Transcript:

Aircraft are subject to tax depreciation that is very accelerated based upon, in contrast, the actual loss of value of the aircraft. That is makers for part 91 aircraft which is the modified accelerated cost recovery system, is a recoverable life of about five and a half years. This is a purchase and investment incentive built into the tax code. That is if you purchased a new aircraft or a used aircraft even and it only lasted you five and a half years there’s something wrong with your machine. They allow this type of cost recovery because it creates investment in large equipment and the availability of those extra tax dollars allows you to cover the significant upfront cost of owning and operating a business aircraft.