halting all aircraft sales, transactions, and renewals, which jeopardizes over $1 billion in airplane deliveries and sales.
Aviation industry leaders warn that this closure is effectively grounding the U.S. general aviation sector and impacting thousands of small businesses, with expired registrations potentially grounding aircraft and airman tests also stopped.
Although legislation is being drafted in the House to reopen basic FAA services, its passage is uncertain due to limited Senate interest and a potential White House veto.

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The government shutdown has put a temporary halt on aircraft sales transactions after the FAA’s registration office in Oklahoma City was ordered closed on October 1. If the shutdown drags on and the FAA office remains shut, more than $1 billion worth of airplane deliveries could be in jeopardy, aviation industry leaders warn.

The National Business Aviation Association sent an urgent letter to President Obama and Congress spelling out the dire consequences the shutdown could have on the ability of aircraft manufacturers to deliver their products.